KEY POINTS:
The State Services Commission (SSC) is to look further into the Environment Ministry's hiring of Labour Party activist Clare Curran, in particular into how any conflicts of interest were handled.
National leader John Key wrote to the SSC after his party learned Ms Curran won a short-term contract at the ministry after Climate Change Minister David Parker suggested she could provide communications help.
Madeleine Setchell lost her senior communications role at the ministry because her partner Kevin Taylor is Mr Key's chief press secretary.
Acting State Services Minister Trevor Mallard said today that suggestion by Mr Parker had been the "naive" actions of a new minister.
A report from Deputy State Services Commissioner Iain Rennie, which was released yesterday, said Ms Curran had already approached the ministry in late 2005 or early 2006 seeking work, outlining her interest in climate change communications and public awareness work, particularly in Australia.
The ministry did not employ her at that stage.
However, the report said one of the officials, who had met Ms Curran earlier, had been in the meeting when Mr Parker suggested her name and had felt she might be a good option.
Ms Curran's contract at the ministry ran from May 22 to July 28, 2006.
State Services Commissioner Mark Prebble today said Mr Rennie's initial investigation had given him a good understanding of the overall picture.
But there were further matters which required clarification "particularly surrounding whether and how any conflicts of interest were identified and managed".
The ministry's contract management checklist was marked in the affirmative to the question "are you confident there is no conflict of interest for any of the parties to the contract".
Mr Rennie would talk to the relevant ministry staff and other parties to confirm the facts, Dr Prebble said.
Mr Key had wanted former state services commissioner Don Hunn, who looked into the Setchell afair, to do the investigation.
But Dr Prebble said he saw no need for that as Mr Rennie had the "necessary powers" to carry out a full review.
National has complained that while Ms Setchell lost her job over a potential conflict of interest, the ministry saw nothing wrong in hiring Ms Curran, a Labour Party member who wrote a strategy party for a Labour Party conference mid-last year.
Dr Prebble said in a letter to Mr Key that he upheld the rights of public servants to hold political affiliations "so long as they do not bring their jobs into politics and their politics into their job".
There was nothing in the short term contract Ms Curran held that suggested it was one of the very small number of jobs where demonstrated political impartiality was required.
"Accordingly, I do not see that party affiliation in itself is a basis for concern on this occasion."
Dr Prebble said the idea that ministers might occasionally contribute to thinking on employment matters was not new and when carefully managed not problematic.
"The issue in this case is whether the process was managed with sufficient care by everybody involved to ensure that conflicts were avoided."
National state services spokesman Gerry Brownlee said it was good the SSC was carrying out a further investigation into Ms Curran's appointment.
The report issued yesterday had failed to deal with the fundamental question over Mr Parker's involvement, Mr Brownlee said.
During question time in Parliament, Mr Brownlee asked Mr Mallard whether he believed there was "political pressure or inappropriate ministerial interference" in Ms Curran's appointment.
Mr Mallard, who is also environment minister, said it was his view "a naive suggestion was made by a new minister".
The ministry had been "desperate" to find someone and Ms Curran had "measured up," he said.
Mr Parker told reporters last week he had suggested Ms Curran's name because he was familiar with her work and knew she was capable.
- NZPA
