Leak not from my office, says Clark

Prime Minister Helen Clark says she is "absolutely certain" none of her staff were responsible for the leak of the broadband Cabinet paper.

Over the weekend, National Party leader Don Brash said the leak of the highly-sensitive paper to Telecom could only have come from one of "Helen Clark's inner circle". Speculation was further fuelled by reports that Helen Clark was refusing to join other Cabinet ministers in declaring the innocence of her staff.

Yesterday, Helen Clark said through a spokesman that she was absolutely certain no one in her office had leaked the paper.

Communications Minister David Cunliffe, who was responsible for the Cabinet paper, and Deputy Prime Minister Michael Cullen have also said they are confident their staff were not involved in the politically embarrassing leak.

State Services Commissioner Mark Prebble is expected to announce either today or early this week the terms of reference for the inquiry into the leak.

Late on Friday, Telecom gave the Cabinet paper to the State Service Commission (SSC) along with the findings from an internal investigation it had conducted into how the paper came into Telecom's possession.

Last night, Telecom spokesman John Goulter would not comment on whether the report names the leak, but said it was comprehensive and would aid the SSC's investigation.

The SSC inquiry will have the powers to summon witnesses and request evidence from Telecom as well as other Government and non-government organisations.

A retired judge or QC might conduct the inquiry and forensic tests would be carried out if needed.

The Government had been intending to announce the broadband plan in the Budget on May 18, but was forced to bring the announcement forward after Telecom revealed it had the Cabinet paper.

When the Government made the announcement that it would break Telecom's monopoly on its lines to ensure better and cheaper broadband, the Telecommunication giant's share price plummeted.

By Friday's close, more than $1.8 billion had been wiped off Telecom's value on the sharemarket.

Helen Clark has publicly chided Telecom saying it had chosen to defend its market position in a negative way.

Dr Brash said National plans to write to the Commerce Select Committee about the need for a select committee inquiry into the leak.

The Herald also understands the Securities Commission will launch an inquiry into the handling of the leaked material and any potential impact on the stock market or regulations governing the markets.