KEY POINTS:
David Parker's future as State Services Minister is under a cloud as an inquiry starts into the hiring of Labour Party council member Clare Curran by the Ministry for the Environment.
The move preceded claims from former ministry contractor Erin Leigh that Ms Curran was hired as Mr Parker's "watchdog".
Ms Leigh resigned, believing the appointment amounted to political interference in the strictly neutral public service.
State Services Commissioner Mark Prebble said the inquiry would focus on how any conflicts of interest were identified and managed.
National has contrasted the ministry's hiring of Ms Curran, who has long-standing ties with Labour, to the ministry's firing of Madeleine Setchell - who was hired as the ministry's communications manager but dismissed when concerns were raised about her partner working for National as a press secretary.
Ms Curran approached the ministry for work in late 2005 or early 2006, but was not hired. In May the ministry decided it needed communications help, and Mr Parker - who was then Climate Change Minister - mentioned Ms Curran's name as a possible candidate.
That suggestion has since been described as "naive" by Prime Minister Helen Clark.
Ms Curran was hired for three months, at $120 an hour, to provide a communications plan and strategies, work with stakeholders and media, and develop information resources about climate change. She was paid $29,400 for her work.
Ms Curran did not return phone calls last night.
National Climate Change spokesman Nick Smith said he doubted David Parker could continue in his recently assumed job as State Services Minister.
"He is meant to be setting an example to ministers with their relationship with public servants."
Mr Parker said from Scott Base that he did not direct the ministry to employ Ms Curran.
He said the claims by Ms Leigh, whom he did not recall having met, were not correct.
Mr Parker said the issue of Ms Curran's employment had come up at a select committee last week and ministry staffer Dave Brash, who had been involved in the appointment process, had clearly stated he did not direct the ministry to appoint Ms Curran, "and I didn't".
Mr Parker said he had "absolutely no doubt that all that I did was raise a suggestion of someone who could meet their need and I never directed that they appoint anyone and would not do so".
He welcomed the SSC's decision to probe further into the appointment.
Dr Prebble said he upheld the right of public servants to have political affiliations, so long as they kept the two separate.
"There is nothing in the short-term contract that Ms Curran held which suggests it is one of the very small number of jobs where demonstrated political impartiality is required."
Dr Prebble said: "The issue in this case is whether the process was managed with sufficient care by everybody involved to ensure that conflicts were avoided."
- Additional reporting, NZPA
