John Key and his vineyard investments

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Wed, 26 May 2010 6:00p.m.

Mr Key denies knowing about the vineyard investment

Mr Key denies knowing about the vineyard investment

Prime Minister John Key once said his blind trust was "so blind I haven't got a clue what's in it".

Mr Key put his assets in a blind trust soon after taking power in late 2008. It basically means someone else takes control of his assets. He knows nothing about what's going on, and therefore is protected against being accused of conflicts of interest over what he owns.

It only takes a trip on the Tube for others to get to Key's hidden assets. Yes, it was the London Underground that helped unlock Key's blind trust's holding in the Highwater commercial vineyard in Central Otago for my story tonight.

Mr Key's blind trust is down in the Register of Pecuniary Interests as the Aldgate Trust.

The Companies Office shows Mr Key and wife Bronagh initially purchased their share of the vineyard in their own names on September 8, 2008. In November he became Prime Minister.

On December 22, their one-tenth share of the vineyard was transferred to Whitechapel Limited. This is about when Mr Key was putting his assets in the Aldgate Trust.

Those who know London well will, of course, know that Aldgate and Whitechapel are both Tube stations in the East End.

Whitechapel Limited's constitution says it is set up to manage a trust - which appears to be Aldgate. It has shares in other assets on the public record as Mr Key's - the Earl of Auckland property company, and the Dairy Investment Fund.

It is important to remember here that Mr Key is hiding these assets from himself. It is to prevent controversies like Tranzrail and his "sloppy" ownership of shares in a company that was mining for uranium.

But back to wine. Mr Key gave away 240 bottles of Pinot Noir as presents last Christmas.

They were branded JK - PM's Pinot. That name is being trademarked by Andrew Nugent, a friend and fellow shareholder in the vineyard.

The Prime Minister told me that he'd asked Mr Nugent to trademark the name PM's Pinot for future use so he could keep giving wine away as presents....and he didn't want others to exploit the name.

The label on PM's Pinot says "Highwater Vineyard" but Mr Key told me that it's a totally different wine ... It's actually from the Sleeping Dogs vineyard....a nice drop too.

Companies Office checks would have shed little light on his blind trust's involvement with Highwater unless you were aware Whitechapel Limited was a vehicle for the trust.

This byzantine trail continues with Highwater Vineyard. The physical vineyard is owned by the Highwater Vineyard company (still under its old name of Devil's Creek on the records). But it is actually part of Mt Michael Wines, although this is a separate company with slightly different shareholders and Whitechapel Limited is not involved.

It is a rising star on the Central Otago wine scene and has parachuted in the highly-regarded John Belsham as winemaker.

Mr Key's barely said a word about his initial involvement with the vineyard publicly. But he was clearly proud of it, given his comments to renowned wine critic Jancis Robinson in early 2009 soon after it had gone into the trust.

Whitechapel Ltd is one of eleven shareholders in Highwater. Five of the shareholdings can be linked to some of the biggest supermarkets in the North Island.

The Law Commission has just reported back with its recommendations for alcohol law reform and the Government is about to respond making decisions on liquor laws. Everything except tax increases (which it ruled out before the ink was dry on the report) is up for change, from the drinking age to licensing hours.

Mr Key assured me today that he knows nothing of what's in his blind trust and issued a statement.

That, in part, says : "I set up the blind trust after becoming Prime Minister so I didn't have any conflicts of interest through my investments, and that is the case because I don't know what my investments are.

"To the best of my knowledge, the only people who can be certain what assets the blind trust owns are the trustees, and anything else is mere speculation."

Aldgate to Whitechapel, then Highwater to Mt Michael... Only wine and politics could bring Central Otago and the East End of London so close together.

DISCLAIMER: Patrick Gower was given a bottle of the "PM's Pinot", which he was grateful for. He gave it to a relative soon afterwards and well before research on this story began. It had long been drunk when he checked back.

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Comments

19 Oct 2010 09:04a.m.

Jeremy wrote:

If John Key wants to avoid conflict of interest concerns about his investments he has a simple path to take...Sell...It is rough being a man of people and being rich!

03 Jul 2010 02:55p.m.

John H wrote:

No wonder he doesn't want to increase the duty on alcohol!!!

