Government backs down over Groser role

The Government will now allow National Party candidate Tim Groser to stay on as head of a crucial WTO committee until shortly before the election - a partial retreat on its previous hardline position.

After indicating it wanted him dumped from the chairmanship of the World Trade Organisation agriculture negotiations committee, the Government has adopted a more conciliatory tone, telling the WTO it would be as helpful as possible if the trade body wished to retain Mr Groser's services "for a time".

A spokesman for Prime Minister Helen Clark last night rejected suggestions the Government had backed off its earlier insistence that Mr Groser be removed as chairman.

However, the new position - conveyed in a letter to the WTO General Council - appears to be an attempt to end the stand-off with Mr Groser, which risked causing New Zealand potential embarrassment and left the Government open to criticism that it was petty politicking at the expense of the national interest.

Although Mr Groser has resigned as ambassador to the WTO, he had wanted to continue chairing the committee through the Doha Development Round of trade talks until December, when ministers of WTO countries are due to meet in Hong Kong.

Removal from the chairmanship is in the WTO's hands, not the Government's.

The latest development appears to be a compromise with Mr Groser staying until the trade bureaucrats break for their holidays in August - but no longer.

The Prime Minister's spokesman described the latest arrangement as a "transitional phase" and emphasised the Government had set an outside limit on Mr Groser staying in Geneva.

National Party leader Don Brash said he hoped the latest developments were a sign Helen Clark was "coming to her senses".

"National has said all along that this issue is far more important than party politics."

When it was announced on Sunday that Mr Groser was quitting as ambassador to the WTO to stand as a list candidate for National, Trade Negotiations Minister Jim Sutton accused him of "betrayal", saying he was putting political interest ahead of national interest.

Helen Clark said on Monday that the Government would tell the WTO it did not have trust and confidence in Mr Groser continuing as committee chairman.

"Whether the WTO would want to go down the track of employing someone who can't enjoy the confidence of a member state and has resigned as ambassador is something the WTO would need to consider."

Yesterday, Canada's chief agricultural negotiator, Steve Verheul, said on National Radio that the WTO's chances of concluding an agreement among 148 countries to free up trade in agricultural products would be damaged if Mr Groser did not stay on.

Mr Verheul spoke highly of Mr Groser, saying he had done far more than would be expected from an ordinary chairman.

"I think if we didn't have Tim in the chair, our chances of success will be significantly diminished ... "

WTO discussions in Geneva about Mr Groser's position as chairman, and the implications of him entering politics, are likely to go on for several weeks.