Whether Austin is disqualified from office and any related legal risk will be central to the confidential discussion.<\/p>\n
Austin has denied any wrongdoing and says the council is not like the Hunger Games “where we get to kill each other off\u201d.<\/p>\n
How did the problem arise?<\/p>\n
Her troubles stem from her financial interests in a company she co-owns with her husband, Austin Transport Tippers.<\/p>\n
The business has no contracts with the council, but it does hire trucks out at regular rates to provide carting services to companies contracted by the council to deliver infrastructure projects.<\/p>\n
However, the Local Authorities (Members\u2019 Interests) Act 1968 prohibits people who have financial interests of more than $25,000 with the council from standing for election.<\/p>\n
She maintains that her company\u2019s supply of hired trucks is neither contracting nor subcontracting, and so is not prohibited under legislation.<\/p>\n
![\"A](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/06\/a-confidential-discussion-at-nelson-city-council-on-thursday-2CDLRRJKAFFSVEAXSNZIJXSLJU.jpg\")
<\/p>\n
A confidential discussion at Nelson City Council on Thursday could determine the future of councillor Lisa Austin’s presence around the council table. (Source: Local Democracy Reporting)<\/p>\n
But that opinion is not shared by the Audit Office, the independent transparency watchdog.<\/p>\n
After an Austin Transport Tippers truck was seen on a council worksite after her election, the mayor said the council decided to be \u201ccautious\u201d and approached the office, seeking retrospective approval for her financial interests.<\/p>\n
The Audit Office can grant approval, including at times retrospectively, for incumbent elected members seeking to engage in contracts worth more than $25,000, and has granted such approvals for Nelson\u2019s elected members in the past.<\/p>\n
However, the office says that legislation prevents it from approving interests held by individuals before their election \u2013 an opinion that the council\u2019s independent advice from law firm Simpson Grierson disagrees with.<\/p>\n
With the council\u2019s application having been brought to the office\u2019s attention, the office was then obliged to investigate prosecuting Austin.<\/p>\n
The Audit Office eventually opted against prosecuting her, saying \u201ca prosecution would not be in the public interest\u201d.<\/p>\n
But it was also of the view of the Audit Office that Austin had not been eligible for election, \u201cand remains disqualified from office\u201d.<\/p>\n
While the office has no power to remove her from office, its opinion was that she cannot be, and technically is not, a councillor.<\/p>\n
So what happens now?<\/p>\n
Austin said on Saturday that elected members will vote on Thursday on whether to dismiss her from office.<\/p>\n
If, during its meeting, the council agrees with the Audit Office\u2019s opinion \u2013 that Austin is disqualified from office and her seat is vacant \u2013 it could decide to hold a by-election to fill the gap.<\/p>\n
A by-election could cost upwards of $200,000.<\/p>\n
But continuing to make decisions with her at the council table could create legal risk, former two-term councillor Rachel Sanson warned in an opinion piece in Saturday\u2019s Nelson Mail.<\/p>\n
\u201cHer seat is vacant under law\u2026 sub\u00adsequent coun\u00adcil decisions can be chal\u00adlenged on the basis that a dis\u00adqual\u00adi\u00adfied mem\u00adber par\u00adti\u00adcip\u00adated.\u201d<\/p>\n
‘Council is not like the Hunger Games’<\/p>\n
![\"Mayor](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/06\/mayor-nick-smith-said-the-council-was-working-to-find-a-solu-OPACFSDPWJHADHJWZ5ODYOSKFE.jpg\")
<\/p>\n
Mayor Nick Smith said the council was working to find a solution to the Lisa Austin situation that would not result in a by-election. (Source: Local Democracy Reporting)<\/p>\n
Mayor Nick Smith has previously touted the \u201ccollegial\u201d nature of his council, but the legal risk surrounding Austin’s situation is now upsetting that public image. <\/p>\n
Austin alleged in late May that fellow councillor Aaron Stallard has been trying to \u201coust\u201d her.<\/p>\n
But the mayor and Stallard deny Austin\u2019s claim, with Smith saying that Stallard is seeking to understand and mitigate council\u2019s risk.<\/p>\n
![\"Austin](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/06\/austin-has-alleged-that-councillor-aaron-stallard-is-trying-BNIB3BGIZVESRDON3P3WM7PW3I.jpg\")
<\/p>\n
Austin has alleged that councillor Aaron Stallard is trying to “oust” her from the council, a claim that he and the mayor deny. (Source: Local Democracy Reporting)<\/p>\n
\u201cWe are all working together \u2013 staff and councillors \u2013 to get a solution that, if possible, avoids a by-election.\u201d<\/p>\n
Austin denies any wrongdoing and says that she has appropriately declared her interests.<\/p>\n
In her Saturday Facebook post, responding to Sanson\u2019s opinion piece, she said her business\u2019s engagements with council contractors were \u201ctoo far removed\u201d to be covered by the Act.<\/p>\n
\u201cIt is so wrong that council is now going to vote on getting rid of me without any court or judicial process. Council is not like the Hunger Games where we get to kill each other off.\u201d<\/p>\n
Plans for a law change<\/p>\n
The Government is currently updating the law to increase the contract threshold to $100,000, and the local government sector and the Audit Office itself also agree that the legislation needs updating.<\/p>\n
But it is the current legislation that was causing headaches for Austin and the council.<\/p>\n
With the Audit Office and the council\u2019s legal advice differing, it appears there is an untested legal grey zone in the legislation.<\/p>\n
The council\u2019s willingness to stomach that unknown legal risk will be debated behind closed doors when elected members discuss the issue on Thursday.<\/p>\n
\u201cWe recognise it is a matter of significant public interest and will make a public statement as soon as possible,\u201d Mayor Smith said.<\/p>\n
\u2013 LDR is local body journalism co-funded by RNZ and NZ On Air<\/p>\n","protected":false},"excerpt":{"rendered":"First-term Nelson City Councillor Lisa Austin has been embroiled in questions about her business interests and legal ability…\n","protected":false},"author":2,"featured_media":469010,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[42,91,43,40,38,41,39],"class_list":["post-469009","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-headlines","tag-nelson","tag-news","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/469009","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=469009"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/469009\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/469010"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=469009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=469009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=469009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}