The inquiry announced by Minister for Innovation and Better Regulation Victor Dominello was expected to examine the regulatory roles and responsibilities of both state and local governments.

Local Government NSW president Keith Rhoades welcomed the announcement, which he said had the potential to overcome issues which had stymied many councils’ efforts to prevent illegal brothel activity in their local government areas.

“Until now the burden of proof of illegal activity has rested solely on councils, and it has proven extraordinarily difficult to meet this requirement,” Cr Rhoades said.

Jackie Parker, a sex worker who lives in Griffith, was concerned that the inquiry might lead to re-criminalising sex work.

Shutting down premises would only drive workers underground and place them in harm’s way according to Ms Parker, who argued for better policies in place of tighter restrictions.

“It’s expected because (Premier) Baird was talking about this for ages,” Ms Parker said. “It could go many ways, as long as they don’t try to take away decriminalisation from the state that’s okay, but I think sex workers in general will be writing submissions when the time comes saying the reason they’re having problems closing down brothels is because councils make it so hard to comply and open up a legal establishment.”

She feared instead of easing compliance restrictions, the government might move toward the Swedish model of regulating sex work, which criminalises the client, not the worker.

“(In Sweden) sex workers are legally allowed to work, but it’s illegal to advertise or have someone else live off our earnings, like children. It criminalises the client. It’s illegal to purchase sex but it’s legal to sell it,” Ms Parker said.

Ms Parker said all local councils should allow sex workers to work from home. Earlier this year The Area News reported on Ms Parker’s safety concerns over Griffith City Council only allowing sex work within industrial areas.

“We’re not an industrial business, why are we in an industrial zone?” she asked at the time.

“I need somewhere safe to work. Everyone else gets a safe workplace.”

In 2014 Sydney Morning Herald reported 10 Sydney councils hired the same 60-year-old man to sleep with sex workers and help strengthen their legal standing against rogue brothel barons with Willoughby council confirming it had spent $60,000 over two years.

Ms Parker said the use of public funds to pay for sex services was inappropriate.

“The way these councils were trying to infilitrate these ‘illegal’ premises was ridiculous, because they were hiring private detectives, and a guy was paid to go in and have sex with (a worker) and report back,” Ms Parker said.

“That’s disgusting. It takes away our consent. I consent to have sex with my clients. I don’t consent to have sex with a private investigator (so they can) produce a report. It feels like a violation.”

Cr Rhoades said the O’Farrell opposition promised they would establish a licensing authority to oversee the sex industry before the 2011 election, and in September 2014 NSW Special Minister of State Anthony Roberts said the NSW Government was examining further options to ‘ensure the best possible outcome for the community and those working in the industry’.

The inquiry, which will be headed by Alister Henskens SC MP, is expected to hand down its report on November 12.