KEY POINTS:
A big revamp is looming for the Environment Ministry after an investigation into claims of political interference revealed managers learned little from high-profile employment problems.
Yesterday, Environment chief executive Hugh Logan resigned and the State Services Commission issued a report criticising the way the ministry had handled problems.
Deputy State Services Commissioner Iain Rennie's report dismissed concerns that Labour Party member Clare Curran's appointment to a communications job at the ministry was the result of an inappropriate directive from Cabinet minister David Parker.
But Mr Rennie criticised the ministry for not being aware of the need to display political neutrality at all times.
And he found fault with the way Ms Curran was hired after Mr Parker suggested her name to senior ministry staff.
She was employed using a non-competitive selection process, and its speedy pace made it seem she was appointed at Mr Parker's instruction, Mr Rennie said.
The ministry then did nothing internally or externally to counter perceptions of political interference.
Mr Rennie said that after discussions with ministry staff, he felt they would not act differently today if similar circumstances arose again.
"This is surprising given the events surrounding the ministry in recent months."
State Services Commissioner Mark Prebble said he shared the concern Mr Rennie had voiced.
He would be talking about the issue with whoever took over from Mr Logan as chief executive.
"I know that the team will be able to work to get things right in the future," Dr Prebble said.
The Environment Ministry has been under pressure since the Government made climate change and sustainability one of its main policies.
The ministry has struggled at times to meet heightened Government expectations, but it has been its employment practices that have led to accusations of politicisation of the traditionally neutral public service.
In November, a State Services Commission report revealed details of how former communications manager Madeleine Setchell was removed from her position because her partner is chief press secretary to National Party leader John Key.
Then, former ministry contractor Erin Leigh said Mr Parker had interfered to get Ms Curran appointed.
Yesterday's report said Mr Parker suggested to senior ministry officials that Ms Curran - whom he knew because she had done work for him as a Labour MP - be hired to help with climate change publicity work.
Four days later, he phoned Ms Curran and told her what he had done. On the same day, his private secretary emailed the ministry and repeated Mr Parker's suggestion.
Later that day, the secretary sent another email, apparently not triggered by anything in particular, saying it would be "no problem" if the ministry hired someone else.
A month later, the private secretary referred to Ms Curran in another email as Mr Parker's "right hand woman" - a description Dr Prebble yesterday said was "overcooked".
Dr Prebble said it was not inappropriate for ministers to make suggestions to chief executives or officials, but they always created a risk that someone might feel they had to oblige.
In his own 30-year public service career, he had seen ministers from many Administrations make suggestions and sometimes mention names.
"Senior officials have to rise to the occasion at that point - they have to respond, they have to run a thorough process," Dr Prebble said.
"Very often the simple thing to say is, 'That's an interesting idea, minister', and don't do anything."
After days of talks, chief decides - 'I want to leave'
Environment Ministry chief executive Hugh Logan discussed his future with State Services Commissioner Mark Prebble over several days before deciding to walk away from his $330,000 a year job.
Dr Prebble said yesterday that it was hard to work out exactly when Mr Logan indicated he was considering resigning, but "he and I have been talking through this week".
"Conversations work their way around," Dr Prebble said. "Yesterday he said 'I would like to leave'."
Mr Logan will leave on February 1 after 18 months as Environment Ministry chief and 26 years in the public service.
He refused to be interviewed yesterday, but said he was going because the ministry needed a fresh start so it could focus on challenges ahead.
"We have had a rough few months," he said. "There have been mistakes made in managing employment situations and communications with the minister.
"Where these have occurred, I have been prepared to take the responsibility, apologise, and put things right."
Mr Logan was not at the Environment Ministry when Clare Curran was hired.
But he has had a difficult period in charge in recent months, apologising first for the mishandling of Madeleine Setchell's employment at his ministry, then twice more after problems with advice given to the Environment Minister.
The Government steered clear of any discussion over whether it had confidence in Mr Logan. But Prime Minister Helen Clark did say she felt let down by the ministry.
Mr Logan will be paid three months' notice from February 1.
He has been given the option of returning to the ministry to do research work, at a quarter of his present salary.
