6. Heron Report—AllegationsDr MEGAN WOODS (Labour—Wigram) to the Minister supporting Greater Christchurch RegenerationHeron Report—Allegations6. Dr MEGAN WOODS (Labour—Wigram) to the Minister supporting Greater Christchurch Regeneration: Will he be initiating further examinations of the alleged potential conflicts of interest suggested in paragraph 3.40 of the Heron Report; if not why not?Hon GERRY BROWNLEE (Minister supporting Greater Christchurch Regeneration): The allegations mentioned in paragraph 3.40 of Mr Heron's report came late in his investigations by the two gentlemen who have now been referred to the Serious Fraud Office. However all allegations are taken seriously and the Chief Executive of the Department of the Prime Minister and Cabinet as the successor agency to the Canterbury Earthquake Recovery Authority (CERA) is currently looking into the matters raised in paragraph 3.40 of Mr Heron's report. Should he discover anything of note or concern then he would report back to the State Services Commissioner who would have the responsibility to enact a further more detailed investigation. I consider at this point that that is an appropriate course of action.Dr Megan Woods: What are the specific allegations about the additional three former CERA employees who Andrew Kibblewhite today revealed are being investigated and do the allegations relate to property transactions?Hon GERRY BROWNLEE: There are no specific allegations made that I have seen. There were allegations raised by the two gentlemen who have now been referred to the Serious Fraud Office and when Mr Kibblewhite has completed his investigation I expect he would report them to me.Dr Megan Woods: Does he accept that these allegations and the referral to the Serious Fraud Office came about only because of an investigation by the media; if so why were they not picked up and investigated further until the media reported on them?Hon GERRY BROWNLEE: That is a very good question. Throughout the life of CERA there were several agencies monitoring its performance. From the very outset I engaged with the Auditor-General's office to ensure that there was oversight of large amounts of public money in an environment that was hurriedly put together. I note that through those years CERA was in front of select committees on numerous occasions and quite clearly had there been any widespread public concern about activities—in other words systemic problems in the organisation—I am sure that members would have brought it up at those reviews.Dr Megan Woods: Will he then give an assurance that these individuals now six in total are the only CERA and/or Ōtākaro employees who may have engaged in activities that may constitute a conflict of interest or fraud; if not why not?Hon GERRY BROWNLEE: Given the many mays" that were in that question I would have to say it borders on the hypothetical. The reality is that there are investigations taking place because two gentlemen now referred to the Serious Fraud Office in the later stages of the investigation they were under spun around and pointed the finger at others. They will be investigated.Dr Megan Woods: Has he read the Press editorial today that said that Cantabrians had been badly let down; if so is this not justification enough to ensure that this is not the tip of the iceberg and launch a wide-ranging investigation?Hon GERRY BROWNLEE: I want to confirm for the House that it is many years since I read any editorial published in the Press."