WELLINGTON - Work and Income New Zealand chief executive Christine Rankin says she lost all of her $37,599 performance bonus following last year's controversy about the department.
During a grilling yesterday by Parliament's social services committee over the financial performance of Winz, Mrs Rankin said she got none of the bonus written into her contract.
"I guess that is my own personal business, but because I want to clarify it and I'm frustrated with the things that people say, I was not paid a bonus," she told the committee following questions about a controversial staff training conference last year.
State Services Commissioner Michael Wintringham had indicated previously that some or all of Mrs Rankin's performance-related bonus might be docked because of concerns about the conference. Mrs Rankin earns about $250,000 a year.
And revelations that the department's acting human resources manager, Sue Christie, is a director of a firm hired to give Winz industrial relations advice will prompt an expanded review into the department.
The company, Martin Jenkins and Associates, won a contract ahead of two other firms to provide industrial relations advice to Winz.
Social Services Minister Steve Maharey said yesterday that he was alarmed by the news, and wanted to know whether it was appropriate for consultants to act as managers of Government departments.
"The Government is deeply concerned about it. I have written to Trevor Mallard as State Services Minister that this very question be included in the review of Winz."
In other questioning relating to the conference last year, Mrs Rankin told the select committee she was unable to divulge details of a settlement with the worker she previously accused of misleading her about its cost, which included $165,000 for charter flights.
The worker was suspended by Winz and later took a case to the Employment Court.
Mrs Rankin said she wanted to "seek advice" before answering the questions.
She took a similar line to Act MP Muriel Newman's question over whether she stood by her statement of last July that the worker misled her.
"I can't answer that question. You would be aware there are confidentiality and privacy issues. I may be able to answer it but I would need to take advice."
A report by Mr Wintringham, released in January, said that Mrs Rankin ignored legal advice when she made the statement.
Mr Wintringham's report said her statements strengthened the staff member's legal case against Winz, which resulted in a confidential out-of-court settlement being paid before Christmas.
The settlement has been reported to be worth $100,000 plus an apology from Mrs Rankin to the staff member.
The worker's name was suppressed by the court.
Mrs Rankin has had a troubled tenure since being appointed to head the department, established under National 18 months ago.
Labour and its welfare spokesman, Steve Maharey, were highly critical of Winz while the party was in Opposition. Mr Maharey is now the minister in charge of the department.
Following his first meeting as minister with Mrs Rankin he said that he was satisfied she was a "good public servant," but he has since been critical of her performance following problems with the department's administration of the student loans system.
Mrs Rankin told the committee yesterday that she had a "productive" relationship with Mr Maharey.
But she would not answer National MP Nick Smith when he queried whether she had sought advice from Mr Wintringham over critical statements about her by Mr Maharey.
"I feel uncomfortable answering it."
Mrs Rankin said she had not sought any assurances from Mr Wintringham about a statement by Mr Mallard that there was one public sector boss he wanted to sack for incompetence, but couldn't.
Mrs Rankin said Winz staff had been "battered" by continuing public criticism of the department and of her own performance.
"In terms of the work they do my staff are absolutely fantastic and I don't think that they deserve that kind of criticism."
She was determined to rid the organisation of its image of departmental "extravagance and waste."
"Of course there will still be public criticism ... but we have really worked very hard to make sure there is nothing that can be criticised and that doesn't have good reason for taking place."
Asked by Labour MP Jill Pettis if she should take responsibility for the media attention, given some of the "outrageous behaviour" she allowed, Mrs Rankin said she had no control what the media said or did.
Mrs Rankin also said that taking on student loans had been too much for the department.
She said that in hindsight Winz already had a lot to deal with following the merger of Income Support and the Employment Service.
"Taking on responsibility for students has complicated an enormous change process."
Winz had just three weeks to prepare for a leap in demand for student loans following the new Government's introduction of interest-free loans, she said.
In response to a question from Dr Smith, the Winz manager of specialist services, Patricia Reade, revealed that the Government turned down a request by Winz for funding for an advertising campaign for students to inform them of the loans process.
- NZPA
Winz: Rankin says she lost $37,000 bonus
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