Labour accuses Banks adviser of clash of interests

John Banks. Photo / Jason Dorday

Labour wants the Auditor-General to investigate if Michelle Boag's roles in setting up the new Auckland Council and in John Banks' campaign for the Super City mayoralty constitute a conflict of interest.

Ms Boag, a former National Party president, is a voluntary adviser to Mr Banks as well as part of the team at recruiting company Momentum that is in charge of hiring 50 executives for the Super City council.

Momentum's proposal documents to the Auckland Transition Agency (ATA) show her as part of the project team tasked with recruiting a manager of communications and public affairs.

Labour's Auckland issues spokesman, Phil Twyford, said he would ask the Auditor-General to investigate.

"The fact is that she is intimately involved in the vetting and recruitment process for the Super City's chief spin doctor.

"They are trying to have that position filled in the next month or so, so the spin doctor will be in place pretty much for the duration of the mayoral campaign, the same campaign where she is advising mayoral candidate John Banks.

"That is a clear conflict of interest, and if she and the ATA can't see that, that raises even more serious problems," Mr Twyford said.

Ms Boag said it was ridiculous to suggest that her friendship with Mr Banks might influence her professional work.

"I don't see why I can't have a cup of tea with John Banks, who is a friend of mine, whenever I like.

"If [Mr Twyford] is suggesting that I make decisions about my professional work based on a favour I want to do for a mate, then that is defamatory. Mr Banks is one of hundreds of people who I help on a voluntary basis."

She angrily dismissed Mr Twyford's claims as a desperate politician trying to get a headline.

"If Mr Twyford said I can't work on any local government role, I couldn't work on anything because I know people everywhere."

Yesterday in Parliament, Mr Twyford asked Local Government Minister Rodney Hide if he had any concerns about a potential conflict of interest. Mr Hide said he did not, and invited Mr Twyford to write to the Auditor-General if he had concerns.

Mr Hide tried to disarm the question by saying the head of the ATA's human resources was Laila Harre, a former leader of the Alliance and a Cabinet minister in the Labour-Alliance Government in 1999 - who led the process of hiring Momentum.

Mr Banks declined to comment, except to say that there was no conflict of interest.