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PM has head in sand over trust funding

Labour Party

Tuesday 24 July 2012, 8:17PM

By Labour Party

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The Prime Minister’s “investigation” into the funding of a trust chaired by a National MP was a joke, and failed to ask the obvious questions, according to Labour’s Environment spokesperson Grant Robertson.

“In Parliament John Key effectively admitted his officials had not even bothered to read the relevant documents covering the special payment made to the MacKenzie Futures Trust, chaired by Waitaki MP Jacqui Dean.

"The Trust received $180,000 directly funded by the Ministry for the Environment. This was despite being turned down for funding by an independent panel as part of an open and competitive process for the Community Environment Fund.

Grant Robertson says the panel unanimously rejected the Trust’s bid on the grounds that the costs were "high" and the Trust had no clear strategy and no clear plan.  “That should have set off alarm bells for the Prime Minister.”

“John Key has also not bothered to investigate the concerns of Ministry Deputy Secretary Sue Powell that “we remain deeply concerned at the level of professional fees being paid into this process; some of the costs charged also have us concerned.” This is a significant comment from a senior official and deserves more than a cursory look from the Prime Minister.”

Other documents tabled in Parliament today showed that Ministry officials were also concerned the Trust was "pressuring" the Ministry into a quick decision on funding. “This is a serious allegation given the role of a National MP as Chair of the Trust, and the close involvement of the Minister in the process.”

“I want to make it clear that none of these issues reflect on the community groups who have been involved in the collaborative process in the Mackenzie Basin. They are to be congratulated for their commitment to a sustainable solution to issues in the region.

“My concern is with the process for awarding funding and the role of the Minister, a National MP and insiders. This deserves a proper investigation, not the once over lightly from the Prime Minister.”