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Debt-stricken council paid CEO $240k

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Debt-stricken council paid CEO $240k

3News NZ

The Northern Advocate reports that Jack McKercher was paid $240,000 when he quit the council

The Northern Advocate reports that Jack McKercher was paid $240,000 when he quit the council

The former head of the debt-stricken Kaipara District Council received severance payments totalling $240,000 when he quit, a report says.

Jack McKercher, who was the chief executive of the council in the lead-up to an $80 million debt blow out, resigned from the role in August.

The Northern Advocate reports that he was paid $240,000 when he quit.

Mr McKercher, who sited health as the reason for leaving his job, said leaving the council was the best decision he had ever made.

He would not comment on his contribution to the council's poor financial record.

A Northern Advocate request in February for details of his severance payment was declined by the council, despite it having to put the information in its 2011/12 annual report when it is published.

In May the council proposed a 31 percent rates increase, which residents are refusing to pay.

It also has debts of about $85m and its new sewerage scheme is $35m over budget.

A commissioner has since been appointed to oversee the council.

NZN

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22/08/2012 1:58:22 p.m.

Jim Seaview wrote:

QUOTE: "The former head of the debt-stricken Kaipara District Council received severance payments totalling $240,000 when he quit, a report says."

When a CEO leaves debts of about $85m and its new sewerage scheme is $35m over budget then one has to question the logic that is so common in the Public Sector - why do elected councillors vote to pay their CEO a bonus of $240,000 for underperforming??.

Paid for by the over-rated, hard working and diligent rate payer.

The councillors who voted in favour of this 'bonus' to be paid to Mr McKercher must be named and they must resign immediately as they failed by any due diligent standards to obtain the best value for the rate payers dollar collected and protect the ratepayers from shoddy management decisions.

These particular councillors have lost touch with reality and should be sent back to planet Mars or Uranus, where their heads are.

Councils used to have reliable, talented "Town Clerks" which we paid around $60K per annum, but I dont which Government authorised the change to allow Councils to hire "CEO's" and you would have to pay them rougly 8 to 10 times more than a Town Clerk to get the best value for the ratepayer.

What a bloody joke!!!!!

This is the system that most NZ Councils have now AND by all reports it is not working.

The Kaipara scenario should be viewed as an early warning sign that changes are drastically needed in NZ.

Bring back the Town Clerk System. Most of the old Town Clerks came up through their local councils hiearchy and knew all the towns history, had met a lot of the ratepayers and knew every nook and cranny in their town or city.

The CEO's are generally short term imports who are there to make drastic changes and get their exit bonuses.

It is time for a Change!!!!

22/08/2012 11:44:22 a.m.

robbie wrote:

Crikey!!! I hope for all Kaipara rate payers that none of their elected councilers ever decide to quit - their redundency cheques would make the $85 million dept look like a grtauity tip.

21/08/2012 11:54:48 p.m.

katrina wrote:

If someone quites there is no way they should get a severance pay. if he was manipulated to quit then it is for poor performance and he should not get a severance pay.

21/08/2012 10:00:54 p.m.

MH wrote:

Shocking but common. When is NZ government going to stop these horrors from occuring, or is it because politicians are doing the same thing why year after excruciating year this happens time and time again.