Rotorua District Council and real estate company Ray White have agreed to cancel their listing arrangement for selling a surplus council-owned property in Horohoro to end any claims of a conflict of interest.

The council is selling a piece of land which is on the market for $1.2 million.

It was listed on the Ray White Real Estate (formerly Coopers) website with council chief executive Peter Guerin’s wife Toni the agent in charge of the sale but that agreement was cancelled yesterday following criticism of a perceived conflict of interest by various parties including some district councillors.

Rotorua Chamber of Commerce chief executive Roger Gordon had 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,” Mr Gordon said.

Some Rotorua district councillors defended the decision to appoint Mrs Guerin.

However, Mr Guerin said he instructed his managers on Thursday afternoon to discuss terminating the agreement with Ray White to put an end to any “finger pointing or claims of potential conflict of interest”.

“It’s very clear to anyone who has all the facts that there has been no conflict of interest in the council listing the surplus property for sale with this company.”

He said it was clear council managers and Ray White had acted with “unquestionable professionalism throughout and any suggestion to the contrary was without grounds”.

In 2007, the council bought a 41ha site for about $1.2 million on Apirana Rd in Horohoro to use as a cemetery but residents opposed the plan and the council looked for another site. One was found near Tarukenga on State Highway 5, between the Lake View Golf Course and a farm, and was bought in December last year for $795,000.

District councillor Mike McVicker, who is chairman of council’s economic and regulatory services committee, said he was concerned at the perceived conflict of interest and suggested Mr Guerin rethink the council’s real estate arrangements.

Mr Guerin emphasised council managers handling the sale had been at pains to ensure he was totally removed from the process and not involved in any of the arrangements.

The council’s parks and recreation manager, Garry Page, said council officers had met with Ray White’s owners yesterday morning and the two parties agreed the agreement should be cancelled.

The property would now be listed with another real estate company over the next few days.

Ray White Rotorua co-owner Tim O’Sullivan said he did not believe there was a conflict of interest but also understood there could have been a perceived conflict by some and the company agreed to release the listing.