Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Statement to the Australian media by Dr Cullen

14 September 2001

Statement to the Australian media by Dr Michael Cullen

There is some anti-New Zealand sentiment emerging in the aftermath of the Ansett failure. Air New Zealand will no doubt account for its actions. I want to make it clear that actions – or more specifically alleged inaction – by the New Zealand government in no way contributed to the demise of Ansett.

The facts are relatively clear. On 19 June, Singapore Airlines and Air New Zealand entered into a memorandum of understanding that envisaged a share placement followed by a rights issue, designed to raise about $850 million of new equity.

As events have unfolded, it has become clear that that amount would not in the remotest sense have been sufficient to allow the group – with Ansett – to continue trading and to restructure along profitable lines.

That, though, is history. It is important to make two points.

Firstly, the April memorandum of understanding was not binding. The money would not have been put in without Directors agreeing and finalising a strategy and Singapore Airlines completing due diligence. It is now clear that process would have resulted in a radical review of Air New Zealand’s capital requirements.

Even if it had not, time was not on the side of a quick decision. Air New Zealand shareholders would have to have approved the new share issue. The Directors of the company would then have had to initiate an internal due diligence process, and issue a prospectus. Shareholders would then have been given time to decide on whether or not to take up their rights and subscribe to the extra shares.

The company, not the government, estimated that the earliest a rights issue could have been concluded was mid to late November.

The decisions taken this week have in fact speeded up, not delayed, a decision, and by a substantial two month margin.

The facts are that the problems go back a long way. They have been compounded by recent events, both in the wider economic environment and in the aviation industry. Activity on this side of the Tasman has not materially impacted on the viability of Ansett.

Dr Michael Cullen
New Zealand Finance Minister

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news