'The decision to go was mine' - Stephen McKernan

CRAIG SIMCOX/The Dominion Post

STEPPING DOWN: Stephen McKernan is not seeking reappointment as Director-General of Health.

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Director-General of Health Stephen McKernan has denied he is quitting his $500,000 job because of political pressure.

His decision to leave, announced yesterday, sparked speculation of a difficult relationship with Health Minister Tony Ryall and that he was unhappy with the establishment of the National Health Board.

But he insisted yesterday: "I have decided not to seek reappointment after my current term expires at the end of July. The decision to go was mine."

The National Health Board, set up under former Treasury secretary Murray Horn, oversees the $9.7 billion a year DHBs spend on primary and hospital services.

The sector is undergoing major changes, announced last year, that will see savings of $700 million over five years and loss of up to 500 jobs.

Council of Trade Unions president Helen Kelly said it was unclear why Mr McKernan had stood aside.

"We would be very concerned if the minister has played any role suggesting he should not reapply."

Labour state services spokesperson Grant Robertson said the resignation raised questions around the politicisation of the public service. Dr Horn was Health Minister Tony Ryall's man.

"Was he pushed, or did he jump?" Mr Robertson said.

Association of Salaried Medical Specialists executive director Ian Powell said Mr McKernan would be a huge loss.

"One of his many strengths is his preparedness to give health ministers the advice they may not want to hear. This is an essential part of the robust relationship between chief executives and cabinet ministers that governments benefit from, especially with restructuring underway," he said.

"We hope that Mr McKernan's surprise decision is not due to political opposition or negativity."

Mr McKernan said he had not been pressured to leave, and it was something he had thought long and hard about.

He had told State Services Commissioner Iain Rennie in January that he would not be seeking to extend his term, which started in 2006.

It was a logical time to go, with changes mostly in place by July.

He said the National Health Board's longterm focus was sensible, as was the move to avoid duplication of services in the sector.

Asked about his relations with Dr Horn, Mr McKernan said: "I get on well, actually. We have lots of discussions, debates, throw around some thoughts, but I have really appreciated the opportunity to share thoughts with Murray in the course of the last 12 months."

His proudest moments in the job were increasing surgery by 25 per cent over the last four years, greater access to primary care and seeing up to 37,000 people with longer life expectancy due to efforts to reduce smoking. "They are the things I would like to be remembered for."

Mr McKernan, who has held senior health system roles for 18 years, said he would make an announcement on his future in due course.

Mr Ryall yesterday thanked Mr McKernan for his contribution and said he hoped he would contribute to the sector in future.