Inquiry into CEO’s plans for housing

The Auditor-General has launched an inquiry into the management of Queenstown Lakes District Council chief executive Adam Feeley’s family’s proposal to establish a special housing area.

This month several people raised issues of trust and confidence in council processes and how council officers can participate in those processes as members of the community in relation to the case, a statement on behalf of AuditorGeneral Lyn Provost said.

‘‘Accordingly, we have decided to undertake an inquiry into how the council and chief executive are managing the chief executive’s interest as the council proceeds to make decisions on special housing areas.’’

Special Housing Areas are recommended to the Government by councils as areas where development can be fast-tracked to provide affordable homes.

The council signed a housing accord with Government in October last year and, in that same month, adopted a policy setting out its criteria and processes for assessing expressions of interest.

On November 26, Feeley advised Mayor Vanessa van Uden of his family’s intention to express interest in creating a special housing area on land it owned near Arrowtown.

He proposed steps to manage any conflict of interest and suggested she contact the auditor-general’s office to advise of the proposed management approach and seek views on whether any additional steps were needed.

The office indicated in late December it was comfortable with the approach. ‘‘ At that time, we focused on the steps that were to be put in place to manage the chief executive’s interest rather than the prior policy development process. For completeness, we have decided that it is important to consider the policy development period,’’ the statement said.

The inquiry would include the nature and extent of any involvement by the chief executive in developing the council’s housing accord and related policy for special housing areas; how the council and chief executive have managed the chief executive’s interest in land owned by his family being considered for a special housing area; how the council and chief executive should manage matters if the land owned by the chief executive’s family is approved as a special housing area.

In early December, Feeley’s family submitted an expression of interest for a 20-home development on the outskirts of Arrowtown.