Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

$50m off state sector extravagance

The Alliance will cut $50 million a year from state sector chief executive salaries, the use of consultants, golden handshakes and unnecessary public relations exercises, Alliance leader Jim Anderton announced today.

'We're going to try to put the words 'public service' back into the vocabulary of the people who manage the state sector,' Jim Anderton said. 'The money saved on consultants, executive salaries, golden handshakes and PR exercises will be spent on priorities like nurses, firefighter s and teachers.

'Spending on consultants is too high. The Treasury last year spent $61 million - more than half its budget - on outside consultants, including $47 million for advice on asset sales. We'll save all of that because we won't sell more assets.

'We know that too many public sector chief executives are over-paid. Last week it was revealed that ECNZ paid someone more than $800,000 for nine months work. A recent survey by international recruitment firm Korn Ferry shows pay packets for Government Department CEOs substantially outstrip rewards for chief executives in private companies.'

Government chief executives are paid an average of $411,000, compared to $381,000 for the chief executives of private companies. The chief executives of companies listed publicly on the sharemarket averaged $501,000.

'In Australia, state sector managers are paid much less than their private sector counterparts. They average 31% less than the chief executives of private companies and they're paid just a third as much as the chief executives of publicly listed companies.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

''Too much is being wasted on pointless public relations exercises. For example, Timberlands alone spent more than a million dollars a year on a political campaign, including using public money to pay an infiltrator to report on a university environment group. The Fire Service Commission used public money to pay a public relations consultant to accompany a Cabinet Minister to inspect the scene of a fire. That's all money down the drain.

'The culture of golden handshakes has to end. The Tourism Board and the Fire Service Commission pay-outs that outraged New Zealanders this year were made to political appointees. The Alliance won't spent public money on pay-outs to political appointees who get removed from their boards.

'The Alliance has previously announced a review of public service management which would include: the State Sector Act and the performance of the State Services Commission; seemingly endless restructuring; the widespread use of consultants; State Sector CEO pay levels; the absence of accountability for state sector scandals; and the failure of State Sector reforms to achieve most of the goals set for them.

ends

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On National Spreading Panic About The Economy


The lure for New Zealand to join the AUKUS military alliance is that membership of only its “second pillar” will still (supposedly) give us access to state of the art military technologies. As top US official Kurt Campbell said during his visit to Wellington a year ago:
...We've been gratified by how many countries want to join with us to work with cutting-edge technologies like in the cyber arena, hypersonics, you can go down a long list and it's great to hear that New Zealand is interested...
More


 
 


Government: Retiring Chief Of Navy Thanked For His Service

Defence Minister Judith Collins has thanked the Chief of Navy, Rear Admiral David Proctor, for his service as he retires from the Royal New Zealand Navy after 37 years. Rear Admiral Proctor will retire on 16 May to take up an employment opportunity in Australia... More


Labour: Grant Robertson To Retire From Parliament
Labour List MP and former Deputy Prime Minister and Minister of Finance Grant Robertson will retire from Parliament next month, and later in the year take up the position of Vice Chancellor of the University of Otago... More

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.