The Clutha farmer seeking compensation from the Clutha District Council has lost an appeal to have the tender for a section of land granted to someone else revoked.
Matau Farm Ltd director Mark Budge appealed the council’s decision to accept a tender from another farmer for the lease of a reserve in Kaitangata.
He believed he was given misleading information by a council staff member which affected his bid for the land.
Matau Farm has leased the land near the Kaitangata rugby clubrooms for the past 15 years and it was opened up for tender earlier in the year.
At the public forum at a full council meeting yesterday, Raewyn Budge spoke on behalf of her husband and the other farm directors.
Confusion arose when the first tender process closed on April 8 but was "abruptly stopped" by the council.
Someone from the public complained, as it was stipulated only young stock could be grazed on the land, she said.
A second tender process was started and closed on May 6.
Mrs Budge said her husband was advised to declare he intended to use the land for growing silage.
She believed this advice "sabotaged" their chances of succeeding in the bid.
Others were given more information and were successful in their bid, she said.
If the Matau Farm directors had the same information, Mrs Budge believed Matau Farm would have been successful.
Clutha District Council chief executive Steve Hill was aware of the the farm directors’ concerns
but the council had not acted illegally in the tender process and had the right to accept a tender from whomever it chose.
Cr Hamish Anderson asked why the first tender process was stopped.
Mr Hill said advice was sought on what the land could be used for following the complaint made to the council and the tender process was reopened.
It was stipulated the land was not to be ploughed, dug or cropped and should be used solely for grazing.
Cr Ken Payne likened using the land for silage to mowing the lawn on a yard and throwing the clippings away.
Using the land for growing silage did not mean the land would be dug up.
Cr Anderson was concerned about the "public court" and what rumours there might be because of the issues raised in the public forum.
He was confident the council had acted within the law and the tender should go to the winning bid but it was a question of morals.
Mr Hill stood by his earlier statement which said Matau Farm would not necessarily have won the tender and, due to the nature of the tender process, it was not possible to restart it.
The council agreed the decision to award the tender to Collingwood Farms trustees Evan and Tracey Dick would have to stand.
