BNZ inquiry has no relevance, says Cullen

Deputy Prime Michael Cullen yesterday dismissed a suggestion that a historic investigation involving the senior Telecom executive who received the Budget leak should have had some relevance to the State Services Commission report on the leak.

The commission exonerated Telecom and its executive, Peter Garty, from any fault in the acquisition of the document, stolen by Mr Garty's friend and sacked Beehive messenger Michael Ryan.

Mr Garty, as a former partner of Ernst and Young, had been the BNZ's auditor in the late 1980s, a period for which certain BNZ investments became the subject of a Securities Commission inquiry.

New Zealand First MP Brian Donnelly asked whether the State Services Commission had taken "Mr Garty's history of what the Securities Commission called 'creative accounting' into consideration when reaching his conclusions?"

Dr Cullen said he had no idea "but I doubt they were relevant to the actual matter that [State Services Commission report] determined about the acquisition of the document".

The commerce select committee meets today and is likely to discuss the prospect of holding its own inquiry.

United Future MP Gordon Copeland holds the balance of power on the committee but has said that while he is leaning towards supporting an inquiry into Telecom's role in the leak, he will be reactive only and will not propose a separate inquiry.