Red Alert

Posts Tagged ‘ministerial services’

Key fudged answers on Premier House

Posted by Chris Hipkins on May 21st, 2011

There is a pattern in the way John Key and his office deal with revelations about how they are spending taxpayers money on themselves while telling everyone else they need to stomach cutbacks. When it was first revealed that John Key had splashed out on new carpet and painting for his prime ministerial residence, the initial reaction of his office was to deny all knowledge.

Then they reveal that they did know about it, defend it saying it’s no big deal, and accuse those answering questions of muck-raking or focusing on the small stuff. But if you keep asking questions, it usually turns out that they knew exactly what was going on and in fact they were up to their eyeballs in it.

Answers that have just come back to written parliamentary questions reveal that not only did Key know about the painting of Premier House, he made them change the proposed colour scheme.

A pattern is also emerging that shows how sloppy this government are when it comes to the way they spend money on themselves. Key stated in his most recent answers that the decision to re-carpet Premier House was made in late-2009. If that’s the case, Key should have included it in Estimates information provided to the Select Committee following the Budget. He didn’t.

At best that’s sloppy management on Key’s part (he signs off the answers to the Select Committee), at worst it suggests they’re deliberately trying to fudge the amount they spend on themselves. Either way it’s pretty clear that Key’s “aggressive” line-by-line review of government spending doesn’t apply to his own spending. There’s a word for that.

It was a similar situation with the BMWs. First Key claimed he hadn’t been told, then it turned out his Chief of Staff was fully briefed and two of his Ministers had signed the deal off. A bit odd that Key would take an active interest in something as small as a new paint job for Premier House but not know about a multi-million dollar car purchase. And let’s not forget that Bill English only paid back the housing allowance because he got found out.


The BMWs: Some unanswered questions

Posted by Chris Hipkins on May 14th, 2011

Last week I asked John Key a few questions in Parliament regarding a $50,000 donation the National Party received from an Auckland BMW dealer just 2 days after his Chief of Staff met with VIP transport officials to discuss the upgrade of their limo fleet. He didn’t like the questions very much, so rather than provide any answers, he resorted to attacking me instead. Very prime ministerial…

So here are a few of the questions that remain unanswered:

  • Did John Key know about the $50,000 donation when his Chief of Staff met with the VIP transport officials?
  • Does John Key think it was wise to speak at a fundraiser organised by BMW dealer Team McMillan while his officials were in the process of signing-off the BMW fleet replacement, particularly given Mr McMillan has publicly stated he wants to be involved in selling the old ones?
  • What was the actual date of the Team McMillan fundraiser?
  • Who else attended the Team McMillan fundraiser? Was anybody from BMW NZ, who are supplying the new cars, in attendance?
  • Who will be responsible for disposing of the old BMWs? Will it be BMW NZ, or will the Department be responsible?
  • Did John Key discuss the VIP fleet at the fundraiser with anyone, if so, who?
  • Have any of the original BMW fleet been sold yet, if so, who to?
  • Why does John Key keep claiming the deal for the new BMWs was Labour’s, when his own officials admit there was no obligation to take up the renewal option and they could have stuck with the old ones without any penalty?
  • What did his officials discuss with his Chief of Staff at the 28 July 2010 meeting? Why didn’t his Chief of Staff brief him on it?
  • Why does John Key keep claiming his government didn’t know about it when both Nathan Guy and Bill English signed it off, his Chief of Staff clearly knew about it, and he himself signed at least 4 documents that referred to it?

I think these are all legitimate questions and John Key should man-up and provide a few answers. Unfortunately he has a history of being slippery with the facts until he is caught. Do you remember how the story of his Tranz Rail shares changed back in 2008? He didn’t admit to the extent of the holding until after he knew TVNZ knew how many he really had. In fact, he lied first and told the truth only after the truth was told for him.


Walking the talk

Posted by Chris Hipkins on May 8th, 2011

John Key and Bill English are telling Kiwis that they have to get by without ‘nice to haves’ as we deal with the mess they are making of the economy. So are they walking the talk themselves? Seems not…

After upgrading the BMW fleet, beefing up their personal security, and boosting their own pay packets with a new tax-free accommodation allowance, we now learn that Key has just spent $215,000 repainting Premier House, the official Prime Ministerial residence.

That’s a heck of a lot of money and one can only assume it must be a pretty gold-plated paint job. It’s more than some people can afford to spend buying their entire house.

Answers to written Parliamentary questions have revealed that National has just spent $187,996.93 repainting the outside of the Prime Ministerial residence and another $30,023.83 painting the fence and sprucing up the garden.

I simply don’t buy John Key’s argument that it wasn’t his decision, he’s the responsible minister, the buck stops with him, as it did with the BMWs and the security budget blow-out. It’s about time Key manned-up and starting taking a bit of responsibility.


What were the other 3 trips?

Posted by Chris Hipkins on April 24th, 2011

John Key would have us believe that his jaunts on military planes and helicopters aren’t among the ‘nice to haves’ that Bill English says we’ll all have to learn to live without, but are essential to his ability to carry out his duties as Prime Minister. If that’s the case, then he won’t have any problem issuing a full list detailing his use of airforce planes and helicopters, including the important matters of state that he was attending to that justified their use.

Stuff reported last week that Key has used the helicopter four times in the past 3 weeks alone, including the now infamous trip from the V8 supercars to the golf club. So what were the other three trips? Looking on Key’s Facebook page, the possibilities are endless. Did he use Airforce helicopters to visit the Timaru skateboard park? Perhaps he used them to make a ‘cameo appearance’ at the NZ Shearing Champs in Te Kuiti?

