No 'active suspension' of Saudi agri-hub funding – Joyce

The government says there was no active suspension of NZ Trade and Enterprise’s funding of the controversial Saudi sheep agri-hub after the Auditor-General announced a probe last year.

Yesterday, Labour Party members of Parliament's commerce committee put forward a motion for NZ Trade and Enterprise officials to re-appear before the committee to answer more questions on the suspension of funding for the Saudi agri-hub.

When NZTE chief executive Peter Chrisp was last week asked if funding for the Al-Khalaf agri-hub had been suspended he replied, “No, there’s absolutely no reason to.”

But according to board documents obtained by the Labour Party, this response contradicted information he gave to NZTE days after the Auditor-General announced in August she would conduct an inquiry into the expenditure of public money on the Saudi Arabia Food Security Partnership.

Lyn Provost’s probe was prompted by several requests – including from two members of Parliament and the NZ Taxpayers’ Union – not to mention a petition signed by more than 10,000 New Zealanders – to inquire into aspects of the deal.

Labour MP David Parker says NZTE should return to the committee to correct its answer and explain why funding was suspended, and if it remains suspended on the deal, which gets “murkier and murkier.”

“This controversial deal has included a $4m cash payment, $1m on flying sheep to Saudi Arabia, most of the lambs dying, and concern over whether the abattoir being paid for by taxpayers will be owned by the Saudi government.

“The public deserve proper answers.”

Today, Mr Parker asked Foreign Affairs Minister Murray McCully who will own the abattoir at the Saudi agri-hub, and how much taxpayer money has been spent since further spending was suspended after the Auditor-General’s probe was announced.

Economic Development Minister Steven Joyce, answering on Mr McCully’s behalf, says that under the funding agreement, the equipment sent to Saudi Arabia becomes property of the Al-Khalaf group.

But ultimate ownership of the agri-hub is yet to be finalised, which Mr Joyce says will be a matter for the group and the Saudi government.

Mr Joyce also says there was no active suspension of funding by NZTE in August, 2015.

He says Mr Chrisp yesterday clarified that “in hindsight, the use of the word suspended in the board paper was not helpful.”

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