A Wairoa motelier alleges a group of short-term guests at his lodge were "poached" by the chief executive of a contracting company they worked with, who offered cheaper rates at a private accommodation house.
Vista Motor Lodge owner Peter Nash said the contract workers staying at the lodge were in Wairoa working on the redevelopment of the town's medical centre, a project headed by Alexander Construction.
He said they were approached by Leigh Aitken, the chief executive of Quality Roading and Services (QRS), a Wairoa District Council controlled trading organisation, set up for civil construction, infrastructure and roading work.
"The CEO of QRS was over here one night talking to the workers and then the next morning the construction guys came in and said it was their last night because they had been offered a house to stay in, which was the CEO's."
Mr Nash said moteliers had to pay commercial rates whereas many bed and breakfast accommodation outlets operated privately did not, although both provided the same type of service.