Pharmac chair Steve Maharey not being sacked over political comments

Pharmac chair Steve Maharey's political columns broke impartiality rules for public servants but haven't met the threshold for a sacking, the The Public Service Commissioner  says.

Health Minister Dr Ayesha Verrall on Tuesday said Maharey had tendered his resignation, but she was still waiting on advice from the Public Service Commission. That was received by the Minister for Public Services on Tuesday night.

A code of conduct for Crown Entity board members requires political impartiality.

However, Maharey - who is also the chair of ACC and Education NZ - has written several newspaper columns criticising the National Party.

The Public Service Commissioner has found Maharey's criticisms did breach the Code of Conduct but did not justify his removal.

Prime Minister Chris Hipkins said the Commissioner characterised Maharey's actions as "unwise" but at the "lower end of the spectrum".

The Prime Minister said that based on the advice from the Commissioner, he and Ministers Ayesha Verrall, Jan Tinetti and Peeni Henare remain confident in Maharey.

"It's critically important that the public service be politically neutral, and it's not acceptable for people in these roles to be publicly criticising the Opposition or any party," Hipkins said. 

Hipkins said there is a "clear distinction" between Maharey and former health boss Rob Campbell in "patterns of behaviour and future intent".

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

The Prime Minister said political neutrality of the public service is "long-standing" and the Public Service Act 2020 protects it as a core principle.

Campbell and Maharey's political opinions have seen further questions rise about the actions of other board members and chairs, the Prime Minister said.

Public Service Minister Andrew Little has since written to the Commissioner asking that he issues a reminder to Crown Entity Chairs of their and their boards' obligations. 

"Where other potential breaches are brought to light, the responsible Minister will need to consider these individually, with support from the Commissioner."

Hipkins added if issues arise that are historical and at the "lower end of the spectrum", and if the person acknowledges and regrets the breach and will adher to the Code going forward - that would not warrant a Minister losing confidence.

"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."

 

A code of conduct for Crown Entity board members requires political impartiality.

However, Maharey - who is also the chair of ACC and Education NZ - has written several newspaper columns making criticisms of the National Party.

In a statement on Wednesday afternoon, the Prime Minister said the Public Service Commissioner characterised Maharey's actions as "unwise" but also at the "lower end of the spectrum". 

"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," Hipkins said.

"It's critically important that the public service be politically neutral, and it’s not acceptable for people in these key roles to be publicly criticising the Opposition or any party.

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

Hipkins said there is a "clear distinction" between Maharey's case and that of Rob Campbell, who last week was sacked as the chair of Te Whatu Ora and the Environmental Protection Authority after making political comments about the National Party. The Government's said Maharey has apologised and been contrite, while Campbell has said he has "no regret"

However, the Prime Minister said it is important to "make clear the Government’s expectation of all Crown Entity board chairs and members in the future".   

"The principle of political neutrality of the public service is long-standing but the Public Service Act 2020 enshrined it as a core principle, and following that last year a Code of Conduct for Crown Entity Board members set out this principle in more detail," Hipkins said.

"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."

He said Minister for the Public Services Andrew Little has written to the Public Service 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".

"Where other potential breaches are brought to light, the responsible Minister will need to consider these individually, with support from the Commissioner," he said.

"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."

He said "no one is perfect" but board members should "understand the bounds of what they can say without jeopardising their ability to perform their roles".   

"We have excellent people in public roles, including both former National and Labour MPs. No one thinks they don’t or shouldn’t hold their views.

"Their roles, however, come with obligations under the Code of Conduct and they are expected to exercise the appropriate levels of caution and discretion."

Earlier on Wednesday, Ruth Dyson, the deputy chair of the Earthquake Commission and Fire and Emergency New Zealand (FENZ), said she would review her social media content after concern was raised about the political nature of some tweets.

She also admitted she hasn't read the code of conduct as she "didn't think of it". 

"I'm prepared to review all my social media engagement and reflect on whether it meets the standard. I haven't done that yet".