Public servants roasted over spending

File photo / Hawke's Bay Today

Top public servants were given a roasting today when their expenses were released, but the organisation behind the biggest spender says his $100 lunches were necessary.

Credit card spending by state sector bosses for the two years to July were released today, with State Services Commissioner Iain Rennie saying while all spending was within the rules, there was excessive expenditure on entertainment and dining.

"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," he said.

"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."

Total spending across 36 departments was $856,623, with less spent in the last financial year than the previous one.

Among the biggest spenders were former New Zealand Food Safety Authority (NZFSA) chief executive Andrew McKenzie with $66,105, followed by Crown Law chief executive David Collins QC with $64,210 and Ministry of Research, Science and Technology boss Helen Anderson with $52,589.

Out of Dr McKenzie's total spending, about $20,000 was for dinner and lunches. He retired at the end of June when his contract finished. Major expenses included lunches for up to $1000 in Wellington's top restaurants.

NZFSA acting deputy director-general food safety Carol Barnao said its chief executive was often required to lead delegations to negotiate liberalisation of market access for food exports.

That meant he had to travel overseas and host officials.

"Incurring the associated expenses necessary to build networks and foster good relations with overseas food regulatory authorities (was part of that)."

Much of those costs were repaid by the industry and not borne by the taxpayer, she said.

Dr McKenzie was on his way to China and could not be contacted.

Solicitor-General Dr Collins spent a total $64,210 over the two years - $5836 of that was on entertainment, which included catering worth $4558 and numerous working lunches, including some in London in 2008 during David Bain's Privy Council appeal.

Dr Anderson spent more than $10,000 on meals and drinks from the total $52,589.21 she charged to her credit card during the period.

State Services Minister Tony Ryall agreed with Mr Rennie's concern at some of the hospitality spending and also wanted to see a change in behaviour.

"Regular public reporting of these expenses will help assure the public that their money is being properly spent."

Public service management should reflect the tougher economic times, he said.

Prime Minister John Key said from what he understood the bulk of spending had been appropriate, but one or two amounts had been repaid.

"But for the most part, it looks like it's been in line with the expectations and guidelines set down by the State Services Commission."

Public Services Association national secretary Brenda Pilott said the publication of the expenses would detract from important issues and "throw a harsh media spotlight" on government employees.

It was appropriate for Mr Rennie to monitor credit card use and there were already processes around expenditure, she said.

Public servants were not able to respond to negative media reports.

"This move doesn't represent greater transparency, it's merely a distraction from the legitimate scrutiny of politicians and their policies."

The expenses released today not only point to the biggest spenders, they also identify a number of Wellington eateries that have become regular haunts for the Who's Who of the public service.

For foodies and Wellingtonians many of the names will be familiar - Logan Brown, Juniper, Boulcott St Bistro, Shed Five, Bisque on Bolton and Martin Bosley's.

They are top restaurants in the capital and carry a price tag to match.

Other meals were chosen for their proximity. Rise cafe and the Wine Loft, both situated on the Terrace, are minutes' walk from Parliament and many government departmental offices.

It was not all wining and dining though. There were a few who chose to save the taxpayer a penny and ate with the regular folk at Wholly Bagels.

State Services Commissioner Iain Rennie has told the chief executives to watch their spending. There will be many Wellington restaurateurs who hope they do not listen.

The top three spenders:

* The Ministry of Culture and Heritage had two acting and one permanent chief executive during the two year period surveyed. The trio spent a total of $7906.85, more than $2500 of that was on entertainment.

* Incoming chief executive of the Ministry of Transport Martin Matthews spent $539 at Great India Restaurant to thank outgoing acting chief executive Wayne Donnelly in November 2008 and $134.50 on drinks after a ministry senior leadership day in August 2009.

* Education Review Office chief executive Graham Stoop had several favourite Wellington haunts including Rise, where he spent a total of $685.30 on breakfast over two years, Juniper, $410 on lunches and Trade Kitchen $855 over two years. Dr Stoop also spent hundreds of dollars at Wellington restaurants Tinakori Bistro, Boulcott St Bistro and the Wine Room.

* Ministry of Women's Affairs chief executive Shenagh Gleisner had a number of entertainment expenses including several at Bisque on Bolton in Wellington.

* IRD Commissioner Bob Russell enjoyed dining out with foreign visitors at the Whitehouse Restaurant on Oriental Bay in Wellington - he spent $738 there for dinner with a Ghana delegation and $1543 during a visit by the Australian Taxation Office. He also shouted his senior management team to an end of year dinner at Tinakori Bistro in 2008 and 2009 worth $600.50 and $550 respectively.

* Ministry of Education chief executive Karen Sewell spent $1598 on dinner at Boulcott St Bistro during a reciprocal visit by Chilean education officials and in 2009 spent $423 on wine which was "in accordance with Ministry entertainment policy" the statement said. This year she charged $368 for dinner with the national standards advisory group at Le Canard.

* Ministry of Foreign Affairs boss Simon Murdoch hosted a number of functions, as would be expected. Among the biggest events was a $760 working lunch to farewell the Australian High Commissioner in 2008 and a working dinner for nine people during the visit of a senior Australian foreign affairs official worth $1130.

* Ministry of Pacific Islands Affairs chief executive Colin Tukuitonga sent flowers worth $76 when someone had a baby and another bunch worth $50 to the outgoing minister following Labour's loss in the 2008 general election. In 2008, Dr Tukuitonga charged $690 for a staff Christmas function at the Chow restaurant and $307 on supplies for an interdepartmental Christmas function. In 2009 he spent $256 at the Mill liquor store in Papatoetoe for wine and
beer for a Nuie Arts Meeting.

* Customs Service chief executive Martyn Dunne paid for several hundred-dollar meals. Many of those were while overseas but there was a $443 at Logan Brown and $450 in Mikano Restaurant in 2008 and $703 at Harbourside Seafood in Auckland this April.

* Justice Ministry chief executive Belinda Clark purchased $945 worth of alcohol in 2008 for two formal dinners during a conference. There were also numerous bills for lunch and coffee meetings she had with the deputy, and for a period acting deputy, chief executive at Ministry of Food near Parliament.

* Ministry of Social Development chief executive Peter Hughes spent a total $18,575 in the two years. Of that $7781 was on entertainment.

* Agriculture Ministry chief executive Murray Sherwin paid for several hundred dollar dinners, his biggest was $1373.43 at a forum in Rome for two MPs, two ambassadors and eight officials. There was another in April for $1120 in Whitehouse Restaurant.


Click here for the State Services Commission's details of public service credit card spending.

- NZPA