The Public Service Association believes Associate Health Minister Casey Costello’s claim officials are undermining the Government’s smoking regulation reform is an “unacceptable” attack on their neutrality.

Costello’s claim and the union’s criticism follows a report detailing how the Ministry of Health’s chief adviser of epidemiology had described some evidence used by Costello to justify cutting excise tax on heated tobacco products to help reduce smoking rates as out-of-date, selective and “crap”.

It comes alongside Prime Minister Christopher Luxon’s growing frustration at how Radio New Zealand has reported the Government decision as he faced questions about whether his ministers’ ties to members within the tobacco industry had been appropriately declared.

Yesterday, 1News reported internal emails from ministry adviser Fiona Callaghan who had reviewed advice Costello had held up as independent evidence backing the decision to cut excise tax on heated tobacco products to incentivise smokers to transition from cigarettes.

In the emails, Callaghan told colleagues two of Costello’s papers were adequate but out-of-date.

“It’s not so much that all of the studies are crap …” she also wrote, according to 1News.

“It’s more that it is a small number of selective research, not up to date, and certainly don’t form any sort of robust evidence review and don’t represent current evidence.”

Associate Health Minister Casey Costello is leading the Government's smoking regulation reform. Photo / Mark Mitchell

In a statement, Costello alleged the email proved officials were “undermining the Government’s harm-reduction approach to reducing smoking rates”.

“I have spoken to the Director-General about the importance of maintaining public sector standards of integrity and political neutrality.”

Costello’s statement echoed earlier concerns she’d had regarding an instance in which a Ministry of Health staffer was let go in February after allegedly leaking a document showing Costello had asked for advice on freezing the annual increase in tobacco tax.

The ministry confirmed Director-General of Health Dr Diana Sarfati had apologised to Costello for the emails and stated the ministry’s commitment to supporting the Government’s Smokefree 2025 goal. Sarfati refused to be interviewed on the matter.

Labour health spokeswoman Dr Ayesha Verrall didn’t believe an apology was necessary for the staffer “calling a spade a spade”.

“When did it become wrong in internal emails to call something that is crap, crap? That’s what free and frank advice is.”

Public Service Association national secretary Kerry Davies argued Costello’s complaint proved the Government feared advice it didn’t agree with.

“Publicly attacking a public servant for giving advice that you disagree with is unacceptable within our democratic system,” Davies said.

“In this case, the official with expertise in this matter was simply doing the job expected of her by taxpayers. She was pointing out the flaws in evidence the minister herself provided to justify a $200 million tax break for tobacco companies.

“Of course, ministers have a right to reject that advice, but publicly attacking an official undermines a core principle that officials must be able to give free and frank advice to enable good decision-making.”

Labour's health spokeswoman Dr Ayesha Verrall was the former Health Minister. Photo / Mark Mitchell

She said the union would write to the incoming Public Service Commissioner to express “our strong concerns”.

Costello today claimed the union had misunderstood her position as she wasn’t criticising the advice.

She did disagree with the assessment that any of her advice was “crap” and believed the matter was “unhelpful” to her goal of reducing smoking rates.

However, Costello said it was the “end of the matter” and wouldn’t be seeking any changes to the staff who advised her.

“I’m really happy with the people I’m working with at an operational level to deliver the services.”

Luxon this morning told RNZ the ministry had exhibited “pretty unacceptable behaviour”, also citing the ministry’s failure to declare a staffer engaged in the Government’s smoking reform was Verrall’s sister-in-law.

However, Luxon became frustrated when the interviewer asked whether NZ First ministers Winston Peters and Shane Jones had declared conflicts of interest when Cabinet discussed the heated tobacco products (HTPs) policy, given tobacco company Philip Morris dominated the local HTP market and former NZ First staffer Api Dawson worked for Philip Morris.

“I think what’s frustrating is that Radio New Zealand frankly just wants to talk about this single issue every single week and what’s exciting is that we’ve actually made good progress.”

Luxon did say he believed the conflict of interest protocol was followed.

Labour calls on Winston Peters to prove leak claim

Verrall today gave her first interview about claims made by Peters last month that her Ministry of Health staffer sister-in-law was linked to leaks from Costello’s office.

Verrall denied she had ever been given leaked information by her sister-in-law: “Absolutely not, she is totally professional.”

On Peters, she said it was inappropriate for politicians to single out public servants who couldn’t defend themselves without any evidence of wrongdoing.

“I think it’s for Winston Peters to justify his comments.”

Asked why she hadn’t fronted on the issue last week, Verrall said she hadn’t wanted to “add fuel to the fire”.

Labour leader Chris Hipkins restated his confidence in Verrall and said he had written to the Public Service Commission to clarify the guidelines ministers were supposed to adhere to when discussing public servants.

“Naming that public servant publicly is reprehensible.”

Adam Pearse is a political reporter in the NZ Herald Press Gallery team, based at Parliament. He has worked for NZME since 2018, covering sport and health for the Northern Advocate in Whangārei before moving to the NZ Herald in Auckland, covering Covid-19 and crime.