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Air New Zealand—Engineering Outsourcing

Tuesday 21 February 2006 Hansard source (external site)

Bradford1. SUE BRADFORD (Green) Link to this
to the Minister of Finance

Does he believe that, as 82 percent shareholder of Air New Zealand, he should have been more proactive in finding a solution that would keep Air New Zealand’s engineering work in New Zealand?

MallardHon TREVOR MALLARD (Acting Minister of Finance) Link to this

No. I would hope that the airline and unions talk further, but as a matter of policy the Minister of Finance, as shareholding Minister, does not intervene in the operational affairs of the airline.

BradfordSue Bradford Link to this

Has the board of Air New Zealand shared with the Government shareholder its long-term strategic plan for this business; if so, does it show that what is happening at the moment is just the beginning of a whole series of changes that will lead to lay-offs and cuts in wages and conditions?

MallardHon TREVOR MALLARD Link to this

As Acting Minister of Finance, I am not privy to the details of the briefings between the board and the Minister of Finance.

MappDr Wayne Mapp Link to this

Will the Government take on board the need to deal with ongoing problems with the Holidays Act and other legislation and issues of relevant daily pay, which Air New Zealand said added several million dollars to its costs, given that the Treasury briefing to the incoming Government that deals with changes to labour laws stated that the “cumulative effect may be significant, particularly in an economic downturn.”, which is exactly the situation facing the airline now?

MallardHon TREVOR MALLARD Link to this

I have never ceased to be amazed by the National Party’s approach to workers’ holidays.

MappDr Wayne Mapp Link to this

I raise a point of order, Madam Speaker. I asked a very specific question about whether the Government will take on board the issues of the Holidays Act and the Treasury briefing to the Government. The second point was certainly not addressed and the first point was hardly dealt with.

WilsonMadam SPEAKER Link to this

As the honourable member knows, in supplementary questions only one supplementary question is normally permitted. The Minister did address the question, although of course it may not be to the satisfaction—

SmithHon Dr Nick Smith Link to this

Point of order, Madam Speaker—

WilsonMadam SPEAKER Link to this

The Minister did refer to the holidays legislation, which was raised in the question. He therefore addressed it. The Speaker is not responsible for the quality of the answers; that is the responsibility of the Ministers and will be judged in this House and elsewhere.

SmithHon Dr Nick Smith Link to this

I raise a point of order, Madam Speaker. It is your role to enforce the Standing Orders. I draw your attention to Standing Order 377, “Contents of replies”, particularly Standing Order 377(2)(b) and (c), which quite clearly makes the answer from the Acting Minister outside the Standing Orders. The Standing Order quite properly states that any inferences, imputations, ironic expressions, or discreditable references to the House or any member of Parliament are outside the Standing Orders. All we got in the answer from the Minister was a shot at the National Party. He made no attempt at all to answer the question as a Minister of the Crown.

MallardHon TREVOR MALLARD Link to this

Speaking to the point of order, I in fact said that I never cease to be amazed by the attitude of the National Party to workers’ holidays. That is just a straight statement of fact.

BradfordSue Bradford Link to this

Is the Minister aware that Air New Zealand has also put the jobs of over 100 cleaners on the line by putting cabin-cleaning work out to tender; and as a majority shareholder does he see any role at all in trying to get it to reverse its decision, especially in the light of Labour’s own industrial relations policies in the areas of contracting out and job security?

BrownPeter Brown Link to this

Can the Minister clarify exactly what he is telling the House—that with all these issues that have been raised in question time this afternoon it is acceptable for the Minister to sit on his hands and get cramp in them?

MallardHon TREVOR MALLARD Link to this

I want to make it clear to the member that the Minister of Finance has a very clear role as a majority shareholder in a publicly listed company. He is proscribed from doing many of the things that many of us might find desirable. Having said that, I point out that, as members of the House will be aware, other people, including the Prime Minister, are much freer to make the views of the Government generally clear.

BradfordSue Bradford Link to this

How does the current Air New Zealand strategy of business transformation, which seems to involve slashing wages and jobs and contracting out, align with the Government’s strategic priority, as outlined by the Prime Minister last week, of economic transformation; if it does not, does the Minister think there is some way in which these two strategies can be aligned?

MallardHon TREVOR MALLARD Link to this

Without going into a lot of the detail, I think it is fair to say that many members of the House are aware that the future of Air New Zealand itself was at very serious risk when the Government bought back into it, and it is not out of the mire yet.

BrownleeGerry Brownlee Link to this

I raise a point of order, Madam Speaker. My colleague Dr Nick Smith raised a very valid point of order with you. It was dealt with by you, and I am not going to question your ruling, but I do think that it stands in somewhat stark contrast to Speaker’s Ruling 154/1, whereby Speaker Hunt had a particular message for Ministers of the Crown who have been asked to account to the public. Mr Mallard gave us his own personal opinion. That may well be the opinion of Cabinet, and it may well be his instruction not to give answers in this particular way. But this is the House of Parliament. We have a right to ask questions and, I think, a right to expect that a Minister will treat questions seriously and attempt to answer them.

WilsonMadam SPEAKER Link to this

I thank the member. Dr Nick Smith raised essentially the same point of order, although he referred to different Standing Orders. I note what the members say, but the Minister did address the question and will be judged on the quality of that answer.

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