‘Absurd’ expenses exposed
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.