21 October 2002
Media statement
Today I have tendered my resignation as Chair of both Television New Zealand Limited and Industrial Research Limited and
these resignations have been accepted by the shareholding Ministers.
I accept that my positions are no longer tenable and that the honourable course of action is to resign. However, I
regret and reject the way in which reports of my efforts to develop the Public Private Partnerships (PPP) issue have
been interpreted as an attempt to deliberately mislead the government,
A word about the subject of PPP. Public private partnerships enable the public and private sectors to work together in
developing major projects that may otherwise not be affordable. A precondition of these partnerships is the requirement
that ownership remains in Government hands.
My intention was to work with a team to develop a set of discussion papers on PPP with input from the private sector and
overview from the public sector.
I saw this as an opportunity to contribute to New Zealand's growth because our standard of living and our future depends
on our ability to grow the economy. To achieve such growth, services and infrastructure must perform efficiently. Roads
are a vital part of our infrastructure and when Auckland is moving, New Zealand is moving. Conversely, when Auckland
comes to a standstill New Zealand's growth and productivity is compromised.
There was absolutely no intention that any participating company would have an unfair advantage. In fact no advantage
beyond the obvious benefit by their participation in a better understanding of policy issues such as the private public
sector risk, the public sector comparator, approval processes and other contractual issues, was intended. The issues of
probity would have been a central part of one of the discussion papers. Following the completion of the papers it was
intended that Government would consider and implement a consultation process with both business and the wider public.
The reason I sought to pursue this idea and involve the private sector in an area traditionally the preserve of the
public sector was because it seemed to encapsulate the very spirit of the words "public private partnership". Here was a
policy area where a number of New Zealand companies through their off shore connections had an excellent working
knowledge of PPP. Our closeness to Australia mean that we had an opportunity of understanding the workings of PPP in the
states of New South Wales, Victoria and Queensland. This meant we wouldn't have to reinvent the "policy" wheel.
While the paper was prepared by the Pacific Roads Company, I take responsibility for it. Unfortunately, the preparation
and approval process took place in a short time frame and I overlooked some critical phrases in the draft. There was
never any intention that there be favouritism to any participating company and I do regret the embarrassment caused to
the Government.
I am proud, privileged and honoured to have been given the opportunity by successive Governments to lead New Zealand
Post, establish Kiwi Bank, prepare for the implementation of TVNZ's charter, and add to scientific innovation through my
work with Industrial Research Limited.
Ross Armstrong