Health chief's exit linked to shake-up

Tensions over health sector restructuring are thought to be behind Director-General of Health Stephen McKernan's decision not to seek a second four-year term when his tenure expires in July.

Mr McKernan yesterday told the Herald he had "enjoyed bringing about the changes that have been under way across our system and I'll continue to do that in the next five months but it seems a sensible transitional time. So no, I'm not seeking re-appointment".

But Opposition state services sector spokesman Grant Robertson questioned whether Mr McKernan's decision was entirely his own given the restructuring, in which former Secretary of Treasury Murray Horn was playing a leading role.

"Mr McKernan's fate may have been sealed many months ago when Health Minister Tony Ryall decided to appoint Murray Horn to chair the National Health Board," said Mr Robertson.

The board was established as a result of a ministerial review of the health system led by Mr Horn.

"Mr Horn was the Secretary of Treasury in the 1990s, overseeing massive cuts to public services including in the health sector," said Mr Robertson.

"[His] growing influence in the health sector confirms that the ideological agenda of cutting services and privatisation is alive and well in this National Government."

The Herald understands much of the restructuring led by Mr Ryall and Mr Horn is at odds with the direction of Mr McKernan's leadership.

Ian Powell, of the Association of Salaried Medical Specialists, said one of Mr McKernan's strengths was "his preparedness to give health ministers the advice they may not want to hear".

"We hope that Mr McKernan's surprise decision is not due to political opposition or negativity," Dr Powell said.

Public Service Association national secretary Richard Wagstaff said the PSA was concerned the Ministry of Health was losing such an experienced director-general "at a time the health sector is going through major upheavals".

Mr McKernan told the Herald he had never intended seeking a second full term but had contemplated applying for an extension to his existing term.

"But I came to the conclusion that in terms in my time, where I was at with implementing the changes ... it seems a sensible time for me to go in July."

A spokeswoman for Mr Ryall said the issue of Mr McKernan's reappointment had been handled entirely by the State Services Commission.

Mr Ryall thanked Mr McKernan for his contribution and wished him well.