Lianne Dalziel's family business links to Cloud Ocean Water concerns council colleagues
Tuesday, 12 March 2019
Several Christchurch city councillors have questioned why Mayor Lianne Dalziel failed to publicly disclose a potential conflict of interest over family connections to water bottler Cloud Ocean Water.
Dalziel held talks with elected members on Tuesday to explain her situation after Stuff revealed a law firm run by her husband, Rob Davidson, is representing the China-owned firm and offered to use long-standing political connections to lobby politicians on its behalf.
Davidson, who is also the father of city councillor Mike Davidson, confirmed his firm made the offer but said he was unaware of it and lobbying neither took place nor was requested by the client.
Councillor Yani Johanson said members were only told about the work by Davidson Legal on Friday, when Stuff first raised questions with the council.
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Colleague Glenn Livingstone said Dalziel should have raised the issue with councillors earlier, while David East and Johanson said it created the perception of a conflict of interest.
Political scientist Dr Bryce Edwards said the situation was 'highly concerning' and had cast a 'very damaging shadow' on Dalziel, Davidson and the city's political landscape.
'I think voters in Christchurch have a very strong reason to be suspicious of their politicians and closely connected law firms.
'No conflict of interest might have occurred, but as a result of this information coming to light, the public will quite rightly have less trust in the probity of their representatives.'
Dalziel has repeatedly spoken out against water bottling, saying last month that while she does not have a position on Cloud Ocean Water itself, she has concerns over the transfer of historic water consents that the bottling firm is relying on – a situation being challenged in court by campaign group Aotearoa Water Action.
She did not mention at any time that her husband's firm is working for the company.
Dalziel is said to have been contrite in what is understood to have been a tense meeting with councillors on Tuesday.
She later said she had not previously mentioned Davidson Legal's work for Cloud Ocean Water publicly because 'there never has been a reason to do so'. She also promised to disqualify herself from any future decisions concerning the bottling company.
Davidson Legal began acting for Cloud Ocean over employment matters in October.
Dalziel said she only learned of the situation earlier this year, and that she 'couldn't recall' how she found out.
Livingstone felt there was a 'perception' of a conflict of interest.
'I think it would be good to have known formally about it.
'It's important for every elected member to be aware either of real, actual conflicts of interests or of perceived conflicts, and to declare them.'
He said both he and Mike Davidson already knew of the law firm's involvement with Cloud Ocean, something they learned of during a social meeting with friends that included Rob Davidson.
Livingstone said he was 'incredulous' when he found out, but did not raise it with the mayor, something he conceded he should have done.
Mike Davidson said he did not believe there was any conflict of interest, and that it was 'easy to separate' his own and his father's professional work.
'I don't really think there was a need to make councillors aware of the situation,' he said.
'I had a conversation with my father about it over a cup of coffee. I didn't like him representing Cloud Ocean, but that's his decision to make.'
Vicki Buck, a long-time ally of Dalziel's, said she immediately raised the issue directly with her as soon as she heard.
'I said this was of great concern and she needed to deal with it or step aside from this when it came back to council.
'I did not know about any offer to lobby politically prior to reading The Press. If that were ever to eventuate, that would be so wrong.
Dalziel and Mike Davidson had both been strong supporters of the Cloud Ocean consent judicial review, Buck said.