Social Services Minister Steve Maharey has started giving evidence at the Christine Rankin case in the Employment Court.
Ms Rankin, chief executive of the Department of Work and Income is suing State Services Commissioner Michael Wintringham for $818,000, alleging political interference in his decision not to reappoint her to her
position.
Mr Maharey told the court that while he made no personal comments about her dress code, he did say the public view of the department was coloured by her personal style.
He said he told Ms Rankin she was running the department more like a business than a public agency.
He said when he became Minister he wanted to make a fundamental change to Work and Income and he did not believe Ms Rankin was the right person to head the department.
Earlier this morning Mr Maharey answered questions from opposition MPs on a parliamentary select committee about the Government's treatment of Ms Rankin.
He acknowledged the Department of Work and Income had done "very well" while under her leadership.
ACT MP Muriel Newman asked Mr Maharey if the proposed merger of the Department of Work and Income with the Ministry of Social Policy was motivated by a wish to get rid of Ms Rankin's position.
Mr Maharey said he denied that absolutely.
Mr Maharey also rejected a suggestion from Dr Newman that the merger of the two welfare agencies was unprecedented in the public sector.