Government acts over iwi consultation millions

By RUTH BERRY and KEVIN TAYLOR

The Government moved rapidly yesterday to jump on apparent generous taxpayer spending on Maori consultation and support.

Corrections Minister Paul Swain described $1.3 million spent consulting iwi over a new prison near Meremere as "excessive". It included more than $131,000 paid in 2002 to a convicted fraudster, Tom Moana.

The department has spent almost $2.2 million consulting iwi about three prisons since 1997.

In another move to try to end embarrassing headlines, Acting Social Development and Employment Minister Ruth Dyson said she would review a $115,000 taxpayer grant to help to set up a regional television station in the Far North.

The money was paid by the Labour Department's Community Employment Group, criticised by National MP Katherine Rich for a $26,000 grant for two "social entrepreneurs" to travel the world studying hip-hop and rap music.

Ms Dyson said that on the face of it the television grant appeared to meet funding criteria, but she would look further into the issue.

Mr Swain promised to vet prison consultation plans in future.

Prime Minister Helen Clark also appeared concerned, saying: "It does seem like a lot of money ... Corrections will have to show where it spent it and whether they can justify it."

But Government MP Matt Robson, Corrections Minister while most of the money was spent, disagrees. "The thorough consultation with Tainui to prepare the way for the new prison at Spring Hill near Meremere was worth every penny spent over the last four years," the Progressive MP said yesterday.


Mr Swain said he was also seeking further details from the department on consultation costs associated with the building of two other prisons, the Auckland Region Women's Correctional Facility and the Auckland Region Correctional Facility. Consulting iwi on the three prisons has cost almost $2.2 million since 1997.

The largest single year of spending relates to Spring Hill, which cost $668,398 in 2001-02.

Mr Swain said he considered the Spring Hill spending excessive.

He added: "I've also instructed officials to advise me of any proposed consultation commitments in the future so that I can assure myself that the commitments were fully justified."

Port Waikato MP Paul Hutchison asked Mr Swain how much had been spent consulting non-Maori around Meremere. Mr Swain was unable to provide that figure.