Day after accusing councils of wasting money, government puts $750K toward dance festival

Economic Development Minister Melissa Lee announced the government would stump up $750,000 for a world dance festival in Auckland. Photo: RNZ / Samuel Rillstone

The government's advice to councils - to stop wasting money on "nice-to-haves" - has been turned back on itself with critics targetting funding for a new street dance contest and the Ministry for Regulation.

Economic Development Minister Melissa Lee on Thursday afternoon announced the government would stump up $750,000 from its major events fund to go towards the inaugural World Dance Crew Championship in Auckland next year.

Auckland Council would also match the contribution, Lee said.

The announcement came a day after Prime Minister Christopher Luxon called on councils to "rein in the fantasies" and focus on the basics.

In a statement, Taxpayers' Union's Connor Molloy said the government was ignoring its own advice.

"Despite telling councils 'the party is over' yesterday, the government is now teaming up with Auckland Council to waste money on exactly the kind of vanity projects they are ridiculing them for," he said.

"The government can't expect to be taken seriously by local government when it continues to splash cash on pet projects that make great photo opportunities but don't deliver value for most New Zealanders currently struggling with the cost-of-living crisis."

Speaking to reporters at Parliament, Finance Minister Nicola Willis seemed unaware of the funding announcement - "I don't know anything about it" - but waved away suggestions of hypocrisy.

Molloy said the government had undergone an "extraordinary exercise" to recoup $23 billion in savings over the next four years.

"We've taken considerable cost out of the public service. I have not seen many councils undertake an exercise like that."

She said it was her expectation that any investments from the Major Events Fund generate economic growth and value for communities and businesses.

"I would want to understand what economic impact analysis had been done and whether or not that was going to create value."

In the media statement announcing the funding, Lee said the dance contest was expected to attract at least 2000 international participants, supporters and officials.

"It's hoped that this inaugural event will inject approximately $4 million into the New Zealand economy, $1 million of which is set for host city Auckland.

Lee said the event also had the potential to become "valuable, New Zealand-owned intellectual property" that could attract sponsorship and investment from overseas.

Molloy - from Taxpayers' Union - said the professed economic benefits were little more than "wishful thinking".

"The economic activity lost from taxing the money away from productive New Zealanders will far outstrip any benefits of the dance competition. If people aren't willing to spend their own money to go and watch, why on earth should taxpayers be subsidising it?"

Finance Minister Nicola Willis. Photo: RNZ / Samuel Rillstone

'Pet ministries'

The Green Party also picked up a similar attack line in Parliament on Thursday afternoon, drawing a comparison with the large salaries being paid at the new Ministry for Regulation.

During question time, Green MP Francisco Hernandez asked Willis whether staffing the Regulations Ministry was a 'must-have' in comparison to the 6500-odd 'nice-to-have' public servants who had lost their jobs.

"I find the inference that any member of this House would refer to human beings as 'nice-to-have' as objectionable," Willis responded.

"We on this side of the House are pro-growth, pro-development, and anti-red-tape - and that's the approach we're taking to regulation."

Willis yesterday admitted that the first she had heard of the average salaries at the Ministry for Regulation was through the media.

Hernandez suggested Willis was happy to remain "ignorant of what happens in her coalition party's pet ministries" while cutting thousands of jobs elsewhere.

Willis hit back: "I've had some work done in my office and apparently the average salary of a Green MP is a little over $180,000 - although I would note that that number excludes the salary of [now-independent] Darleen Tana."

The remark earned a mild telling-off from Deputy Speaker Barbara Kuriger who said it was "unnecessary".

Senior National MP Chris Bishop can be heard responding: "It was pretty funny though".

Deputy Prime Minister Winston Peters followed up by asking whether $180,000 was the highest salary a Green MP could ever expect to earn, but Kuriger again stepped in: "that question will create chaos".