The New Zealand Taxpayers' Union can reveal, through an Official Information Act response 12 contractors have been continuously engaged by IRD for more than five years, costing taxpayers a total of $20.8 million over just the past five years.
As Nicola Willis prepares to unveil Budget 2025, the Taxpayers’ Union is calling out the millions still being frittered away on long-term consultants, highlighting one Inland Revenue contractor who has been on the books for a staggering 13 years and 11 months.
Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:
"Someone racking up billable hours for nearly 14 years isn’t a contractor, they’re a shadow public servant, just with less oversight and more cost."
"While Kiwis are tightening their belts, bureaucrats are clinging to consultants like they’re essential infrastructure. If a role is truly necessary, hire for it properly or scrap it altogether."
"Despite a directive from Nicola Willis to reduce consultancy spending, the data reveals just how entrenched and expensive these arrangements have become. Inland Revenue spent $12.4 million on seven long-term contractors in one team alone with another $8.3 million spent elsewhere in the department."
"Cut the consultants. Cut the waste. Balance the books. With the Budget seven days away that’s what Kiwis expect."