15 July 2001 Media Statement

Acting State Services Minister Margaret Wilson, today released the costs to the Crown to date in defending the case in which the former chief executive of the Department of Work and Income, Christine Rankin, is suing the State Services Commissioner.

The costs – which total $445,647 - were calculated as at the week beginning Monday, 9 July 2001. At that point, the hearing before the Employment Court was virtually complete.

Ms Wilson said most of the costs were internal.

"The State Services Commission (SSC) and the Crown Law Office (CLO) have calculated the in-house costs, for legal expertise, within those two departments for the case.

“The sums for the SSC and CLO are notional. They are the costs of staff time, calculated at a notional charge-out rate, for counsel and legal support staff who would be working for the Government anyway. So, they are not an extra charge to the taxpayer.

“The only cheques that will be written specifically for the case will be for expertise from outside the Government. That will be the relatively smaller proportion of the total cost.

In-house costs are:

- CLO: $226,742
- SSC: $84,055

External costs are: (GST exclusive)

- Fees and disbursements for senior counsel acting for the Crown: $107,026
- Expert witness fee: $6,200
- Crown Law Office disbursements: $14,369
- State Services Commission disbursements: $7255

Ms Wilson said neither CLO nor the SSC would receive extra funding for the case. “Both departments will manage the case from within existing resources."

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