Council members use own firms

Taupo District Council has defended payments for work done by local businesses in which elected members have a financial interest.

It was revealed this week that the council had paid almost $200,000 over the past two years to seven businesses with which the mayor, a councillor and two community board members were associated.

The businesses included a car dealership of which mayor Rick Cooper is a director, a security firm owned by councillor Mich'eal Downard, a Turangi furniture and appliance shop and joinery owned by community board member Jan Lockyear, and a property management company owned by fellow board member Terry O'Brien.

The total amounts paid by the council to the businesses ranged from about $11,500 to $65,000 for items such as servicing council vehicles, building repairs and security patrols.

The work was never put out to public tender because it was considered too small and fell under the council's $50,000 threshold.

Council finance manager Alan Menhennet said there might be a perception that information between elected members' businesses and the council was hidden away in large council documents.

However, the opposite was true, and the annual report listed disclosures from all elected members.

"The council is careful to put the information out in public to ensure financial transactions were open and transparent and that there is no perceived conflict of interest."

Mr Menhennet said the auditor-general's office was consulted if there was a perception of conflict with business between the council and elected members.

"There are strict rules around managing transactions between local businesses and council," he said.