Greens outraged at 'conflict of interest'

Advocates for New Zealand's biggest water polluters have been handed a contract to write a 10-year Government water strategy.

The Green Party is outraged DairyNZ, which represents dairy farmers, received the uncontested contract to do the work for the state-funded Foundation for Research, Science and Technology (FRST) in what MP Jeanette Fitzsimons says is "such an obvious conflict of interest".

DairyNZ is funded by a levy on milksolids.

The Greens are also angry that no environmental or recreational non-governmental organisations (NGOs) were consulted.

DairyNZ employee and former FRST investment strategy general manager David Johns will conduct the review.

DairyNZ says Johns is doing the work in a private capacity, not as a DairyNZ staff member.

Current FRST investment strategy general manager Richard Templer told The Press Johns' two-day a week contract was being invoiced through DairyNZ.

The contract, released under the Official Information Act (OIA) and tabled in Parliament by Fitzsimons on Thursday, states DairyNZ is the "contractor" and "shall make available Dr David Johns to perform the services".

Templer said there was no requirement to go out for tender as the value of the contract was "well below" the required level of $80,000. "Dr Johns was chosen because of his reputation and the knowledge he had built up during five years working with the foundation.

"In a country like New Zealand with a relatively small pool of experts, potential conflicts of interest are common," Templer said.

In Parliament, Fitzsimons asked Science Minister Wayne Mapp what advice he had received on the potential conflict of interest.

Mapp said that potential had been "carefully managed through consultation" before Johns' engagement.

Fitzsimons told The Press she was unhappy with his responses.

"We're not suggesting any criticism of David Johns. The problem is with the foundation that the foundation thought it was OK to ask an organisation which is funded by and represents the biggest polluters of water to design a research strategy for the Government to try to clean up water, a strategy for all Government-funded research of water quality.

"We've got no problem with farmers and dairy farmers being involved, but to be in charge of it, that is quite major."

DairyNZ chief executive Tim Mackle said it would not have released Johns to do the work without satisfying itself there was no conflict of interest.

"Based on his extensive experience ... Dr Johns had a valuable contribution to make," Mackle said. "DairyNZ was not involved in the process. Dr Johns was simply contracted to facilitate the process of the preparation of the draft water research strategy."

An FRST file note released under the OIA said Johns' employer "has an interest in the outcome of the strategy in that it would be a future beneficiary".

The possible conflict had been managed through several actions, including consulting to ensure no interested parties objected to his involvement, it said.

Fitzsimons said that had not been done fully.

"They did go and ask the stakeholder groups the contract lists Uncle Tom Cobley and the kitchen sink, everybody except the environmental NGOs who have a long track record. What we needed was the water rights groups, Forest & Bird, Ecologic, the WWF for Nature, the Environmental Defence Society (EDS), those kinds of groups."

EDS chairman Gary Taylor said Johns carrying out the study was "no worse than Peter Jackson reviewing the Film Commission".