16 January 2001

National MP Tony Ryall should explain why quarter million dollar special Y2K payments were made to Housing New Zealand staff while he was housing minister before muck raking over recent decisions by the management of Housing New Zealand, Duty Minister Steve Maharey said today.

"When Mr Ryall was minister around $250,000 was paid to Housing New Zealand staff in the form of performance payments for work on the Year 2000 compliance issue.

"In fact, under Mr Ryall the total amount Housing New Zealand paid to employees earning more than $100,000 jumped from $4.3 million in 1999 to $5.3 million last year.

"Mr Ryall and Mrs Shipley should check the history of their Government's record on bonus payments before throwing mud at Labour and the Alliance. It is a bit rich for Mrs Shipley to start lecturing this Government given her own record of mismanagement and appalling wastage of public money.

"The simple fact is that an unsatisfactory situation has developed over a number of years around the issue of bonuses and special payments within the public sector and this Government wants it sorted out.

"I have spoken with State Services Minister Trevor Mallard. He, like the Prime Minister, is not impressed by the cases that have come to light in recent days.

"Mr Mallard has requested a report from the State Services Commission and will meet with officials when he returns to his Beehive office next week," Steve Maharey said.

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