Minister pays and apologises

BY MICHAEL FORBES

After spending thousands of dollars in taxpayer money and even more of his own, Environment Minister Nick Smith has settled a $15 million libel case with a High Court apology and statement of regret.

His climbdown yesterday, which included a secret payment, came after a July 2005 public statement in which he linked the leaky building debacle to a product made by Osmose New Zealand, a division of a United States wood preservation corporation.

Osmose sued Dr Smith, who was an opposition MP at the time of his statement, and timber preservation scientist Robin Wakeling for libel.

The case was to have gone to a six-week hearing in Auckland yesterday but Dr Smith settled out of court.

Outside the court, he denied that his credibility had been affected by the settlement.

"I am just pleased that the matter has been settled. People will judge for themselves what issues of credibility might or might not be. It's inevitable in the rough and tumble of politics that sometimes you are involved in these sorts of proceedings," he said.

The settlement he reached would involve "some payment", but it could not be disclosed.

"No public money is involved in the settlement, although I have been very grateful to have received $209,000 of public money from the Parliamentary Service," he said.

His statements were made when he was the Opposition spokesman on building.

"The cost to me personally exceeds what it has cost the public purse  sometimes that is the price for standing up for things you believe in.

"That is a burden  you don't go into politics to make money, you do it because you believe in things."

Dr Wakeling said outside the court that he was relieved the matter was over, and that it had reached the stage where he was defending himself, as he could no longer afford a lawyer.

"It is a cost you just don't appreciate until you experience it. Five years of defamation proceedings is tough, and it's a huge relief that it is over for my friends and family."

He said it was appropriate that Dr Smith had apologised and settled. "I believe my reputation is very much intact."

He had published an article critical of the Building Industry Authority, now the Building and Housing Department, for approving the use of the treatment in timber framing of houses in 2004.

Dr Smith issued a press release the same day critical of the then Labour government and BIA, along with a copy of Dr Wakeling's article.

Osmose claimed the statements created "public panic" and destroyed the reputation of its product, TimberSaver.

It says it lost more than $14 million in projected profit from 2005 to 2008.

As well as Dr Wakeling and Dr Smith, who were named as first and second defendants, six companies that provided Dr Smith with information about timber products are also being sued.

- © Fairfax NZ News