Blood pressure rises with appointment

Margaret Wilson’s reputation as a minister has well and truly preceded her.

The collective reaction from the financial services industry yesterday to the news that she is taking over as the Minister of Commerce from Lianne Dalziel seems to have been: “Oh my god.” But of course no one wants to go on record saying this as they all have to work with her.

In the past few days most of the smart money was on a minor reshuffle, with commerce either going back to Paul Swain, who held the job in Labour’s first term, with an expanded role for associate minister David Cunliffe.

And a bolder course would have been to give John Tamihere the job. But as often is the case the smart money ain’t always right.

Instead, Prime Minister Helen Clark has given the job to the minister most likely to raise blood pressure amongst business people.

Clark’s rationale for the appointment is that Wilson wanted out of the Labour and Treaty Negotiations portfolios, and - more positively - there are a number of legal issues looming in the commerce area.

Two of those issues directly concern the financial services industry - regulation of advisers, and a wide-ranging review of the Life Insurance Act.

Sacked minister Lianne Dalziel had surprised many within business - and especially within the financial services area - with her grasp of the issues and her willingness to listen. On the issue of adviser regulation she was prepared to take the issue back to first base, talk to the industry and make a decision – as opposed to just accepting what the Securities Commission said.

Whatever her sins in other areas of her job, she will be missed by many within the financial services industry.

What will Wilson bring? The omens are not good. Wilson has shown a suspicion of business in general and an enthusiasm for regulation.

Unlike Dalziel, she has tended to lecture rather than listen. Given the issues confronting the industry between now and the election, this is not a good sign. But maybe Wilson will surprise as much as Dalziel did.

They said it:
"The meeting opened with songs from the Tower New Zealand Youth Choir, their second item was a Samoan song, quite delightful but unintelligible and that brings me to the accounts."

Shareholders’ Association director of advocacy Ross Dillon at the recent Tower AGM

This news service is brought you you by online money management magazine Good Returns www.goodreturns.co.nz.