Wellington Scoop

Treasury spending on consultants up by 1014%; “gobsmacking,” says Labour

News from NZ Labour Party
Official figures reveal that Treasury’s spending on consultants has increased by a “gob-smacking’” 1014 per cent over five years, Labour’s State Service spokesperson Chris Hipkins says.

The figures, in responses to the supplementary estimates questions, show that Treasury spent $1.968 million on consultants in the 2007/200 year and is expected to spend an estimated $21.927m in 2012/13 – an increase of $19.959m, or 1014 per cent.

“On the one hand Treasury is saying the figure is so high because $17m is being spent in 2012/13 on consultants for the asset sale programme. On the other it admits the $21.927m estimate could be on the low side.

“The fact is, the money is being spent. Even excluding the $17m Treasury has more than doubled its spend on consultants since National took office.

“Unfortunately it’s not surprising. When you have a Government determined to slash budgets across the state sector and in the process lay off staff, it is inevitable departments will find themselves in the position of being forced to use consultants and contractors.

“This isn’t about value for money. We know that former staff are being re-hired as external consultants at a much greater cost to taxpayers.

“Labour is all for greater efficiency and achieving outcomes in the public service, but what we are seeing now is a Government that favours buying in skills rather than keeping them in-house.


1 comment:

  1. Bob Lawton, 5. December 2012, 20:33

    But it doesn’t matter because this is the way it’s done overseas so it must be OK. What we need to do is keep this snippet from David Shearer and when he becomes PM, hold him to account if his future government comes within cooee of this figure.
    Personally, I think any more than 10% of any department or company’s wage and salary bill spent on consultants indicates that the management leadership team and or the Board of Directors are either scared or incompetent and should accordingly be thrown out – and the chances of that? Yeah right.