Conflict of Interest?

Now darn it, I'm a pretty simple fellow and I don't pretend to know a lot about all things.
But I tend to think of common sense as being a bit like art. I may not know if its art or not, but I know what I like.

So imagine my surprise to find in the Thursdays Marlborough Express, an application under the Resource Management Act for a water permit.
Now this sort of thing is pretty normal, people do it all the time.
But in the case of Application U080625 the applicant is the Marlborough District Council.
They are applying to themselves for a permit to draw water from a well to irrigate 24 hectares of grapes.

Eh?

Firstly, I suppose the ratepayers should be grateful that they asked. But in fairness they will always operate in a correct manner.
But hang on...
What are the odds of them turning themselves down?
If someone objects and the resource consent is granted anyway, how can they prove that there wasn't a conflict of interest?

And lastly... I can presume from this that the Marlborough District Council is in the business of growing grapes.
Err.... does that mean that they have a vested interest in allowing activities that support / promote grape growing in the region?
Umm... if someone applies for a resource consent for an grape related activity, are they more inclined to approve?
Wait... does this mean that they are more likely to find against any application for other vineyards? (I mean competition and all...)

It feels like conflict of interest. It smells like conflict of interest. It tastes like conflict of interest.
I suppose its ok though.