8 July 2016
[FYI request #4063 email] [email address]
Dear Ms Ford
Thank you for your email of 26 May 2016, partially transferred to Callaghan Innovation on 1 June
2016 concerning an Official Information Act 1982 (the Act) request for the following information:
1. The formal policies for the senior leadership teams at Ministry of Business, Innovation &
Employment, Callaghan Institute and NZ Trade & Enterprise for holding non executive
directorships positions (both paid and not paid)
2. A list of the declared possible conflict of interests for the entire senior leadership teams at
Ministry of Business, Innovation & Employment, Callaghan Institute, NZ Trade & Enterprise.
3. The salary bands for the individuals with declared conflict of interest and the associated
directorship fees these individuals receive.
In response to your first request I have attached Callaghan Innovation’s Managing Conflicts of
, which applies to our Executive Leadership Team. Also attached is a copy of the
document Employee Appointments to External Board.
In response to your second and third requests, there are two members of Callaghan Innovation’s
executive leadership team, Dr Mary Quin, Callaghan Innovation Chief Executive and a General
Manager, that have declared interests and a current conflict management plan in place. In regards
to Dr Quin’s Westpac directorship appointment, advice was sought from the State Services
Commission and the Callaghan Innovation Board.
In order to be helpful, information regarding Callaghan Innovation’s Chief Executive salary is
publicly available and can be found at: www.ssc.govt.nz/rem-senior-state-sector-staff-to-30june15
The remaining information regarding your second and third requests is withheld under sections
9(2)(a) of the Act in order to protect the privacy of natural persons. In making the decision to
withhold some of the information, we have considered the public interest under section 9(1) of the
Act. You have the right to request a review of this response, and the information withheld, by the
Ombudsman at www.ombudsman.parliament.nz
or 0800 802 602.
Please contact [email address]
if you require any further
Esther Livingston GM People and Capability
Managing Conflicts of Interest policy
This policy sets out our requirements for declaring and managing conflicts of interest. Scope
Applies to all permanent, fixed term and casual employees, agency staff, independent
directors of the Boards of any subsidiary companies, members of committees, Board
members and contractors. Policy
We are bound by the State Sector Standards of Integrity and Conduct
which sets out the
expected standards of behaviour for Public Servants and the associated guidance material
Also the Office of the Auditor General has issued guidelines and examples
of how they can
be applied in practice.
A conflict of interest can arise where two different interests overlap. They are real or
perceived, and are an inevitable part of running an organisation. We will effectively and
efficiently manage any declared conflicts of interests as it is essential to maintain the public’s
trust through being seen to be unbiased in our deliberations and decisions.
We value your integrity and commitment to the interests of Callaghan Innovation and rely on
you to act at all times in an open and honest manner and in a way that does not interfere or
conflict with your employment obligations. You must ensure that there is no actual, or
perceived, conflict between your personal interests and your work duties and responsibilities.
If you believe that a conflict of interest does, or may, exist then you must declare it in writing
using the Conflict of Interest Declaration form. A decision will be made about whether or not
a conflict exists, and the ways in which it can be best managed or mitigated. It is your
responsibility to update your reporting manager if there is a change or as soon as you
become aware of that possibility.
Candidates are required to declare any potential conflicts when applying for positions and
prior to commencing employment – see Recruitment and Selection policy. Employment
Agreements also identify specific requirements to disclose any actual or potential conflicts of
interests. Some Examples of Conflicts of Interest (but not an exhaustive list)
• Direct or close working relationships: having a direct reporting or close working
relationship between people who have a domestic relationship (marriage, civil union
or de facto, parent or child, or grandparent and grandchild, siblings, and other close
family relationships) outside of work. This may also arise where two people who work
together form a relationship.
• Contracting, consulting or secondary employment: having a business relationship
with Callaghan Innovation, or an outside business relationship which would affect
independence. Secondary employment may be inappropriate for other reasons – see
Secondary Employment policy.
• Gifts and hospitality
(see Gifts, Koha and Donations policy): receiving gifts and
hospitality such as meals, travel, shows/events tickets can create a conflict or if
potentially involved in decisions related to the gifting party/organisation.
• Voluntary interests: being involved in political or social causes which may be closely
aligned to Callaghan Innovation’s business, or situations in which your involvement
may create reputational risk for Callaghan Innovation. This may also depend on
seniority and/or the position held. See separate guidance
for public servant’s
involvement in political activity.
• Unpaid and hobby activity: creating a business opportunity or intellectual property in
own time which is closely related to that of paid employment. Callaghan Innovation
time and resources should not be used to further these private interests. Or being
involved in any decision making for grants or potential clients where the nature of the
decision might be perceived as being influenced by such outside of work activities.
• Recruitment: being involved in short listing or recruitment and selection decisions
involving family members, personal friends, business associates or any other forms of
• Procurement, regulatory, funding or sponsorship: being involved in decision making
where it has, or potentially has, any financial or personal relationship impacted by the
outcome of these decisions.
• Financial: having any private financial interests (company directorships,
shareholdings, ownership) where it could be seen to influence your actions in an
Options to Manage a Conflict of Interest
The way in which a conflict is managed will depend on both the seriousness of the conflict
(significance of the issue or decision involved, risk, size of financial interest or closeness of
relationship for example) and the available options for managing it. There may also be
existing legal or other policy requirements which must be applied.
