Lottery staff hit pay jackpot

Lotteries Commission staff earn an average of $62,386 but 14 of them earn more than $100,000 a year.

Four of the commission's 110 employees earn more than $200,000 and salaries for those in the bracket above $100,000 appear to be steadily increasing, says a Government administration committee report on a financial review of the body.

"We note that the salaries of senior executives have been brought more into line with state sector norms but consider the overall level of salaries still appears to be very high," the report says.

"We expect the commission to re-evaluate how its salaries compare to the rest of the state sector."

The committee is also concerned at the level of staff turnover.

Nearly 40 staff changed in 18 months and another 12 were made redundant.

Six others left as part of the commission's reorganisation.

"This cannot help but impact on organisational capability, through the loss of key skills," the report says.

"We expect the commission to ensure it does not risk losing any further skilled staff and that it take steps to ensure morale is not damaged by the organisational changes and high staff turnover."

The concerns over staff salaries and turnover add to worries about falling sales.

In the year to last June, sales were 3.1 per cent short of the forecast, at $605.7 million. In the previous year, sales were 3.2 per cent below predictions.

The commission projected sales of $564.68 million this year despite it planning for $597.7 million - 5.5 per cent lower than budgeted and a fall in sales of almost $80 million in three years.

Four factors have been blamed for causing the fall in sales:

fusqi Increases in key items of consumer spending, such as petrol.

More competition for discretionary spending, including from gaming machines.

Damage to the brand after publicity about such items as the chief executive's salary in 1999.

The need for new products.

"The commission has acknowledged it must address the decline in sales," the report says.

"Regardless of this, we believe the commission must ensure it sets realistic targets."

- NZPA