Best advice is Air NZ bail-out sufficient - Cullen

Finance Minister Michael Cullen said today that the government’s best advice was that the $885 million rescue package for Air New Zealand would be sufficient to meet the company’s recapitalisation needs.

“There is no reason to believe that any more money will be required,” he said.

Dr Cullen was responding to media reports of an interview he gave the Australian television programme Business Sunday. He said he never implied that Air New Zealand might need up to $150 million more.

He had been replying to the interviewer’s assertion that the $885 million may not be adequate and that two to three times that amount may be needed.

“The due diligence process will reveal whether the $885 million is enough. At this stage, I have every confidence it will be at or very near requirements.

“I made it very clear to Business Sunday that, if more was required, the $150 million figure was well toward the top end of the range the government could tolerate,” Dr Cullen said.

Contact: Patricia Herbert [senior press secretary] 471-9412, 021-270-9013, patricia.herbert@parliament.govt.nz