Pharmac chair broke neutrality rule but won't be fired - PM

March 8, 2023
Steve Maharey in 2020.

Former Labour minister Steve Maharey will stay on as the chairperson of Pharmac, ACC, and Education New Zealand, Prime Minister Chris Hipkins says.

In a statement, Hipkins said the Government received advice from the Public Service Commissioner that Maharey’s actions did breach the public service code of conduct, but do not justify dismissing him from his posts.

"The Commissioner has characterised Mr Maharey’s actions as ‘unwise’, but at the ‘lower end of the spectrum’," he said.

"Based on this advice, Ministers Ayesha Verrall, Jan Tinetti, and Peeni Henare have confirmed this morning that they retain confidence in Mr Maharey and will keep him in his roles as Chair of Pharmac, Education New Zealand and ACC.

"In Mr Maharey’s case, he proactively acknowledged the error, has undertaken to stop writing the column and apologised.

"There’s a clear distinction between the cases of Maharey and Campbell in patterns of behaviour and future intent."

Rob Campbell was removed as chairperson of Te Whatu Ora/Health NZ and the Environmental Protection Authority last week following comments made on social media about the National Party's water policy.

The health minister says there is a process to go through with the Public Service Commission before any decision is made on accepting it. (Source: 1News)

In the wake of that, Maharey contacted the office of Prime Minister Chris Hipkins about the regular column he wrote for Stuff.

"The issues arising from Mr Campbell and Mr Maharey’s comments have the potential to raise questions about a variety of actions by other Board members and Chairs," Hipkins said.

"Given this, Public Service Minister Andrew Little has written to the Commissioner requesting that Crown Entity Chairs be reminded of their and their boards’ obligations under the Code of Conduct for Crown Entity Board Members, issued under the Public Service Act 2020.

The PM said potential breaches will be considered individually with support from the Public Service Commission.

"However, particularly when they are historical and are at the lower end of the spectrum, my guidance to Ministers is that provided the person acknowledges and regrets the breach and is clear about adhering to the Code going forward, it should not necessarily result in the responsible minister losing confidence in them.

"No-one is perfect but it’s only right that board chairs and members understand the bounds of what they can say without jeopardising their ability to perform their roles."

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