A report for the Department of Labour recommended prosecution over an incident during last year's Queenstown Winter Festival opening at Earnslaw Park.
Loose fireworks shot into the crowd, landed on the roof of Prime Restaurant and a fire crew was also called to the Queenstown Gardens.
Queenstown's Mountain Scene newspaper reported Lakes Environmental compliance manager Tim Francis alleged in his report fireworks organisers submitted a not-to-scale plan to the certifier, who incorrectly accepted it.
It resulted in an "exclusion zone" within a 250m radius of the barge in Queenstown Bay for a display firing a 300mm shell, which should not have been approved because it compro-mised the exclusion zone.
However, the department has now said the recommended prosecution would be "shelved".