11 Jun 2010 09:00p.m.

Debby wrote:

@ Windom Earle, are you aware that you actually said "miscegenation"? I didn't think anyone outside the KKK ever used that word! Incredible! As for "John Key has been fully cleared", Mark H., what are you talking about? Deb

08 Jun 2010 04:01p.m.

Gerald wrote:

The "key" to this story is about John Key claiming not to know what investments are in the "blind trust" But he (JK) claims he put these investments into a blind trust on becoming N Z"S Prime Minister. He and his wife invest in an Central Otago winery in Sept 2008, as he was legitimately able to do but on becoming PM in Nov 2008, he puts this among other investments into a blind trust, and then makes an obvious false claim of not knowing whats in the blind trust. He had knowledge of what he and his wife had invested in so he must have had knowledge of just what went into the blind trust, any claim of non-knowledge is a lie. Ergo John Key is a liar. But the cause for genuine angst here is not that Key has money invested in a winery but that he was very quick to rule out any increase in tax on booze. Happy to increase taxes on cigarettes and tobacco but not on the far more dangerous drug, alcohol. Political hypocrisy and a blatant conflict of interest. Those of you who laud his money should think more deeply on how he made his wealth, as a money speculator, the carrion of commerce. There in nothing "honourable about John Key, he, like all politicians, is just one more grubby self serving treacherous b*mlicking sycophant who does not deserve, and his utterances re his blind trust prove it, the trust placed in him to work for the betterment of all N Zers Increasing taxes, including the theft of more by way of the 1 July EFT imposts, on the poor and low waged and retired, to fund massively greater benefits on the already rich is typical of the type of charlatan that resides on the Govt front and back benches. Labour are for all purposes National Lite and if they had genuinely exercised genuine care for the people of N Z instead of busting themselves selling out to any who would buy the scam of "Free Trade" they would still be governing. The Chinese certainly showed us via the Fonterra debacle just how good free trade was when it comes to dealing with huge economies like the US, and EU. Even under CER the Govt had to go to WTO to get our NZ grown apples into OZ. We'd be better trading with Israel than these criminal states that our craven Govts are determined to sell us out to. Face it Tories, John Key is just one more exposed political Liar.

05 Jun 2010 09:05a.m.

Mark H. wrote:

Now that John Key has been fully cleared - did TV3 apologies ? did TV3 ? no - do we her apologies form the nasty comments from the small minded lefties and socialist that posted here - no - I doubt it - that's the sort of low life they are. They smear, denigrate and attempt to 'dig the dirt' and then run - that's how they lost the last election. The left hate success, they hate self made people who thru hard work make something of themselves - people like John Key - they are the wreckers and haters of society thank goodness they are consigned to the backbenches of government and the way 'Philin' is polling in the popularity stakes [in the margin of error !] they will hopefully remain there for some time yet.

01 Jun 2010 10:05p.m.

steven wrote:

can you all see the double standards these nats have , oh no you cant say anything against key becouse each time you do well acuse you of attacking him becouse he is rich , no it is time the nationals grew up mr key is pm hes open opposition becouse hes the head of the national party , just as any other mp . they just cant atke it they want special treatment just becouse hes a millionare you cant disagree with mr key . its time the national party mob grew up , its called politics , they went after helen clerk even harder than labours gone after ol smiley .the cry babies im sick of them .

01 Jun 2010 08:32p.m.

Lily wrote:

Mr Gower, you are the hottest thing on TV right now. Keep up the good work.

31 May 2010 07:35p.m.

steven wrote:

the only blind trust mr key and his nat cronies care about is NZs blind trust in national, now that we have almost the lowest tax rates in the world what next ? , we dont have a tax problem we have a wages problem and the nats wont do anything about that . wages went up under labour thats why we paid more in paye tax , you arnt going to close the wage cap with our tradeing partners bye tax cuts , we need to grow wages , we have no show under the nats , no show .that would eat into the record profits business have to make evray year .

30 May 2010 04:15a.m.

Irascible wrote:

In any other country, the UK, Canada, USA, European states, the perceived conflict of interest and any other situations where a PM is seen to be distorting his involvement or behaviour would be the subject of intense journalistic scrutiny and investigation. It is unusual to see a situation like this one in N.Z. being interpreted as "picking on a millionaire PM". Key must realise that he is no longer a private individual who could play high stakes gambling in secret but a public individual who must be honorable and squeaky clean at all times. In this situation he obviously is neither. The investigations must continue if NZ politics is to be seen to be in the interests of the people rather than in the interests of the speculators and money manipulators. I look forward to similar scrutiny of the architects of the anti-democratic Auckland "super-city" legislation.

29 May 2010 02:46p.m.

David wrote:

Sounds like a lot of green eyed leftie fools are pushing this. Hodgson's jealous 'cos he is nothing and has nothing. He certainly has been a failure as an MP. I guess if you out of ideas you have to push doubts and innuendo.

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Patrick Gower is a 3 News Political Reporter based in Wellington.

Here he offers his commentary on New Zealand politics from his front-row seat in the Press Gallery.

He has been a journalist for ten years, going as far as Afghanistan to get his stories, and was previously a political and investigative reporter for the New Zealand Herald

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