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$837,000 in Golden Handshakes this week alone
The Taxpayers' Union is calling for greater transparency and a hard cap on exit payouts in the public sector after taxpayers have funded an eye-watering $837,000 bill for golden handshakes this week alone.
The $837,000 bill stems from three high-profile public sector exits this week:
- Andrew Coster - ex-chief executive of the Social Investment Agency - $130,000
- Diana Sarfati - Former Ministry of Health director - $350,000
- Sarah Fitt - Former Chief Executive for Pharmac - $357,000
Taxpayers' Union spokesperson Tory Relf said:
"It’s a slap in the face for New Zealanders who are struggling with the cost of living. These handshakes are outrageous, especially in cases of voluntary departures like Diana Sarfati and in exits that should have been dismissals like Coster."
“You can’t sustain a culture where poor performance is met with a reward. Until the Government clamps down on these payouts, taxpayers will keep getting burned. The government needs to start showing some fiscal responsibility.”
“The scale of this $837,000 taxpayer bill is obscene. The Taxpayers' Union is calling on Minister Brooke van Velden ensures her reforms include a hard cap and ban all exit payouts for public service employees paid more than an MP.”
Another day, another golden handshake
The Taxpayers’ Union is calling for a law change to prevent the payout of golden handshakes to public servants paid more than MPs, after yet another health boss has walked away with a $350,000 payout despite leaving voluntarily.
Taxpayers’ Union spokesperson Tory Relf said:
“We’re barely a day on from the Pharmac payout and here we are again. Yet another giant cheque has been handed to someone already paid more than an MP, and this time simply for walking away.”
“Most New Zealanders don’t get paid for quitting and public servants on top-tier salaries certainly shouldn’t. It’s outrageous and it chips away at any remaining trust in the system.”
“Enough is enough. The Government must ban exit payouts for public servants paid more than an MP. If you’re on a premium salary, there’s no reason for taxpayers to fund a golden goodbye.”
Second golden handshake in two months: Minister Collins must act
The Taxpayers’ Union is slamming news of another taxpayer-funded payout, this time to Reserve Bank Deputy Governor Christian Hawkesby, calling it the second golden handshake revealed in as many months.
Taxpayers’ Union spokesperson Tory Relf said:
“This is déjà vu for taxpayers. Just weeks after Adrian Orr’s golden goodbye was revealed, we’re now seeing another six-figure payout dressed up as a ‘restraint of trade’. It’s the same old story: public-sector insiders look after their own while taxpayers pick up the tab.”
“Most Kiwis don’t get a cushy payout when they leave their jobs, so why should bureaucrats who already get paid eye-watering salaries be treated any differently?”
“The power to stop this sits squarely with Minister Judith Collins. Anyone in the public service earning more than the Prime Minister should have no entitlement to a taxpayer-funded golden handshake, period.”
“Two golden handshakes in two months is two too many. The Minister needs to act now to protect taxpayers from footing the bill for more of these outrageous payouts.”
Taxpayers who agree that golden handshakes must end can sign the petition at taxpayers.org.nz/petition_end_golden_handshakes.
Barbara Edmonds Leads Where Government Fails on Policy Scrutiny
The New Zealand Taxpayers’ Union welcomes reports that Labour’s finance spokesperson, Barbara Edmonds, has offered to support Finance Minister Nicola Willis’ efforts to establish an election policy costing unit.
Taxpayers’ Union Executive Director, Jordan Williams, said:
“Barbara Edmonds is on the right track with her members’ bill. It’s rare for the Taxpayers’ Union to call on the Government to spend money or create new offices, but this has long-term benefits to the taxpayer. We have been calling for this for more than a decade, and run our own pre-election policy costing unit, called the “Bribe-O-Meter” during various election cycles.”
“It’s true that Minister Willis’ proposal for a unit within the Public Service Commission cannot be considered truly independent. Our preference would be for it to be an officer of Parliament, like the Auditor General and the Parliamentary Commissioners.”
“We also favour a full service, Independent Fiscal Institute or Office of Budget Responsibility similar to that in the UK. Its role would be to expose the fiscal cliffs and budget assumptions that the public need clarity on to make informed voting decisions.”
“Governments continually kicking the budget surplus can down the road and running up debt is costing the country. A properly structured Independent Fiscal Institute would provide much greater transparency which promotes more accountability. Greater sunlight will lead to more responsible fiscal management that will deliver long-term savings far in excess of the Institute's cost.”
“Edmonds’ policy is a good recipe as a first step, and we will do everything we can to support this initiative.”
Stop the Secrecy: Whānau Ora Probe Shows Why OIA Must Follow the Money
The New Zealand Taxpayers’ Union is calling for immediate legislative reform to bring all 75% taxpayer-funded organisations, including Whānau Ora commissioning agencies, under the Official Information Act (OIA), following a New Zealand Herald investigation into Pasifika Futures and potential conflicts of interest in the distribution of public funds.
Taxpayers’ Union spokesperson Tory Relf said:
“It’s completely unacceptable that taxpayer-funded bodies like Pasifika Futures can distribute millions of dollars with so little public oversight. The people writing the cheques are the same ones setting the rules and the public is locked out of the room.”
“When taxpayers’ money is handed out behind closed doors to organisations run by friends and family, the least we should expect is the right to ask: why, how, and who made the decision?”
“If you’re spending public money, you must be accountable to the public. That starts with full transparency through being subject to the Official Information Act.”
“If these agencies are confident in their processes, they should have nothing to fear from public scrutiny.”
“It is time for the Government to amend the Official Information Act to cover all organisations receiving substantial public funds and finally bring accountability to the wider public sector.”
