Sowry Roger: Questions for Oral Answer — Questions to Ministers 
Sowry Roger: Questions for Oral Answer — Questions to Ministers 
[Volume:606;Page:3432] 
9.  
Hon ROGER SOWRY (Deputy Leader—NZ National) 
 to the  
Minister of Finance 
: Does he stand by his statement in the House on 8 October 2002 regarding a partial sale of Air New Zealand to Qantas “If he means whether I have in an official capacity received advice that there is such a proposal the answer is no.”? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 Yes. 
Hon Roger Sowry 
: How can the Minister reconcile that answer with the fact that he received on or about 10 May 2002 Treasury Report No. 2002/648 entitled:  
Air New Zealand Update on Proposal for Strategic Partner 
—a report that contained the annexe titled “Air New Zealand - Qantas Proposal for a Strategic Partnership”; and is the reason the proposal was not advanced along the lines of the timetable detailed in the report—which suggested that a decision would be made in late July—due to the fact that the Government had no intention of going about that before the election? 
Hon Dr MICHAEL CULLEN 
: Absolutely not! If the member would care to actually talk to people in Air New Zealand they might care to tell him that negotiations were not concluded until 24 November. 
Hon Peter Dunne 
: Does the Minister recall his comments to  
The 
Australian 
 in January of this year that “a horror scenario” would be disagreement between competition watchdogs which could squash the proposed Qantas - Air New Zealand deal; and if he does recall that will he advise the House whether in the light of that “horror scenario” coming to pass the Government will direct Air New Zealand to withdraw from the proposed arrangement? 
Hon Dr MICHAEL CULLEN 
: If that scenario comes to pass the proposal will fail because it requires the consent of both regulatory authorities. 
David Parker 
: How did the proposal evolve and when was it presented to you as holder of the Crown’s stake in Air New Zealand? 
Hon Dr MICHAEL CULLEN 
: As is well known Air New Zealand and Qantas were in discussions for most of last year and there was a great deal of speculation surrounding those discussions. The fact they were occurring was scarcely a secret. The papers released by the Government yesterday show that as late as August when Treasury was invited there was still “some uncertainty as to whether proposals will eventuate at all”. Members should note the meaning of that language. As I said before I understand that the final details were concluded the night before the proposal was submitted to the Government on 25 November. 
Hon Roger Sowry 
: If the Government was not concerned about this proposal being advanced before the election why was the proposal to sell part of Air New Zealand to Qantas christened by the Government “Project Vanilla” and Qantas given a code name of “K”?  
Hon Dr MICHAEL CULLEN 
: The Government never christened anything “Project Vanilla”—[ 
Interruption 
] No that is what Air New Zealand described the project as being. The Government was entirely “tasteless” in those matters.  
Rodney Hide 
: Was the real reason for denying any knowledge of this deal the fact that the Minister had been advised back in May about the upcoming election; and if it was not the upcoming election given that the papers clearly show that what he told this House and the public of New Zealand was false—[ 
Interruption 
]  
Mr SPEAKER 
: I am sorry. I will ask the member to restate his question. I will be now listening carefully. 
Rodney Hide 
: Was the reason that this Minister denied any knowledge of a deal that he had been advised of as far back as May last year the fact that there was an upcoming election—where he did not want this deal discussed—and if that was not the reason why should anyone take what he says seriously when the papers he released show that what he said is at variance with what is in the papers? 
Hon Dr MICHAEL CULLEN 
: No it is not. There was no deal in May. If there had been a deal in May— 
Hon Bill English 
: Same stupid game. 
Hon Dr MICHAEL CULLEN 
: Same stupid leader unfortunately. If there had been a deal in May Air New Zealand would have had to announce it to the New Zealand Stock Exchange. Those are the rules.  
Hon Roger Sowry 
: I seek leave to table a Treasury Report dated 10 May 2002 to the Minister of Finance and Treasurer with an annexe entitled: “Air New Zealand - Qantas Proposal for a Strategic Partnership”.  
Document by leave laid on the Table of the House.  
Rodney Hide 
: I raise a point of order Mr Speaker. I know you listened very carefully to my question. The primary question did not discuss a deal as Michael Cullen alleged; it was a proposal. That is what that Minister denied any knowledge of. That is what the papers show he had been advised of in May. 
Hon Dr MICHAEL CULLEN 
: Speaking to the point of order I point out that the member’s question asked about a deal. I suggest he consult his own notes.