The decision came after an emotional meeting last night where residents urged council administrator David Jesson not to cave in to what they called "bullying" by the department.

Mairi Petersen of the Save Killalea Alliance said the council should represent community wishes for development to be restricted at the park, which includes The Farm surfing reserve.

"It is inappropriate for the Government in its dying days to require that the council change the LEP - a huge change that the community does not want," she said.

Mr Jesson said he was reluctant to delay the LEP any further but he needed more information, including about the powers of a caretaker government.

"I would hope that while I am gathering this information, that no other arbitrary or unilateral action be taken in relation to the exhibition of the LEP," he said.

The department had told the council it must change its LEP, which would allow a caravan park only at a small area, so caravan parks were allowed across the entire park, or the department would not allow the LEP to go on public exhibition.

Mr Jesson decided the LEP's exhibition would be deferred for up to two meetings.