ED SAID - All will be revealed

Rumour and speculation became more substantive with the release of the severance package payout to former Kaipara District Council CEO Jack McKercher, though it has in fact asked as many questions as it has answered.

The revelation of the $240,000 payout brought much baying from ratepayers who demanded to know the make-up of the package, most focussing on the amount without apparent realisation that every CEO in the country would have, as part of their employment package, a severance arrangement which could be re-negotiated at any time depending on circumstances. These may include gross misconduct on one hand, or sudden health or family problems on the other, things not neccessarily allowed for initially but that can instantly change any situation.

Whatever the figure, it would still have been referred to as a ‘golden handshake’ by many so that terminology is quite irrelevant regardless of the amount or the circumstances. 

McKercher had been in the job for 18 years. During that time his employment contract would have been reviewed and renewed on several occasions. Never at any time during those 18 years did any ratepayers ever ask what his severance arrangement might be.

But did he jump or was he pushed?

That McKercher had had some health problems leading to his resignation was no secret. However this was not cited nor mentioned in the severance agreement, nor did it mention ‘retirement’ but resignation. Thus the agreement was $200K salary for remainder of his contracted period, $20K for the period during which he might seek new employment and another $20K payment with reference to an Employment Relations Act clause relating to  humiliation, loss of dignity, and injury to the feelings of the employee. Debatable maybe, but that’s what it was.

As thick-skinned as he appeared to be, McKercher must have felt some heat rising from the growing discontent of ratepayers towards the KDC fiscal situation. This being the case, did he feel it was time to ‘get out of the kitchen’ thus resulting in the agreement and his departure before the proverbial really hit the fan?

Did he have the council in his pocket to such an extent that he was able to negotiate such a settlement? Alternatively, if he was about to ‘take the money and run’ why did he not move to Perth or San Francisco – well away from any likely fallout?

On the other hand, if he felt the rising heat, surely the Council must have felt likewise. If this were the case, why did Council accept the resignation on those terms or accept the resignation at all? Why did they not say, ‘sorry, you have to stay and face the heat with us as it was you who rubber-stamped a number of the deals that contributed to this situation.’

Again, more questions than answers.

The bottom line is this: Release of the severence document was agreed by present KDC CEO, Steve Ruru, and Commissioners Chair John Robertson in the interest of public demand and a ‘need for transparency’ so things could then move on. Commissioners had also said withholding the information was hindering their ability to address some Kaipara issues. The document is, despite the many different interpretations by many individuals, a legal agreement between employer and employee. Council was under no legal obligation to release the document. It is a severance agreement, not an employment contract.

Few are really aware of just what the Commissioners have to wade through in their efforts to get Kaipara back on track but next week there will be a series of public meetings held at Mangawhai, Maungaturoto and Dargaville when residents, ratepayers and rate-non-payers will receive up-to-date explanations of progress and also be able to ask questions pertaining to same.

Just another step along the path to recovery.

That’s my humble opinion today.

Cheers, Rob.