Payout not discussed in talks, says Maharey

Chief Families Commissioner Rajen Prasad met Social Development Minister Steve Maharey just four days before approving a confidential payout to former chief executive Claire Austin but did not mention it.

The minister had known there was a serious breakdown in the employment relationship between Ms Austin and the commission since February, but the dispute was not discussed at the April 7 meeting, he told Parliament yesterday.

On April 11, the commission entered into a legally binding agreement with Ms Austin which ended her tenure as chief executive and included a payout despite the Government campaigning against golden handshakes at the last election.

Asked by National MP Judith Collins yesterday if he expected people to believe the possibility of a payout was not discussed with Dr Prasad, Mr Maharey said yes.

He said he was told on April 13, soon after his ministry's chief executive, Peter Hughes, found out.

Dr Prasad has apologised to Mr Maharey and Mr Hughes for authorising the payout, against Government guidelines.

He has been told he will not get an annual pay rise as a penalty.

Mr Maharey said he did not discuss Ms Austin with Dr Prasad because employment matters were for the commission and the ministry.

He said that in a separate April 7 meeting with Mr Hughes he made it clear what the Government's expectations on severance payments to state sector staff were, and he was confident this had been relayed to Dr Prasad.