Anderton riled at leak of Origin Pacific loan rejection

Origin Pacific's revelations of an unsuccessful request last year for a $7.5 million Government loan have riled Economic Development Minister Jim Anderton.

The Independent Business Weekly reported on Wednesday that Origin Pacific asked the Government for $7.5 million last September as a bridging loan to fund a share issue while the company did its own capital raising.

Anderton had turned down the request, saying that propping up private companies would set a dangerous precedent. Yesterday he said the request had been "ludicrous".

"How could any Government say, 'Any time you're in trouble or need help, come to us'? How long would the queue be outside the Beehive?" he said yesterday .

He was disappointed Origin Pacific had spoken about the request, because he believed the meeting had been confidential.

"When people come to me for help, my door is always open. But it has to be dealt with confidentially."

Managing director Robert Inglis denied releasing the details.

"We have never, ever raised the issue. We accepted the Government's decision and remained silent. The Independent approached me after comments by Air New Zealand."

Air NZ chief executive Ralph Norris yesterday denied the information had come from him.

Anderton said he tried his best to help Origin Pacific, and took advice from people, including then Transport Minister Paul Swain, about whether to grant the loan.

"When I had fully considered everything and taken advice, the considered answer was no."

Inglis said he went to the Government for help because it was difficult to raise money in an "unstable market" that he believed was caused by the Government's bailout of Air NZ.

"We were trying to raise that capital in a time when Air New Zealand were applying to merge with Qantas. There was uncertainty from an investor's position."

He did not think it was hypocritical to ask the Government for assistance, despite being outspokenly critical of its involvement in rescuing Air NZ.

"The Government put us in that position. All we wanted was a level playing field."

Origin this week said it was laying off 93 staff and cutting flights after creditors accepted a rescue package.

- NZPA