Conduct of MBIE officials referred to Parliament's Privileges Committee

Parliament's Speaker has referred a question of whether Ministry of Business, Innovation and Employment officials misled Parliament to the Privileges Committee.

In March, senior officials appeared before the Education and Workforce Committee and failed to tell MPs that a $35 million IT project had been axed.

Labour MP Phil Twyford and the Education and Workforce Committee itself both wrote to the Speaker, raising it as a matter of privilege.

On Wednesday, Speaker Gerry Brownlee said the conduct complained of could amount to deliberately attempting to mislead a committee, which is a contempt of Parliament.

"The Speaker does not enquire into the veracity of the evidence presented, or conduct an inquiry into the allegations. That is the role of the Privileges Committee," the Speaker told the House.

"The Speaker's role in such matters is to determine whether the facts alleged could amount to a breach of privilege, or a contempt of the House. I find that a question of privilege does arise, and the question stands referred to the Privileges Committee."

The Public Service Commission has also commissioned an investigation, to be led by Michael Heron KC.

That review will look at what advice MBIE provided to ministers, including how it was prepared and what it said, as well as what MBIE knew or should have known about the project at the time.