Blacktown, Camden, The Hills, Hawkesbury, Campbelltown, Holroyd, Liverpool and Penrith councils are among 16 local government authorities which are refusing to process applications for new house and land sub-divisions in protest at the state government's cap on developer levies. The cap means councils must bear any cost above $20,000 for new drainage, roads, lighting and sewerage in new estates. Clr Alison McLaren, president, of the Western Sydney Regional Organisation of Councils (WSROC), said some councils had given up trying to talk to government and had started talking directly to developers to try to convince them to pay up. A spokesman for Planning Minister,Tony Kelly, said the department was still discussing the issue with councils.