Consultancy firms have swallowed more than $1.3 million from the Government's regional development policies in only three months.
The spending has sparked criticism from National, which says it has received a lot of feedback from people concerned about the lack on action on the programmes.
"They've got every right to be worried," said the party's industry and regional development spokesman, John Luxton.
"We've got figures showing that while regional New Zealand still waits for action, Wellington consultants are pocketing the cash."
The $1.3 million worth of spending includes $21,601 towards the recruitment of a chief executive for Industry New Zealand, $18,500 for phase one of selecting directors and $254,920 on advice and help for the establishment of Industry NZ operational groups.
Industry NZ was the initiative of Deputy Prime Minister Jim Anderton, who described it as a "jobs machine."
Consultancy firms to have benefited from its creation include Martin Jenkins and Associates, Burleigh Evatt, Wheeler Campbell and Sheffield Consulting.
Mr Anderton told a parliamentary select committee this year that Industry NZ would be as lean as possible on administrative spending, enabling it to offer as much financial help as possible.
Said Mr Luxton yesterday: "This from the man who promised that consultants would be eliminated from the public services and the money would go on nurses, firefighters and teachers.
"While ordinary New Zealanders in the regions are struggling with higher prices and the lower dollar, Jim Anderton is lining the pockets of Wellington consultants."
Mr Anderton admitted in a reply that setting up Industry NZ had "incurred significant consultancy costs."
"Unlike the case with most new crown entities, there were few existing functions or staff to build on," he said.
"Waiting until the entity was formally established and able to employ staff would have reduced the use of consultants, but the new entity would have had to do exactly the same work, causing delays.
"The approach taken has increased the speed with which practical assistance has been offered to the industry."
Mr Anderton said the board and chief executive would be able to hire permanent staff and reduce the reliance on external resources now that the relevant legislation had been passed.
- NZPA
Consultants siphoning cash from regional aid: National
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