KiwiRail board chairperson David McLean will retire early, next month, as Finance Minister Nicola Willis reveals the Government will look to "refresh" the organisation's board.
McLean tendered his resignation just days before one of KiwiRail's ferries ran aground near Picton. Willis' office announced his resignation earlier this morning.
On Wednesday, McLean told ministers of his "intention to retire early", according to Willis.
In a statement, the board chairperson said "stepping aside from the start of the new financial year is best for the organisation as it enters a new phase of its development."
"I understand the Government intends to announce my retirement today, so I have brought my announcement forward," he said.
The Finance Minister said the resignation was "unrelated" to the grounding of the Interislander vessel, Aratere, which occurred on Friday night.
Willis said: “Unrelated to the Aratere incident, we can confirm that on Wednesday, KiwiRail board chair David McLean advised us of his intention to retire early, effective from July 31. His term was due to finish at the end of October.
"We will now conduct a search for his replacement and are considering additional changes to further refresh the KiwiRail board.
The Aratere ran aground shortly after leaving Picton at 9.45pm on Friday. (Source: Marlborough District Council/Skyworks UAS) (Source: Supplied)
"As a state-owned enterprise, KiwiRail is governed by its board. As ministers, we exercise our influence through our appointments to the board and the expectations we set for it."
The former Westpac New Zealand chief executive was appointed as KiwiRail chairperson in December 2021 after around two decades at the bank.
McLean said he now left KiwiRail with "confidence" in the state-owned enterprise.
"I joined KiwiRail because I believe that rail has a critical role to play in New Zealand’s future - transporting goods to market, reducing road congestion, and contributing to New Zealand’s low carbon economy," he said in a media release.
"I am proud of the role that KiwiRail plays and believe that it is in a strong position to build on this legacy. I leave with confidence in a team and an organisation that has dealt with many major challenges and is now in a much stronger and more stable position."
News of the resignation comes after the Aratere ferry was successfully re-floated last night, nearly 24 hours after running aground. Transport Minister Simeon Brown said yesterday he was "very disappointed" in KiwiRail over the embarrassing incident.
The organisation has laid out the scale of the challenge to find replacement ships for the cancelled Interislander ferries. (Source: 1News)
When asked why the grounding had occurred yesterday, Brown said he understood there was a new piece of equipment relating to the ferry rudders recently installed and crew had lost the ability to steer the ship.
State Owned Enterprises Minister Paul Goldsmith said the Government wanted KiwiRail to take "every action necessary to maintain the safety and reliability of ferry operations."
"Earlier this year we appointed a ministerial advisory group to advise us on options for replacing the ferries," he said in a media release.
"The group made a series of recommendations to us late last week which are being considered by ministers before we take proposals to Cabinet."
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