Affidavits join dollar float storm

Press, 23 March 1985, Page 1

Affidavits join dollar float storm

By

PATRICIA HERBERT

in Wellington

The Opposition’s allegations against the Minister of Agriculture, Mr Moyle, were yesterday backed up by two sworn affidavits but denied by the original source and Federated Farmers.

The Prime Minister, Mr Lange, remained unimpressed and again rejected calls for an independent Commission of Inquiry, saying there was “no proof whatsoever.”

National members of Parliament allege that Mr Moyle told the executive committee of Federated Farmers meat and wool section on February 12 that the dollar would be floated within two months.

They apparently decided to persist with their assertions at a strategy meeting on Tuesday although they have attracted a storm of denials from everyone present when the leak allegedly occurred.

It seems the case against Mr Moyle hangs on a conversation on March 4 in Waipukurau and involved Mr John Falloon (National, Pahiatua), Mr David Sorenson, a chartered accountant, and a member of the federation’s meat and wool executive, Mr David Petersen.

The controversy had died

down, but the Leader of the Opposition, Mr McLay, has brought it back by releasing sworn affidavits from Mr Falloon and Mr Sorenson to support the allegations. Mr Falloon swore on oath that Mr Petersen had told him he had been at the federation meeting attended by Mr Moyle and that Mr Moyle had said: • That it was likely a float would occur before the next production season. • If the dollar went down as a consequence, it would compensate farmers for certain Budget imposts. • The float could possibly occur in the next two months.

Mr Falloon said he had no reason to doubt the accuracy of what Mr Petersen had told him but that when he had checked it with Mr Petersen on March 15, Mr Petersen had said that he was “now unsure” whether the Minister had in fact made the statement set out in the third point. He had, however, confirmed the first two, Mr Falloon said. Mr Sorensen’s account entirely backs up Mr Falloon. . “David Petersen told us that Mr Moyle had told the meeting that the New Zealand dollar would be floated within two months,” he said in his affidavit. “I was in no doubt from

the comments made by Mr Petersen that Mr Moyle had been specific as to the time at which the float was to take place. “Mr Falloon then asked Mr Petersen if he realised how important his, Mr Petersen’s, comments were. I do not recall his reply.” Mr Petersen said last evening there was a serious error of fact in the affidavit (with a reference then to timing of their conversation). “He (Sorensen) said in the affidavit that the alleged conversation between myself and Mr Falloon took place outside the St John Hall, Waipukurau, the National Party meeting in question. “In fact, Mr Falloon did not arrive until well after the meeting had already started and I sat in the centre of the hall with my wife,” he said. "I did not speak to Mr Falloon until well after the meeting had concluded and that took place inside the hall over supper.” Federated Farmers’ president, Mr Peter Elworthy, yesterday called all those who were at the sector meeting — the five committee members and the federation’s vice-presi-dent, Mr Brian Chamberlin — to Wellington for a press conference.

He said the federation had been “strong and consistent in denying that there was a leak or indiscretion” but that the events of the last few hours had persuaded him that the executive should “front the New Zealand public.” Mr Petersen was one of those summoned at short notice to head office and issued a statement in which he admitted he might have “inadvertently given the impression over a cup of tea in a casual conversation with some National Party members and Mr Falloon who were mingling in a group that a time span of two months for a float was mentioned at our meeting.” But he continued: “Mr Falloon made his allegation in the House without further reference to me. He then approached me by telephone and sought confirmation that his statements were correct. “I told him that if I had given the impression that Mr Moyle had said a float was likely within two months, that impression was without foundation although I thought a few months had been mentioned by someone in the room — possibly as an unanswered question. “When I last spoke to Mr Falloon, on Friday last week, he accepted my statement that at no time had I

considered there had been a leak of the Government’s intentions. I stand firmly by that statement.”

It was put to Mr Petersen that Mr Falloon, as a politician aware of the possible implications for Mr Moyle, would have pressed him in the initial conversation for more details.

Mr Petersen replied that Mr Falloon had questioned him but “briefly.” He also said that Mr Falloon, a former Cabinet member, had immediately taken the stance that anything else was irrelevant — for Mr Moyle to have discussed any kind of currency fluctuations in any way was “a breach of Ministerial responsibility.” “I made it quite plain to him at the time that the context in which the subject was discussed made that a nonsense,” Mr Petersen said.

Asked, then, how the misunderstanding had arisen, he suggested that he had perhaps misled Mr Falloon — by not choosing his words carefully.

Mr Falloon told “The Press” that on Tuesday Mr Petersen had stuck by his claim that Mr Moyle had said the float would take place within the next two months. It was only on Friday, after Mr Petersen

/ had telephoned Federated Farmers, that he had gone back on it, he said. Mr Petersen’s denial, however, was backed up yesterday by the chairman of the meat and wool section, Mr Bruce Anderson, who said he wished to make it “quite clear that Mr Moyle at no time indicated if or when the Government was likely to float the dollar.”

“I am becoming increasingly angry that the Opposition is questioning the integrity of myself, those whom I represent and the federation," he said. Mr Chamberlin said that when he had first heard reports of the alleged leak he had wondered which Minister, which group. “I was flabbergasted the next day to find out that this incident was meant to have taken place at a meeting at which I was present,” he said.

“I believe my integrity has been questioned by the allegations which have been made on this subject. It has put considerable strain on me and my family.”

Mr Elworthy said the accusations against Mr Moyle were based “on the flimiest possible hearsay evidence” and that both he and Mr Anderson had tried to warn

Mr Falloon that there was no truth in them and that he should drop the matter.

He also said that it had not been until Thursday that Mr McLay had been able to report that there was “a futher affidavit due from a person in Waipukurau.”

Before then, although he had said he would not raise the issue without verification independent of Mr Petersen’s comments to Mr Falloon, Mr McLay had proceeded on the confirmation of three committee members that the subject of a float had been discussed and that Mr Moyle had referred to it.

This was something several of those at the meeting had freely acknowledged, Mr Elworthy said. The Opposition has asked the federation to release the minutes of the committee discussion, but Mr Anderson has rejected the request for reasons of principle and predecent and because he thinks it important that future visitors to federation meetings feel they can discuss matters “freely and frankly.” The refusal also reflects the present sourness in. relations between Federated Farmers and the National Party. ;

Text of affidavits, page 5