Business leaders fight it out over airline debts

By ELLEN READ

A rare public stoush has flared between two Auckland business groups.

The chief executives of the Employers and Manufacturers Association and the Auckland Chamber of Commerce went head to head yesterday over the responsibilities of limited liability companies in the wake of the Qantas New Zealand collapse.

Employers and Manufacturers Association chief executive Alasdair Thompson said New Zealand business would be appalled at comments from Chamber of Commerce head Michael Barnett that the owners of Qantas NZ should look at paying some of the debts facing long-term suppliers.

Mr Barnett made his views known on Monday in a press release and television interview.

Mr Thompson said that although Mr Barnett's compassion for those who had lost money was commendable, solutions would not be found in calling "into question the basic principles of the limited liability system on which the whole successful capitalist, corporate Western world system is based."

"Mr Barnett's comments undermine how risk capital is made available by investors to create businesses and generate employment."

Mr Thompson said it was unusual for him to publicly criticise Mr Barnett.

"I don't like taking colleagues to task - especially ones in the same business - but I have had a number of calls from business leaders who are my members who were absolutely horrified by the implicationsof what [Mr Barnett] was saying."

One small business owner who contacted the Business Herald was outraged by Mr Barnett's stance, saying that for the former Mercury Energy board member to criticise Qantas NZ directors was "like giving an axe murderer a new axe."

Mr Barnett stood by his comments yesterday, saying Mr Thompson was taking "a somewhat narrow interpretation of business in today's world."

"Governments worldwide have given businesses increased freedom, and that has to be balanced by business with increased and balanced responsibility.

"There is an increasing call to challenge some of the centuries-old business values and increasing global concern on ethical and values-based business practices. I think that in today's marketplace the mood has changed and I stand by that."

He said he was surprised and disappointed at the personal attack.

Mr Barnett has at least one ally - Economic Development Minister Jim Anderton agrees that Tasman Pacific shareholders should consider paying some of the debts.

"The amounts required are obviously substantial, but wouldn't bankrupt some of the individuals concerned. They have an ethical obligation to consider their position."

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