Jobs machine 'out-of-control gravy train'

The Government's job machine - Industry New Zealand - has been criticised for poor monitoring of what one MP labelled its "gravy train".

Industry NZ appeared before a parliamentary select committee yesterday and was accused of having the "most appalling audit report" that National MP Tony Ryall had seen in his 12 years in Parliament.

The Crown entity had not met its most important performance measures and had not been able to properly account for its spending, Mr Ryall said.

The agency was set up by Alliance leader Jim Anderton to boost job numbers, help businesses start and grow, as well as help regional development projects.

Industry NZ's chief executive, Neil Mackay, said the performance measures were written before the organisation was formed and many had to be changed to meet the reality of operations.

"We are refining the whole performance framework," Mr Mackay said.

Mr Ryall wondered whether parts of the grant's programme to build businesses had become over-subscribed.

Mr Mackay said only 43 per cent of the money approved in one programme had been allocated and the rest was in a holding account ready to be used when applicants qualified.

The internal report said: "There may be inadequate funds to pay out when the claims are eventually made and this is being closely monitored".

An Industry NZ official said it may have been a "poorly worded" way of saying that there might not be enough money to meet demand, but he assured the committee there was enough cash to meet approved reimbursement of expenses.

After the hearing Mr Ryall said: "The jobs machine has become a gravy train which is massively out of control".

Mr Ryall also questioned Mr Mackay about the continuing use of consultants and contractors. In the last financial year, the agency was still being set up and since then consultants had been wound down, Mr Mackay said.

Full-time employees now made up more than 80 per cent of staff.

In the last financial year, $2.68 million was spent on leased executives. Now there was only one, whose term ended this month.

Mr Ryall said it appeared Industry NZ was calling people contractors instead of consultants to make it more politically acceptable.

He said people would be shocked to know there was still a contractor earning $1400 a day.

Mr Mackay said it was expected that Industry NZ would have created 4000 jobs in three to four years' time.

- NZPA