No Ministerial Involvement In Contact

It is correct, as announced in Parliament by Phil Goff yesterday, that Saatchi and Saatchi have been awarded the advertising contract for the float of Contact Energy, Treasurer Bill Birch and SOE Minister Tony Ryall said today.

"It is also correct, as Mr Goff said, that this contract was awarded by the Treasury.

"Ministers, as is standard practice, had no input into the awarding of this contract."

This Government has established a commercial, non political, system for managing asset sales. Under this process the Asset and Liabilities Management Branch of the Treasury, are responsible for the operational aspects of any sale.

The appointment of independent commercial advisors, and advertising and public relations agencies, are such operational matters. Whilst Ministers are of course informed of such appointments, they play no role in them.

"We do not want Labour's campaign of innuendo to in any way bring into question what is a transparent commercial process," the Ministers said.

"Contracts such as this are awarded on the basis of price and quality."

The attached Treasury report sets out the process for the appointment of advertising and public relations firms for the Contact Sale.