The flag at the honourstone in Batemans Bay will fly at half-mast for the next 10 days to pay respects to Her Majesty Queen Elizabeth II.
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Batemans Bay RSL sub-branch president Brian Wheeler was joined by Soldiers Club president John McCaskill at the honourstone this morning for a small ceremony to commemorate the Queen's passing.
The weather was suitably dreary as Mr Wheeler placed flowers against the honourstone while the Last Post played on a small speaker.
Mr Wheeler said he'd made a pledge to the Queen every year since 1968 as part of his duties with the RSL.
"This is our last respects we can pay to her, and we thought we'd do something this morning," he said.
"The flags are at half-mast now and will stay that way until she's buried."
Mr Wheeler said it was the first time the Batemans Bay honourstone flag was put at half-mast outside of Anzac Day and Remembrance Day.
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"We were loyal to her, she was a wonderful person, the type the world should aspire to I reckon," Mr Wheeler said.
"I'm glad she was able to sign off on an OAM for me earlier this year, I'm quite thankful to have her name on it.
"If more leaders took a note from her, we'd be in a better place. She was good for the country, good for the Commonwealth, and good for the world."
Batemans Bay RSL Women's Auxiliary president, and Brian's wife, Tricia Wheeler said she was "extremely sad" to hear the news this morning.
"She's been someone we've looked up to all our lives," she said. "I'm 80 next year, and I've known her since I was a young child at school, and when she came over we all went out waving our flags.
"You listen to the media this morning, and most people feel the same way. You knew it would happen because she was 96, but it was still a shock."
A Eurobodalla Shire Council spokesperson said all council flags would also fly at half-mast today as a "show of respect for Queen Elizabeth II's passing".