3 MAY 2016

‘Horrific’ Compass Avoiding Tax, New Zealanders Suffer

The catering company responsible for providing “horrific” hospital meals to Southern DHB has been undercutting New Zealand businesses by avoiding paying its fair share of tax, says New Zealand First.

“The Compass Group made $170 million in revenue last year, yet only paid $2million in tax – little wonder they are able to outbid New Zealand businesses for the food contracts in public hospitals,” says Health Spokesperson Barbara Stewart.

“This means that not only is New Zealand missing out on tax revenue, but food service providers in the regions have been robbed of a fair shot at delivering this vital service for their local communities, costing economic opportunities, including jobs, for regional New Zealanders,” says Mrs Stewart.

New Zealand First MP based in Invercargill Ria Bond says the choice to contract Compass as the food service provider has had an impact on the wellbeing of patients.

“Compass is serving Southern DHB patients food that has been described as ‘inedible’, and in some cases has not taken into account the patients’ dietary needs.

New Zealand First is calling on the Minister of Health to end the Compass contract with DHBs throughout New Zealand and give New Zealand food companies the opportunity to deliver real food into public hospitals,” says Ms Bond.

ENDS

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