The Taxpayers’ Union is welcoming the Government’s rapid review of the Ministry of Justice, after new information revealed the Russell Harrison scandal is not the only case of its kind within the Ministry.

An Official Information Act request by the Taxpayers’ Union reveals the Ministry currently has four employees on paid special leave while facing criminal charges or serious misconduct investigations. One has been on leave for 25 weeks and another for 16 weeks.

Taxpayers’ Union spokesperson Tyler Groenewald said:

“The Russell Harrison case exposed an extraordinary failure of oversight. The revelation that four more Ministry employees are currently on paid special leave facing either criminal charges or serious misconduct investigations, including one for a period of six months, shows the Government is right to order a wider review.”

“The issue is no longer just how one case was allowed to drag on for five years. The review must examine how the Ministry manages these cases more broadly, whether proper oversight exists, and whether taxpayers’ interests are being protected.”

“When the Justice Minister says his confidence in the Ministry has been seriously shaken, that is a damning indictment of its leadership. Taxpayers now deserve to know who knew, why the Minister was kept in the dark, and what accountability will follow.”

“Taxpayers need confidence that years-long paid suspensions are not quietly continuing across government. This review could not come quickly enough.”

Responding to New Zealand Herald reporting that the Prime Minister took a taxpayer-funded flight after attending a National Party fundraiser, Taxpayers’ Union spokesman James Ross said:

“We hope the National Party’s fundraiser was a success, because it should now use the proceeds to repay taxpayers for the cost of the flight.”

Responding to comments from Labour MP Helen White that she wants house prices to fall, the Taxpayers’ Union is calling on Labour to explain how that squares with its capital gains tax and spending promises.

Taxpayers’ Union spokeswoman, Ella Dickson, said:

“Labour need to make their minds up. Do they want house prices to spiral, which is the only way their capital gains tax will raise anything close to what they’re claiming, or do they want them to fall, and have the CGT make zero revenue?”

“Labour can’t have it both ways, so it’s time to front up on what they want.”

Responding to Public Service Commissioner Sir Brian Roche directing the Public Service Association to remove its “Change the Government” campaign material from public service workplaces, Taxpayers’ Union spokesperson Tory Relf said:

“The PSA’s politics are no secret, but using supposedly neutral public service workplaces to campaign for the Government’s defeat crosses a line and abandons any pretence of impartiality."

“Taxpayers already fund paid time for union activity, and some departments go even further by employing staff to undertake union work. They also fund union-only bonuses, with MSD alone recently paying PSA members more than $1.6 million."

“Sir Brian Roche is right to intervene, but the Government must go further. Taxpayers should not be subsidising membership of an organisation that treats the public service as its own political campaign network.”

 Responding to MBIE uncovering a further $6 million in costs associated with its failed Biometric Capability Upgrade, Taxpayers’ Union Executive Director Jordan Williams said:

“Finding another $6 million down the back of the couch is not a rounding error. It exposes a shocking lack of financial control and system failure within MBIE."

“This project ran for seven years, across successive chief executives, yet MBIE still cannot say what it actually cost. Nic Blakeley needs to be held accountable, but so too must the senior leadership responsible for financial controls."

“Carolyn Tremain presided over MBIE for almost the entire life of this project and has since received a gong for services to the Public Service. That's a slap in the face for taxpayers, and case in point of failure being rewarded in the public sector.”

The Taxpayers' Union says the Government's response to the COVID-19 Inquiry is a good start, but New Zealand needs structural reforms to ensure taxpayers are never again left paying for a "spend now, check later" approach to government.

Taxpayers' Union spokesperson Tyler Groenewald said the Inquiry should mark a turning point in how governments manage taxpayers' money.

"The Inquiry confirms what taxpayers have been saying for years: billions of dollars were sprayed across hundreds of programmes with no oversight, leaving New Zealand with higher debt, higher inflation, and a cost-of-living crisis we're still paying for."

"The Government now needs to go further. Cut wasteful spending, tackle debt, reduce taxes on businesses to grow the economy, and restore the fiscal headroom needed to respond properly when the next crisis comes."

