Dunedin police say their hands are tied in being asked to evict the Occupy Dunedin protesters.
Dunedin City Council has served trespass notices on the anti-greed protesters, part of a world-wide movement and camping for the last four weeks in the central city Octagon, but police have so far refused to enforce the notices.
Dunedin-Clutha police area emergency response manager Inspector Alastair Dickie told the Otago Daily Times that was because police could leave themselves open to being sued under the Bill of Rights Act.
North Island police had ended up paying out up to $100,000 to protesters for breaching their rights in similar situations.
"The protesters have the right under the Bill of Rights Act to protest peacefully.
"Our hands are tied due to the legalities of the situation."
Dunedin Mayor Dave Cull said there was an "overwhelming" message from the community it wanted the protesters gone.
"Other cities, I know, want them to be removed."
The police response had "enormous" national implications for the rule of law, and it appeared the council had no jurisdiction over its public spaces, he said.
The council's legal advice on the situation differed from the police position, he said.
The police decision meant anybody could camp on public land, put up a sign and say they were protesting, Mr Cull said.
But University of Otago law professor Andrew Geddis said the council was not a private landowner.
"That's the difference."
He commended police on their decision, saying that just because a protest breached a bylaw it did not take it out from underneath the umbrella of the Bill of Rights Act.
"The police are not the council's private army."
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