KEY POINTS:
The Beehive's confidence in Environment Ministry chief executive Hugh Logan appears to have evaporated after a series of high-profile errors, with Prime Minister Helen Clark saying she feels let down by the ministry.
Mr Logan - and his minister Trevor Mallard - are at the centre of a storm after Mr Mallard attacked communications consultant Erin Leigh in Parliament just over two weeks ago.
Mr Mallard's decision to label her as incompetent and sad came after he received advice about Ms Leigh's employment at the Environment Ministry from Mr Logan.
But Mr Logan suddenly issued a statement last week saying that the advice had never been intended to reflect on Ms Leigh's performance, which had been good and professional.
He apologised for what happened as a result of the advice given to Mr Mallard. It was the third time in less than a month that Mr Logan has found himself in the position of making a public apology for something that has been mishandled by his ministry.
Yesterday Helen Clark said she understood the State Services Commission reviewed the performance of people like Mr Logan every year.
"So I'm sure there are a range of issues which would be taken into account in an annual review," she said, when asked if she thought Mr Logan should keep his job.
Asked if she felt let down by the ministry in recent times, Helen Clark said, "well, in a nutshell, yes". She then recalled the Madeleine Setchell affair, in which a communications woman hired by the Environment Ministry was later removed from her position because her partner worked as chief press secretary to National Party leader John Key.
A State Services Commission inquiry into the matter revealed Mr Logan had ignored advice from State Services Commissioner Mark Prebble not to discuss the situation with then Environment Minister David Benson-Pope. Mr Benson-Pope's Cabinet career later fell apart over his handling of the Setchell affair.
Helen Clark yesterday said she had been "extremely careful" not to attribute any blame to Ms Setchell.
However, the Prime Minister clearly was not happy that the Environment Ministry had "consistently ignored" advice it had been given by the commission.
"The history of the whole affair might have been a little different if they had taken the specialist advice which the State Services commissioner offered," she said.
Mr Logan has accepted having his pay docked as a result of the Setchell affair. It is understood any further performance issues arising from his latest problem around his ministry's advice to Mr Mallard will not be looked at until after the State Services Commission completes an inquiry into allegations of politicisation at the Environment Ministry.
That report could come out just before Christmas.