Cullen's meal with airline sparks claim of conflict

Michael Cullen

Finance Minister Michael Cullen's dinnertime conversation came under parliamentary scrutiny yesterday, with National claiming he could have faced conflict-of-interest issues amid the small talk at a meal with senior Air New Zealand representatives.

Dr Cullen and fellow ministers David Parker, Lianne Dalziel and Damien O'Connor met Air New Zealand chairman John Palmer, board member Ken Douglas and chief executive Rob Fyfe at Wellington's Boulcott Street Bistro on March 13.

National finance spokesman John Key said yesterday that such a meeting was unwise as the airline could have raised its proposed code-share deal with Qantas.

Dr Cullen is a shareholding minister in Air New Zealand.

Mr Parker, as transport minister at the time, was responsible for the still-pending decision on whether the code-share deal, under which the airlines would sell seats on each other's aircraft, should proceed.

"The issue [is] that it was probably unwise of them to have that meeting in that way because it implies that it's sort of over the line," said Mr Key.

Dr Cullen told Parliament yesterday that code sharing was not discussed during the dinner.

He had delegated aviation issues to Associate Finance Minister Phil Goff, and did not remain at any meetings where those matters were discussed.

But, asked Mr Key, "practically, how difficult would it have been if the issue had turned up in the middle of the main course? Would he have gone and stood in the bar for two hours while they discussed it?"

Mr Palmer said the dinner was an informal gathering of ministers with portfolios relevant to Air New Zealand rather than a formal business meeting, and no records were kept.

"I can absolutely confirm that the issue of the code-share application was not discussed.

"The issue of the Tasman, and particularly the impact of Emirates [Airlines] on the Tasman, was certainly discussed, but the issue of the code share was not discussed ...

"It's unthinkable almost in my view that that issue would be discussed at a meeting like that."

Mr Palmer said the controversy seemed to stem from an announcement by airport investment firm Infratil on June 19, which said four ministers had met him and Mr Fyfe on the code-share application.

"That statement is false and grossly misleading," said Mr Palmer.

He said Air New Zealand had demanded that the Securities Commission and Stock Exchange take action against Infratil for the "deliberate release of false and misleading information".

Grant David, a lawyer from Chapman Tripp advising Infratil on the code-share proposal, said the June 19 statement was based on information released to it under the Official Information Act.

"We could have been more specific if there had been more fulsome releases by the minister of what transpired at the meeting of March 13."