Opposition MLAs grilled Heather Foley Melvin about her qualifications to run Conserve Nova Scotia during an all-party committee hearing in November 2006. (CBC)

The woman hand-picked by former Progressive Conservative premier Rodney MacDonald to head Conserve Nova Scotia will continue to draw a paycheck, even though the agency she heads will be disbanded this spring.

Heather Foley Melvin got the job the day she was fired as MacDonald's chief of staff in 2006. There was no competition and no one else was asked to apply.

The Tories renewed her contract just weeks before the June 2009 election that saw Nova Scotia's first New Democrat government voted into power. Her contract runs until June 25, 2011.

Now, the government of Darrell Dexter is replacing Conserve Nova Scotia with an agency at arm's length of government called Efficiency Nova Scotia.

The new board was appointed Tuesday and one of its first jobs is hiring a boss.

Bill Estabrooks, the cabinet minister responsible for the agency, confirmed Tuesday that Foley Melvin will continue to draw her $140,000 annual salary even after her job is eliminated.

"Heather has a contract and the contract will be adhered to. She's busy these days doing what she's been asked to do and, in light of that, there are some decisions that she'll be making after March 31," Estabrooks said.

He said Foley Melvin can apply to head the new agency, but it'll be up to the board to decide whether she's qualified for the job.

Foley Melvin said she's not sure what she'll do beyond March.

"It wouldn't be continuing on, so the job will change considerably. It's an arms length or actually an independent corporation, so it's not government controlled whatsoever," she said. "Once those positions are posted, I'll make the decision then."

But, Foley Melvin said she thinks she is qualified to take on the job of heading the new agency.

"There are relatively few experts in this field in Nova Scotia. [I'm] very proud of what we've accomplished at Conserve Nova Scotia and I could certainly lend my talents," she said.

In 2006, Foley Melvin had to answer questions about her three-year contract, which opposition MLAs suggested was based on patronage.

Foley Melvin was president of the Progressive Conservative Party of Nova Scotia from 2000 to 2002 and the premier's chief of staff from February to June 2006.

William Lahey, Hector Jacques, Carol MacCulloch, and Michele Wood-Tweel were named Tuesday to the new agency's board.

"We are fortunate these highly qualified and accomplished individuals have agreed to serve on the board," Estabrooks said.

"These individuals bring a wealth of experience to the table, and I am confident they will serve the board and Nova Scotians well."

Lahey will serve as the chairman. Environment deputy minister Nancy Vanstone has been appointed as a non-voting board member.

"I am honoured to have been recommended as board chair for this important new corporation," Lahey said in a release.

"Efficiency Nova Scotia is critical to ensuring the lowest possible electricity rates in the future, while helping Nova Scotians use less energy and save money on their power bills."