MARRICKVILLE Council's proposed boycott of Israel has prompted a warning from the Premier and is creating turmoil among Greens councillors.

The Greens councillors are divided over how to pursue the policy after a council business report found completely dissociating from Israel would cost ratepayers up to $3.7 million.

‘‘Marrickville Council’s long-standing boycott of Burma contains provisions ensuring that ratepayers are not financially disadvantaged" ... Fiona Byrne. Credit:Steven Siewert

The mayor, Fiona Byrne, who has gone to ground since her unsuccessful tilt at the seat of Marrickville in the state election, reassured ratepayers yesterday that the council would not pursue a full boycott of Israel after a report found it could implicate products including Hewlett Packard computers, Veolia waste services and Holden cars.

A spokesman for Barry O'Farrell said the Premier had sent a letter to Cr Byrne cautioning that he could sack the council if it did not drop its pursuit of the boycott. In the letter Mr O'Farrell threatened to use his powers under the Local Government Act if the council did not rescind its resolution within 28 days.