Many top state sector jobs in New Zealand are taken by overseas candidates because New Zealand did not nurture talent in the bureaucracy, Prof Gauld believed.
''I've heard people in Wellington joking that we're becoming the [National Health Service], we're the place of refugees from the NHS in the UK.''
Director-general of health and Ministry of Health chief executive Kevin Woods, recruited from Scotland, has declined a renewal of his contract, which ends early next year. His three-year term started in January 2011. The decision was taken for family reasons, a statement from State Services Commissioner Iain Rennie said.
Prof Gauld's comments were not directed at Dr Woods in particular. He hoped the next director-general of health was already well-versed in the functioning of the New Zealand health sector.
''I think it would be more beneficial to hire someone good from within.
''Our healthcare system is so complicated, there's so much in motion, that you really need someone who understands all that. Otherwise, you spend a year or two coming up to play with what's going on.''
Prof Gauld favoured a system where promising public servants were given experience both overseas, and across different government departments at home.
''I think we lost our career development capacity in 1988 with changes to [state sector law]. Our state sector now is one of the most deregulated in the world.
''Career paths, I'm not sure are a consideration. It's about the best person for the job at the time.''
Dr Woods was chief executive of the NHS in Scotland before taking the New Zealand job, for which he was paid $530,000 to $539,999 in 2011-12. Dr Woods has also held other top jobs in the health sector in the UK.
Southern District Health Board chief executive Carole Heatly was also recruited from an NHS role.
Association of Salaried Medical Specialists executive director Ian Powell said Dr Woods was thoroughly professional.
