Unusually, I find myself in agreement with Vag277.
Given Squawk7700's experience with the specific council concerned, and my experience with councils on matters aerodrome, it is quite possible that the council has put the local aerodromes into the 'it's-no-longer-worth-the-effort' basket.
It's also possible that the council is engaging in the sport of level-of-government blame-shifting, encouraged and aided by Mr Chester. Let's think about what tactic would be better for the Member for Gippsland's (Mr Chester's) popularity: Calling on a Gippsland shire council to get off its backside and sort through the transitional arrangements and exemptions to maintain the certification status of the aerodrome, or dumping on a Federal agency for complex rules made "supposedly in the name of safety". (Surely, as Minister, Mr Chester noticed that all rules made by CASA are "supposedly in the name of safety".)
And it's possible that property developers are licking their lips at the prospect of getting hold of aerodrome land and have given council a 'do we have a deal for you' proposal, and council needs a convenient excuse to give it the tick.
Or a combination of some or all of the above.