12 Sep 2024

New ministry spending more than $400,000 on contractors

11:56 am on 12 September 2024
RNZ/Reece Baker

Minister of Regulation David Seymour. Photo: RNZ / REECE BAKER

A new ministry set up to slash red tape spent more than $400,000 on contractors in six months.

The ACT Party pitched a Ministry of Regulation ahead of last year's election and secured its creation during coalition negotiations.

This new department was set up six months ago, replacing the Productivity Commission, and has spent $410,150 on contractors.

The figure was confirmed in an answer to a written Parliamentary question by Green MP Francisco Hernandez, who said it was "outlandish".

"This government has double standards. While our health system and public service is buckling under the weight of government cuts, their pet ministries are getting lavished with attention."

"While the wider public service is being left with crumbs, Seymour's pet ministry is feasting on cake."

Francisco Hernandez

Green MP Francisco Hernandez. Photo: RNZ / Samuel Rillstone

It comes after new figures revealed the department was paying its staff an average salary of more than $150,000 and would eventually employ more than 90 people.

In his written answer, Minister of Regulation David Seymour said it took "time and resource" to establish a ministry.

"In fact, until 8 May the ministry was without its own payroll services and only able take on staff as contractors or secondees," his written response says.

"Consequently, the ministry has required a mix of seconded, fixed-term staff and contractors to carry out its establishment activities and begin the ambitious programme of work I have asked of it, including initiating and carrying out two regulatory reviews."

Seymour said he expected the proportion of the ministry's budget spent on contractors would decrease when it recruited a permanent workforce.

The new ministry has been unable to provide a timeline for getting its programme of work done, in the two days since RNZ began asking for it.

It put out its first short report on its strategic intentions through to 2029 on Tuesday.

The report provides very few dates or deadlines, even for the 2024-25 year.

RNZ is seeking dates for key outcomes in what it says is its most immediate tasks, to do two regulatory reviews; improve how regulatory assessments are planned and implemented; help develop a regulatory standards bill; build capability in regulatory agencies; and establish its own central role.

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