Key John: Questions for Oral Answer — Questions to Ministers 
Key John: Questions for Oral Answer — Questions to Ministers 
[Volume:632;Page:4060] 
3.  
JOHN KEY (National—Helensville) 
 to the  
Minister of Finance 
: Does he stand by his statement that “I absent myself from any discussions on aviation regulation. I leave the Cabinet room or the Cabinet committee room if any of those matters arise.”? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 Absolutely yes where any such matter relates to my interest as the shareholding Minister in Air New Zealand. 
John Key 
: Does the Minister consider it would be natural to assume as Treasury did that if he and the Minister of Transport were meeting the chairman and chief executive of Air New Zealand there was a possibility that the subject of code-sharing would be raised; if not why not? 
Hon Dr MICHAEL CULLEN 
: No. Treasury advises me on a whole range of issues and the member himself yesterday specifically accepted Mr Palmer’s assurance that the matter of code-sharing was not discussed at the dinner. 
Shane Jones 
: How is the Minister dealing with possible conflicts of interest arising from aviation regulation and the Crown’s shareholding in Air New Zealand? 
Hon Dr MICHAEL CULLEN 
: To ensure that no conflict arises in that respect my functions as Minister of Finance in relation to regulations are delegated to the Associate Minister of Finance Phil Goff. Regulatory matters are dealt with by the Minister of Transport. Of course in the mirror image if matters were to arise at Cabinet relating to the ownership interest in Air New Zealand then the Minister of Transport would take herself out of the room. 
John Key 
: Is the Minister aware that the  
Cabinet Office Manual 
 is clear that an apparent conflict of interest may be as significant as an actual conflict of interest; if so how does he try to identify and mitigate apparent conflicts of interest in his ministerial roles? 
Hon Dr MICHAEL CULLEN 
: If there is any doubt around those matters advice is taken from Cabinet Office staff. That has always been the practice and continues to be. 
John Key 
: Does the Minister think that when the dinner at the Boulcott Street Bistro was being arranged he had in front of him the potential for a conflict of interest or the perception of a conflict of interest in the public’s eyes given the roles of the people who were invited to attend that dinner; if not why not? 
Hon Dr MICHAEL CULLEN 
: No because I was aware that what was being particularly discussed were matters in relation to tourism promotion—Air New Zealand’s concerns around that—and some related matters to that. I think that if the member ever gets his head around asking me the right question he might find out what the Government itself is discussing in that context. 
John Key 
: Did the Minister take any practical steps to mitigate the potential conflict of interest relating to that meeting and in particular did he write to Air New Zealand and make it clear that code-sharing or any subject relating to that was under no circumstances to be raised; if not why not? 
Hon Dr MICHAEL CULLEN 
: No because both Mr Palmer and I understand our roles in that respect. If the member refers to Mr Palmer’s statement yesterday about which he accepted Mr Palmer’s word he will see that Mr Palmer is quite clear on that matter. 
John Key 
: Does the Minister think in retrospect that it was appropriate to have had that meeting with Air New Zealand in the presence of the Minister of Transport and two other Ministers with no officials present and no notes taken at a time when the code-sharing proposal was soon to be presented to the Minister of Transport for approval and when the success or otherwise of that proposal could have had a significant effect on the Crown’s investment in Air New Zealand; if not why not? 
Hon Dr MICHAEL CULLEN 
: Yes. I have meetings with Air New Zealand’s chief executive and chairman of the board from time to time and will continue to do so. I have no intention of being put off by that member who of course had a famous dinner with his leader in the Boulcott Street Bistro. It is the biggest gossip place in town so there is no such thing as a secret meeting at that bistro. 
Hon Trevor Mallard 
: Does the Minister have confidence in the integrity of John Palmer and if so will he continue to meet with him; and have the over - one dozen questions in the House from John Key had any effect on that whatsoever? 
Hon Dr MICHAEL CULLEN 
: Yes I do. I will continue to do that. No it has not. I also have confidence in Mr Rob Fyfe even though he addressed a National Party electorate meeting for Mr Key.