Delamere deal with Chinese investors called 'repugnant'

By AUDREY YOUNG

National is scrambling to sort out a legal and political mess after the Prime Minister yesterday sacked Immigration Minister Tuariki Delamere over special treatment given to Chinese investors prepared to put money into Maori projects.

Jenny Shipley has made her deputy, Wyatt Creech, acting minister and instructed him and officials to sort out the problem "forthwith."

She made her dramatic move just three days before the election after Mr Delamere refused her order to rescind approvals for residency for 21 Chinese investors.

Mr Delamere made the applications conditional on their investing in Maori-owned land, Maori-run businesses or parts of provincial New Zealand.

Announcing the action against the minister, Mrs Shipley said: "We are not going to have two laws in this country for Maori and non-Maori." She called the immigration deal "repugnant."

But, surprisingly, Mr Delamere remains as a minister outside cabinet with responsibilities in four other portfolios: Pacific Island Affairs, Public Trust Office, associate health and associate finance.

A spokesman for Mrs Shipley said that removing the minister's Immigration warrant was yesterday's priority.

The Prime Minister indicated that she wanted the legal aspects of the residency approvals dealt with swiftly today.

She had thought about delaying the decision until after the election, but had decided that might make Mr Delamere's letter of approval to the investors more difficult to rescind.

Mrs Shipley learned of Mr Delamere's plans on Monday when immigration officials told her own advisers that he was exceeding his discretionary power.

They said he was creating new policy without going to the cabinet through the normal channels.

Mr Delamere, whose letter granting residency to the investors details three areas of required investment, disagrees and says it was "improper" of the Prime Minister or anyone else to try to influence his discretionary decisions.

"We sit around cabinet talking about what we're going to do for Maori unemployed, for Maori land, the rural areas and actually don't do a jolly thing.

"Here's some people willing to invest in New Zealand, take a punt on Maori and I think that's awesome."

Mr Delamere yesterday approved two separate groups of investors, each with separate Maori business partners.

One of those involved was Wi Huata, husband of the Act list MP Donna Awatere Huata, and that caused some embarrassment within Act.

Mr Delamere said that during the Apec summit in Auckland, he met a New Zealand-based representative of the Taiwanese group.

Mrs Shipley would not comment on a suggestion that the issue was engineered by Mr Delamere, the leader of Te Tawharau, to help his chances in the close contest in the Waiariki Maori seat.

She also rejected a suggestion that her tough stance might help her own electoral chances.

"I certainly haven't given it a thought. Whether we are going to have investors directed to invest in Maori land is the issue here. I am not going to tolerate that as Prime Minister."