Council decides deputy mayor not in breach Code of Conduct

“Does making a comment under our breath, not specifically directed at anyone, that could be misheard by others, mean a Code of Conduct could be brought against us?"

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Invercargill city councillors have dismissed an investigator’s recommendations, believing deputy mayor Grant Dermody had not reached a threshold that breached the council’s Code of Conduct.

As a result, no further action will be taken.

Although ratepayers now have a $33,000 - and climbing - bill to pay for the investigation, at a time when the council is attempting to find cost savings to keep rates down.

Dermody had been alleged to have called a senior council staffer “you fucking dick”, “you’re a dickhead”, or something similar, which Crs Ria Bond, Alex Crackett, and Darren Ludlow stated they had heard.

Dermody himself denies using those words, instead suggesting he said “that’s ridiculous” in an aggressive tone.

The incident is alleged to have occurred at a briefing on Rugby Park at Rugby Park on February 3. The briefing involved councillors, council staff, and community stakeholders.

Cr Ian Pottinger was not on at the Rugby Park workshop, but after being made aware of the alleged comments made by Dermody, he decided to file a Code of Conduct complaint.

Dunedin-based lawyer Michael Garbett was enlisted to investigate the matter and found that on the balance of probabilities, Dermody had breached the council’s Code of Code of Conduct.

He recommended that Dermody undertake governance training.

An extraordinary meeting was called on Tuesday to address the investigator’s findings.

Dermody, Pottinger, Crackett, Bond, and Ludlow were all deemed to be conflicted and did not take part in the discussion.

There was an obvious sense of frustration from many of the remaining councillors that they were dealing with a Code of Conduct complaint, and it was coming at a cost of $33,000-plus to the ratepayer.

When it came to the vote, the council decided that Dermody was not a material breach of the Code of Conduct.

Cr Lisa Tou-McNaughton said there were four different versions of what Dermody had said, and she believed finding the complaint as a material breach would set a dangerous precedent.

She added she was at the meeting and did hear Dermody state, “that’s ridiculous,” but not directed at the council staff member.

“We as councillors should be passionate about our roles, responsibilities, and community issues.

“Does making a comment under our breath, not specifically directed at anyone, that could be misheard by others mean a Code of Conduct could be brought against us?” Tou-McNaughton said.

Tou-McNaughton added that Dermody had resolved the matter two days after the Rugby Park meeting by apologising to the council staff member for his behaviour.

“I’m also concerned the Code of Conduct [complaint] was made by someone who was not at the meeting, and I wonder about the rationale of this decision.”

Invercargill deputy mayor Grant Dermody.

Cr Steve Broad also said he had heard Dermody say “that’s ridiculous” at the meeting, and if said in an aggressive tone, it can fall short of what is expected.

But he stated that not every lapse in conduct was a material breach of the Code of Conduct.

“I don’t believe the threshold is met here… Because the finding relies heavily on what was muttered in the moment and then interpreted differently by multiple people in close proximity,” Broad said.

Broad was concerned that lowering the threshold of the Code of Conduct could constrain robust discussion.

Cr Barry Stewart agreed with Cr Tou-McNaughton and Cr Broad and added he was “gutted” for the ratepayers who were forking out $33,000 for the investigation.

Cr Marcus Lush said he was uncomfortable that the council had enlisted a lawyer but had chosen not to accept his findings.

“The report found there was a breach of our Code of Conduct, and if we decide there wasn’t, then what is the point of spending $33,000 on lawyers?”

Lush acknowledged the situation, which has created national headlines, would have been tough on Dermody and an unpleasant time.