The Trade Minister Todd McClay has been publicly reprimanded by John Key for not being open and honest to Key or to the public after a story broke about alleged Chinese threats over trade.

Stuff: McClay rebuked by PM after failing to reveal wider fears of China retribution

After days downplaying Stuff reports, McClay on Monday revealed officials have been “for months” examining reports that China could retaliate if an investigation into steel dumping in New Zealand went ahead.

He also apologised to Key for not seeking more detail on the issue, but he stopped short of offering his resignation.

Key said McClay’s answers to media at a joint press conference in Indonesia, after Stuff broke the story, left the impression “that the only correspondence, the only discussion, had been between Zespri and a non-Government organisation and that’s not true”.

It’s not uncommon for Ministers to avoid telling the public everything about an issue, sometimes to try and protect themselves, sometimes to protect others from revelations that could be embarrassing.

But to not be up front with the Prime Minister can create serious problems for the Government, as it did in this case due to Key giving responses to media that turned out to be inaccurate.

There had been discussions and correspondence with others.

“He should have made both the media and me aware of that.”

“I think he took a very literal interpretation of the question that was asked of him. While that …may have been technically correct the point I was making to him is that’s giving a very specific and, I think, ‘dancing on the head of a pin’-type of answer to what was really a broader question. “

Key says that McClay has apologised to him but has not offered his resignation. McClay should be on notice not to stuff up like this again.

Labour leader Andrew Little called for Key to sack McClay. 

“A Minister who does not appreciate the seriousness of possible retaliatory action by our biggest trading partner against some of our biggest export industries simply should not be in the job.”

I have no idea whether it warrants the sacking of McClay, but Opposition calls for sackings tend to be not infrequent and often overplayed. In any case McClay may have appreciated the seriousness of the issue with China, but not the importance of properly informing the PM.

McClay was hamstrung in what he could say about a possible complaint about steel dumping because under WTO rules the Government could not confirm that until a formal investigation was launched.

How much to tell the PM is an ongoing judgement call by ministers, in this case poorly judged by McClay, but if Ministers resigned or were sacked over every stuff up there would be a drastic shortage of experience in Cabinet.

Key still played down the seriousness of the trade threats.

Key continued to describe the fears of China retaliating as “unsubstantiated rumours”.

“I think it still does fit in that category.”

There had been “engagement” like the one between an NGO and Zespri.

“What has happened is where there have been questions raised about whether, if there was an action taken, there would be retaliatory action the minister and the ministry have sought assurances that wouldn’t take place,” Key said.

“And to the best of our knowledge they have received those assurances.”

There have been claims ranging from serious trade threats from China to the story being an over-egged political hit job in New Zealand.

If the latter then jeopardising trade relations with China for political purposes deserves some attention, but don’t expect openness with the public or resignations for stuff ups in that respect.