Dithering accusations 'crap' - Cullen

By Phil Boeyen, ShareChat Business News Editor

Thursday 4th October 2001

Finance Minister Michael Cullen has again hit out at accusations that the government fiddled while Air New Zealand (NZSE: AIRVA) burned.

Asked at a press conference following Thursday's recapitalisation announcement whether the government had dithered over allowing an increase in foreign ownership Mr Cullen replied "It's crap, to put it bluntly".

"The government has never dithered through this process. I think it's fair to say that for the government negotiators that Air New Zealand's been brought to realise its own position and brought to realise what the effective solutions are.

"I repeat again, the dithering case depends on this argument that, if we had agreed to the original Singapore Air New Zealand approach, all would have been well.

"That would have fallen apart. It could not hold. It would have required due diligence. It would have required director sign off. It would have required a prospectus. That could not have been delivered. If they signed off then undoubtedly I think they could have been charged with breaches to the Companies Act."

Mr Cullen says in hindsight, if he had known what was going to happen between 1989 and 2001, he would have opposed the sale of Air New Zealand in the Labour cabinet, particularly to Brierley Investments (NZSE: BRY).

In terms of funding today's rescue package Mr Cullen says it's unlikely at this stage that the government will need to vary its debt programme.

"We also have rather more cash on hand than anticipated because of the better out-turn of the last fiscal year than was forecast. So at this stage we are not anticipating having to increase the debt programme this year in order to meet the obligation."

Although the Crown will be the majority owner of the airline, taking up to 83% of shares under the recapitalisation plan, Mr Cullen is adamant the board will make the decisions, not the shareholding Minister.

"This is not going to be a sticky hands-on effort by the Minister of Finance," he says.

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