English accuses Labour of Air NZ sale coverup

By FRANCESCA MOLD

National leader Bill English has accused the Government of hiding the possible sale of a chunk of Air New Zealand to Qantas to avoid a pre-election backlash.

Mr English yesterday attacked the Government's handling of the issue and called on Helen Clark to front up and stop hiding behind last year's fuss over comments she made about Air New Zealand shares, which resulted in a Securities Commission investigation.

Mr English said that, as the major shareholder, the Government must tell New Zealanders what the board intended to do.

"It's not good enough for Helen Clark to give us smarmy answers where she says she can't talk about Air New Zealand," he said.

Helen Clark was at a Labour Party rally in Wellington yesterday. A spokesperson said she did not want to risk getting into trouble by commenting on the airline's affairs, as she had in the past.

The Securities Commission cleared Helen Clark of insider trading in April, but it found that her comments at a time of crisis for Air New Zealand were inappropriate.

It has been reported that negotiations for the sale are well under way, and that price is the only remaining major issue.

A Sunday newspaper reported that investment bankers Cameron and Co had been commissioned to provide an independent valuation.

Qantas offered 35c a share earlier this year. Current market valuation is 67c.

The size of the stake Qantas would take has been estimated at between 20 and 50 per cent.

Mr English said there was widespread opinion that a sale would be against New Zealand's interests.

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