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Consultant costs on the rise under Labour

John Key MP

National Party Finance Spokesman

25 July 2005

Consultant costs on the rise under Labour

National Party Finance spokesman John Key has released documents showing the amount taxpayers spend on consultants has been on the rise under Labour, despite massive new spending on the bureaucracy.

"This makes a mockery of Labour's claim that it has been hiring more public servants to avoid the use of consultants. It's a complete hoax," says Mr Key.

Since 2000/01, spending on consultants has increased from $98.5 million to $137.7 million.

In 2003/04 spending on consultants increased by 15.1% compared with the previous year, and in the 2004/05 year it rose a further 8.9%.

"In 2000, when spending on consultants was at $98.5 million, Trevor Mallard said there had been too much reliance on consultants and Labour wanted to see spending reduce.

"Now Labour is spending nearly $40 million more on consultants, having also increased the number of core public servants from 30,000 to around 38,000.

"Once again this illustrates that Labour has no ability to set sensible spending priorities," says Mr Key.

ENDS

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