7. SUE BRADFORD (Green) Link to this
to the Minister of Finance
What advice will the Government, as majority shareholder in Air New Zealand, seek on proposals from the Engineering, Printing and Manufacturing Union regarding Air New Zealand’s engineering capacity, which are due to be presented today?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
I have been advised by the Engineering, Printing and Manufacturing Union of its proposals. I would expect the board to advise me of its response. As a general matter of good employment relations policy, I would also expect, and am confident, that the proposals will be considered seriously.
Has the Minister, in light of the potential impact on shareholder value, considered seeking independent advice from outside Air New Zealand on this proposal or is the New Zealand Government shareholding simply a rubber stamp?
When the Minister said, in response to a question from Peter Brown the other week: “The fact that the Government is a majority shareholder … is a strong reason for not intervening in a case such as this,” did he mean to say that when this Government has financial control over a company it should not exercise this control to benefit New Zealand’s workers?
Hon Dr MICHAEL CULLEN Link to this
The Government, as a majority shareholder, has to be particularly careful it does not intervene in a way that might affect the interests of minority shareholders.
Peter BrownDoes the Minister accept that his answer to the principal question was somewhat vague where he “expects” and he “hopes” the engineers’ proposal will be given fair consideration; can he not use his legitimate influence to assure this House that the engineers’ proposal will be given fair and meaningful consideration by Air New Zealand?
Hon Dr MICHAEL CULLEN Link to this
No. What I can say is I would expect it will be given serious consideration.
Will the Minister ask Treasury and the Ministry of Economic Development to compare Air New Zealand’s proposals with those from the Engineering, Printing and Manufacturing Union from a national interest so they might help the Government decide, in a positive light, about the union’s suggestions?
Hon Dr MICHAEL CULLEN Link to this
No, because this is a decision the board must take, not the shareholders. In the end, of course, the board is accountable to shareholders for its custodianship of the company.
Does the Minister accept that the majority of voters who supported the Labour Party at the last election would, at the very least, expect him to use his legitimate influence to ensure that the engineers’ proposal is given full and fair, meaningful consideration, rather than just expect it would?
Hon Dr MICHAEL CULLEN Link to this
I have stated the shareholders’ expectation in my answer today. That is actually quite a strong statement.