Cunliffe in firing line over fees

Communications Minister David Cunliffe yesterday came under fresh attack over his Telecom comments, as the Opposition shifted its sights to the role his office played in requesting an apologetic letter from Vodafone.

Mr Cunliffe's office released a letter from Vodafone this week as it sought to defend the minister from criticism by the National Party.

The criticism centred on a High Court case last year involving Vodafone, in which a judgment noted that Mr Cunliffe had passed confidential information from the mobile phone giant to the Commerce Commission.

In the letter Vodafone apologised for the "very unfortunate" criticism of the minister in the court judgment.

It emerged on Wednesday that Mr Cunliffe's office requested the Vodafone letter as it sought to deflect criticism of him.

The minister's office was aware that late last year Vodafone had said it was willing to publicly state its position at any time.

Yesterday National's deputy finance spokesman, Bill English, accused Mr Cunliffe of running his portfolio "like a banana republic".

It was inappropriate to request the Vodafone letter just a day after submissions closed for a major regulatory decision of mobile phone fees, Mr English said. "Now Mr Cunliffe is bound to make a decision against Vodafone's interest or he will look like he is returning their political favour."

Mr Cunliffe was absent from Parliament yesterday, and Trevor Mallard responded to questions by saying the Vodafone letter was drafted last November and the request was made by Crown Law.

Cunliffe's troubles

* Last week Communications Minister David Cunliffe told Bloomberg news agency that Telecom may have to cut its dividend payout to fund increased investment.

* That triggered a plunge in Telecom's share price, wiping $157 million off the company's value.

* This week it emerged that Mr Cunliffe's office had asked Vodafone to write a letter excusing him from criticism in a court judgment last year.

* Yesterday National MP Bill English claimed the Vodafone letter compromised the minister's ability to make a crucial decision on mobile phone fees.