KEY POINTS:
The Government was still prepared to do business with the labtesting company former Auckland District Health Board member Tony Bierre had an interest in, despite calling his actions duplicitous, the National Party said.
Prime Minister Helen Clark said in Parliament yesterday that Dr Bierre's behaviour had been "quite
duplicitous".
But National health spokesman Tony Ryall said that despite her protestations, her Government could end up doing business with the company he was involved in which was retendering for the service from July 1.
"... should the DHBs involve themselves in any future contracts for laboratory services involving Dr Bierre in light of the Prime Minister's description of him today?" Mr Ryall asked.
He questioned whether it was okay to award a contract to someone who had used inside information and who the Prime Minister had said could have been involved in illegal activity.
The High Court has overturned the decision by Auckland, Waitemata and Counties-Manukau district health boards to reassign pathology services from Diagnostic Medlab to Labtests.
In a reserved decision, Justice Raynor Asher ruled that by accepting a proposal from Labtests, which included Dr Bierre, there was a conflict of interest and the DHBs failed to ensure that the tendering process was conducted fairly.
Health Minister Pete Hodgson said the court case had created a level playing field.
National leader John Key also questioned the Prime Minister in Parliament on when she had first learned of the potential conflict of interest.
She said she had raised the issue earlier with Mr Hodgson who had told her the Ministry of Health had advised him "they didn't see a problem and I think we need to look at the quality of that advice".
Dr Bierre has said he did not mislead the Auckland regional DHBs and had declared the potential for conflict of interest at all times.
The Prime Minister said Dr Bierre had to be asked to stand down from the board in December 2005 rather than do so voluntarily.
Mr Hodgson said the faults did not lie with Dr Bierre alone but had he behaved "as one might have hoped" there would not have been a conflict of interest.
Mr Ryall said part of the judge's ruling said that on becoming aware Dr Bierre might be involved in a bid in December 2005, the DHBs should have refused to entertain any such bid, but three Government appointees on the board had signed the contract.
Mr Hodgson said those members, including Auckland DHB chairman Wayne Brown, had received a written opinion from the Audit Office to say "all was well" and from their lawyers to say "all was more than well".
Helen Clark said the DHBs had to secure labtesting services from July 1, but that the process for contracting would have to be a lot better than in the past.
Green MP Sue Kedgley said that by allowing Labtests to retender, the message to public servants could be to conceal their conflicts of interest and use their public positions for private gain.
- NZPA
