Clutha-Southland MP Todd Barclay wants worker accommodation built on the soon-to-be-vacated Wakatipu High School site.
He is pushing for Auckland's Crown land development programme to be extended.
Building and Construction Minister Dr Nick Smith, in Queenstown yesterday, said it allows the Government to influence development.
Dr Smith said: ''[The ministry] is able to say to a developer 'here's the deal, we'll take a deferred settlement on when you have to pay for it, but you have to meet these timelines and we get a say in the nature of the development'.''
Social Housing Minister Amy Adams now has responsibility for the programme, but Dr Smith said she was aware of the option.
A decision has yet to be made. The first step would be to get more funds for the programme in next week's budget.
Queenstown Mayor Jim Boult said Queenstown Lakes District Council wanted the land it owned at adjacent Warren Park to be used for the same development.
QLDC is considering three worker accommodation developments and doing ''everything it can'' to expedite them.
