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 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.”
 

Taxpayers’ Union Executive Director Jordan Williams says the latest revelations about the Ministry of Justice are a damning indictment of public sector accountability.

“The question isn’t where Russell Harrison is. The question is: where is Secretary for Justice Andrew Kibblewhite?”

“This happened on his watch. Yet instead of fronting, Kibblewhite has gone to ground while Ministers are left cleaning up the mess. New Zealanders deserve to hear from the person actually responsible.”

“If Andrew Kibblewhite knew a staff member was collecting a taxpayer-funded salary for five years while effectively on garden leave, but failed to tell his Minister, his position is simply untenable.”

“The Ministry’s excuse that nothing could be done until Harrison was convicted is nonsense on stilts. Employment law doesn’t require proof beyond reasonable doubt. Employers make decisions based on trust, conduct and suitability every day.”

“Based on the allegations, the charges, and the company Harrison was allegedly keeping, it was obvious he was no longer suitable to work for the Ministry of Justice. Instead of showing him the door, officials parked him on the taxpayer payroll and kept it quiet.”

“This is now a real test for Public Service Commissioner Sir Brian Roche. He has made restoring accountability across the public service a cornerstone of his leadership. Well, here’s his big test. If those words are to mean anything, there must be real consequences for the officials responsible.”

The New Zealand Taxpayers' Union says revelations that public servants knowingly misled a Minister, deliberately avoided Cabinet scrutiny, and wasted millions of taxpayer dollars on a failed immigration project expose a culture of arrogance and impunity within the public service.

Reports indicate officials withheld information from the Minister, deliberately bypassed Cabinet oversight, and continued spending taxpayer money on a project that was ultimately doomed.

Taxpayers' Union spokesperson Tory Relf said:

“Officials misled a Minister, bypassed Cabinet, and torched millions in taxpayer money”

"This isn't just waste, it's a direct attack on democratic accountability. New Zealanders elect Ministers to make decisions. Bureaucrats are employed to implement them. When officials decide they know better than elected representatives and actively work around them, something has gone seriously wrong."

"Every taxpayer should be furious. Families are working harder than ever to make ends meet while unelected officials treat public money like Monopoly money. Yet the most alarming part isn't the money that's been wasted. It's the apparent belief among senior bureaucrats that they can override Ministers, avoid scrutiny, and face no consequences.

"If a private-sector employee misled their boss and wasted millions of dollars, they'd be shown the door. Taxpayers deserve complete transparency with the ensuing inquiry, and ultimately accountability for every official involved. Heads must roll."

Despite branding this a “responsible Budget”, Nicola Willis has today confirmed the Government will have borrowed more by 2029/30 than Treasury forecast just five months ago.

Taxpayers’ Union spokesman James Ross said:

“The accounting tricks and fiscal illusions in Budget 2026 can’t hide the facts. Yes, surplus may have come forward a year, but over the forecast period we will still be borrowing almost a billion dollars more than Treasury forecast only five months ago.”

“Government debt is set to hit $364.1 billion by the end of the decade, or more than $162,000 per household. That’s up from $29,000 in 2008, and $116,000 in Grant Robertson’s last Budget. The trend is only going one way.”

“If this Budget is supposedly fiscally responsible, Nicola Willis needs to explain why debt will now be higher in 2028, 2029, and 2030 than Treasury previously forecast, and why the next generation is being left to pick up the tab.”

The Taxpayers’ Union is calling out this year’s Budget for its continued spending commitments.

Taxpayers’ Union spokesperson Tory Relf said:

“Despite Minister Willis’ assurances to the contrary, this Budget is full of sugar hits.”

“From $20 million to host the Pacific Islands Forum, to $48 million for te reo Māori broadcasting and cultural capability, this Budget is heavy on the sweet treats.”

“New Zealanders were promised fiscal discipline, but what they’ve been given is more spending today with promises of supposed savings tomorrow.”

“And with Treasury allowing up to $4.7 billion in forecast new operating spending in 2028/29, the surplus could have been even bigger if new operating spending was held at Minister Willis’ promise of $2.1 billion.”

“If the Government is serious about getting the books back to black, it needs to stop with the feel-good spending and commit to genuine fiscal discipline now.”

Responding to reports that the Government is considering establishing something similar to Australia’s Business Growth Fund, Taxpayers’ Union spokesperson Tory Relf said:

“The Government needs to stop speculating with taxpayers’ funds."

“This looks eerily similar to Callaghan Innovation, which was disestablished last year because it had become an unfocused and underperforming agency. It invested too broadly and in too many companies that ultimately failed or moved offshore."

“What would be different about this proposal? The problem this fund appears to address is that the companies under consideration cannot access growth capital. The question that must be asked, and answered first, is: why?"

“The suggestion is that they are too small, but size alone should not deter rational investors."

“The real reason is much more likely to be that their returns are viewed as too low, given the risk of any capital investment. If banks and venture capitalists are unwilling to invest in these firms, why should taxpayers be exposed to these risks?"

“Minister Willis has previously been sceptical about governments attempting to ‘pick winners’ — and the Taxpayers’ Union is in complete agreement. Governments have a very poor track record at picking winners, so why is she now considering trying doing just that?”

The Taxpayers’ Union is calling for cost-benefit analysis to be made compulsory for all major government investment decisions following the release of the Helen Clark Foundation’s report Measuring What Matters.

Taxpayers’ Union spokesperson Tory Relf says:

“Cost-benefit analysis should be at the heart of every major spending decision, yet this report shows many agencies still aren’t using it properly.”

“Treasury already provides a clear methodology, so there is no excuse for Ministers to be signing off major investments without robust analysis of costs and benefits.”

“That only a third of departments surveyed were regularly using cost-benefit analysis raises serious questions about the quality of advice going to Ministers. This may go some way to explain why New Zealand ranks among the top 10 percent of OECD countries for infrastructure spending but in the bottom 10 percent for efficiency.”

“The Government should make cost-benefit analysis compulsory for all investment decisions so taxpayers can see whether projects actually stack up.”