Broadbank purchase inquiry?

Press, 29 January 1986, Page 8

Broadbank purchase inquiry?

By

SIMON LOUISSON

in Wellington

The Chief Opposition Whip, Mr Don McKinnon, has called for a select committee inquiry into the purchase of Broadbank Corporation by the Government Life Corporation. Mr McKinnon said the purchase was a big depar'ture for a State corpora-

tion which had ramifications for the financial community along with policy holders of Government Life. He questioned whether the ownership of Broadbank by the corporation now gave it a Government guarantee on its funds. He said there was also some incompatibility between the employees of Government Life who are

State servants, and those of Broadbank who are not The Minister in charge of the corporation, Mr Goff, has said the Government would review legislation which controls the corporation, but Mr McKinnon said that there seemed to be little reason for it to remain under Government control. Unanswered questions

he wanted the Government administration committee to invesigate were: • Did the Minister consent to the purchase? • Where will Government Life get the funds to buy Broadbank? • What long-term aims does Government Life have for Broadbank and how does that affect existing policy-holders? Government Life differs

from most Government corporations in that it is entirely funded through its policy holders and it is controlled by a board of directors. However, it does have a Minister in charge, must report its results to Parliament, and comes under the Public Service Act

Mr Goff was unavailable to respond to Mr request