Liar, Liar pants on fire

Fran O’Sullivan: PM’s comments don’t fly – 05 Sep 2007 – NZ Herald: New Zealand Business and Personal Finance News

Fran O’Sullivan has again ripped into Clark for her less than honest comments over Air New Zealand.
[quote]The question Air New Zealand has yet to address is whether it can seek recompense from the Government for the commercial damage it has suffered from becoming a political plaything.

It’s worth studying an earlier confidentiality deed between the Clark Government and Air New Zealand so the airline could open its books to the Crown negotiators in the run-up to the bailout. Clause 2.2 of the 2001 deed says the Crown acknowledges that information is communicated to it under terms of strict confidentiality and that Air New Zealand may suffer damage, loss or liability as a result of any part of the information to any unauthorised person.

Under this deed, the Crown agreed it would preserve the confidentiality of any information provided to it and take proper and adequate precautions at all times.

The deed also provides for Air New Zealand to seek equitable relief including an injunction and order for specific performance in the event of any breach of the deed’s provisions.

It is unclear if the 2002 deed, which has yet to be publicly released, contains the same provision.

But the NZX should be seeking explanations from Air New Zealand and the Government over just how much protection the 2002 deed gives the company’s shareholders from damage incurred to the business as a result of verbal incontinence by Clark and other Cabinet Ministers.[/quote]

Fran then recalls Clarks previous indiscretions with regard to Air New Zealand back in 2001.
[quote] Clark has been down this track before. On September 24, 2001, when the airline was negotiating with the Government leading towards the $885 million recapitalisation, the PM advised shareholders to hang on to their shares “because I am absolutely convinced Air New Zealand has a viable future”.

A subsequent Securities Commission investigation concluded that the Prime Minister’s statements were not intended to “encourage” but that encouragement was taken from her comments, as reported.

The Prime Minister was at the time an insider of the company. She is an influential figure whose statements are accorded significant weight by the public. Air New Zealand was a publicly listed company, and one in which there were a large number of retail investors.[/quote]

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