26 January 2010

New Zealand's environment minister Dr Nick Smith faces trial in June on a significant defamation case brought by timber preservative producer Osmose.

Osmose New Zealand began legal action against timber preservation scientist Dr Robin Wakeling and Dr Smith in December 2005 over statements they made in July 2005 about one of its timber treatments. The company is seeking nearly $15 million in damages.

A six-week hearing in the High Court at Auckland is scheduled to start on 8 June, but Dr Smith told the Nelson Mail he hoped it could be resolved out of court before then. Dr Smith, who is also Minister for Climate Changes Issues and ACC, was then National's spokesman on building and construction issues.

Dr Wakeling published an article critical of the Building Industry Authority (BIA), now the Department of Building and Housing, for approving the use of the treatment in timber framing of houses in 2004. Dr Smith issued a press release later the same day critical of the then-Government and BIA, along with a copy of Dr Wakeling's article. He was interviewed on the issue on radio and television.

Osmose's statement of claim pleaded 11 causes of action. Five were directed at Dr Wakeling – two in defamation, two for injurious falsehood and one for breach of the Fair Trading Act.

The other six were against Dr Smith for defamation and injurious falsehood but did not include an alleged breach of the FTA.

"The litigation is a concern but I remain confident the action I took at the time was appropriate," Dr Smith said.

Attempts to resolve the case before it gets to trial are continuing. Meanwhile, the legal costs of the various parties are said to exceed $500,000.