Threats fly as bank traitor row boils over

By VERNON SMALL deputy political editor

Government MPs will rubber-stamp New Zealand Post's plans for a Kiwi bank today as the row over leaked plans becomes increasingly personal and acrimonious.

National leader Jenny Shipley and her deputy, Bill English, yesterday hit back at New Zealand Post chairman Ross Armstrong for accusing the Opposition Leader of "fiscal treason" for releasing extracts from an early business plan.

She said it was outrageous of Dr Armstrong, a former Auckland divisional chairman of the National Party, to comment on an elected politician in this way.

Mr English said it was a bad day when a senior member of the business community used the expression "fiscal treason."

"It continues a trend where those who get under the skin of the Government are greeted with pretty violent language. In the middle of the year it was economic sabotage, and now the Government's playthings are calling criticism fiscal treason.

"No one deserves that. I hope the level of political debate in New Zealand can lift beyond that grubby, grubby level."

Mrs Shipley, who had released 12 pages of NZ Post's 160-page August 2000 draft plan, said she had shredded the document at the request of Deputy Prime Minister Jim Anderton, the force behind the bank.

NZ Post had threatened to take court action against her but backed off after she destroyed the papers.

However, a NZ Post spokesman said the matter "remained of the highest concern" and a meeting would be sought with Mrs Shipley to find out who gave her a copy.

In a letter to Mrs Shipley last Friday, Mr Anderton criticised her for publicising information about the bank's fees and security arrangements and for suggesting depositors' money would not be safe, thereby "undermining public confidence in the banking system generally."

But Mrs Shipley said she had not released any commercial information, and received the plan "unsolicited."

Yesterday, the Government turned its guns on the source of the leak, hinting that those under suspicion could be named in Parliament.

Prime Minister Helen Clark said it was up to NZ Post to track down who gave the "stolen" documents to Mrs Shipley - "I suspect they have a pretty fair idea where it came from."

She would not name names, although she said some MPs might use parliamentary privilege to name a suspect.

Mr Anderton went further, suggesting it might have been "somebody potentially who was appointed by the previous National Government to the board of NZ Post."

Two former National MPs were on the board when the paper was produced, former Trade Minister Philip Burdon and former Miramar MP Graeme Reeves.

Mr Reeves said he still had a copy of the paper, but denied leaking it.

"I haven't released any documents to anyone ... Not to Jenny Shipley or anybody else."

He had not been contacted by NZ Post about the leak, but had phoned "to say it wasn't me and be careful what you say."

Mr Burdon could not be contacted.

Meanwhile, Mrs Shipley yesterday rounded on a television reporter who asked her if she had discussed details of the bank with her husband, Burton Shipley, who works for ASB.

"I find that an outrageous statement. I have never spoken about a single cabinet paper, or a single official document, in my life with Burton," she said.

"I would never do so, and anyone who has suggested that that is the case, I will see them in court."

NZ Post will brief Labour and Alliance MPs on the bank today.

Then NZ Post officials and shareholding ministers Michael Cullen and Mark Burdon plan to unveil details of the bank, which has the working title MyBank.

Mr Anderton, who stands to get the most political mileage from the launch, will hold a separate press conference.

The Government will raise $73 million to set up the bank, with $7 million more likely to be contributed from existing NZ Post funds, possibly from a lower dividend to the Government.