"Within less than 24 hours I had a report that the letter had been given to the press."
Mr Watts said that as the mayor had sent the letter out on council letterhead, it was essentially publicly available, and as such could be discussed.
"This is now a public issue - I have to tell the public what's happening with the BCA," he said. "Discontent with this department has been festering for some time and it's been overlooked and no action taken - in desperation members of the construction industry have come to me."
Chief executive John Freeman interjected, saying Mr Watts was giving a portfolio update and it was not an appropriate time for the councillor to be giving his personal opinion.
"Mr Freeman has the right to say that, he has to defend his staff, but this is so big it has to be made public," Mr Watts continued. "I'm talking about a department, not individual staff - I want to speak on this or you can throw me out."
"I will not be blackmailed," Mr Butler said, at which Mr Watts began to leave, but was called to stay by other councillors who told him he could do more good by remaining in chambers.
Outside the meeting, the members of the public who walked out - including builders and people who were having issues with the building department - said the situation was putting builders under stress and increasing costs.
A CHB builder, who did not want to be named, said over the last seven to eight years he'd had issues to the extent that he now conducted a lot of his business outside of the district because it was made too hard.
"It's this council's interpretation of the rules - it's mind boggling, you would expect some conformity with other nearby councils. I know of builders who are thinking of exiting Central Hawke's Bay and others from outside the area who won't come here."
After the meeting, before attending the public-excluded forum, Mr Watts said the matter was hugely important for the economic development of the district.