KEY POINTS:
The terms of reference for an inquiry into the Madeleine Setchell affair have been released.
The State Services Commissioner Mark Prebble said the inquiry was necessary because of concerns raised about Ms Setchell's treatment, and the reputation of the politically neutral Public Service.
Mr Prebble said he would look at the management of actual or perceived conflicts of interest and the duty to maintain political neutrality.
The terms of reference are:
* investigate the relevant facts of the Public Service's recent handling of their recruitment and employment processes relating to Madeleine Setchell
* Report on the lessons for the Public Service arising from the above investigation
Ms Setchell was removed as Environment Ministry communications manager after Environment Minister David Benson-Pope took exception to her being the partner of National Party chief press secretary Kevin Taylor.
The minister's office instigated the review of her employment and Mr Benson-Pope told ministry boss Hugh Logan he would not be "free and frank" with her in his office.
Mr Benson-Pope resigned from Cabinet under pressure from Prime Minister Helen Clark for misleading Parliament and the media about his role in the affair.
Mr Logan also came under fire because he failed to tell the commission about Mr Benson-Pope's role in the removal of Ms Setchell.
Miss Clark has been critical of Mr Logan for not telling the commission about Mr Benson-Pope's comment about working with Ms Setchell when it prepared a report into the case.
She and the commission had relied on Mr Logan's version of events and as a result had released an inaccurate report on the affair.
- NZPA
