Paula Rebstock's abrupt exit from the Commerce Commission led to an unorthodox process of appointing her replacement, Mark Berry.
It appears Berry was the only name the Ministry of Economic Development forwarded to replace Rebstock.
"Given the timing of Ms Rebstock's departure it was untenable for an open and competitive
recruitment process to be undertaken," the ministry said.
Normally an appointment to the role would be for a three- to five-year term.
The ministry said an "informal process" of compiling names for the role started this year. It is not clear how it identified Berry as the only candidate.
The ministry said it had talked with Attorney-General Chris Finlayson to meet a statutory requirement for the appointment of a barrister or solicitor to the commission.
"It is also normal practice to consult with other ministers. This was done. In deciding the term, the minister [Commerce Minister Simon Power] considered the need to put someone in place to provide continuity for the delivery of the implementation of the Commerce Amendment Bill.
"As a consequence the minister recommended and Cabinet agreed that Dr Berry's appointment should only be for 18 months.
"This will allow for stability now and also an open competitive process for longer-term appointment."
Competition lawyers said Berry was "a compromiser" and a "safe pair of hands" whose low-key style would be a marked contrast to Rebstock.
Her departure after March 31 will hasten another decision.
Since September, Rebstock has been filling in for Telecommunications Commissioner Ross Patterson, who stepped down due to alcohol-related health issues.
Patterson has reportedly met targets for his return, which is keenly sought by many in the telco sector including the Telecommunications Users Association of New Zealand. It is understood he and Rebstock had a difficult relationship.
There are suggestions Rebstock might seek the commissioner role.
The commission started an investigation in September into the appointment of Donal Curtin because of his connection with failed financial advisory group Vestar. This month he stood down as deputy permanently.
In a report into the Curtin matter, Wellington QC Hugh Rennie questioned the ministry's employment practices that led to the appointment. Curtin remains on the Commerce Commission.
