Political lobbying and PR firm SenateSHJ has been based in Wellington for 21 years. Photo / File
Political lobbying and PR firm SenateSHJ has been based in Wellington for 21 years. Photo / File
One of the country’s top corporate communications, public relations and lobbying firms is closing its New Zealand operation.
SenateSHJ will close tomorrow after 21 years of operation in New Zealand, saying trading conditions have become too tough to continue. It says a reduction in public sector consulting and contracting spendhas been a factor.
The closure has caused shockwaves through the PR industry - one established player told the Herald it was an “earthquake”; another said it was huge news.
Managing director Brendon O’Connor confirmed this morning that staff had been advised yesterday of the closure of the New Zealand arm of the firm, and clients were being advised today.
Twelve staff were affected. Reaction from staff had been “exactly as you’d expect”, O’Connor said.
“The basic thing is that the trading conditions have been tough and we feel that the responsible thing to do is to wind up. That’s basically the story,” said O’Connor.
“Our focus is on looking after our staff and clients as we go through the process. We have got lots of clients, I don’t want to comment on how many.”
Newsroom quoted one senior industry figure suggesting SenateSHJ “may have faced difficulties in meeting the contractual costs of paying out senior partners who have left the firm”.
“Founding partner Neil Green stepped down as a full-time team member in March after 21 years with the company, and consulting partner Raphael Hilbron departed in January following more than 15 years with SenateSHJ,” reported Newsroom’s Sam Sachdeva.
The closure also comes on the back of Internal Affairs quietly cutting ties with SenateSHJ for the PR contract for Three Waters under the previous Government.
“Staff from the Wellington consultancy SenateSHJ worked in the physical offices of the competition watchdog and were given Commerce Commission email addresses and devices,” reported RNZ’s Guyon Espiner.
“With a senior Senate staffer charging himself out at $420 an hour, and junior staff at $195-$230 an hour, the Commerce Commission wracked up a bill of more than $300,000 between July 2020 and September 2022.
“The commission spent the money on Senate even though it had 16 of its own communications staff with a salary budget of $1.7 million.”
Academic and author Max Rashbrooke. Photo / Supplied
“If you’ve got a lobbying firm - whose job it is to get government decisions changed in favour of its clients - embedded right in the heart of government, then I think that’s totally inappropriate.”
In a statement following Herald inquiries today, O’Connor said 12 staff would be impacted.
“We have a fantastic team of people, the best in New Zealand, who work on incredibly interesting assignments with clients we love. The decision to close was not taken lightly but is the best choice for our firm and our people.
“We would like to thank all our amazing staff, past and present, and our fantastic clients who have made SenateSHJ a great place to work. We all feel lucky to have been part of a brilliant business over two decades. Our focus right now is supporting our staff and clients.
“The decision hasn’t been taken lightly. Fundamentally, in the last 12 months, we have experienced a tough and extended period of difficult trading conditions in a very challenging economy. The reduction in public sector consulting and contracting spend has been part of that.”
He said the move did not affect SenateSHJ Australia, which would continue as usual.
O’Connor told the Herald he could not comment on employment issues and “we can’t comment on what we’re saying to clients”.
The New Zealand section of SenateSHJ’s website has been removed already.
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.
