Councillor Lisa Austin.
Photo: Supplied
The auditor-general has decided not to prosecute a Nelson councillor over her financial interests, saying it would not be in the public interest.
Councillor Lisa Austin and her husband co-own Austin Transport Tippers, which has dealings with two of the Nelson City Council’s contractors, but no direct contracts with the council.
Earlier this week, she was informed she might face prosecution or have to vacate her seat after a request for approval was declined by the Auditor-General.
The council said the Audit Office has since been in contact to advise it would not start proceedings against Austin.
Nelson mayor Nick Smith welcomed the decision.
“It enables Cr Austin to get on with her job, avoids public money being wasted on daft interpretations of an outdated law and enables the community to be fully represented around the Council table,” Smith said.
Under the Local Authorities (Members’ Interests) Act, people are prevented from being elected or appointed as a member of a local authority if they are “concerned or interested” – either personally or through a spouse or partner – in contracts or subcontracts from that authority totalling more than $25,000 per year unless the Auditor-General grants an exemption.
The council told the Audit Office that Lisa Austin had financial interests in various subcontracts with the council when she was elected last October.
The council then applied for retrospective approval of her existing contracts about a week after she was sworn in.
Last month, the Audit Office confirmed it could not do that as the Act would not allow it.
Smith said the law was outdated, difficult to interpret and prone to differing legal interpretations.
“There will be many mayors and councillors across the country, like Cr Austin, who could be caught by this archaic act,” he said.
“I will also be writing to Ministers of Local Government and Regulation urging that this ass of a law be replaced.”
Councillor Lisa Austin was relieved about the decision, saying it lifted a great weight from her shoulders.
She did not participate in council meetings earlier this week, saying it felt like this was hanging over her.
“It’s been very distressing, and I am pleased it’s been resolved,” she said.
“Thank you to everyone who has supported me. I look forward to getting back around the council table and working for the residents of my community as I was elected to do.”
The Audit Office intended to write to the Minister of Local Government and the Department of Internal Affairs to urge them to consider law reform again.
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