Families Commissioner loses pay rise

Families Commissioner Rajen Prasad has apologised to Social Development Minister Steve Maharey for approving a confidential payout to the commission's chief executive, Claire Austin, and he will face a personal penalty - no pay rise.

Dr Prasad's pay band of $150,000 to $160,000 was to have been reviewed about now and will not be.

As well, the commission will be under much closer scrutiny from the Ministry of Social Development over any major decisions, including the appointment of a new chief executive, and the way it separates operations and governance.

The commission's policy work and advocacy, however, will remain independent.

Dr Prasad authorised an undisclosed confidential payout to Claire Austin, who left last month after only five months in the job. Not only was the Government not told, but nor was the ministry until after the settlement.

The amount will be made public in the commission's annual report and is thought to be less than $50,000.

Dr Prasad met Mr Maharey and the ministry yesterday to discuss the payout and its consequences. He apologised to ministry chief executive Peter Hughes as well, Mr Maharey said.

"It is clear that the commission did not act in a way that was consistent with Government guidelines on these issues," said Mr Maharey.

"They should have been known about and they should have been followed."

The Auditor-General issued guidelines in 2002 that included the need for transparency of process.

Mr Maharey said Dr Prasad's job was not on the line but the minister would send a letter to the commission today setting out the consequences.

It had been agreed that Dr Prasad's salary level would be reviewable once the size of the job was understood more clearly, but "we will now be placing that review on hold because that is not appropriate at this time".

Mr Maharey said he accepted that in authorising the payout, Dr Prasad believed he had been acting in the best interests of the commission and the Government.

"Nothing has gone on here which would be taken to be defiant or venal.

"You can't fault Raj. He is one of the leading family researchers in the country. He has been a social worker. He has run a university department.

"He is well-respected around the traps."