WINEBOX1992,Nov.11

Parliamentary Debate QUESTIONS ON NOTICE : Fay Richwhite and Co.--Investigation Wednesday, November 11, 1992
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Fay Richwhite and Co.--Investigation 8. WINSTON PETERS (Tauranga) to the Minister of Finance: At the time of the second Bank of New Zealand bail-out in November 1990, did she authorise, on behalf of Cabinet, investigations, research or inquiry into the directors of the minority shareholder, Fay Richwhite and Co.; if not, why not? Hon. RUTH RICHARDSON (Minister of Finance): As Minister of Finance, I do not have the power to authorise unspecified ``investigations'' into the affairs of individuals. Our system of democracy safeguards the rights of individuals by ensuring that ``investigations'' are carried out by independent authorities acting within the guidelines set by well-established legal principles and specific statutes. Winston Peters: As the major shareholder, how could that be when the board of directors of the State Bank of South Australia in a minuted note stated that the directors of Fay Richwhite ``could not be trusted'' and further accused them of virtual blackmail ``because the bank was faced with the situation in which actions taken outside of its control had placed it in a position whereby non-BNZ secure exposures would be placed at significant risk should the BNZ pre-capitalisation''--that is, the bail-out--``not proceed.''; how could the Minister not know that? Hon. RUTH RICHARDSON: As I have said to the member throughout, if he has any evidence that should be put before an appropriate statutory authority, he should do so. However, I remind the member that when the Securities Commission last considered his call for an inquiry into unspecified allegations it stated: ``Nothing we have seen to date justifies such an inquiry.''. Hon. Dr Michael Cullen: In the light of the Minister's original answer, why did she once call for a public inquiry into the Bank of New Zealand? Hon. RUTH RICHARDSON: I did not call for a public inquiry into the Bank of New Zealand.