Cablegate: Departing Nz Minister Assumes New Trade Role

VZCZCXRO5898
RR RUEHNZ
DE RUEHWL #0533 1922255
ZNR UUUUU ZZH
R 112255Z JUL 06
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC 3015
INFO RUEHNZ/AMCONSUL AUCKLAND 0830
RHHMUNA/CDR USPACOM HONOLULU HI
RHHJJAA/JICPAC HONOLULU HI
RUEKJCS/SECDEF WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHDC

UNCLAS WELLINGTON 000533

SIPDIS

SIPDIS

SENSITIVE

STATE FOR D (FRITZ), EAP/FO, AND EAP/ANP
NSC FOR VICTOR CHA
SECDEF FOR OSD/ISD LIZ PHU
PACOM FOR J01E/J2/J233/J5/SJFHQ

E.O. 12958: N/A
TAGS: PGOV NZ
SUBJECT: DEPARTING NZ MINISTER ASSUMES NEW TRADE ROLE

Summary
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1. (SBU) Labour Cabinet Minister Jim Sutton has announced his
retirement from politics to become a Trade Ambassador for New
Zealand and Chair of Landcorp. His departure from Parliament will
not alter the balance of power as he will be replaced by the next
person on the Labour Party List, lawyer Charles Chauvel. Sutton's
departure is the first step taken by Labour in a process to replace
some of its longer serving MPs with fresh talent ahead of the next
election. End Summary.

New roles
---------

2. (SBU) As Ambassador for Trade, Sutton will have a roving
commission to support the Government in bilateral and regional trade
negotiations. Although this is officially a new position, Trade
Minister Goff has told the Ambassador that Sutton will largely
continue the same function as he has as Minister of State and
Associate Trade Minister, a position he's held since December 31,
2005. Sutton will continue to explore new possibilities for trade
agreements, attend conferences, and in general backstop for the
tremendously busy Goff, who is also New Zealand's Minister of
Defence. Sutton's appointment is initially set for two years.
According to press reports, he was offered diplomatic posts in
Ottawa, Canberra and Washington but turned them all down citing a
desire to be based in New Zealand with his wife, a Wellington-based
policy analyst.

3. (SBU) As chairman of the board of the State-owned Landcorp, he
will oversee New Zealand's largest agricultural enterprise. Both
appointments take effect from August 1.

Electorate defeat reins in ministerial career
---------------------------------------------

4. (SBU) An MP of 18 years, Sutton has previously held the
agriculture, forestry, rural affairs, biosecurity and trade
negotiations portfolios. A farmer before entering Parliament, Sutton
lost his electorate seat in the last general election and had to
return to Parliament as a list MP only. The loss of his seat led
many analysts to predict his eventual departure from politics. It
also opened Labour to criticism over its practice of using list
slots to retain in Parliament those MPs who had lost their
electorate seats.

Political status quo preserved despite Sutton's exit
--------------------------------------------- -------

5. (SBU) As a list MP, Sutton's departure from Parliament will not
alter the current balance of power. He will be replaced as a Labour
MP by the next person on the Labour Party List, Wellington lawyer
Charles Chauvel. Chauvel, 37, has been a partner in the law firm,
Minter Ellison. He has also chaired the New Zealand Aids Foundation,
served as a board member of the Public Health Commission, and been
Deputy Chair of both the New Zealand Lottery Commission and Meridian
Energy, New Zealand's largest State-owned electricity generator. It
is expected that Chauvel will serve out the remainder of the
parliamentary term as a junior backbench MP.

Exit the first step of renewal process for Labour
--------------------------------------------- ----

6. (SBU) Sutton's departure signals the first stage of a process to
rejuvenate Labour's parliamentary ranks. Prime Minister Helen Clark
is known to be looking for dignified exits from several of Labour's
long-serving MPs before the next election in an effort to bring in
fresh political talent. Although it is well known that Sutton has
mixed feelings about departing the political scene, this first phase
of the process was a fairly painless one for Clark. However, it
remains to be seen whether the acquiescence of the departing Sutton
will be replicated by other long-serving MPs targeted in the
rejuvenation process.

McCormick

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