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Armstrong's Immediate Resignation Called For

Armstrong's Immediate Resignation From NZ Post Called For

"New Zealand Post chairman Ross Armstrong must resign or be fired before he brings this New Zealand icon to its knees," National's Finance spokesman Bill English said today.

"The outcome of last night's crisis board meeting makes it clear the board of NZ Post has no confidence in Mr Armstrong, and for good reason. Despite explicit directions from CCMAU Dr Armstrong has failed to produce a single piece of evidence to back his accusations against his own deputy chairman, Syd Bradley.

"The only thing keeping Ross Armstrong in his job is his close association with Prime Minister Helen Clark. Without her personal support Armstrong would have been sacked by now. Taxpayers are paying the price of Ms Clark's cronyism.

"The Government's failure to act means the Opposition has to act. As of yesterday the Auditor General gained new powers to investigate the governance of SOEs. I have written to the Auditor General today asking him to investigate the governance of New Zealand Post. This will be a ground breaking investigation, reflecting the serious threat to taxpayers' assets because the Government continues to indulge Mr Armstrong.

"NZ Post is far too valuable a state-owned asset to be left exposed by this sort of infighting. NZ Post is now dogged by public disagreements between board members, controversy over its overseas operations, a struggling mail operation and the albatross of the People's Bank.

"Ross Armstrong just doesn't seem to understand that the job of a board, and its chairman, is to stay out of the firing line and above reproach. Instead he constantly involves himself in operational matters and, in this latest case, matters which have brought the board into disrepute.

"The Government has never understood how business works. That is now showing up in how they run their own businesses. They need to move Dr Armstrong out to restore some credibility," Bill English said.

Ends


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