Assistant Health Minister Fiona Nash has revealed that her chief of staff does hold shares in a lobby group after yesterday denying he had any connection to the company.

The revelation comes after Senator Nash ordered the Health Department to take down a website promoting a new healthy food-labelling policy.

The department said the website had been published in error.

Her chief of staff, Alastair Furnival, holds shares in lobby group Australian Public Affairs (APA), which represents major food brands including Cadbury and Kraft that have resisted the introduction of new packaging labels.

In Parliament on Tuesday, Labor Senator Penny Wong pressed Senator Nash about Mr Furnival's links to APA.

"There is no connection whatsoever between my chief of staff and the company Australian Public Affairs," Senator Nash said.

Mr Furnival was chairman of APA until last September, when he joined Senator Nash's staff.

Just before 9pm on Tuesday, Senator Nash returned to the Senate chamber with an update.

"Prior to working for me, Mr Furnival was APA's chairman and because of that previous position, he has a shareholding in the company," she said.

"Prior to his appointment to my staff, arrangements were put in place so that his previous business activities could not conflict with his obligations under the statement of standards for ministerial staff and indeed, with my obligations as a minister."

Wong accuses Nash of misleading the Senate

Senator Wong leapt on Senator Nash's admission in Parliament on Wednesday.

"When and how did the Minister realise she had misled the Senate?" Senator Wong asked.

The Health Department says the website was published in error.

Senator Nash says she updated the chamber after discussions with the Prime Minister's office.

"In relation to the timing in question that the senator asked me, having made further checks after Question Time yesterday, I advised the Senate at the first opportunity that my chief of staff was a shareholder of the company APA," she said.

Senator Wong replied: "Can the Minister explain how her chief of staff maintaining a shareholding in a lobbying company that operates in the Minister's area of responsibility is consistent with the statement of standards for ministerial staff?"

Senator Nash insisted her chief of staff "fully complies with the standards".

"There is a shareholding. There is no income received," Senator Nash said.

"The proper processes have been followed in terms of the statement of interests.

"My chief of staff fully complies with all of the requirements."

Labor senator John Faulkner, who established the code of conduct for ministerial staff, led debate on the matter after Question Time ended in the Senate.

"Clause 4 of the code reads that ministerial staff must divest themselves or relinquish control of interests in any private company or business and/or direct interest in any public company involved in the area of their minister's portfolio responsibilities," he said.

"Mr Deputy President, this just was not done."

Furnival's wife listed as APA's owner

The Front-of-Pack Labelling policy was discussed at an Australia and New Zealand Food Regulation Ministerial Council meeting in December, at which Senator Nash and Mr Furnival were present.

The minutes from that meeting show he did not declare a conflict of interest.

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Mr Furnival's wife, Tracey Cain, is listed on the Federal Register of Lobbyists as the owner of APA.

She released a statement on Wednesday which read: "Since last September, Australian Public Affairs has not made representations to either the Health Minister, their offices, or the Health Department; and has made no representations to any other Minister of the Commonwealth in relation to the health portfolio."

Liberal senator Richard Colbeck jumped to the defence of Senator Nash and Mr Furnival.



"Prior to his appointment to Minister Nash's staff, arrangements were put into place so that his previous business obligations or business activities did not interfere with his obligations under the statements of standards for ministerial staff," Mr Colbeck said.

"Now Minister Nash has clearly put on the record, and it's important that that be understood."

Health Department official in charge of food-labelling policy reassigned

PM also obtained an email showing the Health Department bureaucrat who was leading the development of the food-labelling policy has had it taken from her control.

In an email update to stakeholders on Wednesday, assistant secretary Kathy Dennis wrote that there has been a "restructure" in the department.

She says she will no longer lead the Front-of-Pack Labelling Secretariat after two years in the role.

The secretariat is being made a separate unit from her Healthy Living and Food Policy Branch, and will be led by first assistant secretary Nathan Smyth.