Treasury apologises for website blunder

Finance Minister Bill English. Photo / Mark Mitchell

The Treasury has apologised to the Prime Minister and Finance Minister Bill English after it put a draft version of a paper about state asset sales onto its website showing significant changes were made at the last minute.

The Herald obtained the draft of the consultation paper for iwi over Government plans to sell partial stakes in four energy companies when it was put on the Treasury's website for a few minutes before it was replaced with the proper document. It showed significant changes were made to the paper - including deleting a sentence stating that the Government's preference was not to include any Treaty clause in the new legislation.

The changes were made after the Maori Party objected to plans not to extend section 9 of the State Owned Enterprises Act - the "Treaty clause" - to the mixed ownership model companies. Yesterday John Key said it was the Treasury's view rather than the Government's.

Finance Minister Bill English said the document changed several times over the two weeks it took to compile and the final version reflected the Government's position.

Maori Party co-leader Tariana Turia said she was glad the Government had apparently backed away from the position on the Treaty clause. However, she was sceptical about whether the Government was genuine, saying the reasons for scrapping section 9 were "smoke and mirrors".

She said the draft showed there was clearly an attempt to get rid of section 9 solely because of concerns it would deter investment.

Yesterday the Prime Minister said he remained confident a solution would be found to the issue of the Treaty clause.

"It's my view we can find a solution to accommodate the expectations of Maori, but which equally is not something that is put on private shareholders," Mr Key said.

The content of the changes revealed in the draft - including references to the lack of powers ministers would have and the likelihood a Treaty clause would deter investment from institutional investors - prompted further fire against the asset sales from opposition parties yesterday.

Labour leader David Shearer said the deleted parts showed National's focus was not on "mum and dad" investors but on large foreign investors who were most likely to be scared off by a Treaty clause.

He said the Prime Minister had also repeatedly reassured the public that retaining majority shareholding meant the Government would retain control of the assets. However, the draft showed officials had repeatedly warned that ministers would have limited powers.