NZ First-linked firm wanted Govt funds

Future Forest Products spent six months in discussions with government officials over its Provincial Growth Fund bid and also wanted up to $95 million in funding through the One Billion Trees programme, RNZ revealed.

Brian Henry, lawyer for Winston Peters and judicial officer for the New Zealand First party, is a founding director of NZ Future Forest Products, which he helped to set up in March.

His son, David Henry, is another founding director and the company’s managing director, and Winston Peters’ partner Jan Trotman was made a director of the company in August.

The Provincial Growth Fund bid was eventually rejected by Labour ministers after Shane Jones recused himself from the process.

In a statement yesterday, New Zealand Future Forest Products said it was ‘‘aware that two of its directors have personal links to the New Zealand Deputy Prime Minister’’ and would be maintaining a higher level of transparency than required of it as a private company. ‘‘The company has no further plans to apply for financial support from the New Zealand Government,’’ it said.

Future Forest Products said its application to the $3 billion Provincial Growth Fund – which was negotiated as part of the Labour-New Zealand First coalition agreement – was for a $15 million loan to carry out a feasibility study for a new

Government minister Shane Jones, left, and New Zealand First party judicial officer Brian Henry.

engineered timber operation in Gisborne.

That bid was eventually turned down by Labour ministers at a November 7 meeting.

Jones was at the meeting but excused himself for that agenda item, after receiving Cabinet Office advice that his relationship with Brian Henry posed a potential conflict of interests.

Future Forest Products also wanted up to $95m from the One Billion Trees fund – another programme overseen by Jones – to buy farmland to convert to commercial forestry.

In a presentation sent to senior forestry officials in July, it proposed the Government join it in that scheme as a joint shareholder of a company it proposed to set up, Future Forest Products Afforestation Limited.

Yesterday, Future Forest Products said it did not make a formal application to the One Billion Trees fund. It also

announced a new director, the US-based New Zealand businessman Peter Watson, who has worked for both the George HW Bush and Clinton presidencies.

It had finalised an acquisition of Northland timber company North Sawn Lumber, and that company’s directors, Garth Mortenson and Grant Syminton, would also be appointed as Future Forest Products directors.

The sole shareholder of Future Forest Products is Kinleith Continuation LP, a limited partnership of which David Henry is the public partner. The limited partner and their investment or shareholding is not publicly available.

A spokesperson for Jones said the material outlining the company’s proposal never came to the minister or his office and he was not involved in any decision because it was rejected by officials before reaching him.

– RNZ