The Waitaki District Council Reserves and Other Land Empowering Bill, which would change the status of the reserve land at Forrester Heights, is before the local government and environment select committee.
However, Dr Clark said he had two pressing concerns about the Bill: the stability of land around the site, and a lack of consultation locally.
The Dunedin North MP visited Forrester Heights this week and was shown the erosion at the base of the cliffs, and said the site needed to be investigated.
"I would be keen to see what EQC think of the stability and safety of the land. I think it is well worth knowing what shape the land is in. We have seen in Christchurch that some land shouldn't be built on."
The select committee should also hold its hearings in Oamaru to consult residents to allay fears that local opinion was being overlooked, he said.
"These kinds of decisions are important for local communities. There is no way they should be made in Wellington."
The Bill would reverse what the Waitaki District Council said was an administrative error, incorrectly placing reserve status on the land.
It would also allow the council to proceed with a subdivision of 22 residential lots on a 5.8ha section of land at Cape Wanbrow.
Submissions on the Bill closed at the end of July.