Craig Foss MP
National Party Associate Finance Spokesman

17 April 2007

Labour’s tax army still recruiting

"Labour’s taxation addiction has led to a situation where the increase in the number of tax gatherers has outstripped the bid to recruit 1,000 new police,” says National Party Associate Finance spokesman Craig Foss.

Answers to parliamentary questions reveal the number of staff employed by Inland Revenue has increased by 1,212, since 1999 and the amount spent on consultants has increased a staggering 344% since 1999.

A total of 324 consultants, contractors and consultancy firms were used by IRD in 2006, compared to 73 in 1999. In 1999, Helen Clark pledged to cut back on consultants.

“It’s hard not to measure the rhetoric with the record here. It seems the pledge to crack down on consultants was yet another empty promise.”

ENDS

Headline numbers:

- IRD staff increase between 1999 - 2006 was 1,212, (4,220 to 5,432).

- IRD Consultant spend 1999 vs 2006 - $4m to $27.8m.

- Number of consultants etc used 1999 vs. 2006 - 73 to 324

- Total salary bill $187m to $264m

Attached: Parliamentary Questions – 4 pages.

Subject: 04752 (2007) Published - Revenue - Normal Reply

Craig Foss to the Minister of Revenue:

What was the total wage and salary expense for his department in
each year since 1998?

Hon Peter Dunne [Minister of Revenue] replied:

The following table sets out the total wage and salary expense for Inland Revenue for each financial year since 1998.

Year Salaries and Wages
2006/07* $194,374,000*
2005/06 $264,573,000
2004/05 $238,145,000
2003/04 $216,439,000
2002/03 $202,645,000
2001/02 $185,443,000
2000/01 $169,096,000
1999/00 $188,177,000
1998/99 $187,548,000
1997/98 $189,374,000

*The 2007 figure includes expenditure for the eight months of the current year up to and including February 2007.

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Subject: 04753 (2007) Published - Revenue - Normal Reply

Craig Foss to the Minister of Revenue:

What was the total amount spent on consultants by his department
in each year since 1998?

Hon Peter Dunne [Minister of Revenue] replied:

The following table sets out the total amount spent on consultants and contractors by Inland Revenue for each financial year since 1998.

Year Consultants and Contractors
2006/07* $13,754,000*
2005/06 $27,835,000
2004/05 $12,464,000
2003/04 $10,659,000
2002/03 $9,894,000
2001/02 $6,834,000
2000/01 $6,235,000
1999/00 $7,394,000
1998/99 $4,072,000
1997/98 $4,298,000

*The 2007 figure includes expenditure for the eight months of the current year up to and including February 2007.

About 60% of expenditure on contractors and consultants relates to the development and implementation of Inland Revenue’s Information Technology projects. IT design is specialist in nature, and Inland Revenue’s approach has been to contract in this expertise where required. The increase in 2005/06 reflects the resources required in these areas in order to implement Government initiatives including KiwiSaver, Working for Families and Student Loan changes.

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Subject: 04754 (2007) Published - Revenue - Normal Reply

04754 (2007) Craig Foss to: Revenue

How many full time staff were employed by his department in each year since 1998?

Date Lodged : 29/03/07

REPLY

Due Minister’s Office : 04/04/07

Hon Peter Dunne (Revenue) replied:

The following table shows the number of full time staff employed by Inland Revenue each year since 1998.

1998 4,411
1999 4,220
2000 4,285
2001 4,418
2002 4,579
2003 4,581
2004 4,828
2005 5,078
2006 5,432

Please note that full time staff includes both permanent and non-permanent employees.

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Subject: 04755 (2007) Published - Revenue - Normal Reply

Craig Foss to the Minister of Revenue:

How many consultants and consultancy firms were utilised by his
department each year since 1998?

Hon Peter Dunne [Minister of Revenue] replied:

The following table sets out the number of consultants, contractors and consultancy firms utilised by Inland Revenue for each financial year since 1998.

Year Consultants, Contractors and Consultancy Firms
2006/07* 284*
2005/06 324
2004/05 148
2003/04 199
2002/03 189
2001/02 122
2000/01 96
1999/00 196
1998/99 73
1997/98 54

*The 2007 figure includes expenditure for the eight months of the current year up to and including February 2007.

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