Franks Stephen: Standing Orders—Sessional 
Franks Stephen: Standing Orders—Sessional 
[Volume:614;Page:10330] 
Dr MICHAEL CULLEN (Leader of the House) 
: 
 I move  
That Air New Zealand Limited be a public organisation for the purposes of the Standing Orders.  
This is a relatively simple motion. It is in response to a number of concerns raised by a number of members of the House. I think particularly Peter Dunne raised this issue most clearly at the first instance since the Government took a substantial controlling interest in Air New Zealand. Nevertheless because Air New Zealand has not been a public organisation for the purposes of the Standing Orders it has not been possible for the select committee and indeed Parliament as a whole to have a proper examination of the way in which the Crown shareholding is being operated within Air New Zealand and related matters. 
So for the purpose effectively of Standing Orders 329 330 and 334 which deal with financial review processes in particular this motion means that Air New Zealand becomes a public organisation for the purposes of those Standing Orders. That means the annual report is tabled and that annual report stands referred to the committee conducting a financial review of the performance of the organisation. Also that report and the matters contained therein is part of the annual debate on the performance of Crown entities public organisations and State enterprises. I think members will appreciate that this will be a little bit different from dealing with a State-owned enterprise or a Crown entity where the Government has a 100 percent shareholding because the interests of minority shareholders will mean that probably there will be a somewhat different approach required on the part of the organisation itself. It is those interests—the minority interests of shareholders—that also have to be protected. 
But certainly speaking personally as the Minister who holds the shares on behalf of the Government it is perfectly appropriate that I should be subject to scrutiny by the select committee if required in terms of the way in which that shareholding itself has been exercised. Of course I would issue a prudent warning to all members that as a shareholder I am bound by the Companies Act the Securities Act and various other things and people may wish to ask me questions about matters that I cannot possibly be held responsible for. Indeed if I made myself responsible I would be in breach of statute and find myself a deemed director. So I simply suggest to members that if they wish to ask why they have not got more flights from their home centre to Wellington the standard of food or the lack of it these days on Air New Zealand or other matters I am afraid those are very much management matters and not matters that the shareholding Minister can be held responsible for. Indeed the Minister is specifically debarred from being involved in those sorts of matters much to my regret since the Monday morning flight from Napier is usually the one that most gets delayed in order to allow the 737s to land from Christchurch and Auckland at the same time. 
Stephen Franks 
: Explain this to your junior whip. She does not know what shareholders do and what directors do! 
Hon Dr MICHAEL CULLEN 
: I am sure my junior whip does but of course she is not a shareholding Minister. Therefore she is not subject to the same constraints as the shareholding Minister is in this respect. There is a certain sense in which when one becomes a shareholding Minister certain parts of one’s political anatomy are caught so to speak—cut off—and one finds oneself with a somewhat higher register in approaching these matters than other members of Parliament. 
So I commend the motion to the House. I think it is an important move that Parliament is able to scrutinise the activities of Air New Zealand in this respect and indeed of the role of the Government as an 83 percent shareholder in the company.