Any one or a number of the following options (not an exhaustive list) may apply:
• The declaration itself may be sufficient to protect you and Callaghan Innovation from
perceptions of bias in decision making.
• Avoidance of the conflict, i.e. sale of shares, resignation from another body or
otherwise eliminating the external conflict.
• Exclusion from decision making, i.e. a manager may transfer decision making to
• Seeking consent from those affected by the issue or decision.
• Changing reporting lines, reassigning responsibilities, or putting in place additional
processes to ensure impartiality when performing certain duties.
• Providing additional oversight or quality assurance.
If you do not declare any conflicts of interest or potential conflicts of interests this may result
in disciplinary action up to and including dismissal.
A breach of this policy by individuals, contractors or entities who are not employees may
result in the termination of their contract with Callaghan Innovation. Procedures
• Complete a Conflict of Interest Declaration form and give it to your reporting manager
as soon as you are aware of a conflict or a potential conflict exists. If you do not wish
to advise your reporting manager for privacy reasons you can provide the form to the
General Manager People and Capability.
• If you feel another employee/party may have a conflict you should raise this with your
reporting manager or Group Manager. Alternatively if you wish to do so
anonymously, you can advise the General Manager People and Capability.
• Your reporting manager will prepare a summary of the best ways to manage or
mitigate the conflict and forward the completed form to the Group Manager.
• If the conflict is minor or inconsequential the Group Manager will advise you and your
reporting manager in writing that s/he is aware of the conflict then will send a copy of
the completed documentation to the General Manager People and Capability for
inclusion in the Conflict of Interests Register.
• For all other conflicts of interests the Group Manager will seek advice as appropriate
from the General Manager People and Capability, Legal Counsel, the Chief
Executive, and/or other Group Managers to identify the best way to manage the
• The Group Manager will advise you and your reporting manager in writing of the
agreed steps to manage the conflict, then send a copy of the completed
documentation to the General Manager People and Capability for inclusion in the
Conflict of Interests Register.
• If circumstances change, or other conflicts of interest arise, or the conflict no longer
exists you will advise your reporting manager in writing. Otherwise we will require
you to declare any conflicts annually, generally at the start of each financial year.
The People and Capability team will coordinate this process.
• If a conflict of interest involves an independent member of any committee (or similar)
formed by Callaghan Innovation, or the Chief Executive, the Conflict of Interest
Declaration form should be forwarded to the Chair of the Board.
• The Chair of the Board will confirm the outcomes of his/her consideration of the
conflict in writing to the potentially conflicted person. A copy of this documentation
will be provided to the General Manager People and Capability for inclusion in the
Conflicts of Interest Register.
• The General Manager People and Capability will manage and maintain the Conflicts
of Interest Register.
I, have read and understood this Managing Conflicts of Interest policy.
I declare that: (please select one)
I have no actual, perceived or potential conflicts of interest to disclose.
I wish to disclose the following actual, perceived or potential conflicts of interest.
Please describe below. (Attach further information if necessary).
I understand that this offer of employment is subject to any conflicts relating to my
employment with Callaghan Innovation being appropriately managed or mitigated.
I agree to advise Callaghan Innovation immediately if circumstances change.
External Board Appointments Guidelines for Employees
Cal aghan Innovation’s guidelines regarding the appointment of employees to Boards
are set out below. These guidelines were developed following consultation with the SSC,
and should be read in conjunction with our Conflicts of Interest and Secondary
Employment policies and guidelines.
• Employees can accept appointments to boards in a private capacity (i.e. not as a
consequence or result of their employment with Cal aghan Innovation) and as an
individual on the basis that appropriate approvals have been obtained prior to
accepting the appointment. In approving the appointment, particular care as to
whether or not this appointment could give rise to either a real or perceived
conflict of interest must be taken. Consideration must also be given to the
potential impact in terms of time required to attend to Board duties and any
impacts this may have on the employee’s ability to perform effectively in their
• Where individuals are appointed to boards in a private capacity, the employee
can retain directors’ fees, but must take any time required to attend to the
responsibilities of this Board as either annual leave or leave without pay. If the
employee does not wish to take annual leave or leave without pay, then the
Directors’ fees must be reminted to Cal aghan Innovation.
• In the event that an employee is appointed to a board as part of their role with
Callaghan Innovation, the employee is not eligible for payment of fees, but will
be paid by Callaghan Innovation for the time spent on executing responsibilities
of the Board appointment. Cal aghan Innovation may require that the employee
undertake appropriate governance training in relation to such appointments.
- Request by Sadie Ford regarding Callaghan Innovation’s conflict of interest policy for senior managers holding non-executive directorate positions
- Recommendations to the Minister
- Contacts for discussion (if required)
- Request by Sadie Ford– Callaghan Innovation’s conflict of interest policy for senior managers holding non-executive directorate positions
- Proposed Response and Release
- Risks and Issues
- Media and Communications Issues
- From: Sadie Ford [28TUmailto:[FYI request #4063 email]U28T]