Collins answers conflict question

Press, 9 December 1988, Page 21

Collins answers conflict question

PA Wellington Mr Paul Collins, the Brierley Investments chief executive who has

just been appointed to chair the National Provident Fund, said yesterday there would always be perceived conflicts of interest in a business environment as small as New Zealand. The large superannuation fund has an 80 per cent subsidiary in the investment bank, DFC New Zealand, which is involved in bidding with British Airways for shares in Air New Zealand — counter to a consortium bid involving Brierley and Qantas. Mr Collins said conflict of interest was “not an issue” in this case because he simply would not involve himself in any discussions National Provident may have about Air New Zealand. He also said he would stand aside if National Provident was to consider such things as investing in Brierley. He did not feel it would be possible for an operation such as National Provident to draw business people with the high-

level ability needed without there being a perceived conflict of interest. “It is a very small country,” he added. National Provident has about $3 billion of assets and manages 25 per cent of this country’s superannuation business. It has a stated intention to diversify its asset base. When asked if sitting on the National Provident board would mean that Brierley would be able to gain useful information on what the fund was investing in, Mr Collins replied:

“I sit on many boards. When you sit inside the boardroom, you’ve got to concentrate just on that

company, so that (question) is not a valid comment.” He confirmed he had raised the conflict of interest issue with the Government when the National Provident job was offered to him. Meanwhile, the Opposition’s State-owned enterprises spokesman, Mr lan McLean, said that appointing Mr Collins as chairman of the National Provident Fund is swapping one problem for another. Associate Finance Minister, Mr Peter Neilson, had earlier said Mr Collins would take over from Dr Graham Scott, who has been NPF’s interim chairman since July. But Mr McLean said last evening the same problem of conflicts of interest remained with Mr Collins’ appointment. Dr Scott’s dual position as Treasury secretary and NPF chairman was “clearly unsustainable,” Mr McLean said.