THE PRESS TUESDAY, MARCH 17, 1987. Mr Brierley at BNZ

Press, 17 March 1987, Page 14

THE PRESS TUESDAY, MARCH 17, 1987. Mr Brierley at BNZ

Questions of conflict of interest inevitably arise out of the appointment of Mr Ron Brierley to the position of chairman of the Bank of New Zealand. There is nothing novel about the appointment of a businessman with wide connections as chairman of the Bank of New Zealand. The present chairman, Sir Lewis Ross, is a chartered accountant and since his appointment in 1975 he has also served as chairman of N.Z. Forest Products, of N.Z.1., of L. D. Nathan’s, and of Freightways. He has also served as a director of a number of other companies. Sir Lewis’s predecessor, Mr D. O. Whyte, was also a businessman with a variety of interests. There were doubtless instances in which a conflict of interest could have arisen between the business activities of these men and their role as chairman of the bank; but both conducted themselves so that their probity was never in question. Mr Brierley will be able to sort out any possible conflicts of interest as his predecessors have done. He has been on the board of the bank for two years and should by now have a sound idea of whether there will be much room for conflict. His company is one of the largest listed on the Stock Exchange and that in itself will give some people cause to be cautious. Brierley Investments has a number of banking interests, which puts Mr Brierley in a different position from his immediate predecessors. It is not impossible to imagine that some of the banking activities will one day come into competition. It is a small world at the top of banking in New Zealand and there is no

way that any real conflict of interest could pass unnoticed by those engaged in the business. Circumstances could arise in which one person, privy to the policy-making of competing banks, might be able to separate knowledge into compartments; yet public appearances would demand more than this and resignation would be inevitable. An ordinary director of the bank might stand aside from possible conflicts of interest; the chairman cannot be too often in such a position and still remain in charge. The chairman of the BNZ is not an executive of the bank. Nevertheless, it may be expected to be a demanding job because of the increased banking competition within New Zealand, because of the sale of BNZ shares, and because of BNZ’s international ambitions. Mr Brierley is already a busy man because of his company’s activities, and he is also resident in Australia. A number of people commute across the Tasman to pursue their business interests; but when the chairman of the BNZ is living in Australia, the appointment gives a new dimension to the financial dealings between New Zealand and Australia. Other countries may also have a different view of New Zealand’s financial dealing because of Mr Brierley’s appointment. Some foreign eyebrows might be raised that the Bank of New Zealand had as its chairman the founder and chairman of one of the country’s largest companies. Others will argue that one of New Zealand’s most successful businessmen is an entirely appropriate person to be chairman of the bank.