KEY POINTS:
The Government told Solid Energy yesterday that using paid informants was unacceptable, but the state owned enterprise gave no undertaking to stop the practice.
Trevor Mallard, Minister for State Owned Enterprises, rang Solid Energy acting chairman John Spencer to discuss Solid Energy's action.
The company hired Thompson and Clark Investigations which paid a 25-year-old Canterbury University student about $400 a month to infiltrate environment group Save Happy Valley.
The group opposes Solid Energy's coal mining plans on the West Coast.
Mr Mallard said he "made it clear that while I understood Solid Energy's frustration at the appalling behaviour of Happy Valley protesters, the use of paid informants was not acceptable, and a step too far for a State Owned Enterprise."
A spokeswoman for Solid Energy said the matter would be discussed at the next board meeting but would give no assurance it would not continue the practice.
"We've got a business to run and we are going to get on and run our business and the board will be reviewing it at the next meeting although I cannot confirm when that is."
The board meets monthly.
Save Happy Valley Coalition spokeswoman Frances Mountier said she welcomed Mr Mallard's stance but disagreed her group's actions were "appalling".
A spokeswoman for Mr Mallard said he was referring to disruption and economic harm the group did to the business as well as allegations of harassment and of defacement of a Solid Energy director's home.
Ms Mountier said the group campaigned to address root causes of climate change, in this case coal. "It's concerning when a minister in a Government that wants to be carbon neutral calls such a campaign appalling."
She said the group had used non-violent direct action and the only property they affected was railway lines they chained themselves to during one protest. Ms Mountier believed the board needed to give the business clear direction on the issue.
"There's obviously some serious contention there between [chief executive] Don Elder, the board and the minister."
The group were seeking legal advice over the incident as under the Private Investigators and Security Guards Act anyone acting as a private investigator had to be registered. They were lodging a complaint with the registrar of private investigators. "Solid Energy are engaging in illegal activities by having these infiltrators, indirectly hiring people to go into our group."
Prime Minister Helen Clark yesterday said Dr Elder was a good chief executive. But she did not believe it appropriate for a state owned enterprise to hire private investigators and expected the board to pass on those views.
The National Party has also said it was concerned about the tactics.
Green Party co-leader Russel Norman, said it was wrong for the company to spy on protesters and "heads should roll".
Dr Elder has said he was comfortable with the tactics as the group were taking action designed to hurt the company financially.
Greenpeace has also expressed concern at the case and another where Mighty River Power also used Thompson and Clark. The power company has refused to release information the investigators obtained and a complaint has been lodged with the Ombudsman.
Greenpeace spokeswoman Bunny McDiarmid said the infiltrations were unethical and believed the Government should launch an inquiry into the practice. "The fact that Thompson and Clark have infiltrated other community groups is concerning and raises the question of whether spying is becoming a regular way of doing business for publicly owned companies.
- NZPA
