Scenario 2 overview- Where do you draw the line? -

Scenario aim

The aim of this scenario is to explore the concept of non-pecuniary interests for councillors:

• when councillors should declare a non-pecuniary interest
• when they should step out of a council meeting or council committee meeting

Ethical issues and points to consider

Many councillors are active members of local community clubs and committees. Their dual roles may give rise to non-pecuniary conflicts of interest, or pecuniary interest if, for example, they are an officer-bearer in a club or association.

While there is nothing inherently wrong with having a conflict of interest, any conflict needs to be appropriately managed.

Councillors should refer to the following resources for guidance on how to manage their conflicts of interest:

• pecuniary interest – Part 5 of the Local Government Act 1993
• non-pecuniary conflict of interest – their council's code of conduct

Links to further information are provided at the end of the video.

Scenario analysis

What ethical issue was evident in this scenario?

The Local Government Act 1993 provides an exemption in respect to pecuniary interests and non-profit associations and clubs, provided that there is no personal financial benefit or detriment to a councillor or close associate, and provided the councillor is not also an office-bearer in the association or club.

The status of Councillor Perelli's role in the club is not clear from the scenario. If he is an office-bearer, he will need to consider whether he has a pecuniary interest and manage it accordingly under the processes set out in the Act.

What is the  possible impact of Councillor Perelli's actions at each stage?

Councillor Perelli is not acting impartially.

The Chair of the Council Committee was very clear in requesting that committee members stated whether or not they had a conflict of interest.

His fellow councillors would be likely to be aware of his involvement with the club and this would influence their view of his conduct on other issues.

All decisions must be made impartially and in the best interests of the community as a whole. Councillor's Perelli's actions impact upon council's processes. His decision may have an impact on the community's trust in council's processes.

What resources could Councillor Perelli refer to as a guide to managing his conflict of interest?

• The Local Government Act 1993 - Part 5
• The council's Code of Conduct
• The Local Government Division website - Resources for councillors