Source: ALICE COWDREY & SONIA O'REGAN - The Marlborough Express | Thursday, 20 September 2007

 The Attorney General's Office is investigating a land purchase by a company set up by the Kaikoura District Council chief executive and staff.

A spokeswoman has confirmed the office is looking into a land purchase following a complaint, but said there were no laws banning council staff developing properties. She said the office expected to finalise the matter in the next couple of weeks and would report the findings to Kaikoura mayor Kevin Heays. The land purchase was also raised at a Marlborough Express Meet the Candidates evening in Kaikoura on Monday.

Kaikoura man Gordon Cockerell asked candidates whether they thought the purchase of land by Kaikoura District Council chief executive Stuart Grant and other council staff members within council boundaries was ethical. Mr Grant was not at the meeting and later called the question "mud raking". Mr Grant said he was a shareholder in a company with other people, including some council staff and the company had bought a total of eight hectares of land on Bay Paddock Rd and Topline Rd.

The land had been sub-divided into four two hectare blocks. Mr Grant said it was not his place to name the other people involved, but added none of them had been involved in the resource consent process.The Attorney General Office spokeswoman said it was important to note that there was no statutory prohibition on council staff being involved in development activities. "However, documents such as codes of conduct for staff and employment contracts can be relevant." Mr Heays said he was fully aware of the land purchase. A review was undertaken a few months ago and the results would be available when the process was completed. "At the moment I am fully confident that any process required in the future will be implemented."

In Blenheim, Marlborough District Council chief executive Andrew Besley said he was sure many individual council staff members had invested in land and there was no problem with them doing so. Processes were in place to pick up conflicts of interest and when they were identified elected councillors or an independent commissioners were called upon to make relevant decisions. There had not been a case of council staff forming a company together to collectively buy land, he said.

Mr Cockerell's question stirred heated debate at the Monday night meeting. Some said such land purchases were an ethical issue, others said council staff were free to make whatever land purchases they wanted and others said it was not an issue worth raising. Mayor Heays said he did not think it was necessary to regulate staff land purchases. Cr John Macphail said he understood Mr Cockerell's concern and said he felt uncomfortable when he first heard of the purchase. However, he said it was a free country; "you can't tell them not to do something". Council candidate Darran Kerei Keepa said it was an ethical issue and he would support regulation. Councillor John Diver said there was nothing from stopping staff from buying and subdividing property. "As long as it fits in the legal requirements of the district plan and as long as council is not used as an instrument. "I was aware of what was going on and nothing wrong is being done."

Cr Marion McChesney said Mr Cockerell had no right to bring the question up in the first place and said staff involvement with the sub-division was ethical and "above board". She would "certainly not" support any decision to regulate such business. "I am cross you can sit there and do that when the people involved have no right of re-dress. There is no behind the scenes information no matter what your smirk might say," she said. Cr Barbara Woods said she had been on the hearings and applications committee for nine years and was sometimes surprised to find out who was involved in certain companies, but said those involved should not be disadvantaged because of who they were.