Some Rotorua district councillors are defending a decision to appoint council chief executive Peter Guerin’s wife as sole agent to sell a million dollar rural property.

While some councillors have criticised the move as a conflict of interest, others are now defending the Rotorua District Council’s position.

A council property at Horohoro, on the market for $1.2 million, is listed on the Ray White Real Estate (formerly Coopers) website with Mr Guerin’s wife, Toni Guerin, named as the agent in charge of the sale.

In 2007, the council bought the 41ha Apirana Rd site for about $1.2 million to use as a cemetery but residents opposed the plan and the council found another site, near Tarukenga on State Highway 5.

Mr Guerin referred questions put to him by The Daily Post regarding the Horohoro property sale to council parks and recreation manager Garry Page who confirmed Ray White Real Estate was sole agency for the sale.

Mr Page said Mr Guerin had no involvement in the sale process as land sales were handled at department manager level.

“I have been very careful not to involve Mr Guerin in the process at all, to ensure that there is no conflict,” Mr Page said.

District councillors defending the move said they believed there was no conflict of interest and Mr Guerin had explained his position to them at a meeting yesterday.

Councillor Karen Hunt said the situation had been handled well.

“Those operations are not handled by the chief executive but by senior management.”

Councillor Dave Donaldson said the question of a possible conflict of interest should have been asked but he was satisfied with Mr Guerin’s explanation that he was kept at arm’s length.

Whether it was “a good look” was a matter of opinion, he said.

“I’ve been reassured the process has integrity and am satisfied Garry Page has the integrity to handle it properly.”

Councillor Julie Calnan said in hindsight it did not look good and could have been handled better but she was happy there was no conflict of interest.

“There’s nothing untoward in this at all,” she said.

Rotorua Chamber of Commerce chief executive Roger Gordon said the situation was unfortunate.

“Public perception is an aggressive animal – any hint of impropriety invites attack.

“It is all a matter of perception. I think that as an elected or appointed official of any local authority, there has to be no hint of preference or conflict of interest in any dealings of the council.

“My understanding is that there is a requirement for declaration of interest … I would have thought that the chief executive was the principal RDC officer involved in the decision to dispose of the asset, particularly of this value.”

Mr Gordon said it was inappropriate for the property to be sold by a company for which Mr Guerin’s wife worked.

He accepted that once approval for the sale was given, it became the responsibility of another council officer to arrange the sale, he said.