I've nothing to hide: Banks

By BERNARD ORSMAN


Auckland Mayor John Banks is distancing himself from a controversial Waiheke Island development plan by two of his business partners.

Mr Banks told the final city council meeting of this term yesterday that he had gone into an unrelated business with two directors of Waitemata Infrastructure, which is planning a $35 million village at Matiatia on Waiheke.

On June 29, Mr Banks bought the New Zealand Institute of Education, with campuses at Epsom, Botany Downs and Takapuna, with Bill Birnie and Stephen Norrie, directors of Waitemata Infrastructure.

"I have no financial interest in Waitemata Infrastructure Ltd ... and I will not participate in any statutory or regulatory meeting involving these matters with Waitemata Infrastructure," Mr Banks said.

He left the council chamber before the appearance of a deputation of island residents on the issue.

Despite these assurances, Waiheke resident and former television newsreader John Hawkesby told councillors: "The appearance of a conflict of interest looms large given the business relationship of the mayor with the principals of Waitemata Infrastructure."

Mr Hawkesby cited Mr Banks endorsing the project at a launch in his Town Hall office in May 2002 as "all about moving Auckland forward", and remarks he made to the Waiheke Rotary Club on September 4 suggesting he knew about a revised council position subsequently approved in secret by two councillors, Bill Christian and Juliet Yates.

"The planning and fixtures subcommittee met on September 14, essentially in secret," Mr Hawkesby said.

"The meeting took place under the rules of confidentiality, without a published meeting date or agenda, without published minutes or a record of what was presented or discussed, based on a confidential report by a council officer - a report still restricted as confidential."

And the meeting was held 11 days after the Environment Court ruled that 5000sq m was the largest development allowed for under the existing plan.

"You are in the middle of an election, yet your council officers and standing orders may have unleashed a political scandal upon you," Mr Hawkesby told the council.

"The people of Waiheke are furious, both at the duplicity of the process and the standing orders which permit such secretive conduct of officers and two councillors."

Faye Storer, the Hauraki Gulf Islands councillor, who was not told about the September 14 meeting to approve a development of 12,000sq m at Matiatia, said she subsequently learned Mr Christian and Mrs Yates' decision was based on incorrect and insufficient information.

An attempt by some councillors to hold an urgent inquiry into the process and report before the local body elections on October 9 was lost by 10 votes to nine. The inquiry will be held after the elections.\

Mr Banks later told the Herald: "Today was the first public opportunity I'd had to declare what could be perceived as a conflict of interest. I have absolutely nothing to fear or hide on the council management of these matters. Any other interpretation is just a beat up."

Matiatia's village

* Waitemata Infrastructure, two-thirds controlled by investment bankers FR Partners, originally planned a 23,000sq m development at Matiatia, including apartments, cafes, restaurants and shops.

* After strong local opposition and rejections by planning commissioners, the proposal was reduced in size, initially to 18,500 sq m, then to 12,000 sq m.