Messenger gets boot as lawyer calls leak 'gossip'

The Beehive messenger who blew Michael Cullen's Budget wide open two weeks early was sacked yesterday, while a few hours later the messenger's lawyer described his client's leaking of information to a friend as "extravagant gossip".

In Parliament, Finance Minister Michael Cullen attempted to portray the breach as a one-off incident by a formerly trusted official who had never erred in his 30 previous years in the public service.

Michael Ryan was formally dismissed by the Department of the Prime Minister and Cabinet where he had worked as a ministerial courier and shredder of sensitive documents for the past seven months.

He passed a secret Budget document about Government plans for Telecom to a friend of his, Peter Garty, who worked for Telecom, precipitating an early Budget announcement.

Telecom has lost $2.2 billion in value since the Government said it was opening the network to competitors.

Mr Ryan's lawyer, Peter Cullen, said at a press conference yesterday in Wellington that Mr Ryan had given the document to his friend because of the close long-standing friendship they had and for no other reason.

"What occurred was an extremely foolish mistake based on a misguided sense of friendship; it could be described as extravagant gossip."

He said Mr Ryan was deeply remorseful for showing the document to Mr Garty and had told him it was for his eyes only and was not to be copied - requests Mr Garty did not comply with.

Mr Ryan offered his resignation last Thursday but it was not accepted by his employer, Maarten Wevers, the chief executive of the Department of Prime Minister and Cabinet.

It was made clear by State Services Commissioner Mark Prebble on Tuesday that he believed resignation would have been too light and that he preferred to see Mr Ryan sacked.

Mr Cullen said he had hoped the Department of Prime Minister and Cabinet "would not set about flogging a dead horse by continuing to treat Mr Ryan as an employee despite his resignation".

"The only reason for doing so would be so that the department can dismiss him. They have done so."

Mr Cullen said that in Mr Ryan's letter to the State Services inquiry he had apologised "to all he had harmed" including Mr Wevers and his fellow employees and to Prime Minister Helen Clark and the Government.

He would take no questions. Mr Ryan was not present and has gone to ground.

In Parliament yesterday the Opposition attacked Communications Minister David Cunliffe over comments he made on Tuesday about Telecom's dividend, which preceded another dive in Telecom's share price.

One day before the Budget, Dr Cullen led the Government's handling of the Beehive leak issue.

"One employee in a position of trust, despite psychological vetting, despite police vetting, committed a breach of that trust.

"One person in a position of trust who worked for the government for 30 years with no problems at all in all that previous employment seemed to have suffered some mad rush of blood to the head in dishonesty and decided to help a mate.

"That is the entire story."

National deputy leader Gerry Brownlee, however, was not convinced by his assurances, nor those of State Services Commissioner Mark Prebble, who formerly headed the Department of Prime Minister and Cabinet, and whom Mr Brownlee suggested had been less than helpful during the Corngate inquiry.

"Is it now surprising that we have the same Dr Prebble out there saying that we have got the little scrote who did it, and it will not happen again? I do not think so. I cannot help thinking that there is something bigger afoot here."

Riding mates

Peter Garty

* University rugby player and retains strong ties with student rugby as honorary treasurer of the Universities Rugby Football Council.

* Former senior partner with consultants Ernst and Young.

* 1995 joins Housing New Zealand, where he was general manager finance and corporate and acting chief executive.

* 1997 joins Telecom as the group's financial controller.

* Former member of Westpac stadium members committee, highly involved with Onslow Tar Babies mountainbiking club, which raises thousands of dollars for charity through sponsored events. Children have been to school with Mr Ryan's children.

Mike Ryan

* Attended Holy Cross School, De La Salle College and Papatoetoe High School.

* Married to Deborah, youngest daughter of the late Sir John Robertson, a former chief ombudsman.

* 1970 hired by Department of Lands and Survey.

* 1986 moves to Ministry of Works.

* 1987 employed by Landcorp.

* 1990 hired by Department of Land Information.

* 1998 leaves public service.

* 2005 joins Department of Prime Minister and Cabinet as one of four messengers, earning between $24,000 and $36,000 a year.

* Also an Onslow Tar Babies cyclist. Both families have holidayed overseas together, and live near each other in the Wellington suburb of Khandallah.