Wood stood down over airport shares

WELLINGTON: Prime Minister Chris Hipkins wasted no time in standing down Michael Wood as transport minister yesterday after it was reported he owned $13,000 of Auckland Airport shares that he was told to sell ‘‘half a dozen times’’ since 2020.

The New Zealand Herald also reported yesterday Mr Wood declined North Shore Aerodrome’s application for airport authority status while he owned shares in Auckland Airport, a potential competitor.

Mr Hipkins described Mr Wood’s ownership of the stock while he was regulating the aviation industry as ‘‘not acceptable’’.

‘‘To be honest, I’m not really sure of [Wood’s] explanation there,’’ Mr Hipkins said.

‘‘I’m not sure that Michael himself even has a really good explanation for that.

‘‘It could simply be one of those life admin tasks that he doesn’t seem to have gotten around to.

‘‘I don’t think that that’s acceptable, having indicated back in 2020 that he was intending to dispose of them.

‘‘He should have done that.’’ Mr Hipkins said there had been discussions between Mr Wood and the cabinet office on divesting his shares about six times since the end of 2020.

Mr Wood’s wife, Auckland councillor Julie Farey, has been forced to correct a declaration of interest she filed to the council last October stating neither she nor her husband had a financial interest in any company or business and neither of them had a beneficial interest in a trust.

This was incorrect, given Mr Wood’s airport shares ownership.

Mr Wood’s decision about the North Shore Airport’s application was made in 2021 when he still held ministerial responsibility for aviation, which includes regulating airports.

A briefing from ministry officials in March 2021 recommended the application for airport authority status be conferred on North Shore Airport, saying they ‘‘did not see evidence to suggest that the airport will not be able to satisfactorily carry out the responsibilities of an airport authority and therefore no reason why it should not be granted airport authority status’’.

Mr Wood nevertheless declined the application.

He said yesterday the decision to decline the airport’s application ‘‘was made after carefully considering the overwhelmingly negative feedback from the community and advice from officials’’.

‘‘I have already acknowledged that this conflict was mismanaged and a mistake that I take full responsibility for,’’ Mr Wood said.

There is no suggestion Mr Wood acted inappropriately given his shareholding in Auckland Airport, which had an effective monopoly on flights from the region.

National acting Auckland spokesman Paul Goldsmith said Mr Wood should have recused himself from the decision on whether to grant airport authority status to North Shore Airport.

‘‘The first thing he should have done is sell the shares. If he didn’t sell the shares then he had to manage the conflict more effectively . . . He failed on all counts,’’ Mr Goldsmith said.

Mr Hipkins would not give his view on whether Mr Wood should have recused himself from the decision, when asked about it yesterday.

‘‘As with all of these things, I want the facts before providing an opinion,’’ he said.

Mr Hipkins said he would ‘‘double check’’ decisions that were made while Mr Wood held aviation responsibilities.

Mr Wood is the third minister Mr Hipkins has lost since he took office five months ago.

Unlike Stuart Nash and Meka Whaitiri, Mr Wood was only stood down from his job, rather than resigning or being sacked.

He has kept his workplace relations and minister for Auckland portfolios and been given a pathway back into the fold — if he cleans up his mess.

Mr Hipkins said Mr Wood retained his confidence for now, describing the minister as ‘‘hardworking and conscientious’’.

National seized on Labour’s moment of weakness, publishing advertisements comparing the Mr Wood, Jan Tinetti, Kiri Allan, Marama Davidson and Mr Nash scandals unfavourably with its own policy announcements.

National leader Christopher Luxon accused Mr Hipkins of being ‘‘soft and weak’’, saying Mr Wood should have stood down on Friday night when Mr Hipkins first became aware of the shares.

Kieran McAnulty will take the portfolio on an interim basis.

Mr Hipkins himself appears frustrated by the repeated mishaps of his ministers.

He said he had reminded ministers to up their game with transparency and disclosure earlier this year, but Mr Wood clearly had not got the memo.

‘‘Ministers are aware of my expectations.

‘‘Michael clearly has not met them on this occasion,’’ he said. —

❛ I have already acknowledged that this conflict was mismanaged and a mistake that I take full responsibility for Michael Wood