Hon Wyatt Creech, Minister of Education

Education Minister Wyatt Creech today criticised the Labour Party's superficial beat up over investments made by Lincoln University.

"This is not the simple black and white issue Labour's Education spokesperson is trying to portray.

"The issue in dispute is the investment approval mechanism. The disagreement flows from differences of interpretation between the Vice Chancellors Committee (representing universities) and Government officials over the Education Act and the Public Finance Act and how the two pieces of legislation apply to tertiary institutions.

"It is nonsense to claim that I have ``admitted'' that Lincoln's investment is illegal. I have pointed out there is a problem and that it is being addressed. Ministers do not make decisions about legality. I have pointed out that there are differing legal positions on this issue, which stem incidentally from the lack of clarity in ill thought through aspects of these two pieces legislation introduced by the previous Labour Government.

"The real issue at stake is that of the financial accountability and monitoring of tertiary institutions. Improving the accountability of institutions is one of the key things that the Government is trying to correct through the tertiary review," Mr Creech said.