English Bill: Questions for Oral Answer — Questions to Ministers 
English Bill: Questions for Oral Answer — Questions to Ministers 
[Volume:618;Page:13973] 
8.  
Hon BILL ENGLISH (National—Clutha-Southland) 
 to the  
Associate Minister of Education (Tertiary Education) 
: Has he had any advice from Ministry of Education officials about their role in the alleged conflict of interest situation at Christchurch Polytechnic Institute of Technology currently being investigated by the Office of the Auditor-General; if so what was that advice? 
Hon MARGARET WILSON (Acting Associate Minister of Education (Tertiary Education)): 
 I have been advised by the Ministry of Education of three interactions between the Tertiary Advisory Monitoring Unit and Christchurch Polytechnic Institute of Technology on this matter. Firstly the unit was first informed of the business arrangements between the polytech and Brylton Software during a routine visit to the polytech on 27 November 2003. Secondly within days of the conflict of interest allegations being made public on 5 and 6 May the unit contacted management staff at the polytech to advise that they would need to ensure that their processes and procedures had been appropriate and sufficient. Thirdly the unit spoke to the acting chief executive of the polytech in the week of 24 May. She again confirmed that any potential conflicts of interest had been managed in the appropriate manner. 
Hon Bill English 
: Why did ministry officials accept assurances from Christchurch Polytechnic regarding the conflict of interest when Vicki Buck the director of development at the polytech introduced her own private company to the polytech sat on a joint venture overseeing the contract between the polytech and her private company—a $15 million contract—and personally promoted the contracted courses in public; why did officials accept assurances in the light of that information? 
Hon MARGARET WILSON 
: Managing conflicts of interest is the primary obligation of the polytech not the Tertiary Advisory Monitoring Unit. Also the facts that the member mentioned in his question are as I understand it to be established and are subject to an Auditor-General’s report. 
Hon Brian Donnelly 
: What instructions has the Associate Minister given to the chief executive officer of the Ministry of Education about how such alleged conflicts of interest of staff members in State education institutions should be handled in the future or is the Associate Minister happy with how this case has been handled? 
Hon MARGARET WILSON 
: The Tertiary Advisory Monitoring Unit does not have any specific audit functions. However as I understand it the chief executive did tell the select committee—and I would endorse this—that if the Auditor-General’s report does suggest or require that changes be made to the current practices then of course we will comply with those. 
Lynne Pillay 
: What are the role and function of the Tertiary Advisory Monitoring Unit? 
Hon MARGARET WILSON 
: The Tertiary Advisory Monitoring Unit is responsible for managing the Government’s ownership interest in public tertiary education institutions. It monitors the viability of those institutions by providing early warning of potential risks and it intervenes in the event of poor financial management. It does not however have audit functions or audit powers. I am happy to table a description of the Tertiary Advisory Monitoring Unit’s roles and functions at the end of the question. 
Hon Bill English 
: What kind of ethical vacuum do the Minister’s officials operate in when they come across an arrangement whereby a senior public employee stands to gain personally millions of dollars from a contract she is overseeing with her own private company but those civil servants walk away with bland assurances; and if they were not meant to investigate it who was? 
Hon MARGARET WILSON 
: Again the member refers to facts that are yet to be established. They will be established in the Auditor-General’s report. In fact the Auditor-General’s report is the appropriate place for this matter to be decided. 
Hon Bill English 
: Why is the Minister now saying it is the Auditor-General’s job to sort this out when the Government never sought the Auditor-General’s participation and in fact he is involved because I complained and the Christchurch Polytechnic council agreed; in the light of that which public agency is responsible for the ethics of private contracting in educational institutions? 
Hon MARGARET WILSON 
: As I said the primary obligation for managing conflicts of interest is on the council. My understanding is that it did in fact call in the Office of the Controller and Auditor-General before Mr English made his complaint and the two inquiries then became one. I think it is advisable that we wait for its report because then all the facts can be put on the table.