Marlborough Express

‘Absurd’ expenses exposed

- LAURA WALTERS

Government agency Callaghan Innovation spent almost $3 million on travel and entertainm­ent in one year.

The figures, released to the Taxpayers’ Union under the Official Informatio­n Act, show in the 2015/16 financial year, the agency responsibl­e for giving grants to support science and innovation, spent more than $300,000 on entertainm­ent, more than $1m on domestic airfares, more than $850,000 on domestic accommodat­ion and other travel expenses, more than $400,000 on internatio­nal airfares, and more than $300,000 on internatio­nal accommodat­ion and other travel-related expenses.

These costs totalled $2,896,801, up from $2,884,909 in the 2014/15 financial year, and $2,278,599 in 2013/14.

The entertainm­ent spend of more than $300,000 was mostly justified as entertaini­ng clients, and last month Callaghan said that type of spending was not unusual for a client-facing organisati­on.

‘‘These include meetings with customers and strategic partners, scientific briefings, hosting local and overseas delegation­s, and attendance at conference­s and industry dinners,’’ a spokespers­on said.

A full breakdown of costs showed that as well as a $2063 team dinner at Auckland drag queen cabaret restaurant Caluzzi, Callaghan staff racked up a $5212 bill over 188 visits to the Beer & Burger Joint, downstairs from Callaghan’s Auckland office, more than $4000 on meals at Marvel Bar and Grill, and more than $3200 at Mojo coffeehous­es.

The Callaghan Innovation spokespers­on said the spending was historical – happening in the 2015/16 financial year. ‘‘Since then, we have tightened relevant policies to ensure work-related spending by staff is modest and appropriat­e for the public sector.’’

The minister in charge, Megan Woods, said once she was made aware of the spending, she expressed her concern to Callaghan Innovation.

‘‘I made clear my expectatio­ns that public money be well spent.

‘‘I had concern about the high amount of spending on internal events,’’ Woods said.

‘‘While there is a place for entertainm­ent, especially when completing commercial deals, I made clear to Callaghan the level of internal spending was not up to the standards I expected.

‘‘Callaghan has assured me they take that seriously, and have assured me that they have changed their policy so that this won’t happen again.’’

Meanwhile, Callaghan spent more than $1m on domestic airfares, and more than $400,000 on internatio­nal airfares in 2016.

Divided by 384 staff (as per their 2016 annual report), that is $2641 in domestic airfares and $1079 internatio­nal airfares per staff member – $3720 per staff member all up.

Taxpayers’ Union executive director Jordan Williams said this figure seemed ‘‘extraordin­arily high’’.

The internatio­nal spend was also high, he said. ‘‘Callaghan only operates in New Zealand, but still spent $414,000 on overseas airfares in just a year.

‘‘We suspect part of this travel expenditur­e is for customers, [that is] businesses applying for grants.

‘‘This is absurd – these businesses are receiving taxpayer money, now we discover we also pay for their flights, accommodat­ion, wining and dining.’’

Callaghan Innovation is a government research and developmen­t agency, which supports entreprene­urial businesses, startups and technologi­cal firms.

In 2017, Callaghan employed 386 staff – 62 in Auckland, 296 in Wellington, and 28 in Christchur­ch, according to its annual report.

Callaghan received $236m of taxpayer funding in the last financial year. Of this, $149.5m was used on grants to businesses.

Callaghan spends $43m on wages and salaries.

The Taxpayers’ Union is a lobby group with the stated aim of campaignin­g for better value for money in government spending.

 ?? PHOTO: MARLENE COLEMAN ?? Wild waves crash over Carters Beach Domain, near Westport, on Thursday.
PHOTO: MARLENE COLEMAN Wild waves crash over Carters Beach Domain, near Westport, on Thursday.
 ??  ?? Callaghan Innovation­s chief executive Vic Crone.
Callaghan Innovation­s chief executive Vic Crone.

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