Hawke’s Bay District Health Board—Conflicts of Interest

Hon DAVID CUNLIFFE Link to this

Quite clearly, because the primary focus of this report was on governance and the relationship between governance and management—in this case, the chief executive. One of the salient features of that relationship was that the chairman, Kevin Atkinson, was present at a presentation and, following that, a dinner at Craggy Range Winery, at which he was fully briefed on the intention of Mr Hausmann and the chief executive to discuss the request for proposal, and I understand that Mr Atkinson told the chief executive to “get on with it”.

Hon DAVID CUNLIFFE Link to this

In section 6.63 of this very comprehensive report, the independent review panel reports that Mr Peter Dunkerley sent an email to three levels of management in support of retaining the policy of “no more licences” for pharmacies, even though he had a clear conflict of interest because of the effect on existing pharmacies owned by the Radius Pharmacy chain, of which he was chairman and in which both he and his immediate family had direct pecuniary, and insufficiently disclosed personal, interests.

Hon DAVID CUNLIFFE Link to this

I am deeply concerned at the investment by the board, as it then was, in legal and public relations matters, and would have preferred its members to focus on the health care of the people of Hawke’s Bay. That is absolutely the case.

Hon DAVID CUNLIFFE Link to this

I have seen two reports, which I will shortly seek leave to table: one proposing $2.9 million of pharmacy savings for the people of Hawke’s Bay, and one consulting on proposals for more efficient pharmaceutical dispensing. I note that the former board chair, Kevin Atkinson, confirmed on Radio New Zealand National yesterday that there was, therefore, potential commercial conflict between Mr Hausmann and Mr Dunkerley, precisely because Mr Hausmann’s community services proposals might have hurt Mr Dunkerley’s pharmacy businesses.

Hon DAVID CUNLIFFE Link to this

What is important here is not what Mrs King knew but what Mr Atkinson knew. Once the appointment had been made, in full accordance with normal Cabinet processes, the responsibility for managing the conflict of interest was, as with any other board, squarely on the shoulders of the chair and the member concerned. The independent report concludes that both could have done better.

Hon DAVID CUNLIFFE Link to this

I repeat that the primary responsibility for managing conflicts of interest rested with the chair of the board, as it does with the chairs of other boards. Admittedly, in the case of Mr Atkinson, his job was made more complicated by the fact that inadequately declared commercial interests were at play across the board table that meant that Mr Hausmann was quite possibly persona non grata from day one.

Hon DAVID CUNLIFFE Link to this

As long as the member is keen to ask questions I am very keen to answer them. As I have said, the primary responsibility for managing conflicts of interest rested with the chairman. It was for the chairman to disclose what he had found out at Craggy Range Winery, and what he had told the chief executive to do—to “get on with it” and work up a community services request for proposal—and, once he had declared that to the board, to get on and manage it. Kevin Atkinson failed to do that, and no matter how much the member would like to rewrite history—just as that chairman had a habit of rewriting minutes—it does not change the facts.

I seek leave to table the transcript from Radio New Zealand National yesterday where Mr Atkinson confirms the possibility of commercial conflict across the board table.