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Home / New Zealand

$300,000 Regional Council severance payout for Andrew Newman

By Victoria White
Hawkes Bay Today·
31 Aug, 2017 06:08 AM4 mins to read

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Andrew Newman was back at the helm of council for just six months before resigning. PHOTO/FILE

Andrew Newman was back at the helm of council for just six months before resigning. PHOTO/FILE

The resignation of the man driving the controversial Ruataniwha Dam cost Hawke's Bay ratepayers more than $300,000.

In March long-term Hawke's Bay Regional Council chief executive Andrew Newman resigned. This came after local government elections saw a change to the council's stance on the controversial Ruataniwha Water Storage Scheme (RWSS). A majority of councillors elected had an anti-dam mandate - the project Mr Newman had spent a large portion of his tenure driving.

He had been back in the chief executive's role for less than six months, returning after a three-year secondment to lead the council's investment arm driving the RWSS - the Hawke's Bay Regional Investment Company.

Having signed a two-year contract on his return in October just before the local government elections, he received a severance package of $306,200 - according to the council's draft annual report.

Mr Newman could not be reached for comment today. His role was filled by James Palmer, who said the council would not be making any further comment.

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"What has been disclosed in the draft Annual Report is as per the council's requirements under the Local Government Act. There is a confidentiality agreement between the council and former chief executive, Andrew Newman."

Council chairman Rex Graham said he could not comment on Mr Newman's resignation, his severance package, or why Mr Newman had signed a shorter contract, as the chairman had signed a confidentiality agreement.

At the time, Mr Newman's reasons for resigning were around allowing for change at the council.

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"I have decided to step aside to enable the new council to take whatever direction it sees as prudent with the support of a refreshed executive team," he said then.

"This is a time of change at HBRC and time for a new direction, energy and vigour from the council's senior executive in assisting councillors with its agenda."

On the new direction of council, Mr Graham said the makeup of council had "dramatically changed" after the November election, and was very focused on the environment.

"As a new council, new way forward, new chief executive, we're very happy about the way we look and our makeup. I think at the moment we're pretty united, we're a pretty united council."

Progress on the scheme stalled after the 2016 election. Earlier this week, the council pulled its support from progressing the scheme any further.

When asked, Mr Graham said he thought this move still would have happened with Mr Newman at the helm.

"Absolutely. The CEO does not make governance decisions. The councillors do. No matter who was CEO, that decision would have been made yesterday in regard to Ruataniwha."

New Zealand Taxpayer's Union researcher Matthew Rhodes said serious questions had to be asked on why Mr Newman "needed a $306k sweetener to push him out the door".

If Mr Newman had demanded such a severance package, this was "totally unjustified".

"Council chief executives should be concerned with the administration and operations of their organisation, not their policy direction. That is for the councillors to decide.

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"If every chief executive was paid out a $360k leaving sweetener when they disagreed with council policy, it would be an enormous cost to the ratepayer."

The draft annual report shows during the six months he was back at the council, Mr Newman was paid $216,188 - which included outstanding leave entitlements, Mr Palmer said.

Including his salary, and $20,853 of "other benefits", Mr Newman's total remuneration for the 2016/2017 financial year was $543,241.

He also received $94,490, which included his base salary and his higher duties allowance as HBRIC chief executive.

Another cost associated with his resignation was the remuneration given to Greg Woodham, who was in the chief executive's role between Mr Newman's departure, and the appointment of new CE James Palmer.

Mr Woodham received a salary of $45,792, and total remuneration of $51,578.

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There were two other severance payments made last year - one for $9000, and the other for $8000.

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