PM silent on new roles for cleared minister

David Parker

Prime Minister Helen Clark expects strong support today from Labour MPs for David Parker to return to the Cabinet.

But she is not commenting on what roles she will assign Mr Parker, who was Transport, Energy and Climate Change Minister as well as Attorney-General before he resigned in March after allegations that he filed false documents with the Companies Office.

He was cleared last week of wrongdoing.

At Labour's caucus meeting today Helen Clark will nominate Mr Parker for a Cabinet seat.

She said that if MPs supported his return an announcement on his roles would be made shortly after the start of caucus.

The PM could reinstate Mr Parker to all his roles, but there is speculation she will lighten his heavy workload by returning him to only two or three of his previous four portfolios.

In March, Mr Parker was the subject of an Investigate magazine story involving an allegation by his former business associate, Dunedin property developer Russell Hyslop.

Mr Hyslop has since filed a complaint with the Otago District Law Society, but Helen Clark said it had little substance.

"It wouldn't be causing anyone to lose sleep," she told Television New Zealand.

When Mr Parker resigned he said it was impossible for him to stay on as attorney-general - the highest law officer in the land - while he was being investigated for breaking the law.

The accusations stemmed from the late 1990s, when Mr Hyslop was a partner in a company called Queens Park Mews. The other partners were Mr Parker and his father, Francis Parker. Each held one third of the shares.

According to Mr Hyslop, Mr Parker filed a declaration to the Companies Office stating that the shareholders of Queens Park Mews decided unanimously not to appoint an auditor.

Mr Hyslop said he was never asked to approve the "unanimous" decision, and the declaration was, therefore, false.

The Companies Office said there was "no basis whatsoever" for taking a prosecution against Mr Parker for filing a false or misleading document.

This was because Mr Hyslop had at first agreed to the audit waiver and, after he was declared bankrupt, the Official Assignee gave an audit waiver.

Legal advice to the Companies Office said it was an "interesting legal point" whether the waiver was "effective" but it was not material to the case because permission had been granted to not audit the failed and virtually worthless company.

At one point, the Official Assignee offered to sell the shares for $1. Mr Parker accepted the deal but it was never completed.

Investigate publisher Ian Wishart has said the Companies Office investigation was seriously flawed.

- NZPA