PM Jacinda Ardern tells Minister of Regional Economic Development Shane Jones his calling for the sacking of Air NZ’s chairman went ‘a step too far’

The Prime Minister has pulled Regional Economic Development Minister Shane Jones into line after he called for Air New Zealand’s chairman Tony Carter to resign.

Jacinda Ardern says the New Zealand First MP’s comments “were a step too far.”

But Jones has stopped short of an apology, saying only that he knows he has “no authority as to the future tenure of the Board.”

Jones called out Carter on Wednesday morning, after earlier slamming the airline for cutting some of its regional flights. This prompted a strong response from Carter, who on Tuesday said he had written to Minister of Finance Grant Robertson, one of two shareholding ministers, to “reinforce that the airline will always act independently.”

The Government owns 51% of the airline.

Arden says as Jones has always been a strong defender of the regions – “[his comments] won’t surprise anyone.”

She explained to Jones that he is “absolutely entitled to an opinion, which he has shared, but suggesting anyone from the Board should go is a step too far.”

But Jones’ job is safe, Ardern says – “this is not a sackable offence.”

Asked if she was confident Jones was not going to make similar comments again in the future, Ardern says Jones is “of course always going to have opinions.”

“What we have to do is make sure that we draw the line, as a Government we have a large interest in Air New Zealand, to make sure we don’t overstep the mark. Even though he has not got the ability to follow through on what he has suggested, it has gone too far.”

Challenge remains the same

Jones defended his comments, saying that because of his “championing of the provinces, I have made, I believe, a fair bit of traction on the issue.”

But he says his challenge to Air New Zealand “remains the same.”

 “I have been told that whilst I am a Cabinet Minister I have no authority as to the future tenure of the Board, I accept that – that has been made crystal clear to me.”

He reiterated that every time a chief executive pokes their nose into the political boxing ring, they have two options: get into politics or go back into the corporate box.

“If anyone on that board believes they are going to muzzle me as a champion for the provinces, they are sadly mistaken.”

Asked if he stands by his comments, he says they have “gone through a process of refinement.”

“Both Grant [Robertson] and the Prime Minister have said ‘Shane, you have a strong view as a regional, provincial champion but you have no authority to effect changes at the level of the Board – I accept that.”