B.C. Housing Minister Rich Coleman says he stands by his decision to free up private lands for residential development back in January 2007. (CBC)

Housing and Social Development Minister Rich Coleman has been cleared of conflict of interest allegations for a decision he made as forests minister to free up private land for residential development.

Coleman has been under attack because he allowed Western Forest Products Inc. to remove three tree farm licences the company held on southern Vancouver Island and sell the land for residential development in January 2007.

The suggestion of a conflict stemmed from the fact that Coleman's brother, Stan, was manager of strategic planning with Western Forest at the time. Coleman moved from the forests portfolio to housing in June.

Provincial Auditor General John Doyle issued a report in July condemning Coleman for his decision and citing the possibilities of conflicts of interest and insider trading by government staff.

'I stood by the decision when I made it. I stand by it today.'— Rich Coleman

Doyle also said Coleman acted on incomplete information and with too little public consultation.

Coleman referred the issue to Conflict of Interest Commissioner Paul Fraser, who finished his investigation this month.

"There is no indication that Stan Coleman benefited in any way from the decisions made by the minister. He received no extra compensation or consideration … as a result of the minister's decisions," Fraser wrote in his report.

"It is my opinion that Minister Coleman was not in an apparent conflict of interest in making these decisions," Fraser said.

Coleman said Tuesday he is pleased with the outcome.

"I was never that concerned about it because I knew I have always conducted my business in the highest professional manner as a minister and I've always gone to extraordinary lengths to make sure that I insulate any issue that would ever come into conflict," Coleman told CBC News.

"I stood by the decision when I made it. I stand by it today and I still think it was the right decision," he said.

Coleman's decision remains controversial on Vancouver Island, where critics fear it opens the door to more urban sprawl.

The B.C. Securities Commission conducted a review into the allegations of insider trading but found insufficient evidence to pursue an investigation and the file was closed in early May.