Finance Minister Nicola Willis had until recently removed herself from decisions relating to Genesis Energy, one of the country’s main gentailers, citing a potential conflict between her responsibilities and a “personal interest”.
However, according to a register of ministerial conflicts of interest released by the Cabinet Office, that personal interest had ended by June 27. Willis then resumed responsibility for decisions, in her Minister of Finance role, relating to Genesis.
The list of potential conflicts of interest covers those in which actions were taken to manage them between January 1 and June 30. It is intended to show the public what actions are being taken to address potential conflicts.
However, there is limited detail provided about the nature of the conflicts, other than saying whether it is personal, relates to financial interests or to a minister’s role as an MP.
In light of this week’s package of actions on energy, which Willis announced at a press conference and included her writing to Genesis, Meridian and Mercury about the Government’s willingness to provide capital support, the Herald asked her office what led to the ending of her personal interest.
“Like all ministers, minister Willis identifies and manages her conflicts of interest in accordance with the Cabinet Manual guidance,” a spokesman said.
“A family member of minister Willis had an interest relating to Genesis Energy that ended in June this year. Before that date, she did not participate in decisions specific to Genesis Energy, in accordance with the transfer of responsibility in place at the time.”
The office said this did not relate to her involvement in energy policy more generally.
Before Willis’ potential conflict lapsed, responsibility for decisions relating to Genesis was given to Associate Finance Minister David Seymour on April 29 last year.
However, Willis did have another potential conflict of interest between responsibilities as Finance Minister for matters “relating to financial support for the oil and gas sector and a personal interest”. The register provided no more details on the nature of the personal interest.
Her responsibility for these matters was transferred to Chris Bishop, another Associate Finance Minister. Actions taken to manage the potential conflict included officials reporting to Bishop about the matter, and Willis not receiving Cabinet papers solely about this specific topic. Any general paper would note Willis’ interest.
If the matter was to be raised at the Cabinet or other meetings, Willis would declare her interest and withdraw from the meeting, or seek agreement from her colleagues to take part.
Willis fronted this week’s energy announcement alongside Energy Minister Simon Watts, explaining that one of the steps she was taking to address concerns about power generation was writing to the gentailers – including Genesis – to reassure them that capital was available to support investment.
She released that letter, which said a review of the electricity market by consultancy group Frontier Economics had stated that the mixed-ownership model companies – Genesis, Mercury and Meridian – had “faced constraints on their ability to invest in larger generation projects”.
That was attributed to a “perception that the Government would not provide equity injections to support those investments”, which Willis said was an “incorrect” perception.
Where proposed projects supported energy security and affordability, the Government was open to participating in equity capital raisings by the gentailers.
Willis told reporters that the gentailers welcomed the signal from the Government, and she was confident “there will be plans being taken out of drawers and reimagined that would otherwise be gathering dust”.
She said the gentailers had not approached the Government earlier to ask about capital injections.
The Cabinet Office list said nine ministers had potential conflicts in which actions were taken during the period, relating to various matters and of different natures. Very little detail was provided about them.
“The actions listed in the table are standing arrangements and may cover multiple instances when responsibility was exercised by another minister or papers were not received. It is also possible that there have been no such instances because the particular issue has not arisen in practice.”
Each minister’s potential conflicts were being managed, including the transfer of responsibility over specific matters to other ministers.
Judith Collins had a potential conflict between a personal interest and her responsibility as Public Service Minister for decisions on exceptions to the fees for panel members under the Fast-track Approvals Act.
A potential conflict was identified for Nicola Grigg between her responsibilities as Associate Minister for ACC and as the MP for Selwyn.
Bishop had a potential conflict as Transport Minister between decisions relating to Wellington International Airport and a personal interest.
Paul Goldsmith had a potential perceived conflict between his responsibilities as Arts, Culture and Heritage Minister and a personal interest. One of the actions taken to manage this was to transfer responsibilities for matters relating to appointing the chair of the Te Papa board to Bishop.
A perceived potential conflict was identified between Tama Potaka’s responsibilities as Associate Housing Minister and his former roles at Karioi Nui Trust and as chief executive of Ngāi Tai ki Tāmaki.
There was also a potential conflict between Potaka’s responsibilities as Māori Development Minister in relation to Treaty settlements and his former role as negotiator for the Mōkai Pātea Waitangi Claims Trust. Matters relating to the trust were transferred to Chris Penk.
A third potential conflict for Potaka related to his responsibilities as Māori Development Minister and a personal interest. The register says matters relating to the appointment of a chair of the Te Māori Manaaki Taonga Trust Board were transferred to Shane Reti.
As the Herald previously reported, Scott Simpson had a potential conflict between his responsibilities as Commerce and Consumer Affairs Minister and a personal interest. This was because close family members own a supermarket, a sector typically covered by his portfolio.
Shane Jones has a potential conflict between his responsibilities as Regional Development Minister and a personal interest, described as iwi and family connections to Te Aupōuri and Ngāi Takoto.
Matters relating to applications by Te Aupōuri or Ngāi Takoto to the Regional Infrastructure Fund, and any arrangements entered into as a result of those applications, were transferred to Potaka.
Jones’ responsibilities as Oceans and Fisheries Minister for matters relating to aquaculture settlements for the Northland region, including gazetting Aquaculture Settlement Areas or making aquaculture settlement offers from the Crown, were also transferred to Potaka. This was also due to connections to Te Aupōuri and Ngāi Takoto.
Penk has a potential conflict between his responsibilities as Land Information Minister and his role as the MP for Kaipara ki Mahurangi. He transferred responsibilities to Penny Simmonds for decisions on several roading projects, a proposed cemetery and matters relating to the Public Works Act in his electorate.
Jamie Ensor is a senior political reporter in the NZ Herald press gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office. He was a finalist this year for Political Journalist of the Year at the Voyager Media Awards.