KiwiRail chair David McLean steps down as Finance Minister Nicola Willis announces 'refreshed' board

  • 23/06/2024

KiwiRail Board chair David McLean has announced he's stepping down from the role, as Finance Minister Nicola Willis advised of a "refreshed board" at the state-owned entity. 

The departure announcement comes a day after Kiwirail's Interislander Aratere ferry was refloated in Picton - 24 hours after it ran aground. 

However, Willis said McLean's "early retirement" was "unrelated" to the Aratere incident. 

"As an SOE [State Owned Enterprise], KiwiRail is governed by its board. As ministers, we exercise our influence through our appointments to the Board and the expectations we set for it," she said in a statement on Sunday. 

"We will now conduct a search for his replacement and are considering additional changes to further refresh the KiwiRail Board." 

McLean's retirement will be effective from the end of July. 

"My current term on the Board was due to finish on October 31... I advised shareholding ministers last week that, in my view, stepping aside from the start of the new financial year is best for the organisation as it enters a new phase of its development," McLean said in a separate statement, which he said was brought forward because of the Government's intention to announce the news. 

"I understand the Government intends to announce my retirement today, so I have brought my announcement forward. 

"I leave with confidence in a team and an organisation that has dealt with many major challenges and is now in a much stronger and more stable position. 

"In my two and a half years as chair we have appointed a new CEO in Peter Reidy, refreshed the board, strengthened the management team, and built stronger relationships with stakeholders." 

McLean said the changes had enabled KiwiRail to successfully deliver many major projects, including major track and facility rebuilds, equipment procurement, and readiness for Auckland City Rail Link, as well as recovering from the 2023 floods and Cyclone Gabrielle.  

"Notwithstanding yesterday's grounding of the Aratere (the cause of which will be determined in due course), there has been a significant improvement in asset management, particularly on the Interislander ferries, which has been confirmed by recent independent reports," he added. 

"New transformation programmes for health and safety and commercial performance improvement have been launched, with an increased focus on its core business. KiwiRail is now beginning the next phase of its evolution to being a modern, efficient transport operator." 

State Owned Enterprises Minister Paul Goldsmith said the Government was focused on ensuring KiwiRail takes every action necessary to maintain the safety and reliability of its ferry operation. 

"Earlier this year we appointed a Ministerial Advisory Group to advise us on options for replacing the ferries. The Group made a series of recommendations to us late last week which are being considered by ministers before we take proposals to Cabinet," Goldsmith said.