Councillors brand leak review 'political and biased attack'

Wednesday, 1 November 2023

Deputy Mayor Laurie Foon has accused fellow councillors of leaking about a deal to buy land under the quake-prone Reading cinema.

All five councillors accused of leaking information on a secret deal to buy land under the derelict Reading cinema site are refusing to co-operate with an inquiry.

Diane Calvert, Ray Chung, Tony Randle, Nicola Young and Iona Pannett are the subject of a complaint by deputy mayor Laurie Foon, alleging they breached Wellington City Council’s code of conduct.

Mayor Tory Whanau and chief executive Barbara McKerrow appointed top flight lawyer Linda Clark to head a review – and the suspected councillors had until close of business Wednesday to respond.

Instead, Calvert, Chung, Randle and Young have issued a statement, rejecting the premise of the investigation, refusing to participate. They called it a “political and biased attack”.

Pannett is yet to comment.

The row relates to a closed-door meeting in which the cash-strapped council debated buying the land under the disused complex on Courtenay Place for $32m.

The building closed abruptly in 2019 after engineers discovered seismic problems following the 2016 Kaikōura quake.

It came as officials revealed the council was on the hook for a $147m blowout in the costs of strengthening the Town Hall.

Whanau – who has made revitalisation of the area a priority since coming to office in 2022 – said confidentiality was necessary because of the commercial nature of the deal. The council voted to continue with due diligence on the purchase.

In the statement, released Wednesday, the four independent councillors said: “The mayor and deputy Mayor are using council resources (internal and external) to target the elected members whose views don’t conform with the politics of the mayor, and who want a higher level of accountability around council business.

Former television journalist Linda Clark asked to interview the accused councillors for her review. They refused.

“The mayor is also clearly pursuing an attack on democracy against councillors carrying out their role as elected members, which includes monitoring the performance of the Council against its stated objectives and policies and prudent stewardship of ratepayers’ monies.”

The quartet said they were surprised by the complaint – and given no opportunity to initially respond. Since details became public, they have been overwhelmed with public support.

Neither Whanau or McKerrow provided support “yet have continued to use the significant resources of the Council against us,” they said. “The Mayor, however, continues to undermine us in an attempt to reduce our ability to carry out our duties as elected members representing a significant number of Wellingtonians.

“As these allegations…are evidently designed to attempt to silence and discredit a third of council’s elected members, we have advised them we will not be participating in this political and biased attack – and certainly not one that irresponsibly uses ratepayer funding.”

The Post has asked the council for details of the cost of Clark’s review. A spokesperson said this would be provided once findings were complete.

Clark, a Dentons Kensington Swan partner, was appointed to lead a review of ‘trust and confidence issues’ at Gore District Council, estimated to cost ratepayers $130,000.

Official information papers also show her review of how Upper Hutt City Council handled complaints about Farrah’s factory was initially costed at $60,000.

Tory Whanau has cancelled weekly meetings over the leaking row.

The four councillors also questioned the independence of the review, following an October 30 radio interview with Whanau. “She also discussed her prior association with investigator Linda Clark, showing an obvious conflict. Once again, the Mayor herself discussed the proposed Reading deal,” the statement said.

The public were excluded from the October 4 meeting to discuss the deal following a vote. Foon claimed an audiovisual screen displaying council officials’ report on the deal was photographed; that a staff member overheard a councillor say they were going to publicly release details; and referenced a social media post which disclosed the voting record.

The complaint also alleges confidential information was shared with media and that councillors have publicly commented on the deal.

Foon lodged her complaint two days after the meeting. Clark was appointed on October 10. It was not until October 12, that Whanau notified councillors of the complaint and the investigation.

Clark asked to interview the five by the end of October, noting they could be accompanied by a support person. She plans to present her final report by November 27.

In recent years, the council has been plagued with tensions and dysfunction.

Former mayor Andy Foster was censured for a breach of the code in 2021, after he was found to have shared information about the controversial Shelly Bay deal. The investigation cost almost $32,000.

Early in her term, Whanau railed against the leaking of council documents about the escalating cost of a planned multimillion-dollar sludge minimisation facility and the purchase of 475 car parks.

After the row over the cinema deal became public, Whanau cancelled weekly councillor-only meetings.