Government authorised $3 million ransom for baby Kahu

10.00am

Prime Minister Helen Clark and Finance Minister Michael Cullen authorised payment by the government of a $3 million ransom demand for kidnapped baby Kahu Durie.

Miss Clark told TVNZ this morning the police had needed high level permission about the money in order to negotiate with the kidnapper, but she had not expected the government to make a payout in the end.

"The money offer had to be authorised. It was hoped of course it wouldn't go terribly far. But they had to be in a position to start talking and of course at the point when the ransom demand comes in you have no idea whether it is a crank call.

"All I knew is that there had been a request for the money. I knew nothing else until the (police) commissioner phoned me last night."

Miss Clark said it was unlikely the government would have covered the ransom demand: "There's a long process of negotiation that goes through ... No, it is very doubtful that money would have ever been paid."

The prime minister said she had not been briefed on details and did not expect to get involved in the day-to-day work of the police.

"Once I was told (about the ransom) I just had to keep my mouth shut as did Dr Cullen so that we said nothing to anybody that could have in any way jeopardised what the police were negotiating."

Miss Clark said she was "just so happy for the family to have the baby back safe and sound. It is the very best outcome we could hoped for".

She also praised the police for doing "a fantastic job".

- NZPA

Full coverage: Baby Kahu kidnapping


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