Act Now or Pay Later: Political Cowardice on Super Age Risks Public Services
The Taxpayers’ Union is calling on the Government to urgently raise the age of superannuation eligibility in light of a newly released Treasury briefing warning of deep cuts to core services like health and education unless major spending reforms are undertaken.
Taxpayers’ Union spokesperson Tory Relf said:
“Kicking the can down the road is not an option. Treasury’s warning is clear – unless we make tough but fair decisions now, future generations will be stuck with worse public services, higher taxes, and an economy strangled by debt.”
"Government expenditure outside superannuation and health is already excessive. Stronger fiscal consolidation is needed immediately. Minister Willis’ target of core Crown expenditure not exceeding thirty percent of GDP not only looks unachievable under current policies, it is insufficient."
“The Taxpayers’ Union is urging the Government to begin incrementally lifting the eligibility age to 67 over the coming decade, in line with moves already adopted by comparable nations such as Australia, the UK, and the USA.”
“Raising the super age is one of the most obvious and responsible steps we can take. We are living longer, healthier lives, yet we continue to pay billions more each year in superannuation without any adjustment. It’s unaffordable.”
“It’s time for political courage and long-term thinking. The sooner we act, the fairer and smoother the transition will be. Pretending there isn’t a problem only makes the eventual fix more painful.”
Taxpayers' Union mark passing of Takutai Moana Natasha Kemp
The Taxpayers’ Union has acknowledge the passing of Te Pāti Māori MP Takutai Moana Natasha Kemp and offer condolences to those close to her.
Jordan Williams, Executive Director of the New Zealand Taxpayers’ Union, said:
“We extend our sincere condolences to the family, friends, and colleagues of Takutai Moana Natasha Kemp. Her passing is a huge loss to all those who knew and worked alongside her.”
"Ms Kemp's family will be in our thoughts."
Zero Chargers, Zero Sense: Bin the $170m EV Blunder
The Taxpayers’ Union is calling on the Government to scrap its $170 million EV charger programme, after revelations that no chargers have been installed and the expected environmental benefits are minuscule.
Taxpayers’ Union spokesperson Tory Relf, said:
“The Government has allocated $170 million for EV chargers and has absolutely nothing to show for it. A year on, not a single charger has been installed. This is a masterclass in waste.”
“Even if it were delivered tomorrow the emissions savings don't even meet the Government’s own threshold for significance, not to mention that under the Emissions Trading Scheme this programme won’t reduce New Zealand’s net emissions by even a gram.”
“There is a fundamental misunderstanding of the ETS by the government. Because of the ETS, any reduction in transport emissions here simply frees up carbon credits for other emitters to emit more. So even if the scheme removed transport emissions entirely, it would still be a waste of money as net emissions would be identical.”
“In other words, the EV chargers are an expensive token gesture. Kiwis can’t afford to throw good money after bad, especially in a cost-of-living crisis.”
“When money is tight, every dollar needs to go towards things that actually make a difference. This programme clearly doesn’t.”
“The Government should cut its losses and scrap the EV charger scheme immediately.”
Cook Islands Shouldn’t Get Automatic NZ Privileges if Foreign Policy Splits, say Kiwis
A new nationwide poll commissioned by the New Zealand Taxpayers’ Union shows New Zealanders do not believe the Cook Islands should continue to enjoy automatic access to New Zealand citizenship, healthcare, and education if its government pursues a foreign policy contrary to New Zealand’s – or fails to even consult Wellington. 60.5% of decided respondents oppose Cook Islanders retaining automatic access.
Across all respondents, just 30% of respondents supported Cook Islanders retaining automatic access to New Zealand entitlements under such circumstances. 46% were opposed, and 24% were unsure.
Taxpayers’ Union spokesperson Tory Relf said:
“Direct funding of the Cooks has been in the media in recent days, but it is a drop in the bucket compared to the taxpayer-funded entitlements given to Cook Islanders such as health, education, and the New Zealand passport."
“If the Cook Islands Government isn’t going to act in New Zealand’s best interests, or even bother to consult with us on foreign affairs, it raises the obvious question of whether Kiwi taxpayers should continue to give Cook Islanders the free lunch.”
“This is a strong message from taxpayers. The results show that the public expects alignment on foreign affairs in exchange for the privileges and responsibilities that come with New Zealand citizenship. From a taxpayer perspective, that is not an unreasonable expectation.”
The poll was conducted by Curia Market Research between 7–9 June 2025 and sampled 1,000 eligible and likely voters across New Zealand. The margin of error is ±3.1%. The full results are available at www.taxpayers.org.nz/cooks_poll
25,000 Back a Rates Cap But Government Delay Lets Councils Keep Spending
The Taxpayers’ Union is urging the Government to fast-track legislation to cap council rate hikes, following new figures from Stats NZ showing runaway local government spendingand the risk of even higher rates next year if action isn’t taken now.
Sam Warren, Local Government Campaigns Manager, said:
“Council spending is out of control and ratepayers are picking up the bill. This new data shows exactly why we need a rates cap now, not later.”
"Total council spending rose 7.6 percent to $18.41 billion compared to March 2024, yet employee costs have jumped 9.9 percent and interest payments soared 16.3 percent. It’s clear councils aren’t exercising financial discipline."
“More than 25,000 Kiwis have backed our petition to cap rates to inflation. The public gets it – and the Government is starting to as well.”
“The PM backed a rates cap on Newstalk ZB this morning, but the current timeline delays legislation until at least 2026, meaning councils can raise rates unchecked for another full year."
"Let's remember, the previous Local Government Minister, Simeon Brown, resolved to pass rates capping into legislation this year."
“Any later is too late. Councils are locking in bloated budgets right now. If we wait, ratepayers will keep getting hammered and blame will lie at the feet of councils and the Government.”
"The Government must act to Cap Rates Now and stop the spiral.”