Alexandra businessman Stu Millis used his member's report at the board meeting to highlight what he claimed were shortcomings in the work of Tourism Central Otago (TCO).
TCO is the regional tourism organisation and part of the Central Otago District Council's district development department.
Mr Millis was critical of a TCO staff member and the organisation's website.
TCO was a powerful group and people were ''fearful'' about criticising it, he said.
He was a member of the Alexandra and Districts Business group, which would put a submission into to the draft Central Otago Tourism Strategy that TCO be ''dismantled'' and then reassembled.
Mr Millis' comments were ''absolutely over the top'' and an ''unwarranted attack'' on a staff member, Mr Melhopt said.
If the business group was trying to engage with the council, comments like that ''made the relationship very difficult to manage.''
Ms Higginson said his comments were not ethical or fair and she did not want to have ''dysfunctional sessions throughout board meetings.''
''My issue is you are a community board member being disrespectful to the people that work here, one; and two, you are speaking with the board as not a board member [but on behalf of the business group], and that's quite tricky,'' she said.
Mr Millis replied: ''I'm here to make things happen.''
Mr Topliss reminded Mr Millis of the code of conduct for board members and said it was unacceptable ''to have council staff berated in public''.
Mr Millis had the chance to raise any concerns privately with Mr Melhopt.
Mr Millis said he had been ''fobbed off'' when he tried to raise the matter at other times.