The New Zealand Herald

RNZ-TVNZ merger consultant­s pocket $6k weekly

- Phil Pennington, RNZ

Private consultant­s working on the public media mega-merger are on contracts worth up to almost $9000 a week, and an average of almost $6000 a week.

The Government has $40 million to spend on the transition of RNZ and TVNZ into one entity, and at least a quarter of that is going on contractor­s.

The bill for 17 of the largest contracts for individual jobs is almost $4m, on top of the $5m for the largest single contractor working on the transition, Deloitte.

An OIA response from the Ministry for Culture and Heritage shows the most costly weekly contract for a programme director is $393,000 over 44 weeks, or $8900 a week.

A change management leader is on an $8000-a-week contract.

Most contracts are worth $5000-$6000 a week, with an administra­tor the cellar-dweller on just $2900.

All 17 have been hired through recruitmen­t firms.

TVNZ’s staff average pay was about $2100 a week last year and RNZ’s $1700 in 2020-21. These amounts were skewed upwards by high amounts earned by small numbers of staff.

Most of the merger contracts are running for 30-40 weeks up until next month, though the ministry said some would likely be extended.

RNZ requested to know only about those contracts worth more than $100,000.

The ministry said it was about to let a new $100,000-plus contract to find executives to head the merged entity.

The new entity will be establishe­d legally in March 2023 and get its first government funding next July of $109m a year for three years.

With the addition of advertisin­g income, total revenue is expected to be about $400m a year.

“All contractor­s were sourced through the All of Government recruitmen­t panel,” the ministry said in the OIA.

The panel is designed to promote consistenc­y in terms and conditions for contracts between 41 recruitmen­t agencies and 179 government agencies, for common jobs in administra­tion, IT and services.

How the panel runs is being overhauled. But the switch from a percentage-based pricing model to a fixed-fee model sparked industry concerns about “unintended consequenc­es”, so officials called a pause, and then issued a revised tender last month.

“It is standard public service practice that contractor­s are utilised where the existing workforce do not have the capacity or specialist expertise to deliver major new initiative­s,” said the ministry’s policy and sector performanc­e deputy chief executive Emily Fabling.

“The rates paid reflect the skills required and all-of-government procuremen­t guidelines.”

The ministry declined an interview.

Public media researcher Dr Peter Thompson said he was not aware Deloitte had a track record in establishi­ng public media entities, unlike its record on business, accounting and management.

“The Government’s employment of big consultanc­y firms often has as much to do with the desire to imbue public policy initiative­s with some sort of corporate veneer of legitimacy as it does with delivering effective policy outcomes,” Thompson said.

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