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Tuesday, July 11, 2023

Point of Order: Buzz from the Beehive - 11/7/23



Peeni Henare – the latest minister subjected to “conflict of interest” questions – is confident he has broken no rules

The PM would be cheered to see his doughty Associate Minister of Health, Peeni Henare, getting on with the job of appointing people to government jobs while “conflict of interest” accusations are being aired by his political opponents and some news media.

Newstalk ZB on Friday posted a report headed Senior Political Correspondent: “It’s a clear conflict” (HERE).

Yesterday the National Party released a press statement headed Min Of Health Contracts Raise New Conflict Questions (HERE) and RNZ this morning aired a report headed National accuse Labour of contract conflicts (HERE).

At issue is the propriety of contracts that went to an ad agency run by Henare’s partner.

Back in the Beehive, Henare – or his press officer – was polishing a statement about the minister dishing out three jobs.

He has announced the appointment of three new members to the Board of the Māori Health Authority.

The new members are Kim Ngarimu, Ben Dalton and Helmut Modlik.

“They will support current members in providing oversight, insight, and foresight for the organisation.”

To ensure the most appropriate people were appointed to these roles, the statement says, Minister Henare consulted the Hauora Māori Advisory Committee.

  • He wasn’t the only minister announcing appointments, although the fuss raised by the Nats might result in Henare’s appointees being subjected to closer scrutiny than the others -
  • Commerce and Consumer Affairs Minister Duncan Webb announced Pierre van Heerden has been appointed as the first Grocery Commissioner, in the latest move to improve competition in the sector. Van Heerden will join the Commerce Commission’s Board and head this new function as the regulator of New Zealand’s grocery industry.
  • Emergency Management Minister Kieran McAnulty announced further appointments to the Government Inquiry into the response to the 2023 North Island severe weather events. Sir Jerry Mateparae, who was announced as chair the week before last, will be joined on the Inquiry by John Ombler, Julie Greene and Rangimarie Hunia.
  • The Minister of Education and the Minister of Finance have appointed Jeremy Banks as Chair of the Board of Directors of the Crown-owned Network for Learning (N4L). This agency has grown from providing internet connection and a basic firewall service to schools to a purpose-driven, values-led organisation that is connecting, protecting and supporting more than 2,450 schools and 900,000 users.
Each of those appointments was posted on the government’s official website along with news – among other things – about where Foreign Affairs Minister Nanaia Mahuta is going and with whom she is talking.

Latest from the Beehive

Network for Learning appoints new Chair of Board of Directors

The Minister of Education and the Minister of Finance have appointed Jeremy Banks (Ngāti Rārua, Rangitāne ki Wairau and Ngāti Kuia) as the Chair of the Board of Directors of Crown-owned organisation,

Te Aka Whai Ora leadership enhanced with new appointments to Board

The Associate Minister of Health (Māori Health) has today announced the appointment of three new members to the Board of Te Aka Whai Ora, the Māori Health Authority.

Foreign Minister to attend ASEAN-led Foreign Ministers’ meetings

Foreign Minister Nanaia Mahuta will travel to Indonesia this week to represent New Zealand in a series of Association of Southeast Asian Nations (ASEAN) hosted Ministerial meetings in Jakarta.

Government progressing on improving outcomes and equality for women in Aotearoa

Minister of Women Jan Tinetti has submitted New Zealand’s latest report to the UN detailing the progress being made to improve outcomes, wellbeing, and equality for women in New Zealand.

First Grocery Commissioner appointed to hold sector to account

Pierre van Heerden has been appointed as the first Grocery Commissioner, in the latest move to improve competition in the sector, Commerce and Consumer Affairs Minister Duncan Webb announced today.

Foreign Minister meets with International Atomic Energy Agency (IAEA) Director General

Foreign Minister Nanaia Mahuta today met with Rafael Grossi, Director General of the International Atomic Energy Agency (IAEA) in Auckland.

