Excess of Government zeal leaves taxpayer picking up Dotcom tab

New Zealand taxpayers were already facing significant liabilities as a result of the Dotcom litigation before John Key’s admission of likely illegal conduct amongst the security services, Labour’s Justice spokesperson and Shadow Attorney-General Charles Chauvel says.

The extent of some of those other costs and liabilities were clarified in Parliament’s question time by the Government today, he said.

“When the United States made its extradition request, the New Zealand Government had little choice but to grant it.  Both parties have signed a mutual assistance in criminal matters treaty, hence when criminal wrongdoing is alleged by one country, the other country has to act, and to pay for the action.

“What is of considerable concern, however, is how much further the New Zealand Government has gone.  As Attorney-General Chris Finlayson revealed today, in addition to auctioning the extradition application, it sought a restraining order against Mr Dotcom’s New Zealand-based assets.

“This was a civil, not a criminal, application, and was not required by the treaty obligation owed by New Zealand to the United States.

“When it made this application, the New Zealand Government was told by the Court that it had to give an undertaking as to damages to Mr Dotcom.  In other words, it was told that it would have to promise, on behalf of taxpayers, to pay damages to Mr Dotcom if the seizure of his assets is found to be unlawful in any way.

“Senior ministers – including Bill English and Chris Finlayson - were briefed before the giving of the undertaking.  Apparently, the United States Government was consulted about it as well. The undertaking was given.

“The Prime Minister’s admissions yesterday about the role of the security services; the high level briefings given to ministers as this litigation progresses; the significant resource being devoted to this litigation at Crown Law and in the Crown Solicitors’ Office at Auckland; the successive Crown appeals from interim High Court and District Court decisions – all of this paints a picture of a Government that is highly invested in this litigation, contrary to the picture that John Key and others are seeking to paint.

“Kiwi taxpayers can now only hope that they won’t be left on the hook for the Government’s zeal in pursuing this case”, Charles Chauvel said.