26 April 2002

Shareholding Ministers Comfortable With Committee's Recommendation

State Owned Enterprises Minister Mark Burton said today that shareholding ministers are comfortable with the recommendation of the Finance and Expenditure Select Committee that the Auditor-General consider undertaking an audit of Transend to ensure its policies and procedures are adequate.

"The Controller and Auditor-General will no doubt consider this request as part of the discretionary work programme of his office," Mark Burton said.

"There has been considerable political debate centred around the operations of Transend. The Auditor-General would provide an independent appraisal.

"I note that New Zealand Post has given the committee assurances that governance arrangements have been strengthened, primarily in the areas of financial management and travel policy. Shareholding ministers have been given the same assurance," Mark Burton said.

"The report notes that Transend reported a net surplus after income tax for the 2000/2001 year of $14 million. At a time of expected reductions in key volume areas and ongoing cost increases, this was a major contribution to New Zealand Post's overall net surplus of $21 million."

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