Matariki excitement builds

The second celebration of Matariki as a national public holiday this Friday is being marked by increasing public support for the event, Associate Minister for Arts, Culture and Heritage Willow-Jean Prime said today.

Appointments made to Government Inquiry into North Island severe weather events response

Minister for Emergency Management Kieran McAnulty today announced further appointments to the Government Inquiry into the response to the 2023 North Island severe weather events.

No press statement has been posted on the Beehive website to address the questions raised in the National Party press statement about Peeni Henare’ and his partner.

The National Party statement released yesterday says:

Revelations that the immediate family of a senior Minister has received at least a quarter of a million dollars from a ministry for which he had responsibility – and yet no conflict of interest was declared – raises serious questions that require answers, National’s Public Service spokesperson Simeon Brown says.

“Parliamentary questions have disclosed that a company headed by the partner of Associate Minister of Health Peeni Henare, and which also employs other members of his family, has been awarded government contracts worth at least $593,000 in the past two years. At least $249,000 worth of contracts were awarded by the Ministry of Health.

“On the face of it, this represents a clear conflict of interest. Yet there is no reference to Mr Henare declaring any conflict in the public register released by the Department of Prime Minister and Cabinet.”


Brown acknowledged that New Zealand is a small country and said it was not unreasonable to expect professional and personal paths to cross.

“However, the partner and family of a Minister receiving hundreds of thousands of taxpayer dollars deserves an explanation and assurances that proper processes have been followed. It is a breach of the Cabinet Manual to not declare a conflict, and another breach to not manage it.

“The rules are very clear that even a perception of deriving benefit from a personal association with a Minister requires management.”


Brown said Labour already had an “appalling” record on managing conflicts of interest.

He recalled that this year Stuart Nash has been sacked over disclosure of confidential Cabinet information to donors, Michael Wood resigned over his failure to declare shareholdings in companies he had ministerial powers over and Kiri Allan failed to properly declare a donation linked to Race Relations Commissioner Meng Foon.

Foon was also forced to resign from his role over a separate failure to disclose interests in emergency housing.

“New Zealanders deserve answers from both Mr Henare and Prime Minister Chris Hipkins as to how such a massive conflict has been managed and whether it has been done so appropriately.”

The issues were raised by Newstalk ZB political correspondent Barry Soper, who last Friday said questions should be asked about Peeni Henare’s conflicts of interest.

National claims contracts around Covid and Smokefree New Zealand went to Henare’s partner’s ad agency.

Soper told Heather du-Plessis Allan that because Henare is Associate Health Minister, it’s a clear conflict.

He says former Health Minister Andrew Little was asked if any conflict was looked into and said no.


But Henare says he disclosed his relationship, and is confident that he has managed his interests in accordance with the Cabinet Manual.

He says he made no ministerial decisions to contract with her business.


RNZ picked up on the matter this morning:

The National Party is accusing the government of more conflict of interest issues, over contracts that went to an ad agency run by the partner of Associate Health Minister Peeni Henare.

Henare insists he’s always been upfront about his relationship with Skye Kimura, the chief executive of the agency Tatou, which did the ads.

He’s confident that that everything has been managed according to the rulebook.

National Party public service spokesperson Simeon Brown isn’t so sure.


RNZ provides a link to what Simeon Brown said when questioned by Corin Dann.

The Taxpayers’ Union has pitched in, describing revelations that at least a quarter of a million dollars from the Ministry of Health had been paid to a company run by Peeni Henare’s partner as “banana republic stuff”.

Taxpayers’ Union Executive Director, Jordan Williams, said:

“Taxpayers are entitled to know that conflicts of interests are, at minimum, truthfully disclosed. Why has, yet again, a senior Minister been caught short?”

“The first question we have for the Minister is whether all of the relevant contracts were tendered. If not, that would be an astonishing failure by the Ministry, and heads should roll. New Zealand is not a family affair at the bottom of the Pacific.”


High standards must be applied, and be seen to be applied, to avoid slipping into “banana republic territory,” Williams said.

Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton

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