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Home / New Zealand

KiwiRail releases board members’ resignation letters, including David McLean’s, after Ombudsman intervenes

Georgina Campbell
By Georgina Campbell
Senior Multimedia Journalist·NZ Herald·
29 Jan, 2025 04:00 PM4 mins to read

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Former KiwiRail chairman David McLean. Photo / Mark Mitchell

Former KiwiRail chairman David McLean. Photo / Mark Mitchell

  • KiwiRail has released the resignation letters of former chairman David McLean and three board members.
  • The state-owned enterprise originally refused to release the correspondence for privacy reasons.
  • The letters were only made public after the Herald complained to the Ombudsman.

KiwiRail has released previously withheld resignation letters of four board members, which reveal Government ministers announced former chairman David McLean’s retirement two days earlier than he had wanted.

There was an exodus from KiwiRail’s board last year in the aftermath of the mega-ferry fallout, the grounding of the Aratere and Finance Minister Nicola Willis confirming the intention to overhaul the governance of the state-owned enterprise.

McLean wrote to Willis and then Minister for State-Owned Enterprises Paul Goldsmith on June 19 noting his early retirement, after a “recent telephone call”.

“I was intending to advise the KiwiRail CEO and board of my decision at the board meetings next week, so would appreciate it if it could be embargoed until Tuesday 25 June. I will advise Treasury at that time also.”

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Finance Minister Nicola Willis announced former KiwiRail chairman David McLean's retirement two days earlier than he wanted. Photo / Mark Mitchell
Finance Minister Nicola Willis announced former KiwiRail chairman David McLean's retirement two days earlier than he wanted. Photo / Mark Mitchell

McLean’s letter came a week after Willis had raised concerns with him that KiwiRail had spent an “excessive and not justifiable” amount on consultants from global management consultants McKinsey & Company.

Willis and Goldsmith went on to announce McLean’s retirement earlier than he had wanted, on June 23.

This was in the period immediately following the Interislander Aratere ferry running aground near Picton, which coincidentally happened shortly after McLean had informed ministers of his retirement.

Willis told the Herald that ministers routinely decided the timing of announcements about board changes.

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“That was the case in this instance.”

McLean did not respond to a request for comment.

KiwiRail originally refused to release the resignation letters for privacy reasons.

The Aratere ran aground two days after former KiwiRail chairman David McLean told ministers of his intention to retire early.
The Aratere ran aground two days after former KiwiRail chairman David McLean told ministers of his intention to retire early.

The Herald complained to the Ombudsman, arguing there appeared to be an inconsistent approach across organisations subject to the Official Information Act.

For example, Kāinga Ora released the resignation letter of former board member Professor Philippa Howden-Chapman and Wellington Water released the resignation letter of former chief executive Tonia Haskell.

The Herald also argued this type of information should be released because KiwiRail board members were ultimately accountable for an organisation funded by public money.

The Ombudsman’s office advised two weeks ago that it was investigating.

Before the Ombudsman completed the investigation, KiwiRail senior government relations adviser Dave Allard wrote to the Herald advising the letters would be released after all.

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“We have gone back and consulted with the former board members whom your request related to and have enquired if they would be comfortable with their individual resignation letters now being released, given the passage of time that has elapsed.

“They have agreed they can be released, with personal email addresses and signatures withheld.”

Former Labour MP Maryan Street said she resigned from KiwiRail's board largely because of the signals the board has been, and has not been, given by shareholders. Photo / Greg Bowker
Former Labour MP Maryan Street said she resigned from KiwiRail's board largely because of the signals the board has been, and has not been, given by shareholders. Photo / Greg Bowker

Former chief executive of Canadian airline WestJet Ed Sims submitted his resignation letter on June 28.

“I appreciate that I have only served in this role for eighteen months of my three-year term. Nonetheless, I am offering my resignation in the best interests of yourselves as shareholding ministers, and of the company.

“Whilst my tenure has been shorter than intended, I would like to recognise the work undertaken by management during my tenure, including the ongoing cyclone recovery, the progress in metro operations (notably the City Rail Link), the elevated maturity of all safety management systems, and the reduction in enterprise risks particularly in asset management.”

When approached for comment, Sims said he had nothing further to add.

Transport consultant Rachel Pinn sent her resignation letter the following day.

She said her daughter was starting school in October and she wanted to be present in her life over the next few months.

Former Labour MP Maryan Street submitted her resignation letter on July 5.

“It is largely because of the signals the Board has been, and has not been, given by our shareholders that I have arrived at this decision.

“I am grateful to have had the experience of working with the extremely capable directors on this board and adding to my existing governance experience.

“I hope the Government sees fit to retain some of the essential expertise remaining amongst current board members – they are worthy of your confidence.”

Pinn and Street could not be reached for comment.

Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.

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