20 Sep 2013

Extra payout to former state sector head

8:55 pm on 20 September 2013

The former head of the Department of Building and Housing received an additional $100,000 payout when her job was disestablished.

The payout is revealed in the State Services Commission's annual report of state sector remuneration in the year to the end of June.

Former Building and Housing Department chief executive Katrina Bach initially received $81,105 in entitlements after the department was disestablished and its functions transferred to the new Ministry of Business, Innovation and Employment.

The State Services Commission report says another payment of $102,000 in entitlements was also made to Ms Bach.

The report includes a number of other severance payments associated with the formation of the Ministry of Business, Innovation and Employment.

Former head of the Ministry of Science and Innovation Murray Bain's severance cost was $249,301.

Most of the chief executives covered in the report received increases in pay, although a few had cuts, including the heads of the Superannuation Fund and the Ministry of Foreign Affairs and Trade.

Commissioner defends big payouts

The State Services Commissioner is defending several big payouts to public sector heads caught up in the formation of the Ministry of Business, Innovation and Employment.

A new remuneration report shows three former state sector chief executives received between $68,000 and nearly $250,000 in payments when their jobs were dis-established last year.

Commissioner Iain Rennie says it is important that all employers, particularly in the public sector, meet their legal obligations.

He says those payments would have included redundancy, and money for annual leave that had not been taken.

Mr Rennie says state sector contracts are being tightened to make sure no redundancy payments are made if an employee moves to another role within an entity.

Union shocked at Canterbury University VC pay rise

The Tertiary Education Union is shocked the Vice-Chancellor of Canterbury University has received a $50,000 pay rise.

The increase was revealed in the States Services Commission's salary report

Canterbury University sought financial help from the Government earlier this year after posting an annual loss of $67 million.

A union spokesperson, Stephen Day, says the university is struggling financially after losing a large number of students following the Canterbury earthquakes.

And he says the university has been laying off staff.

Pay hikes slap in the face for public servants

The Public Service Association says recent increases to the pay packets of state sector chief executives are a slap in the face for the average public servant.

PSA national secretary Richard Wagstaff says the association has to battle at the bargaining table to get pay increases for its members, with some departments suggesting claw backs because of Government budget cuts.