State-owned Airways gives $11,000 book as leaving gift to CEO

Ed Sims, former chief executive of Airways NZ. Photo / File

Airways have been forced to apologise after it was revealed it spent $11,417 on a farewell book for their departing chief executive Ed Sims.

The leaving gift was a photo book made by Christchurch creative agency Harvey Cameron that tracked Sims' six years at the state owned enterprise.

SOE minister Todd McClay told RNZ today he thought the spending was "excessive and unacceptable."

Interim Airways chief executive Pauline Lamb said "we completely understand and share the public's view that the cost for the production of this book is exceptional. Prior to receiving this enquiry we had disputed the invoice for the work."

Lamb stressed that no senior management were aware of the costs before the invoice was received.

She said the cause of the problem was that the work was commissioned by "a part of the business that does not usually commission design work and there was an error in judgement and process".

Sims departed the state-owned company in May to head an airline in Canada.

Lamb said Airways appointed a new brand agency in June.

Staff at Airways were said to be ''gutted'' by revelations of the cost of the book. It is understood he was farewelled at three morning teas at Airways offices in Christchurch, Wellington and Auckland where sausage rolls and lamingtons were served.

Airways said the total cost for the farewell events was $3,317. Along with the $11,471 book, there was also a gift which cost $439.

Airways is a state-owned enterprise that provides air traffic control to New Zealand and the Pacific.