3. Hon TONY RYALL (National—Bay of Plenty) Link to this
to the Minister of Health
What rules or principles govern the tendering process of multimillion-dollar contracts by district health boards, and does he believe these were followed by the Hawke’s Bay District Health Board in relation to its community services proposal?
Hon DAVID CUNLIFFE (Minister of Health) Link to this
District health boards are required to adhere to guidance provided by the Office of the Controller and Auditor-General and Treasury, the Ministry of Health’s operating policy framework, and the district health boards’ own board procurement and provider selection protocols and policies. From the information currently available to me, I do not believe that these processes were followed at all times by the Hawke’s Bay District Health Board. In his recent report, the Auditor-General concluded that the Hawke’s Bay District Health Board’s policies do not comply with good public sector practice. The Director-General of Health has commissioned an independent review of the governance practices of the Hawke’s Bay District Health Board, and I look forward to receiving that report on 17 March.
Can the Minister explain why, that at the same time Annette King was telling Cabinet that Mr Hausmann should be appointed to the board, and that he understood how to manage his conflicts of interest, Mr Hausmann was colluding with the chief executive to make changes to tender documents in order to benefit his own company over all others; surely, even this Minister must see that for the Labour cronyism it is?
Hon DAVID CUNLIFFE Link to this
I note that at all times the former Minister of Health followed the appropriate Cabinet processes for the appointment of that director. I suggest that the member wait until he sees the final report from the director-general before committing his own reputation in defence of certain parties.
Lesley SoperIs the Minister satisfied that all required tendering and procurement processes were followed in relation to the contract with Royston Hospital for elective surgery?
Hon DAVID CUNLIFFE Link to this
No. Although I do not have access to the material that may be the subject of the director-general’s review, I am aware of allegations of inappropriate governance processes that cause me great concern. Some of those allegations were contained in submissions made to me last week that have now been made public—I repeat, some of them.
Barbara StewartWill the inquiry into alleged conflicts of interest at the Hawke’s Bay District Health Board reveal the extent of management mishandling of the contract tendering process as distinct from board dysfunction; if not, why not?
Hon DAVID CUNLIFFE Link to this
As I have not seen a draft or a copy of work in progress of that governance report, I, like the member, will wait for the final on 17 March.
Is the Minister aware of the email that shows that chief executive Chris Clarke instructed staff to send draft tender documents to Mr Hausmann—who had indicated he would be a bidder—some weeks before the tender process opened, and before any other bidder saw the documents; and is this acceptable behaviour?
Hon DAVID CUNLIFFE Link to this
As I have already confirmed, I do not have access to the material that may be the subject of the director-general’s independent review, but I do note that the member seems to be labouring under some misapprehension that it is my role to defend Mr Hausmann, which it is not.
Is he aware of this email that shows that Mr Hausmann, appointed by the Labour Government, having received this confidential draft tender document, proposed changes that would benefit his company, and is that what he would expect of someone being appointed to the board of that very district health board?
Hon DAVID CUNLIFFE Link to this
In the first place, may I reconfirm to the member and to the House that my decision of recent weeks did not turn on which parties may or may not have acted correctly, but is predicated on the level of overall conflict and dysfunction at that district health board. In the second instance I wonder whether the member is drawing upon material that is covered by a confidentiality deed, subject to lawyers’ undertakings, in respect of the director-general’s independent process.
Is he aware from this email that the chief executive agreed to alter the tender documents in precisely the terms proposed by Mr Hausmann, at a time when no other bidder had such access, and is that a proper and ethical process?
Hon DAVID CUNLIFFE Link to this
I think the public will find it very interesting, when the final director-general’s report comes out, just exactly what has been doctored by whom.
Is he aware that the final document that went out to all tenderers incorporated the changes proposed by Mr Hausmann, whose company was the eventual successful party, and does he think that all potential bidders were fairly treated equally in this process?
Hon DAVID CUNLIFFE Link to this
May I firstly confirm that I do not have access to the material that is in the director-general’s draft report, and, secondly, may I reconfirm to the House that my decisions in respect of the Hawke’s Bay District Health Board do not turn on the proprieties or otherwise of any one individual but, rather, on the overall level of conflict and dysfunction surrounding that board.
Hon Bill EnglishI raise a point of order, Madam Speaker. There is a standard in this House that when a Minister gives an answer it should be truthful. In successive answers the Minister has just contradicted himself. In this answer he said that he had no access to the draft material in the report being done by the Director-General of Health. In a previous answer he intimated that material was going to come out showing that someone had altered the minutes of no doubt some significant meeting. He cannot say both things to the House within 3 minutes—first, that he does not know about the material, and then, on the other hand, give details and quote from that material.
Hon Dr Michael Cullen Link to this
The Minister clearly said he had not received details. In his previous answer he said he would welcome the report appearing, and he would expect that the report would show exactly who doctored what. I note the highly sensitive reaction from the Opposition front bench on that matter.
Dr Cullen’s explanation is completely irrelevant. The fact is the Minister made two directly contradictory statements about his access to the material. The House has the right to know which one it should believe, because it cannot believe both.
Hon Dr Michael Cullen Link to this
Mr English himself tried to cover his own butt by saying the Minister intimated certain things. What in fact happened was that members on the Opposition front bench inferred certain things, which might imply certain knowledge on their behalf.
Madam SPEAKERThis is a matter of debate, it is not a point of order, and undoubtedly there will be opportunities to do that.
Does the Minister recognise that the email from Mr Hausmann proposing changes to the tender document, to his advantage, is a smoking gun showing that there is something rotten and improper in the relationship between the management of this district health board and Mr Hausmann, and does he condone this sort of activity within a public organisation?
Hon DAVID CUNLIFFE Link to this
When the director-general’s review is finally published, having been delayed by the board acting at the request of the chairman, I think we will see which smoking guns are pointed at whom.
Does the Minister realise that this stench of cronyism all began because of Annette King’s foolish and senseless promotion of Mr Hausmann, and does the Minister have any idea why Annette King was so keen to appoint this man?
Hon DAVID CUNLIFFE Link to this
Any appointments that may have been made before my time as Minister are of little concern to me in this instance. I have acted—[ Interruption]
Hon DAVID CUNLIFFE Link to this
I have set out the grounds of my decision in respect of the Hawke’s Bay District Health Board upon taking careful advice and considering all possible options. Those grounds have nothing in particular to do with the appointment to which the member refers.