Hall decision 'governance failure'

A decision to halt the proposed Cromwell Memorial Hall upgrade stands up legally but could be considered a governance failure, a legal opinion about the issue has found.

Legal advice was sought after Cromwell Community Board members voted 4-3 last month to halt work on the hall upgrade and find out the cost of a rebuild instead.

The turnaround was led by board member Robin Dicey and supported by members Shirley Calvert, Annabel Blaikie and Werner Murray. It was opposed by Neil Gillespie, Nigel McKinlay and Anna Harrison.

After the vote, Mr Gillespie asked for legal advice, as he was uncertain if two opposing resolutions could be on the table at the same time.

A legal opinion provided by Simpson Grierson said the April resolution stood legally, and neither it nor the previous February resolution to proceed with the upgrade would need to be revoked.

However, the ''continued equivocation on this matter by the board could ultimately be considered a governance failure'', the legal advice said.

This could be considered a ''problem'' justifying ministerial intervention under the Local Government Act, the opinion said.

''At a certain point, the [Central Otago District] council might consider revoking the relevant delegation in order that the matter can be addressed definitively by the council.''

Mr Gillespie, the board chairman, said he accepted the legal advice. He said the comment about a possible governance failure was ''good advice that the board needs to be mindful of'', but preferred not to comment further.

The item will be discussed at the next board meeting on Friday.

Submissions on the council's 2017-18 annual plan will also be discussed at the meeting. Of the 37 submissions that related to the board, 73% were about the Cromwell Hall upgrade, and of those, 89% wanted the upgrade to proceed.

Given the community support for the refurbishment over various consultations, the board and council exposed itself to loss of reputation over the ''further deferrals'' of the project, a report by council chief financial officer Bernard Murphy said.

pam.jones@odt.co.nz

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