The Christchurch City Council is being accused of attempting to gag a community group.
The St Albans Residents Association has refused to sign part of the council's new funding contract because of a clause banning it from speaking badly about the council.
The association has been granted $40,000 in annual funding for the next three years.
However, it has refused to sign part of the contract which states that funding could be terminated immediately if the group did anything to bring the council's reputation into disrepute.
The association has received significant legal advice which agreed the clause would gag association members. It also publishes a monthly newsletter which, under the clause, would not be able to include any criticism of the council.
The council says the clause is not intended to prevent anyone expressing contrary views and has been included to protect it in situations in which a group's actions reflect badly on the council.
The associaton says it is working with the council to try to come up with a clause that is suitable for both parties.
