Simon Power National MP for Rangitikei
29 May 2002
Defence loses millions for Jim's jobs plan
It seems the Defence department has lost several million dollars despite their advice warning against the sale of land
at the Hobsonville airbase, National MP Simon Power said today.
Mr Power released documents today, which show that the Ministry of Defence sought reimbursement for any loss if the 4ha
of land was sold under value, and that the Ministry of Economic Development agreed in a draft memorandum to make up this
loss.
"It seems from documents that Defence recommended against this land being sold and sought reimbursement from the
Ministry of Economic Development should it be sold below its value. The land was sold for $523,000 but two days after
restrictions were changed, its value rocketed up to $7.5 million and $10 million.
"The question is, as the sale was rushed through, and Defence lost millions of dollars has the NZDF ever been reimbursed
as was proposed?
"Minister of Defence Mark Burton has been had. This land was sold from under his nose in a political move driven through
the Ministry of Economic Development by Jim Anderton to make it look as though he and the Government were creating many
jobs in the boat building industry.
"The Government should be very concerned that this land has been sold for no other reason than to advance a political
agenda, the Government, taxpayers and Defence, have lost millions of dollars on the sale. Mark Burton must explain why
this sale was rushed through and the subsequent botch ups," Mr Power said.
Ends