SOE digs in over 'spy' claims

State-owned coal company Solid Energy will not distance itself from a controversial investigator, despite a Government expectation, after another spy scandal.

State-Owned Enterprises Minister Trevor Mallard said yesterday he was awaiting Solid Energy's "appropriate decision" about its future with Auckland firm Thompson and Clark Investigations.

He was referring to the company's attempt to employ a paid informant. Private investigator Gavin Clark met Christchurch man Rob Gilchrist several times this year, offering cash for information on several organisations, including Save Happy Valley Coalition. The protest group, of which Mr Gilchrist is a supporter, opposes Solid Energy's plans for a coalmine on the West Coast.

TCIL is forbidden from using paid informants in its work as Solid Energy's security provider, after the prime minister and Mr Mallard admonished the practice last year.

Both Solid Energy's chief executive, Don Elder, and Mr Clark said its dealings with Mr Gilchrist did not involve the coal company.

Therefore, Dr Elder said, it would be inappropriate for Solid Energy to end its association with the investigations firm.

"It would appear that we're still dealing with a company that does all things properly and when working for us has a still higher standard which they have absolutely been adhering to," he said. "So it's not even up for discussion."

Mr Clark would not disclose who he was working for when he approached Mr Gilchrist but said he thought Save Happy Valley members were also part of other extremist groups, such as the Animal Liberation Front and the Earth Liberation Front. "Just the fact that they might be in Save Happy Valley doesn't mean that that's all we're focusing on. You can't tell me that all they're doing is focusing on some kiwis and snails.

"The information that I was after with Mr Gilchrist was really a gauge to see where he was at, and if he [could] provide me with the type of information that would be useful within my business."

Mr Mallard, however, rejected Mr Clark's claim that he was working for another client.

"I've racked my brains and can't work out who that might be that's not a state-owned enterprise. It's fair to say that I'm cynical."

Last year, the company was exposed after paying a Christchurch student to join Save Happy Valley and gather information about its protests against Solid Energy's proposed coalmine.

Prime Minister Helen Clark said it was "unacceptable behaviour from a state-owned enterprise". Mr Mallard formally told Solid Energy not to do it again.

He said yesterday that he was unhappy about the new case but had Solid Energy's "unqualified assurance" it was not involved. It had suffered "enormous reputational damage", he said. The case had in effect ended TCIL's relationships with any crown entity.

Mr Gilchrist has left Christchurch since the TCIL conversation details emerged yesterday. He would not comment last night.

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