Smith Nick: Debate on Prime Minister’s Statement 
Smith Nick: Debate on Prime Minister’s Statement 
[Volume:606;Page:3444] 
Hon Dr NICK SMITH (NZ National—Nelson) 
: 
 Under Standing Order 343 I wish to make a personal explanation in respect of allegations made by Mr Trevor Mallard the Minister of Education. Earlier in the afternoon the Minister of Education seriously questioned my integrity in respect of a Government decision in 1999 to fund a literacy recovery programme for disadvantaged children run by the Pipi Foundation. Under the Official Information Act I have sought copies of the briefing papers and Budget documents from that time to refresh my memory of the exact events. 
It is of serious concern to me that Mr Mallard has refused me access to those papers. That has compromised my ability to respond to both his speech in the House today and to the allegations he made prior to Christmas. That sets a very unfortunate precedent about the ability of previous Ministers to answer questions about their own papers. However I do wish to make the record clear with regard to my involvement in the decisions that led to the Budget decision in 1999 that made provision for the Pipi Foundation.  
When I was appointed Minister of Education on 1 February 1999 the Budget process was well under way. There were about 50 individual bids involved in the process including of course at that time a disruptive secondary teacher pay round. Included in the proposals when I became Minister were a number of small grants and bids for non-Government organisation programmes including the Pipi Foundation the Pacific Foundation Alan Duff’s Books in Homes trust Project K and E Tipu E Rea. 
The Budget process for each of those bids was the same. At no time did Donna Awatere Huata to my best recollection directly raise with me the subject of funding for the Pipi Foundation. I do recall discussing with her the issue of literacy and the broader campaign to lift standards among disadvantaged Maori children. At no time did Mrs Awatere Huata threaten me nor did I have any knowledge of her threatening to withdraw her vote to support the Government on the basis of funding for the Pipi Foundation. My decision to support the Budget bid for the Pipi Foundation as with the other non-Government trusts was on the merits of the proposal. I did not meet Mrs Awatere Huata about the Pipi Foundation nor did I meet any other member of the Pipi Foundation trust. My support was based on a written proposal from the Pipi Foundation and discussions with officials about that proposal. Yesterday I received a copy of ACT’s privileges complaint to the Speaker. It includes a most inappropriate letter from Mrs Awatere Huata to the then Minister of Finance Bill Birch— 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: I caution the member that he is unable to refer to the privileges complaint. 
Hon Dr NICK SMITH 
: I only refer to it in respect of a copy of the letter coming into my possession and how that affects the allegations made by Mr Mallard. I want to make plain— 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: It should not be referred to on the floor of the House at all. 
Hon Dr NICK SMITH 
: I never saw the letter sent to Mr Birch at that time or knew that it existed. I have subsequently spoken to Mr Birch who well recalls receiving it and being very angry about the appropriateness of it. I did in a telephone conversation with ACT deputy leader Ken Shirley indicate my enthusiasm for the Pipi Foundation programme. I expressed concern to Mr Shirley about the association of Mrs Awatere Huata with the Pipi Foundation and that the trust needed to ensure that it was quite independent. I had similar discussions with Ministry of Education officials and made plain that the Pipi Foundation should not be accorded any lesser accountability because of Mrs Awatere Huata’s status as a member of Parliament.  
I do recall later in the year at a regular meeting of ministry officials that the matter of the Pipi Foundation was raised. Concerned was expressed by officials that undue pressure was being applied over a contract issue with the implied threat that the foundation would use Mrs Awatere Huata’s position to overrule officials on those contractual issues. I assured officials that I would stand by them and again stated that the Pipi Foundation should be treated no differently from any other organisation. It is noteworthy that officials later in the year at the change of Government did not draw to the new Minister’s attention any concern over the propriety of the funding contract with the Pipi Foundation. That certainly would have occurred if they had been concerned that I had acted inappropriately and that the funding was being allocated for political rather than genuine reasons.  
I also note that this Government has increased the funding for the Pipi Foundation which is quite inconsistent with the allegations made by Mr Mallard that the previous Government funded the Pipi Foundation for political reasons only. I wish to unequivocally state that my support for the Pipi Foundation’s reading programme was based solely on the merits of the programme. I am appalled at reports that money intended for assisting children’s learning has been hijacked for other purposes such as fashion shows private telephone accounts unrelated business expenses and personal operations. 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: The member is getting off the personal explanation. 
Hon Dr NICK SMITH 
: Those reports raised very serious questions about the standard in reporting of non-Government organisations thus my strong support for the inquiry of the Auditor-General and the Serious Fraud Office. If Mrs Awatere Huata benefited financially in any way from that funding then she brings her party and this House into disrepute. 
The ASSISTANT SPEAKER (H V Ross Robertson) 
: No no. I caution the member. It is a personal explanation.