LIFESTYLER
January 22 2013
Kaipara
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Settlement released by Paul Campbell
The former chief executive officer of the Kaipara District Council, Jack McKerchar, was paid $240,000 in return for the early termination of his employment contract.
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The council on Monday released the deed of settlement outlining Mr McKerchar’s employment severance details, together with a copy of his written agreement, following a request from the Kaipara Lifestyler under the Official Information Act. The decision to release the information followed community requests as well as a statement in support from the council commissioners. The current CEO of council, Steve Ruru said that in deciding to release the deed ”I have been mindful that there has been significant and continuing public interest in this issue. “The Kaipara District Council Commissioners have also advised me that, in their view, the non-release of this deed is hindering their ability to address some of the issues facing the district. “Given that, and after seeking legal advice, I have decided to release the deed. However, I will not be making any public comment on this issue.” Under the agreement which terminated his tenure, Mr McKerchar left council on October 31, 2011, a year before his contract was due to expire on October 31, 2012. At the time, health issues were cited as the reason for his departure. He was paid $200,000 for lost salary that otherwise would have been payable, as taxable income, plus $20,000, tax-free, in compensation for early termination under the Employment
Steve Ruru
Jack McKerchar
Relations Act. Another $20,000 was paid, tax-free, to meet ‘career transition’ costs. Also paid as taxable income was an undisclosed amount in accrued annual leave entitlements. The deed stipulated that neither party could unilaterally publicise its contents. Mr McKerchar has written to council stating that “from the outset, I had considered the settlement deed to be confidential and that it should not be disclosed to any third party. ‘‘I believe the Chief Ombudsman considered the issue and came to a similar view.
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“I feel that considerable pressure is being exerted on me to agree to the release of the deed. Therefore, in addition to providing a copy of the deed, I think it reasonable to ask you include a copy of this letter. “I am particularly concerned about idle speculations that appear to surround my departure from council, and the need to provide solid information. Therefore, I confirm that settlement was achieved on an amicable basis and in return for the early termination of my contract with council. ‘‘I trust this will be the end of the matter.”
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