Collins defends judge's golden handshake

Judith Collins. Photo / Rotorua Daily Post

Acting Attorney-General Judith Collins has defended her decision to accept the resignation of former Supreme Court judge Bill Wilson with a golden handshake.

Mr Wilson's resignation was announced last month following complaints about an alleged conflict of interest regarding a case he was involved in. A judicial conduct panel was set up for the first time in New Zealand to hear the complaints, but inquiries were cut short by the resignation.

Ms Collins said during an urgent debate in Parliament today that Mr Wilson's counsel had initially approached the Solicitor-General to discuss terms under which a resignation may be tendered.

She wouldn't spell those terms out, citing confidentiality, but that they were "absolutely excessive" and unacceptable.

Mr Wilson then formally tendered his resignation on October 21, to take effect on November 5, with terms including a payment of one year's salary of $410,000, plus entitlements, and agreement that the Crown pay his solicitor-client costs - calculated at $475,000.

Labour has been critical over the way the case was handled.

MP Trevor Mallard said today a payout was inappropriate and that the case should have been allowed to run its course so the details surrounding it could be brought out into the open.

Ms Collins said had she not agreed on parting terms, the issue could well have been dragged out for over two years at huge expense.

"I was not prepared to have that happen if there was an opportunity to cut the losses as such for the Crown and taxpayer."

She pointed out that if the situation was allowed to drag on, Mr Wilson would have been entitled to full salary while on "garden leave".

Ms Collins said the Supreme Court was trying to build a reputation and an event like this was not needed.

"This has been an extraordinarily difficult time, I, however, believe I have made the right decision and that this matter had to be brought to an end."

The issue involving Mr Wilson related to a case he sat on in 2007. He was at the time on the Court of Appeal bench when Queen's Counsel Alan Galbraith appeared for the Wood Board Disestablishment Company.

The court overturned a High Court ruling awarding wool growers group Saxmere repayment of $8 million in levies from the former Wool Board.

Allegations were made that Justice Wilson did not disclose his business relationship with Mr Galbraith.

They were co-owners of Rich Hill Ltd, which owned the site of Rich Hill thoroughbred stud, part-owned by Mr Galbraith. There were allegations that Mr Wilson owed Mr Galbraith $242,804, which was not disclosed to the Court of Appeal hearing. The debt was denied by Mr Wilson.

The case was still subject to court scrutiny and a judicial inquiry when Mr Wilson resigned.

Ms Collins said if there were any positives to take from the issue, it was that the public could have confidence that there was scrutiny at the highest level of the New Zealand judiciary. She said she hoped issues around pecuniary interest within the justice system would be sorted out.

- NZPA