Key says nothing wrong with Westpac hospitality

Published: 12:53PM Wednesday June 01, 2011 Source: Fairfax

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  • Key says nothing wrong with Westpac hospitality  (Source: ONE News)
    Prime Minister John Key talks to the media - Source: ONE News

Prime Minister John Key says claims made by the Green Party about ministers receiving corporate gifts are just plain wrong.

Party co-leader Russel Norman said Crown ministers should not be accepting generous corporate hospitality from Westpac when the Government's master banking contract held by the bank is under review.

Nine ministers accepted hospitality from Westpac in the past year, including box seats at the Rugby Sevens, dinner at the White House restaurant in Wellington and tickets to rock concerts. The staff of 13 ministers accepted similar hospitality from Westpac.

Greens co-leader Russel Norman said the gifts were not neutral. "They buy access to decision makers in an unfair way."

Ministers accepting personal gifts from Westpac created a potential conflict of interest because the Government was considering retendering part, if not all, of the banking master contract, he said.

"The fact that so many ministers had staff who also accepted Westpac's largesse is disquieting, given the central role of ministerial staff in influencing the decisions of their busy Ministers."

Norman said one way to avoid all suspicion was for the contract to go through a competitive tender and for the Cabinet Manual to be more explicit about accepting gifts.

But Key says it is all above board because Treasury has the final say on the contract, not ministers.

Westpac's been the banker since 1989 and no competitive process has been entered into until now.

"The government actually has opened up the contract to a competitive process. It's the first time for 20 years," Key told media.

"The process will go through the normal procedure. It's actually a healthy thing that it's open to competition."

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