New Zealand’s ruling Labour Party has lost a third minister in the space of three months, weakening its claim to be a safe pair of hands ahead of a general election in October.
(Bloomberg) — New Zealand’s ruling Labour Party has lost a third minister in the space of three months, weakening its claim to be a safe pair of hands ahead of a general election in October.
Senior cabinet minister Michael Wood has resigned his portfolios after the discovery of conflicts of interest, Prime Minister Chris Hipkins said Wednesday in Wellington. Wood, who was stood down as Transport Minister earlier this month after disclosing he owned shares in Auckland International Airport, also holds shares in other companies, Hipkins said.
“When I stood Michael down as Transport Minister, I asked him if there was any other relevant information I should know about and he indicated there was not,” Hipkins said. “It has become evident, therefore, that not adequately managing the airport shares was not an isolated incident and it is not appropriate for Michael to continue as a minister.”
Wood’s demotion follows the demise of Stuart Nash, who was removed as a minister in March after it was revealed he disclosed confidential cabinet decisions to donors. In May, Customs Minister Meka Whaitiri quit Labour to join the tiny Māori Party.
Labour is currently neck-and-neck with the main opposition National Party in opinion polls, with the election to be held on Oct. 14.
Hipkins said he was alerted yesterday to Wood’s additional shareholdings, held in a family trust of which he is both a trustee and a beneficiary. “These new shareholdings raise significant concerns around Michael not identifying and managing potential and real conflicts of interest,” he said.
In particular, the trust holds shares in telecommunications companies Chorus and Spark.
As Minister of Immigration, Wood made the decision to include telecommunications technicians on the immigration Green List. This followed representations from the telecommunications industry, including Chorus, seeking those changes, Hipkins said.
Wood also has a shareholding in National Australia Bank, the parent company of the Bank of New Zealand.
“That was not disclosed in any of the conversations Cabinet had around a market study into banking or other relevant Cabinet conversations,” Hipkins said.
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