NZ Post retreats from appeal

By FRANCESCA MOLD political reporter

New Zealand Post has abandoned plans to appeal against a High Court judge's refusal to grant a gagging injunction against Act leader Richard Prebble.

The decision is seen as an embarrassing backdown for the state-owned enterprise, which has spent thousands of dollars trying to stop Mr Prebble quoting from a leaked business plan for its People's Bank.

But NZ Post chief executive Elmar Toime said yesterday that the court action at least clearly made the point that the business plan contained commercially sensitive information which could damage the venture if made public.

"I just want to get on with building the bank now," he said.

"We've made the point as well as we can."

Mr Prebble has promised not to reveal commercially sensitive details from his leaked copy of the plan.

But he said it was important for him to be able to use the document to challenge Government statements about the bank and its viability.

Mr Toime said NZ Post decided not to appeal because Justice Warwick Gendall's ruling had been "reasonably definitive."

On Friday, Justice Gendall said that issuing an injunction against Mr Prebble would be futile and serve no useful purpose.

The judge said Deputy Prime Minister Jim Anderton had consistently used details from the plan, including financial data, to promote the bank.

It was unfair to restrict other MPs from debating the same matters, especially in relation to spending of public money, he said.

Mr Prebble said he was relieved and delighted that the appeal had been dropped.

Last week, the Act leader said that in terms of public opinion, NZ Post was on a "hiding to nothing" for pursuing him with court action.

Asked whether the publicity about the court case had damaged the prospective bank, Mr Toime said it was a danger.

"But I can't judge and I haven't had enough feedback to make that assessment."

Mr Toime said the NZ Post board had been informed of the decision not to appeal by chairman Ross Armstrong.