Stephen McKernan

Wellington, March 9 NZPA - Labour is suspicious about why the Director-General of Health, Stephen McKernan, is leaving the position, but Mr McKernan says it is his own decision.

Mr McKernan has been in the role since 2006 and his term of appointment expires at the end of July.

Labour's state services spokesman Grant Robertson suggested Mr McKernan might have been forced out, through the Government's decisions on the recently announced National Health Board.

"Stephen McKernan's decision not to seek re-appointment begs the question. Was he pushed or did he jump?" asked Mr Robertson.

But Mr McKernan said he was leaving of his own accord.

"This is a decision between myself and the State Services Commissioner, who is my employer and I informed the State Services Commissioner about three weeks ago that my preference is to move on at this time," he told Radio New Zealand.

Mr McKernan earlier issued a statement saying he had thoroughly enjoyed his time in the different roles he had undertaken.

"The health and disability sector is an incredibly rewarding, but also very challenging work environment. I consider myself privileged to have worked with so many talented, professional and dedicated people that serve New Zealanders so well."

He said he was proud of the health system, which he described as "world class in many areas".

His career in health includes more than 20 years in senior health management positions, including the last 12 in chief executive roles.

Mr McKernan said he was discussing a number of options and would make an announcement about his future in due course.

Health Minister Tony Ryall said he hoped Mr McKernan would remain in the health sector.

"I thank Mr McKernan for his contribution as Director General of Health, and wish him well. I hope he'll contribute to the health service in the future - we're not going to let him off that easily," Mr Ryall said.

Mr Robertson said Mr McKernan's fate may have been sealed many months ago when Mr Ryall decided to appoint former Treasury boss Murray Horn to chair the National Health Board, which is being set up within the ministry to oversee district health board spending.

Mr Horn who had recommended the new structure in a review of the health system.

Labour has long suspected that this was a way to clamp down on DHB spending.

Mr Robertson said Mr Horn had growing influence in the sector and in the past had supported cuts to services and privatisation.

He congratulated Mr McKernan on his performance at the ministry as did the Council of Trade Unions.

CTU president Helen Kelly said he was a great loss to the ministry as he had built strong relations with the sector and the ministry was going through major change.

"He is very wildly respected and would have been an excellent person to have had at the helm to see through the new changes in a successful manner. It is unclear why he decided not to stay on in his position, but we would be very concerned if the minister had any role suggesting he should not reapply," Ms Kelly said.

Mr McKernan said his five months notice would allow for a replacement to be found and for him to manage the changes at the ministry.