"Just as importantly, governments must open the books. New Zealanders should be able to see, in real time, where emergency spending is going and whether it's delivering results. Sunlight is the best disinfectant, and taxpayers should never again have to wait years to find out where tens of billions of dollars ended up."

Responding to MBIE chief executive Nic Blakeley denying any attempt to mislead Parliament over the failed $35 million Biometric Capability Update project, Taxpayers’ Union Executive Director Jordan Williams said:

“Claiming the project was 'commercially sensitive' is a slimy bureaucratic excuse for misleading MPs. If Mr Blakeley thought could not give the evidence publicly, he could easily have asked the Chair to give evidence in private or as secret evidence."

"Suggesting something is too commercially sensitive for MPs is not just arrogant, it demonstrates a total lack of understanding of who is boss in a Parliamentary democracy."

"But it also fails the sniff test. Ministers too were victims in what is starting to appear as an orchestrated campaign of lies and omissions by MBIE officials about this particular project. Any competent CEO would have wanted to be transparent and truthful, given the history of this matter."

“The fact remains that MPs asked about the project’s progress and were not told it had already been cancelled. The buck stops with Mr Blakeley who knew full well MPs were misled, and failed to immediately correct it."

“In comparable jurisdictions, misleading the legislature is treated very seriously. This is now a test of whether New Zealand’s institutions are prepared to hold the most senior public servants accountable."

“No one is suggesting Mr Blakeley should be sent to prison, which is technically within the powers of the Privileges Committee. But it is difficult to see how Blakeley can remain in his job if it is found that he mislead Parliament and breached Privlidge over his Ministery's $35 million failure.”
 

The New Zealand Taxpayers' Union is calling on Finance Minister Nicola Willis to honour the Government's own commitment to end temporary fuel support once the agreed trigger is met, after signalling the payments could continue even if petrol remains below $3 a litrefor four consecutive weeks despite repeating a fiscal assurances of of "temporary, timely, and targeted".

Taxpayers' Union spokesman, Jordan Williams, said:

"This is classic Nicola Willis fudge. She claims to be fiscally virtuous, but when push comes to shove, she's no better than the last Government."

"'Temporary, timely and targeted' appears to be giving into 'election year'. Willis is signalling to bond markets that the goalposts are about to shift."

"Yet again, Willis neglects her own rules, saying one thing, and doing another. Like 'cutting' spending, while spending more.”

“This is classic Nicola Willis fudge. Fiscally virtuous talk, while walking Grant Robertson's walk.”

“Fiscal credibility is about the discipline. Temporary measures only work if governments are prepared to end them."

"It is likely the fuel crisis is going to get much, much worse. Largess now, will cost options later."

The Taxpayers' Union says there must be accountability after New Zealand's Civil Defence website crashed during last night's Fiordland earthquake and tsunami warning, leaving New Zealanders unable to access critical emergency information when they potentially needed it most.

Taxpayers' Union spokesman, Jordan Williams, said:

"Heads should roll. If Civil Defence can't keep its website online during an emergency, what exactly are taxpayers paying for? Any competent IT provider can stress-test a website to ensure it remains operational when demand surges. A sudden surge in public demand during a natural disaster is exactly what the Civil Defence website exists for."

"National Emergency Management Agency Director John Price should be offering his resignation, not excuses. When the key public communication system fails at the very moment it's put under stress, senior leaders needs to be held accountable. The role of governance is to manage risk - this risk was obvious.

"Public service bosses justify high pay because of high responsibility - but when things go wrong, there never is."

"Systems will improve when Ministers start demanding accountability. New Zealanders need confidence that the next time the ground shakes, the website won't fall over before buildings do."

In response to reports of mounting losses from Callaghan Innovation’s business loan book, Taxpayers’ Union spokesperson Tory Relf said:

“The Government must simply stop trying to pick winners. These are either loans too risky for private investors or opportunities good enough to attract private money without taxpayer backing.”

“Callaghan should stand as a warning before the Regional Infrastructure Fund repeats the same mistakes. Government corporate lending should be abolished.”

“Government will always have a role in funding basic scientific research, but early-stage commercialisation should be left to venture capitalists, who have greater expertise and a financial incentive to make better investment decisions.”