With reference to the statement by the former Minister for Employment, Workplace Relations and Small Business on 18 September 2001, ‘The Government believes that Air New Zealand, as the owner of Ansett, bears heavy moral and legal responsibilities to meet Ansett employees’ entitlements. The board of Air New Zealand will be vigorously pursued’: (a) Can the Minister provide details of the Government’s vigorous pursuit of Air New Zealand; and (b) what outcomes can be attributed to this action.

(a)   On 14 September 2001 the Australian Securities and Investments Commission (ASIC) commenced a wide-ranging investigation into the collapse of the Ansett. During its investigation ASIC undertook extensive enquiries in Australia, New Zealand and Singapore involving a comprehensive review of company records and examinations of directors and other officers. It also interviewed more than 350 parties who said they suffered financial loss as a result of Ansett’s failure, consulted with the market and other experts, and obtained legal advice from external counsel on a range of legal issues.

(b)   On the basis of the evidence available, ASIC determined that there was no realistic prospect of successfully prosecuting the former directors of Ansett for breach of their general duties under the Corporations Act 2001 or for insolvent trading. It also decided not to commence proceedings against Air New Zealand. ASIC considered that such action against Air New Zealand would not serve the public interest and, in particular, would be of no assistance to former employees of Ansett or the general body of creditors.