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Taxpayers’ Union OIA's reveal that despite the Chief Ombudsman's introduction of a self-assessment tool in July, aimed at enhancing public sector transparency and adherence to official information protocols, prominent ministries and agencies including Waka Kotahi, the Ministry of Health, and the Ministry of Justice have yet to utilize it as of September.
Oliver Bryan, Investigations Coordinator at the Taxpayers' Union, said, "It's a glaring irony: departments and Ministries hesitant to use a tool explicitly designed to enhance their transparency and reputation, especially concerning the OIA. It's truly baffling that ministries, which frequently find themselves under the public microscope, are dragging their feet on a tool that promotes better governance. Is it simply a case of old habits dying hard? Or is there an underlying apprehension about transparency?"
"While these ministries play catch-up with good governance tools, one wonders how many other departments and ministries are also stuck in the bureaucratic doldrums. This isn't a game of hide and seek; it's about ensuring transparency and building trust with the taxpayers who fund these agencies."
"We urge the incoming government to show leadership on this issue. It is imperative to ensure all departments, irrespective of their size, employ the Chief Ombudsman's tool. Beyond the immediate operational advantages, this is a clear way to signal commitment to openness and build faith with the New Zealand public."
Responding to Wellington City Council’s approval of plans to spend up to $147 million more of ratepayers’ money on the city’s town hall, Taxpayers’ Union Policy Adviser, James Ross, said:
“Whilst pipes are leaking, roads are crumbling and costs of living are climbing out of control, Wellington City Council have voted to raise the potential cost of the town hall restoration project to over $1,500 per resident. As a Castalia report reveals Wellington City Council is set to blow its budget by $1 billion, quite how the council could justify considering burning hundreds of millions propping up numerous crumbling heritage sites whilst basic services fail beggars belief.
“Council officials have railroaded this decision, providing one-sided information to elected representatives and demanding a decision be taken before proper scrutiny of their advice can take place. Credit must be given to Councillor McNulty for recognising the enormous opportunity costs of this project and calling for time to investigate more cost-effective options, while also encouraging the council to explore a local bill to ensure they don’t end up in the exact same position again in the near future with other buildings.
“A huge chunk of the costs and delays associated with demolishing the buildings stem from heritage-status red tape, but despite what officials would have you believe this is completely avoidable.
“A local bill must be sought to allow Wellington Council to de-list buildings by simple majority. A local bill was progressed by Tasman District Council in relation to a water augmentation scheme in 2018, taking only four months to pass through Parliament. Years of legal battles and spiralling costs can easily be avoided so that Wellington can start focusing on getting the basics right again."
Responding to news that Wellington City Council is planning to buy the land under the currently earthquake-prone Reading cinema complex and re-strengthen the building, Taxpayers’ Union Head of Campaigns Callum Purves said:
“The Reading Cinema may be a dead spot in the heart of the City Centre, but that doesn’t mean the Council needs to step in.“Just earlier this week we saw with Wellington’s Town Hall just how costly these earthquake-strengthening projects turn out to be. It’s just as likely that another massive budget blowout is on the cards with this proposal.
“If Reading International won’t take on the restrengthening itself, then the Council needs to accept that. Should a private buyer choose to purchase and redevelop the land in the future, the Council should ensure that the consenting process – including the demolition option – is as smooth as possible, but that’s all it needs to do.
“This is just another example corporate favouritism at the expense of the ratepayer. Wellington residents are already facing a double-digit rate increase this year. A project of this magnitude will only guarantee further rate hikes and continue to burden Wellingtonians."
The Taxpayers’ Union is questioning the Government’s decision to provide corporate welfare to the wood processing sector, both in the form of direct hand-outs and the Government playing bank manager by providing loans when this could easily be left to private sector banks.
Taxpayers’ Union Deputy Campaigns Manager, Connor Molloy, said:
“Too often we see the Government branching out into areas that are not core government functions and where Ministers and bureaucrats have little to no expertise. What does the Government know that banks don’t when it comes to making sensible investment decisions? This is simply more corporate welfare providing handouts to business at a time when Kiwis are struggling with the cost of living.
“Not only are these spending decisions distortionary by arbitrarily encouraging more investment in some sectors to the detriment of others but they also unnecessarily place private risk on taxpayers who are left out of pocket if things go wrong.
“If the Government is concerned about the lack of investment in growing industries, perhaps they should look at the root causes of the problem – high interest rates made necessary by out-of-control government spending and overly-restrictive overseas investment rules that make it so difficult to get foreign capital into the country.
“The only tree that the Government should be focused on is the self-proclaimed ‘Tāne Mahuta’, Adrian Orr, who has consistently failed to keep inflation in the target range and whose Large Scale Asset Purchase programme has seen taxpayers foot the bill for billions of dollars in losses."
Despite facing consistent financial challenges and relying on taxpayer bailouts - most recently to the tune of $220 million in May's budget - The Waikato Times has revealed a staggering $15.6 million spent on ads, PR, and publications, which includes a $3.5 million campaign launch.
Oliver Bryan, Invesitgations Coordinator at the Taxpayers' Union, commented, "Feedback on Te Pūkenga's performance from experts in the tertiary sector echoes the country's sentiment that this is clearly an organisation costing us a fortune and delivering little in return."
