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Boats no longer get worked on within the Boatyard's own land, for maintenance or repairs.
DoC said that does not mean councils can now approve activities the Reserves Act does not allow, such as running a private business on public land.
Parliament's Speaker says any clauses that confer a private benefit should not be included in a Government bill.
Mayor Carter says Schmuck's boatyard was a popular and useful business, and a special case.