22 Jun 2023

Prime Minister Chris Hipkins leaves door open for Michael Wood's return

1:13 pm on 22 June 2023

A day after the losing another Cabinet minister, Prime Minister Chris Hipkins has said the ultimate responsibility for declaring and managing interests is up to each individual minister.

Hipkins was speaking to media in the Hutt Valley, after Wednesday's resignation of Michael Wood as a minister.

Hipkins announced Wood's resignation on Wednesday, revealing the then-Immigration Minister had undisclosed shares in telecommunications and banking companies which raised conflict of interest concerns relating to recent decisions.

The National Party has been pointing to a recent string of ministers' mishaps as proof the "wheels are falling off" the government, with leader Christopher Luxon calling Hipkins "weak".

"Obviously we don't have someone checking over their shoulder in every decision that they make," Hipkins said on Thursday.

"The reason that we have a declaration system is because as much as anything else… it brings any potential conflicts to the minister's own attention so that they know that they're there and can manage them."

Hipkins said he had not spoken to Wood since the resignation was announced.

"He's headed home. I think I'm giving him the courtesy of giving him a little bit of space - obviously yesterday would have been a very difficult day for him."

Michael Wood

Michael Wood. Photo: RNZ / Samuel Rillstone

As for Wood's future in politics, the prime minister was keeping the door open.

"Human beings make mistakes, but clearly if Michael wants to continue in politics he will need to address what clearly has been a real blind spot for him and something that hasn't been acceptable."

Hipkins on Wednesday announced five changes to tighten the requirements for ministers to disclose potential conflicts of interest.

He had also sought advice on bringing in additional rules similar to Australia's, which would mean ministers could no longer own shares unless it was public superannuation funds or an arrangement where the minister had no control or visibility over investment decisions.

On that idea, Hipkins says changes to the Cabinet Manual are generally made over a period of time, and are usually done in a non-partisan process so that would usually require consultation with the opposition. He said he was encouraged by opposition leader Christopher Luxon's comments that he agreed there could be further change, and could mean changes could be made relatively quickly.

Asked if his conversations with predecessor Jacinda Ardern included topics like Wood and Stuart Nash - whose transgressions occurred during her tenure as prime minister before being made public during Hipkins' - he said they do "on occasion".

"On occasion I have called her to find out what she knew about a particular situation, because often [the media] ask me what she knew about a particular situation. So I like to be able to answer that, if I can."

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Hipkins said he had a talented Cabinet and a talented pool of backbenchers, and the reason he did not lift someone new to Cabinet was because of the nearing election date.

"I deal with issues on a day-to-day basis as I encounter them. Minsiters certainly know what my expectations are."

He played down the likelihood of a snap election.

"We've already set the date, the wheels are already in motion, there'll be an election on October the 14th."

Hipkins was touring around the Hutt Valley on Thursday morning, opening the NZ Campus for Innovation and Sport in Upper Hutt before visiting a new public housing development in Epuni with local MP Ginny Andersen.

He was also expected to depart for a trip to China on Sunday, meeting with President Xi Jinping and other top officials. Asked about China's form of government - a one-party state - Hipkins said it was a matter for the Chinese people.

Oranga Tamariki allegations

Hipkins said the situation with Oranga Tamariki was serious, and should be taken seriously. On Wednesday it was revealed the agency had removed two staff members from residences after "serious allegations" of "inappropriate sexual behaviour".

Responsible minister Kelvin Davis during a debate about the matter in the House used his speech to target Luxon, calling him "Mr Tesla" - a reference to Luxon's reported use of the Clean Car Discount, which he opposed, in purchasing a new vehicle.

"I understand that Kelvin Davis has indicated that he didn't think he got his tone right in that debate yesterday," Hipkins said on Thursday. "I wasn't there, I didn't see the debate, but certainly I think it is something that the government takes seriously, I know Kelvin as a minister takes it seriously.

"Parliament is a place of robust debate, but I think Kelvin probably got the tone a bit wrong on that."

He said there was a lot of interjection at the time, but Davis "was responding to some of that, I think in the process of doing that he should have taken a more restrained tone".

He said he had a lot of confidence in former Police Commissioner Mike Bush to investigate and make sure the facilities were operating appropriately, keeping in mind there may be police investigations also.

"It's important that if there is a broader pattern that needs to be addressed, that it is."

He said youth justice facilities hosted some of the most troubled and difficult children to work with.

"I've visited some of them myself. It is a really tough environment, these kids often are badly damaged young people and they have a lot of complex needs. It's really really difficult work, I've met some amazing people who work in them who just do a sterling job, and I regret for their sake that clearly the actions of some are undermining them."

He said the reform process around Oranga Tamariki was an ongoing one, and it was "a tough nut to crack".

"I think Kelvin Davis has done a great job as minister for children, I think he's a really passionate advocate for young New Zealanders. I think he recognises that the care and protection system has not delivered the sorts of outcomes that we would expect of it as a country over a long period of time.

"We're talking about generations' worth - that takes a while to turn that around, but I know that Kelvin is very passionate about doing that."

University layoffs

Hipkins said it was a difficult time for universities in particular, due to a combination of forces: increasing costs, a strong labour market and a general decline in enrolments.

Entire subjects and 229 full-time equivalent roles would be axed at Victoria University if proposed cuts that staff described as shocking went ahead, and it was not the only tertiary education institution proposing layoffs and course cuts.

Hipkins said there was also huge growth at Te Pukenga in on-the-job training.

"Some of that's coming at the detriment of the off-the-job training, so they're having to adapt to that and that does mean disruption."

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