Key lobbied for billionaire’s case

After days on the back foot, the Government has revealed it was Sir John Key who was lobbying for an exemption for a billionaire’s property development in Northland.

The Government had sought an exemption to the Overseas Investment Amendment Bill for Te Arai development in Mangawhai because the legislation created a disincentive for potential wealthy overseas buyers.

Senior Cabinet ministers had listened to concerns raised by the hapu and iwi (Te Uri o Hau and Nga¯ ti Manuhiri) involved in the development and sympathised with the delays they had suffered over the years and that the overseas buyers ban would hurt them further.

MPs on the finance and expenditure select committee who heard the submission from the hapu and iwi involved agreed to grant an exemption, which was subsequently ruled out of order by the Speaker.

But the Opposition has raised questions about why it was ever given in the first place.

Leader Simon Bridges and MP Amy Adams have been on the attack over why the Government would try to create such an exemption and raised questions about the relationship between Associate Finance Minister David Parker and the Queenstown developer, John

Darby.

American billionaire Ric Kayne, who also has New Zealand citizenship, was the investor and developer of the property alongside Darby and it was Key who lobbied Forestry Minister Shane Jones to meet with Kayne to discuss an exemption.

Kayne owns the luxury Tara Iti Golf Club in Northland – where Key took former United States president Barack Obama – and a golf course was part of the luxury plans for the development at Te Arai, which was formerly Crown forestry land that was given back to hapu and iwi as part of the Treaty of Waitangi settlement process.

Parker has spent the past week dismissing accusations he had a conflict of interest in signing off on the proposed exemption given he didn’t have a friendship with Darby as had been suggested in Parliament by the Opposition.

Jones told the House in Question Time yesterday that he’d never heard of Kayne until Key contacted him asking to meet with him.

‘‘I quite enjoy the company of the former prime minister, which may reduce my prospects for career development given the nature of the current prime minister, but, having said that, I took his call and I didn’t think there was anything improper with meeting those parties, one billionaire. If it was good enough for him to encourage me to meet with them, listen to them about their concerns, then that’s what I’m paid to do. The other side of the House might find more information if they look closer to home,’’ Jones said.

Following Question Time, Jones told media he’d received an Official Information Act request about who had lobbied him and decided to go public about it.

‘‘I could have waited 21 days and played cute with it but, as befits my style, I thought I would front the issue because it’s in my diary that I had a meeting with the people I called today.

‘‘I don’t know if it’s of much assistance to David Parker but it adds a bit more colour and broadens the full script of the story,’’ he said.

Key making contact with Jones was not unusual given he had previously appointed Jones an ambassador to the Pacific under his prime ministership.

‘‘Any suggestion that I’ve done something dishonourable, well it started with my conversations with John and I don’t think he’s dishonourable in any way or form,’’ Jones said.

While the exemption set out to help an iwi which had acquired the land for development as part of a Treaty settlement, Jones said he ‘‘didn’t see there being any scope for a race-based exemption’’ more broadly.

However, he accepted Treaty settlement land may get caught up in ‘‘future grievances’’ as a result.

Key declined to comment.