Auckland councillor Julie Fairey has not disclosed thousands of dollars worth of shares held in a family trust - but the council says she is within her rights.
Fairey’s husband, Labour MP Michael Wood, resigned as a minister yesterday after it emerged he held previously undisclosed shares in the trust, some of which raised potential conflicts of interest with his ministerial roles.
The JM Fairey Trust, of which Wood and Fairey are beneficiaries, held “thousands” of dollars in Chorus, Spark and the National Australia Bank (NAB) shares.
After being elected to the council last October, Fairey filed a declaration of interest stating neither she nor her husband had a financial interest in any company or business, and neither of them had a beneficial interest in a trust.
She was forced to correct the statement earlier this month after it emerged that the trust held shares in Auckland Airport.
This was revealed on the eve of a vote on whether the council should sell its stake in the airport. Fairey also disclosed that the trust held shares in Contact Energy.
Her financial declaration has not been updated to include the additional shareholdings in Chorus, Spark and NAB.
Michael Wood has lost all his ministerial portfolios over the scandal. Photo / Mark Mitchell
An Auckland Council spokeswoman said today that the council was satisfied the councillor was taking all steps to declare her interests.
“Cr Fairey sat down with a council lawyer and worked through her interests, and her current declaration reflects the advice she was given around necessary disclosures,” the spokeswoman said.
“All relevant trusts of which Cr Fairey is a trustee or beneficiary are recorded in her declaration.”
The Herald queried why she was required to include the airport and power company shares but not shareholdings that emerged yesterday.
“The pecuniary interest requirements were only recently introduced by legislation and we are currently working with councillors to determine the circumstances in which interests in companies not directly held by a member must be declared,” the spokeswoman said.
“The council is satisfied that Cr Fairey is taking all appropriate steps to ensure that she declares her interests.”
Fairey did not respond to a request for comment.
A review of councillors’ interests ahead of the airport sales vote found that two further members, Chris Darby and Wayne Walker, also held shares in Auckland Airport.
Walker told the Herald he was still seeking legal advice on the issue. He said he “didn’t have a big issue with it” and would be happy to update his forms.
Isaac Davison is an Auckland-based reporter who covers health issues. He joined the Herald in 2008 and has previously covered the environment, politics, and social issues.
