KEY POINTS:
The head of the Environment Ministry today said David Benson-Pope's opinion on the Madeleine Setchell conflict of interest case had no impact on his decision to remove her.
Following Mr Benson-Pope's forced resignation from Cabinet today, attention is focusing on Mr Logan's role in the case and he has been asked to report back to the State Services Commission (SSC).
It was revealed today that Mr Logan failed to inform the SSC about a key conversation with the minister and the SSC has questions about his handling saying it was not yet satisfied and wanted a full report.
Prime Minister Helen Clark also this evening expressed disappointment in Mr Logan that he did not speak out earlier.
This afternoon Mr Logan and deputy State Services Commissioner Iain Rennie held a joint press conference to clarify issues around conflict of interest.
They both insisted the case - where Ms Setchell was removed as the ministry's communications manager because her partner is National Party chief press secretary Kevin Taylor - was not a concerning precedent for all public servants.
Mr Logan said he had already made up his mind on the potential conflict before Mr Benson-Pope controversially told him that he would be less open if Ms Setchell had the job.
Mr Logan today revealed Mr Benson-Pope's staffer Steve Hurring made the same comment in an earlier phone call.
"I'd already formed a view before I met with the minister that there was a potential conflict of interest to manage," Mr Logan said.
"I considered whether in fact the minister's comments were material or not. If he had said to me that it didn't matter I would still hold the same view that there was a potential conflict of interest."
Mr Logan said the case was "unusual" and he had made his decision thinking of how the public, politicians, the media and other parties would see Ms Setchell's position. Her role was in a politically sensitive area where policy like emissions trading systems would be discussed - something Mr Taylor would be involved with.
"They would both be likely working on the same issues but from a different perspective."
The men denied the decision impacted on all civil servants because of their relationships and beliefs and Mr Rennie said there were "specific circumstances" in this case.
Mr Logan said he had tried to keep Ms Setchell by offering another senior position but she declined.
Mr Rennie has asked Mr Logan to prepare a report explaining how the situation was managed and he declined to say if his job was on the line.
Mr Logan did not tell the SSC about Mr Benson-Pope's comments before it gave a briefing to its minister Annette King.
He admitted today that was a mistake because he was focused on the employment issues.
"With the benefit of hindsight I should have told him. I realised over the weekend that the public interest issues became more prominent and that the employment issues became a separate issue that it was something I needed to bring to his attention."
Mr Rennie agreed he should have been told earlier. He said he was yet to be satisfied about Mr Logan's handling of the situation including why he only found out about the appointment through the minister's office, how the potential conflict was managed and he also wanted changes so similar cases would not arise.
"What I have asked Mr Logan is to provide me with a report about how he managed the critical employment issues in this matter," he said.
"I am not going to prejudge our judgment on those issues until we have received that and had an opportunity to discuss that with Mr Logan."
It has been reported that Ms Setchell told the interviewing panel and acting communications manager about her relationship but they did not pass that on. Mr Logan said he stood by his staff and would not say if there would be consequences.
Mr Rennie said the decision to hold a press conference today was his and Mr Logan's and not influenced by the Government although he did talk to Miss Clark's chief of staff Heather Simpson.
The idea of a register of possible conflicts of interests has been raised and Mr Logan said Audit New Zealand had suggested the ministry set up more formal ways of identifying such conflicts.
Mr Rennie said he would not support a register for all staff - there are 190,000 public servants - but said it might be appropriate for some positions.
The Public Service Association national secretary Brenda Pilott said she thought the case was mishandled and welcomed the call for Mr Logan to report to the SSC.
Key quotes by Benson-Pope during the Setchell saga:
July 18 - Asked what he knew about the Setchell case:
"No, I don't know anything about the detail of that issue, nor do I think it's appropriate for me to get involved or actually say anything about employment matters."
July 20 - Asked whether he expressed his views on Ms Setchell's appointment to ministry chief executive Hugh Logan:
"In respect, nothing. Hugh knew my view was matters of employment were matters for the chief executive."
July 23 - Asked if Ms Setchell lost her job because of a hint from his office:
"No. She lost her job because the conflict of interest was identified by Mr Logan."
July 24 - Asked if he expressed an opinion on Ms Setchell's appointment:
"No I don't think I've got a role in that. I think the issue is an employment issue."
In the same interview he was asked if he would be comfortable working with her:
"I don't think that's an issue."
July 26 - Under questioning in Parliament about what he said to Mr Logan:
"I noted two things - that this was clearly an employment matter and his responsibility alone to manage, and secondly that from the point of view of my office I will likely be less free and frank in meetings with such a person. That was a statement of the obvious."
The latest allegations are not the first to be faced by Benson-Pope. Previous claimed incidents have included:
* Putting a tennis ball in a student's mouth in 1982
* Hitting a student in the face
* Entering a changing room while girls were showering in 1997
* Misleading Parliament in May 2005 by saying he was not aware of any complaints during his teaching career
- NZ HERALD STAFF, NZPA
