Rennie announces $425K payout for education boss who quit in tiff with Parata
The government has revealed a $425,000 payout for Lesley Longstone, the former head of the Ministry of Education who quit in December amid controversy over Novopay, and a "strained relationship" with Education Minister Hekia Parata.
State Services Commissioner Iain Rennie today released details of the severance payment to Lesley Longstone, the former Secretary and Chief Executive of the Ministry of Education.
The CEO left on 8 February and received a severance payment of $267,952, equivalent to six months’ remuneration before tax.
"At the conclusion of Ms Longstone’s employment, she also received other end of term entitlements. These included outstanding holiday pay and a payment in lieu of notice," Mr Rennie says.
"While notice would usually have been worked out, the desirability of a timely leadership transition led the parties to agree that a payment in lieu of notice was appropriate. This payment and outstanding holiday pay totalled $157,523.33."
"Therefore, total before tax payments to Ms Longstone relating to the ending of her employment as chief executive totalled $425,475.33," Mr Rennie says.
The State Services Commission expects to advertise for a permanent Chief Executive later this month.
The Commission has refused further comment.
"Strained relationship" - Rennie
At the time of Ms Longstone's resignation, Mr Rennie told media "There‘s clearly been a strained relationship between the minister and chief executive. Clearly there’s now an opportunity for the ministry to go forward.”
Mr Rennie said from time to time chief executives and ministers will have strained relationships, but most of it never becomes public.
“I have a responsibility for thinking about how any Ministry goes forward, and this is a critical ministry for New Zealand. It spends over $12 billion of taxpayers’ money, it’s dealing with one of the important issues of our future. Key to any ministry succeeding is an effective relationship between a minister and CEO.”
The Commissioner said he and Ms Longstone came to the view that new leadership was required.
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Comments and questions25
What an incredible waste of money.
What an incompetent Minister of Education. Class sizes, Christchurch school closures, Wanganui Collegiate bail out, charter schools- untrained teachers in classrooms, Novopay and "Strained Relationships". Performance pay for the Minister is it?
I think Rennie should up his own game and ensure contracts are written so that if this situation arises and people resign --thats it, No payouts ( except holiday pay and pay up until they leave).
It looks like they paid her out rather than making her work out her notice - so it wasn't technically a severance payment, just 'prepaid salary' while she was on Gardening leave.
Harvey --the work out part in the approx $157k. The remainder is affectively a golden handshake. If is payment for effectively being pushed out then Rennie should say so. But if she truely did resign then Rennie should not be far behind.
Did Longstone voluntarily resign or was it suggested it would be in her best interests if she did?
Want job security and a high salary, with a guaranteed payout if it doesn't work out? Be employed by the taxpayer.
Yeah I'll say. Anybody else in such circumstances just gets told not to let the door slam on their sorry *rse on the way out.
wish 425k 'seemed appropriate' for the rest of us
I hate to think what a toxic environment that place must have been. A minister out of her depth, and a top UK official bussed down to crummy NZ to sort out the mess. And women too! Yeek!
Jolly good show. If that's what was agreed at the outset, then that is what is paid. This government wrote the deal and this government stuffed it up, so it is this government which should pay.If the minister's were accountable as if it was their own money then and only then would we see responsible fair governance.
Another snout has left the trough,but unfortunately,took the trough with her!!!
No Anonymous, only if you are at the top. The real workers just get screwed.
The State Services Commissioner and his merry band are really an appalling pack of incompetent troughers if going by this they cannot organise sensible employment contracts, but I guess they have their own well worded ones in case they get shunted also.
wonder if the payment is going through Novopay, she may get paid sometime this year
Parata can shrug her shoulders at the level of the payout; it's not out of her pocket, after all.
Disgraceful, Both of them should have been booted with no payout. Why should the long suffering tax payer have to keep on picking up the tab because 2 wimmin can't act professionally and work together in the best interests of the citizens instead of their own self interest.
If she was paid by Novopay, she would know how the many teachers are feeling at the moment.
This was hush money. She will have a serious confidentialty clause associated with this payment which of course means she can't blow the whole shameful episode wide open.
I can't for the life of me work out why these Govt employee's are getting contracts with these huge severance packages. It just doesn't happen in the real world. Clearly there is more than one gravy train running in little old New Zealand.
Sounds like a compensation package. The words "constructive dismissal" come to mind.
That money would have been better spent helping to keep Christchurch schools open.
Oh the poor thing, such hardship.Someone else spending someone elses money. What incredible waste.
We tax a freezing worker, a shearer, a coal miner, a fisherman to pay this sort of nonscence. The tax coming from people who would never have that sort of money in a lifetime.
An unbelievable disgusting shameful waste. Hopelessly unfair.
Why is it that statements from those in power in Wellington, always end up saying that the ' tax payer will foot the bill.'
Surely the person/s who draw up contracts that fall over, should be paying the bill, as they are paid handsomely (I would think) for drafting up such, so should be resonsible for same if they fail.