“The consistent mismanagement and questionable spending decisions by Te Pūkenga are alarming and unacceptable. It is deeply concerning to see millions being channeled into advertising campaigns while the very core of Te Pūkenga is riddled with operational deficiencies. The latest feedback from experts and surveys clearly indicates that their hefty advertising investment is not yielding the desired results in terms of student numbers or improved public perception."
"Until the organisation rectifies its operational issues, the Government is just pouring money into a failing system. It needs to stop."
The Taxpayers’ Union is slamming Cabinet's decision to provide yet another taxpayer-funded handout to Ruapehu Alpine Lifts (RAL), this time to the tune of $7 million.
Taxpayers’ Union Head of Campaigns, Callum Purves, said:
“We warned earlier in the year that taxpayer-funded bailouts for failing businesses would be a slippery slope and unfortunately we have been vindicated.
“Every dollar that the Government wastes on corporate handouts is a dollar that first had to be taxed from someone else. While the Government may claim that they are protecting jobs in the ski industry, the taxes to pay for this corporate welfare costs jobs in other industries.
“The Government would be better to let RAL go under and allow a new buyer to come in as a replacement – including leaving the door open for an international investor. This would allow a financially viable operator to take over the ski field while also saving taxpayers from funding unnecessary corporate welfare in the middle of a cost-of-living crisis.
“Once businesses realise that they can get money by coming cap in hand to the Government, the potential for pork-barrel politics and back-room deals is increased as businesses begin to respond to Ministers instead of markets.”
The New Zealand Taxpayers’ Union is calling on New Zealand First to release costings for each of their policies citing fears that they could cost more than Labour’s election spending spree.
When questioned by Jack Tame on TVNZ’s Q + A yesterday about the lack of fiscal detail in NZ First’s policies, Winston Peters said “Well our manifesto comes out later today. Why don’t you wait. We've made sure that were gonna have it out given the huge PREFU gaps and holes there are. We made sure ours stacks up.”
Despite early voting now being open, New Zealand voters are none the wiser as to how much NZ First’s policies will cost taxpayers and what new taxes will be levied to pay for them.
Taxpayers’ Union Head of Campaigns, Callum Purves, said:
“New Zealand First has to date been the least transparent out of all the parties likely to get into Parliament in relation to how much their policies would cost taxpayers.
“In 2017, New Zealand First was campaigning on more spending than any other party and it appears this could be the case again this time around. Unfortunately, the lack of detail in the announced policies make it near impossible for us to independently cost the proposals.
“Included in the policy list is a number of eye-wateringly expensive proposals including $100 million on 'transmission upgrades', moving the Port of Auckland and establishing a naval base, establishing a new Ministry for Energy and a vague promise of corporate welfare in the form of tax incentives.
“This is on top of the policy to remove GST off ‘basic foods’ – a policy that will not only cost significantly more than the $2.6 billion needed for Labour’s GST proposal but will also require an even bigger army of bureaucrats to determine what is and isn’t basic foods.
“Winston Peters is trying to frame his party as one fit for Government yet to date we have had more clarity from Labour, the Greens and Te Pāti Māori. Voters deserve answers now.”
Responding to the release of the OECD’s latest Education at a Glance report, Taxpayers’ Union Policy Adviser, James Ross, said:
“Since 2018, investment received by the Ministry of Education has increased by nearly 75%. Despite this, outcomes for our children are getting worse and worse by the year. Like with so many other departments across the public service, serious questions need to be asked about where this extra money has gone.
“Chucking billions upon billions more into the bureaucratic black hole clearly hasn’t been working, when this increasingly seems to be wasted on a growing culture of inefficiency across the public sector. With the Ministry of Education unable to tackle core problems like 40% of schoolkids still failing to regularly attend school, it’s no wonder Kiwi kids are being left behind.”
“Any incoming government needs to take a long, hard look at how taxpayers’ money is being spent, zero-base funding and do much more than just pay lip service to getting essential services like education working again.”
Commenting on the Grocery Supply Code of Conduct coming into force, Taxpayers’ Union Policy Adviser, James Ross, said:
“The grocery supply code of conduct has completely missed the root causes of New Zealand’s sky-high grocery prices. Lack of competition in the sector is absolutely the main driving factor behind this, but rather than bringing prices down this code will only make things worse.
“The Government props up food prices by refusing to allow competition to spring up, through both its overly restrictive planning regulation and making it nigh-on impossible to attract competition from overseas. A law which requires any competitors which spring up to supply their competition with produce at wholesale prices is of course going to send foreign investors running.
“Rather than answering every problem with soundbite policies promising more bureaucracy, if the Government really wants to help Kiwis struggling under the cost-of-living crisis then it needs to cut the red tape and allow proper competition to the grocery duopoly.”
The Taxpayers' Union has once again highlighted the Ministry of Business, Innovation, and Employment (MBIE) for its overseas excursions. The New Zealand Space Agency embarked on another trip to the USA, racking up a bill of $36,075.62. An Official Information Request has unveiled that the NZ Space Agency covered the flight costs for three of its staff members to participate in an annual space symposium in Colorado.
Oliver Bryan, Investigations Coordinator for the Taxpayers' Union, remarked, “The New Zealand Space Agency's constant overseas jaunts on taxpayer dollars are beyond tedious. Spending $11,427.39 on just one flight, representing over 30% of the total trip cost, underscores the lavish tendencies of one of New Zealand's most pointless agencies.”
“Given today's technology that facilitates seamless and accessible online meetings from anywhere globally, frequent international travel should be reconsidered across all government departments, especially as we confront the imperative to rein in our escalating national debt.”
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