Tararua District councillor Ernie Christison has received a retrospective dispensation from the Office of the Auditor General.
Despite a breach of the Local Authority (Members Interest) Act 1968, relative to payments from his council exceeding $25,000 a year, time out is over for Tararua District councillor Ernie Christison.
Mr Christison was required to make an application to the Office of the Auditor General (OAG) for a retrospective dispensation after exceeding the allowable limit of $25,000 for work done for the district council.
"Yes, it's a relief to have this behind me, but I was never guilty of anything anyway," Mr Christison told the Dannevirke News.
Mr Christison was stood down from the council on April 27 and his council iPad turned off after the OAG told Mayor Tracey Collis he still hadn't replied to requests for information.
This was the first time a Tararua District councillor had been excluded in this way, Mrs Collis said.
"Ernie had failed to reply to several requests from the auditor general's office," she said.
"He'd [Mr Christison] first applied for permission for a retrospective dispensation on January 16 and the auditor general's office had asked subsequent questions."
Last week Mr Christison produced a statutory declaration for the OAG to show what he had been paid from the Tararua District Council, including for work he'd carried out as a sub-contractor.
"I was on the naughty chair and I'm a bit of a black sheep in council, but I've got a thick skin," Mr Christison said.
"Mayor Tracey [Collis] spoke with the auditor general's office and said there was no reason this couldn't be resolved and her support and that of deputy mayor Allan Benbow has been wonderful.
"It's great to be part of a team which shows so much support for each other too."
Mr Christison said he'd had nothing to hide, but acknowledged he had breached the $25,000 cap for a councillor undertaking work for his own council.
"I'd applied for a retrospective dispensation after working on Woodville's water supply Kliptank, realising that work would put me over the $25,000 cap."
Originally Mr Christison approached council chief executive Blair King asking him to apply for the dispensation, but was told he would need to apply himself.
However, Mrs Collis said the council's interpretation of the requirement was incorrect.
"It all happened so quickly and there had been no other situation before at our council and our interpretation was that Cr Christison had to apply himself. The OAG has corrected our interpretation," she said.
Retrospective approval had been granted to Mr Christison for both his work on the Kliptank project ($28,161.77, including GST) and a sub-contract job for Greatbatch Building at the Woodville iSite with payments up to $2301, Melanie Webb, assistant auditor general legal, advised the district council.
These approvals were in addition to, and not inclusive of, the statutory $25,000 limit.
"The OAG is satisfied Ernie didn't participate in any discussions which would have given him an advantage for either of these projects," Mrs Collis said.
"However, it's something we will always have to be very mindful of and if I consider it to be in the best interests of the district that a councillor leave the room when similar discussions are held, I will ask for the councillor to excuse himself."
Mrs Collis said she was pleased a difficult situation had wound up with a positive resolution.
"Cr Christison has been given approval over and above the limit, but he needs to ensure he has systems and processes in place to manage his affairs carefully and manage any further approvals well in advance," she said.
"And it's extremely important for councillors to distinguish between their personal roles and their council role and resolve issues in a timely way."
Ms Webb's letter to the council urged it and Mr Christison to take special care to guard against the possibility of an inadvertent breach of the relevant Act in future, as the consequences could be severe.
But with the Local Authority (Members Interest) Act last amended in 1982, Mrs Collis said with inflation, the current $25,000 cap would now be $90,000.
"This needs to be regularly reviewed so it can stay relevant and Local Government New Zealand supports a review on the limits," she said.
"But we fully support the act and the good governance and transparency which comes with it."
Meanwhile the Tararua District Council will review its procurement policy to see if improvements need to be made.