Allegations fly as BID vote nears

Gary Holmes


Auckland Council is investigating allegations of a conflict of interest in the establishment of Business Improvement Districts (BIDs), but the man allegedly at the centre of the claims is denying anything untoward.

Earlier this month the recently established Warkworth Commerce and Industrial Association (WCIA) published a newsletter with an article claiming Gary Holmes, who manages four BIDs in Auckland, is involved in “deeply unsettling conflicts of interest”.

The newsletter claimed Mr Holmes is making nearly $250,000 from managing BIDs while also serving on the Hibiscus and Bays Local Board, and questioned whether he could serve all roles effectively.

It was also revealed that Mr Holmes was a joint shareholder in a company, NZ Business Communities, along with two Council staff members involved in establishing BIDs – BID team leader Gill Plume and BID partnership programme advisor Claire Siddens.

The letter speculated that the company could be involved in a serious conflict of interest, where those who establish BIDs work in tandem with a person who profits from managing them.

However, Mr Holmes says he has done nothing wrong.

The company NZ Business Communities was established to hold a national business conference in Hamilton in August, he says.

“Why have I been attacked? Why didn’t anyone ask me about these allegations before printing it? It’s got nothing to do with WCIA and it’s totally unprofessional.”

The conference will link BIDs from around the country and host a number of business speakers. The event probably won’t turn a profit, he says.

“It’s not designed to make money, but to fill a gap,” Mr Holmes says. “We definitely have no desire or plan to take over any BIDs in Auckland. We are holding information sessions for BIDs to hear national and international speakers and to network. This is in response to requests from business associations around the country.”

There is no Auckland Council funding for the event.

Mr Holmes says he manages the four BIDs – the Glen Innes, Uptown, Dominion Road and North West business associations – through his company Campaigns Ltd.

“I employ three full-time and two part-time staff for those roles.

“For three of those positions I was shoulder-tapped to come and help. It’s not like I’ve gone out seeking them. The four associations are aware of my arrangements and are very happy with the service they receive.”

He is not involved in any BIDs in the Hibiscus and Bays Local Board areas.

“It would not work to manage a BID and be an elected member in the same area. But, the Local Board appreciates my experience with BIDs, especially when we are providing feedback on the BID policy review.”

Council CCO and external partnerships manager Alastair Cameron confirmed Council was investigating the allegations of a conflict of interest in the BID establishment process, but would not specify the details of the investigation.

“Council has been made aware of allegations that have been made regarding a potential conflict of interest in relation to the processes being used to establish a new BID,” Mr Cameron says. “We take allegations such as this very seriously and these matters are currently being investigated, however we cannot comment on specific employment issues or details of the investigation.”

Voting on the Warkworth BID will start on Tuesday March 29 and will close on Wednesday April 20.

WABA committee member Nicola Jones says a BID manager for Warkworth would only be employed following a robust recruitment process managed by the new BID board.