Six months under administration will continue for the Central Darling Shire Council, as the Local Government Minister calls for an inquiry.

“A public inquiry process will give the Councillors the opportunity to demonstrate that they can and will take responsibility for Council's financial and structural issues,” a statement from NSW Local Government Minister Paul Toole said.

Former Bankstown City Council general manager, Richard Colley, has been appointed to head the inquiry.

“There are concerns,” Mr Toole later said in a radio interview.

“There were concerns about the leadership of the Council, there were concerns about the responsibilities Councillors need to be undertaking.”

“To get to the point where a Council is facing insolvency is a serious matter and is a matter that needs to be addressed immediately,” he said.

The Council was to be reinstated this week, following six months in administration over debt and mismanagement.

Suspended Central Darling Shire mayor Ray Longfellow says councillors were ready to return to work, and even had plans underway for the administrator to hand back control.

Cr Longfellow was shocked to hear the suspension will stay.

“For this to come out of the blue, to put it bluntly, I'm gutted,” he told the ABC.

“I know that there would have been expectations from the Department of Local Government of criteria and reporting standards over a period of time but the opportunity hasn't been given to the council.”