NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

Ministry accused of hiding contractor spending

By Matt Nippert & Chris Knox
NZ Herald·
14 Mar, 2018 04:00 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

The Ministry of Business, Innovation and Employment has been accused of misleading Parliament over surge in contractor spending. Photo / Mark Mitchell

The Ministry of Business, Innovation and Employment has been accused of misleading Parliament over surge in contractor spending. Photo / Mark Mitchell

The Government's super-ministry has been accused of misleading Parliament after admitting its claim to be spending less on high-priced contractors lacked "clarity" and such spending had actually substantially increased.

The about-turn came at Parliament's economic development select committee where the Ministry for Business, Innovation and Employment told MPs it had launched a "review" into how it reported its spending on contractors and consultants and would no longer exclude spending on Information and Communication Technology (ICT) projects.

ACT Party MP David Seymour slammed the about-face and said it appeared to show the ministry had misled Parliament.

"I don't think any sensible person would say a consultant is not a consultant if they work on computers: Which is effectively the argument they've made here," he said.

MBIE declined to make any officials available to the Herald for interview, but in a written statement their chief financial officer Stewart McRobie denied misleading anyone and said their new answers to select committee followed new questions being asked.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"This presented an opportunity for MBIE to look at how all costs were reported and we took the decision that for greater clarity we would also itemise contractor expenditure for ICT projects separately," the statement said.

David Parker, Minister for Economic Development, declined to comment on the accounting fracas with a spokesman describing it as a "operational matter" best answered by the ministry.

Excluding ICT projects had seen MBIE previously report spending on contractors and consultants had declined by 20 per cent between 2013 and 2016. However, the fresh inclusion of these projects showed such spending during the period had actually increased by 22 per cent.

Advertisement
Advertise with NZME.

The review followed a leak to the Herald late last year of a huge internal MBIE spreadsheet containing contractor and consultant payment data that appeared to show the ministry's spending was far higher than was being publicly reported.

At the time ministry claimed the spreadsheet was misleading and contained unspecified "discrepancies" and said the leaking of it was a "serious issue" that was being investigated.

Seymour laid partial blame for the matter at the feet of the former MBIE minister, whose policy capping the public service appeared to have resulted in creative work-arounds.

"You can also blame the Steven Joyce approach of capping the number of direct employees. They've been forced to invest a whole new form of accounting to make this work - and appear to have misled Parliament in the process," Seymour said.

Discover more

Business

MBIE investigates consultant payments leak

08 Dec 12:03 AM
Employment

Super-Ministry's super spending revealed

15 Dec 04:00 PM

MBIE, with 3500 staff, is the third-biggest government department behind Inland Revenue and Justice, and was formed in 2012 in a merger of the housing, labour, science and economic development departments.

MBIE recently acknowledged a sharp 25 per cent increase in contract and consulting spending in the year to June 2017 (to $73.7m, $49.3m without ICT) and said it had taken steps since the election to trim such spending.

The leaked spreadsheet revealed the ICT spending in question included payments for more than 80 fulltime contractors who each made more than $200,000 a year.

Classifying these staff as contractors instead of employees also meant MBIE did not have to disclose these high-earners. Their most recent annual report saw the entire Ministry claim to have only 55 people earning more than that figure.

Seymour said he would be taking up the matter with MBIE's chief executive Carolyn Tremain.

"The fact the their chief executive has attempted to discredit that [leaked] spreadsheet, while their own reporting was so suspect, is something that questions need to be asked about," he said.

Advertisement
Advertise with NZME.

The statement from MBIE's McRobie said the investigation as to who leaked the spreadsheet was progressing, and 19 individuals had been identified who had access to the information in question.

"MBIE is currently working through an employment process and is unable to comment further," the statement said.

Save

    Share this article

Latest from Business

Premium
Markets|shares

Market close: Interest rate-sensitive stocks drive NZ sharemarket higher

02 Jul 06:26 AM
Business

Eric Watson's bid to stymie insider trading charges thrown out

02 Jul 05:48 AM
Retail

‘We absolutely got this wrong and we're sorry’: The Warehouse responds to ad criticism

02 Jul 05:06 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
Market close: Interest rate-sensitive stocks drive NZ sharemarket higher

Market close: Interest rate-sensitive stocks drive NZ sharemarket higher

02 Jul 06:26 AM

Expectations of interest rate cuts helped push NZ stock values up.

Eric Watson's bid to stymie insider trading charges thrown out

Eric Watson's bid to stymie insider trading charges thrown out

02 Jul 05:48 AM
‘We absolutely got this wrong and we're sorry’: The Warehouse responds to ad criticism

‘We absolutely got this wrong and we're sorry’: The Warehouse responds to ad criticism

02 Jul 05:06 AM
Premium
Film producer declared bankrupt after leaky Auckland penthouse dispute

Film producer declared bankrupt after leaky Auckland penthouse dispute

02 Jul 04:00 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP