China board backs Shipley – McKinnon

The New Zealand China Council has no plans to drop former prime minister Dame Jenny Shipley from its board, the organisation’s most senior members say.

RNZ reported yesterday morning that the New Zealand China Council has been told Shipley should not be reappointed when it undergoes a restructure in May. However, council chairman Sir Don McKinnon said there was ‘‘no basis’’ to the report that Shipley was to be stood down from the executive board at a council meeting in May.

McKinnon said there was a review of the council’s governance and structure underway, which began in 2018.

‘‘The purpose of the review is to ensure the council remains as effective as possible given the evolution of the relationship with China and has nothing to do with any issues around individual board members,’’ McKinnon said.

Shipley’s board positions have come under increased scrutiny after a High Court judge ruled she and other Mainzeal directors breached their legal duties as directors leading up to the collapse of the construction company.

McKinnon said the number of council executive board members may be reduced but by how much was unclear. A decision was not expected until the year’s end, he said. The council’s website says there are currently 17 members on its board including the chairman and executive director.

RNZ said a decision to change the size of the council’s board came after a meeting with Foreign Affairs Minister Winston Peters late last year.

Ministry of Foreign Affairs and Trade contributions make up about half of the council’s funding. Over the past four years the ministry has given the council nearly $1.5 million. Council chief executive Stephen Jacobi told RNZ Shipley was not being dropped from council.