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Will Labour Try To Rule By Political Decree?

Will Labour Try To Rule By Political Decree?

Monday 13th Dec 1999
Stephen Franks
Media Release -- Environment

ACT MP Stephen Franks today said that the gag on Timberlands resource application should run into the same law that stopped Muldoon from trying to rule by decree.

"When new Prime Minister Muldoon told employers to ignore superannuation law requiring wage deductions, because he was going to change the law, the Courts gave Muldoon the message that New Zealand was not Cuba, or North Korea.

"The Courts reminded Muldoon that in New Zealand laws are made by Parliament, not by policy slogans re-issued as political decrees.

"It is bad enough that solemn promises in the West Coast Forest Accord are being broken by the Labour and Alliance Coalition. This is not a mere change of Government hand over issue.

"All business people should be worried by a government that thinks company directors should breach their duties at the behest of a shareholder.

"The Companies Act takes the directors duty to act in good faith in the company's interest so seriously that it is unlawful for the company to even try to indemnify directors against breaching that duty (s162(4)).

"I call on the Ministers involved to disclose in full any deals they make to get Timberlands directors to connive at breaching Timberlands obligations to customers, staff and creditors," said Stephen Franks.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.


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