State sector staff shouldn't be wining and dining in pricey Wellington restaurants on the taxpayer when most workers can't afford to eat there, State Services Commissioner Iain Rennie says.He has sent a message to the bosses to rein in their spending and
State sector staff shouldn't be wining and dining in pricey Wellington restaurants on the taxpayer when most workers can't afford to eat there, State Services Commissioner Iain Rennie says.
He has sent a message to the bosses to rein in their spending and prepare for more and more information to be made public.
Today he released credit card expenses for 36 departments for July 2008 until July 1 this year. Total spending on the cards was nearly $876,000 ($414,810 in 2008/09 and $374,578 in 2009/10). The average amount spent per chief executive was nearly $20,000.
About 22 percent of the overall expenditure was on entertainment.
While many of the public were penny pinching during tough financial times as unemployment soared some chief executives were eating well.
Former New Zealand Food Safety Authority chief executive Andrew McKenzie was the biggest overall spender on just over $66,000 and hot on his heels was Solicitor-General David Collins with $64,210.86. Both those men had pricey dinners and lunches out with staff.
Mr Rennie said all the spending was within the rules so no one would get a reprimand but some of the decisions reflected on chief executives' judgement and that would be taken to account in pay rises.
About half the chief executives had one or more instances of entertainment spending that wasn't quite right.
Mr Rennie said much of the spending was justified.
However: "I do not think using departmental credit cards in expensive restaurants is an appropriate way to encourage good performance or a culture of prudence with public funds. We must always think about who is ultimately paying the bill -- namely the taxpayer -- and for the vast majority of taxpayers they themselves would find it very hard to meet from their personal income."
There were instances of frugality -- Treasury boss john Whitehead paid for a dinner for about 25 people including Finance Minister Bill English -- it was pizza and the bill was $9.50 a head.
On the other extreme were dinners at pricey Wellington restaurants at $100 a head or more.
Mr Rennie said he expected chief executives to quickly change their policies around that.
"We need a more modest approach towards entertainment for staff in agencies and they know now that is the expectation and my view is that will move very quickly on this... you will see some quite rapid shifts quite quickly."
Police Commissioner Howard Broad and Defence chief Lieutenant General Jerry Mateparae were among the tightest spenders but former State Services Commissioner Mark Prebble gets the prize for the lowest amount on $118.50 -- but that was for just his last six days in office.
Mr Rennie emphasised the figures would vary dramatically depending on length of service and other factors like size -- some small agencies put all expenses on one card -- and how purchasing was done -- whether a card was used or travel agents invoiced, for example.
In the coming months all business expenses and hospitality and gift information will be released as well as more data around performance as the SSC sought more transparency. It is following similar moves in countries like Canada and the United Kingdom.
Mr Rennie said some travel bills were high. Of the total expenditure 36 percent in 2008/09 and 31 percent in 2009/10 was on international travel. But some chief executives had international leadership roles -- such as in customs -- and there on occasion CEs would attend events instead of ministers.
Three chief executives had petrol and running costs as part of their contracts but those contracts have been phased out since 2007.
Mr Rennie said overall the spending should be put in context considering the chief executives administered $18.5 billion of funds.
