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The PSA union has commended Immigration Service boss Mary Anne Thompson for resigning, saying trust in the public service could have been eroded by questions about her handling of residency applications.
Ms Thompson's resignation comes as the State Services Commission (SSC) reviews the residency applications of some of her Kiribati family members, which were approved against normal Immigration Service policies.
PSA National Secretary Richard Wagstaff said there were continued questions about Ms Thompson's actions.
"We were concerned that these questions would linger while Ms Thompson remained at the Immigration Service.
"For that reason we believe she has made the right decision by resigning and we commend her for making that decision," he said.
The matter is still under SSC investigation, but a Department of Labour spokesman said Ms Thompson's resignation was her own choice and not based on any initial findings of that inquiry.
"We hope that the commissioner's investigation gets to the bottom of this case," Mr Wagstaff said.
"We can't allow any questions to linger that will erode the public's trust in the public service."
An earlier independent report into the case found Ms Thompson had not sought to influence the outcome.
National Party Immigration spokesman Lockwood Smith asked questions of the government in Parliament this afternoon.
Deputy Prime Minister Michael Cullen, who was answering questions on behalf of Clayton Cosgrove, said the minister had been aware of the investigation in April last year but did not become involved because it was an employment matter.
The resignation
In an email to staff today, Department of Labour Chief Executive Christopher Blake said Ms Thompson had stepped down on Monday as Deputy Secretary, Workforce, effective immediately.
"While this decision brings a degree of closure to these matters, I expect public scrutiny will continue around this and wider organisational issues," he said.
"I will be making no further public comment about the resignation, and I remind you to refrain from making any comment or speculation on this matter to persons outside the Department, especially to journalists."
In a formal statement released later, Mr Blake said: "In the interests of the Department and the wider public service, Ms Thompson has decided to resign from her position as Deputy Secretary Workforce."
He also acknowledged Ms Thompson's contribution to the Department of Labour - which includes the Immigration Service.
Ms Thompson will get a three month pay out of her salary - the notice period she was required to give in her contract if she resigned.
An immigration official was disciplined after admitting to ordering staff to process applications by Ms Thompson's family members, despite being filed eight months after applications for the Kiribati quota had closed.
Media coverage of the case forced the release of an independent report by former justice secretary David Oughton.
That report's findings prompted Immigration Minister Clayton Cosgrove to ask the State Services Commission to do a full investigation into the case.
In Parliament
Mr Smith told the Herald this morning that he would not be letting the Government off the hook in this "sorry saga".
"What has not become public yet is when the Minister was first informed about it and what he did about it," Dr Smith said.
Mr Cosgrove has previously said he was briefed on the issue last December and expressed his concern to Department of Labour chief executive Chris Blake but kept his distance because it was an employment matter.
He had not seen the Oughton report until recently.
The Oughton report also raised concerns of a more widespread practice of staff being pushed into making decisions they felt were contrary to immigration policies.
Dr Smith said the issue went to the heart of the Immigration Department, whose reputation had been damaged.
"A perception has now been created that not everyone applying for visas and permits will be treated the same. The way you will be treated may depend on your family connections and who you know and that is an unfortunate and unacceptable situation," Dr Smith said.
He said Ms Thompson had few options.
Dr Smith said the investigation should have been made public from day one and a public announcement should have been made.
"The only reason why Mary Anne Thompson has stepped down is because the matter finally became public. If it hadn't been made public [by the media] you would have seen no change," he said.
The case
Ms Thompson helped family members from Kiribati to fill out residency applications that were lodged in November 2005 - after the closing date for the Kiribati quota.
The residency was given outside Immigration policy - a power reserved in law for ministers alone. The case was investigated after the irregularities in the approval of the residency applications were discovered in an internal audit.
An official was given a formal warning for ordering staff to approve it, despite lacking the authority to do so.
The Oughton report cleared her of trying to influence the outcome of the applications, but did not address her actions in helping fill out the forms.
In his interview with Ms Thompson, Mr Oughton said she now acknowledged that her signature on the forms could have influenced officials to treat it other than on its merits.
Although Ms Thompson signed the form to show she had helped, she had not told her boss - then James Buwalda - of her involvement, possibly a breach of the department's code of conduct.
Mr Buwalda had also previously counselled Ms Thompson after her earlier actions in twice asking immigration staff to give the relatives visa waivers to travel to New Zealand on holiday in late 2004 and early 2005.
Mr Blake has announced that Graeme Buchanan has been appointed Acting Deputy Secretary, Workforce.
- NZHERALD STAFF