Callaghan ‘waste’ irks inventor
A businessman who gave up in the face of ‘‘too much bureaucracy’’ while seeking funding from government agency Callaghan Innovation has been left outraged at news of its multimillion-dollar entertainment bill.
Callaghan Innovation spent almost $3 million on travel and entertainment in one year.
Among the entertainment spending was a $50 tip from the public purse, following dinner at Wellington’s Dockside restaurant.
The figures were released to the Taxpayers’ Union under the Official Information Act.
They show that, 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.
The man, who did not want to be named to protect his venture in future, wanted financial backing for his invention. But he had given up his approach to Callaghan because of the difficulty he perceived in navigating their system.
He said it seemed overly complicated that Callaghan offered to part-fund projects.
‘‘It’s just hard yakka. You get tied up in bureaucracy. Then you hear they’re wasting money.’’
He said for entrepreneurs and inventors who were struggling to fund their ventures, the news of the entertainment spending was galling. ‘‘Are any of these guys inventors? No. I hope they change the model.’’
A review of the organisation last year found it had ‘‘weak’’ management and was struggling to implement its strategy. There have been a number of resignations since new chief executive Victoria Crone took over.
Employers and Manufacturers Association chief executive Kim Campbell said the important question was the context in which the money was spent.
He said it was hard to tell whether the money went to things that would help clients, or just ‘‘junkets’’.
‘‘The entertainment budget becomes a catch-all for all these things. The Christmas party might be in there as well. It’s a dangerous precedent to pick a number out of the blue. On the surface it looks like a lot of money but it’s an organisation of reasonable size that largely does their work by getting together.’’
He said it could be better to ask why the staff were spread between Auckland and Wellington.
‘‘I suspect they’re in the wrong place, travelling up and down the country.’’
A Callaghan spokeswoman said its ‘‘entertainment’’ expenses related to a variety of activities that were essential to its work.
‘‘They include catering for meetings with customers, partners and staff; hosting local and overseas delegations; attending conferences and industry dinners; and meals for staff working away from their normal office,’’ she said.
‘‘We are constantly reviewing our policies.’’