By Mark Daalder of 
Mark Patterson was sworn in as a government minister in November 2023. Photo: Johnny Blades
Rural Communities and Associate Agriculture Minister Mark Patterson refuses to answer questions about a newly disclosed conflict of interest, and won't say whether he was conflicted, when he sat in on Cabinet discussions about carbon markets.
The latest update to the Cabinet Office's list of ministerial conflicts of interest shows Patterson has a "potential conflict between government decisions in relation to the pricing or other settings of Emissions Trading Scheme (ETS) units and a pecuniary interest".
The solution is that Patterson won't receive papers or participate in decisions regarding some ETS settings from 14 August, 2024.
However, Cabinet documents show Patterson participated in at least one ETS settings decision before that date, in late May. The decision related to the Government's consultation on annual ETS updates and was market sensitive - the consultation had to be launched before markets had yet opened.
Patterson also put his name to a press release on the Government's decision to remove agriculture from the ETS, although it's not clear whether this topic would fall under the potential conflict outlined by the Cabinet Office.
Newsroom asked Patterson's office whether the conflict disclosed by the Cabinet Office was new as of 14 August or had only been noticed or declared at that date. In other words, did Patterson hold a pecuniary interest that could be affected by ETS settings, when he was participating in decisions on those settings?
A spokesperson for the New Zealand First MP declined to answer these or any other specific questions.
"Details regarding conflicts of interest disclosed to the Cabinet Office are not generally released to ensure the confidentiality of Cabinet proceedings, maintain the effective conduct of public affairs and, in some cases, to protect personal privacy," the spokesperson said.
"This has been the approach taken by successive administrations over many years, because it is in the public interest that the Cabinet Office can obtain and assess information about conflicts of interest, and provide advice to Ministers on how to resolve them on a confidential basis."
However, previous governments have released more information about ministerial conflicts when asked. In 2018, the Labour-NZ First coalition disclosed the specific conflict held by Shane Jones in relation to a forestry company, which had applied for money from the Provincial Growth Fund he administered.
Integrity Institute senior researcher Jem Traylen said, while Patterson's office may not be required by the Cabinet Office to disclose this information, it wasn't barred from doing so either.
"It's quite obvious that the minister can disclose whatever additional information he wants to about his pecuniary interests, and is in a position to confirm whether or not he had that conflict of interest prior to 14 August," she said.
"What they're really hiding behind is what they feel like they're obliged to disclose, not what they could disclose. It's very clear that it's in the public interest to know whether such a conflict existed during those earlier ETS decisions.
"Obfuscating and hiding behind a dubious interpretation of the rules simply doesn't cut it."
The specific nature of Patterson's pecuniary interest remains unclear. The latest register of MPs' interests shows Patterson was, as of January 2024, the director of Ngapara Farms Limited, described as "sheep and beef farming, and forestry company".
Companies Office records show Patterson has been a director of Ngapara since 2005.
ETS settings can have a significant effect on the profitability of the forestry industry, which sequesters carbon as trees grow.
Labour Party climate change spokesperson Deborah Russell said Prime Minister Christopher Luxon needed to step in over the issue.
"The Associate Minister of Agriculture remains a director on the board of a large farm with forestry interests. He has been present for decisions on the ETS and forestry regulation in Cabinet committees.
"Christopher Luxon cannot turn a blind eye to this potential conflict of interest and should be transparent about what he is doing to get to the bottom of it."
The new questions about Patterson follow revelations reported by RNZ last week that Act Party MP and Associate Agriculture Minister Andrew Hoggard was lobbied by his own sister, who pushed him not to impose tougher regulations on baby formula.
- Newsroom
