Photo: RNZ
The Auditor-General has rejected Labour Health spokesperson Ayesha Verrall's request to investigate the government's decision to halve excise tax on heated tobacco products.
In letter responding to the request, Deputy Auditor-General Andrew McConnell said the Office (OAG) could hold public organisations to account for their performance and use of public money, but was unable to express views on the merits of government policy decisions.
"Our work can include examining whether a decision-maker has followed an appropriate or agreed process in making a particular decision. It is not our role to express a view about the merits of a particular decision or the policy sitting behind that decision," McConnell wrote.
"The decision by the Government to reduce the amount of excise tax on a particular product is a policy choice for the Government to make, and it is not within our mandate to question or examine it."
He said allegations of corruption or criminal behaviour might better be considered by the Serious Fraud Office, and the Commerce Commission may be able to look at whether the policy "has inappropriately affected the market for these products or advantaged a particular participant in that market".
Finally, he said questions about whether the decision was in breach of the World Health Organisation's Framework Convention on Tobacco Control - which requires New Zealand to protect tobacco control policies from the interests of the tobacco industry and complete transparency in any dealings - was a legal question the Office was unable to answer.
In a statement, Verrall said there were still concerns about conflicts of interest - saying Prime Minister Christopher Luxon had dodged questions about that.
"The spotlight should remain on Associate Health Minister Casey Costello ... this refusal should in no way let New Zealand First off the hook. They still need to explain why keeping people hooked on a harmful product is in the interests of New Zealanders' health."
She said the "murkiness" of how a policy document that "mirrors [tobacco company] Philip Morris strategy, plus her inability to explain how heated tobacco products are good for health call into question her acting in the best interests of New Zealanders' wellbeing".
In a written statement, Costello said the OAG response was not surprising, and said she was sure Verrall had written her letter "to make a series of smears".
"As I said at the time the letter was written to the OAG, I would have welcomed an inquiry as it would have put this matter to bed," Costello said.
"The reality is that I have no connections to the tobacco industry, and Labour has no evidence to the contrary. Dr Verrall and the Labour Party are playing very dirty politics here. The policies I'm putting in place are about helping people to stop smoking and reducing smoking rates and that's what I'm going to continue to focus on."