SOE 'cronyism' claim countered

Just three of the 43 people appointed to state-owned enterprise boards by Trevor Mallard are Labour Party members, he says.

Mr Mallard, who has been fending off renewed claims this week that Labour puts cronies on SOE boards, yesterday released a list of the people he has appointed or reappointed since becoming State-Owned Enterprises Minister after last year's election.

The list contains some relatively well-known business names such as the energy industry's Patrick Strange, who was appointed by Mr Mallard as a director of Mighty River Power.

Dairy leader Warren Larsen has also been made a director of Landcorp Farming.

Mr Mallard said that of the 43 appointments and reappointments he had made "I am aware of only three who are Labour Party members - Stan Rodger, Mike Williams and Wayne Harpur".

Mr Rodger, a former Labour minister, is a director of New Zealand Post, and Labour Party president Mike Williams is on the board of Genesis.

Wayne Harpur - who was a Labour Party candidate at the last election - is a director of Invercargill Airport. Mr Mallard's office was also keen to point out that former Prime Minister and National Party leader Jim Bolger was appointed to the board of New Zealand Post and Kiwibank by Labour.

Mr Mallard's list may answer at least part of the criticism levelled at the Government since a Victoria University survey on Tuesday showed that directors of the country's largest SOEs are worried that appointments are politically influenced.

However, National yesterday continued its accusations that Labour is guilty of "cronyism".

The party's State-Owned Enterprises spokeswoman, Katherine Rich, said that "ultimately perception does become reality", and the views of SOE directors in the survey are "powerful".

She cited Mr Williams as an example of a crony appointment, and said only people with commercial capability should be being sought for SOE positions - particularly given a recent shift in policy which encouraged SOEs to spread their wings.

Mrs Rich admitted she had not closely looked at Mr Mallard's appointments yet.

National's claims of cronyism also cover the tenure of previous Labour ministers.