Latest Investigate claims defamatory, says Parker

Lawyers for newly reinstated Cabinet minister David Parker have written to Investigate Magazine editor Ian Wishart, saying his latest allegations are defamatory.

They also say Mr Parker was not given a reasonable chance to respond to them.

After he was sworn back into Cabinet in Wellington this morning, Mr Parker released a letter from lawyers O'Driscoll and Marks and he said all allegations would be dealt with by the firm.

Mr Parker was sworn in at Government House after being cleared of allegations that he filed a false company return.

He resigned his portfolios in March when Investigate magazine published the allegations about false documents filed with the Companies Office.

Those were investigated and last week he was cleared but the magazine last night published new allegations on its website.

They involve claims that creditors were not treated fairly and assets were wrongly distributed when a Dunedin renovation venture failed.

Prime Minister Helen Clark said there was nothing in the new allegations that had not been dealt with by the liquidator's investigation when the company Mr Parker was involved with went bankrupt.

She said: "The intention was to smear. David Parker was seen as a tall poppy -- (when) he came into the Cabinet he had important responsibilities and some people set down to do him in.

"I think, as the Companies Office examination showed, there was absolutely nothing in that; an official liquidator went right through this other business around a decade ago at least and some people just can't bury the hatchet."

She would look at whether Mr Parker would be re-appointed Auditor-General after the Otago Law Society dealt with a related complaint.

Mr Parker said the claim some creditors were treated preferentially was false and that Mr Wishart's allegations "are patently wrong".

Mr Parker said he felt he had done the right thing by working to repay creditors.

"I was the one that stayed and cleaned up the mess and am now being criticised for doing so," he said.

However, he was undecided about taking legal action. "It costs tens if not hundreds of thousands of dollars to take legal action and at the end you can end up with a barren judgment."

The lawyer's letter disputes that the allegations were put to Mr Parker and Mr Parker said he would no longer deal directly with Mr Wishart.

"Mr Wishart again pretends he put these allegations to me ... I deny wrongdoing and I am just going to deal with Mr Wishart in future through my lawyer."'

The lawyer's letter says Mr Wishart rang for comment during question time in Parliament yesterday. He rang back twice after question time while Mr Parker was in a meeting and said his deadline was 5pm.

"Your conduct concerning Mr Parker gives us no confidence that you intend to treat him fairly on any occasion," the lawyers wrote.

"Given the public controversy you are courting, we have advised Mr Parker that he should release this letter to the media who reported your assertion that you gave Mr Parker the opportunity to respond."

At this morning's ceremony, Mr Parker was sworn back in as minister of energy and minister responsible for climate change policy -- plus a new one of land information.

- NZPA