Pharmac leader Steve Maharey keeps job despite ‘unwise’ comments

Public services commissioner Peter Hughes ruled his actions breached the code of conduct but did not meet the threshold for dismissal.

Prime minister Chris Hipkins says in a media release: “The commissioner has characterised Mr Maharey’s actions as ‘unwise’, but 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.”

Mr Hipkins says it is critically important 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.”

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Following Rob Campbell’s sacking as chair of Te Whatu Ora’s board, Mr Maharey reviewed his columns and contacted Mr Hughes. Yesterday, health minister Dr Verrall confirmed Mr Maharey had tendered his resignation, but she was waiting for advice from the commissioner before making a decision.

Dr Verrall and Mr Hipkins indicated they viewed Mr Maharey’s actions as different from those of Mr Campbell, saying the former had been “contrite”.

Dr Verrall yesterday told reporters at Parliament: “With Mr Campbell, he called the leader of the opposition stupid, and he implied his policies were racist. While he apologised to me, he then doubled down on those criticisms in the press. Mr Maharey has reached out and been contrite.

In his media release today, Mr Hipkins said there was “a clear distinction” between Mr Maharey and Mr Campbell’s cases “in patterns of behaviour and future intent”.

“But it is important to make clear the Government’s expectation of all Crown Entity board chairs and members in the future,” Mr Hipkins says.

The commissioner has been asked to remind Crown entity board chairs of their and their boards’ obligations to remain politically impartial.

Any potential breaches will be dealt with by the responsible minister and the commissioner, but Mr Hipkins said if the breach was historical or minor, his guidance is that, if the person is remorseful and vows not to repeat the breach, they can stay in the job.

“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.

“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.”