Parliament

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

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>

 

Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>

ALSO:

Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election