The PM and other Ministers should be able to use the airforce where it is necessary to carry out their official duties. But there is a pretty clear distinction between attending to official matters of state and using them to jet between photo-ops that are clearly little more than campaigning.

Every quarter Parliament and Ministerial Services issue a breakdown of spending on air travel by MPs and Ministers, but those figures don’t include the use of military aircraft. That’s an anomaly that needs to be fixed. As a general rule, I believe that use of military planes and helicopters by VIPs should be disclosed and the public should be able to judge whether the matters that they were attending to justified their use.

Meantime John Key and his Cabinet should start practicing what they preach and stop splashing taxpayer cash on photo-ops for the PM. At the last election John Key chartered a plane so that he could flit from one photo-op to the next. He should stick to that approach rather than suck military resources into his campaign machinery.


English declines Key’s hot seat

Posted by Chris Hipkins on April 12th, 2011

Looks like Bill English has spat the dummy about the order of a VIP car with heated seats, saying he will refuse to ride in it. Does this mean VIP will have to send a separate car down for him when he flies into town? This just looks like more and more of a fiasco every day.

First Key claims nobody in the government knew about the BMW fleet upgrade. Then he admitted English and Nathan Guy signed it off. Then we discovered his Chief of Staff was in the loop. Then we found out Key himself signed-off on it but never read the reports he was signing.

Now we learn that ‘extras’ were ordered like heated seats and mobile offices, despite Key telling Parliament that no such ‘nice to haves’ were in the deal. Seriously, does anyone in government know what is going on? We’re talking about millions of taxpayer dollars here, and it’s not like there hasn’t been considerable public interest.


Heated car seats a ‘nice to have’?

Posted by Chris Hipkins on April 11th, 2011

Bill English has decreed that we’re all going to have to learn to get by without the ‘nice to haves’ as he slashes public spending. Apparently that new austerity is only going to apply to the rest of us, not to Mr English and his colleagues, and particularly not when it comes to where they park their posteriors.

I asked a few questions of the government about their recent decision to upgrade the fleet of ministerial BMWs. The answers were quite interesting. Apparently one of the BMWs to be based in the lower South Island will have heated seats. This is justified on the basis that it will be used for ‘long distance’ and ‘long duration’ movements. Could that be the trips Mr English takes to his pretend home in Dipton by any chance?

Interesting to note that only one of the BMWs has this added feature. Could it be that Mr English asked for it specifically? I know he suffers from a bad back, but surely in this era where the ‘nice to haves’ are out the door, he could chip in and cover his own expenses? Did he ask for this, or did the pixies at the bottom of the garden that he’s so fond of decide that he should just have it?

The new cars will have mobile office facilities and internet access too. One can just imagine Mr English sitting there in the back seat reading the latest Woman’s Weekly and checking his Facebook page. Nice to know that he’s being well looked after, what with the fresh flowers in his office (he’s one of the govt’s biggest spenders) and that nice house in Karori (not with the extra hour a week of cleaning mind you)…


Don’t blame the help John

Posted by Chris Hipkins on February 21st, 2011

So it turns out that John Key was informed about the purchase of a new fleet of BMWs, he just didn’t read the briefing papers. And now he is trying to blame his staff for not telling him. That’s pretty weak John.

Before I became an MP I worked for several different Ministers, and I can recall a few cases where staff slipped up and didn’t pass on information. In every case that I was involved with, the Minister concerned took the rap. Blaming the staff is a pretty weak way to operate. I certainly can’t imagine any of those Ministers, including Helen Clark using the excuse that they were too busy heading off on holiday for not attending to their job.

No doubt tomorrow Key will have a new set of excuses, but for now the chronology goes something like this:

  • Firstly, Key claims he didn’t know anything about it;
  • Then his limo driver told him about ‘a week ago’;
  • Then his limo driver told him about it ‘some weeks back’;
  • Now it turns out he was briefed in December, but chose not to read it.

John Key has been equally devious about the nature of the contract:

  • First he said they couldn’t get out of it without paying a high penalty;
  • Then he said the contract could have been cancelled without penalty;
  • Then he said the contract is a good deal for taxpayers;
  • Now he is saying the Solicitor General has advised that the govt can’t pull out of the deal.

He is hardly consistent either when it comes to how the deal was authorised:

  • First off all, he said the decision was made by the Internal affairs Department, which did not think it had to check with Ministers;
  • Then he agreed Ministers had known about the contract last year;
  • Then he said his Internal Affairs Minister Nathan Guy assumed last year that he would know all about and didn’t bother telling him;
  • Now he says he was informed but didn’t read the briefing paper.

This whole saga has been a shambles and suggests that Key just isn’t on top of his job. If he isn’t willing to do anything more than smile and wave for the cameras, perhaps he should hand over the detail work as Minister Responsible for Ministerial Services to somebody who doesn’t find the thought of sitting down with a thick briefing paper quite so daunting.


Obfuscation on the BMWs

Posted by Grant Robertson on February 16th, 2011

In the comments on Trevor’s post there are a few things being discussed re the purchase of a new fleet of BMWs that need to be cleared up.

First that National was “locked into” upgrading the fleet after three years. The PM said this yesterday and various cheerleaders have carried it on today. It is simply not true. Listen to the interview on Checkpoint (starts at 17.50) where a DIA spokesperson confirms that the contract had an option to renew and there was no financial penalty for not doing so.

Second, the spin about this being an “Internal Affairs” matter. That is an important choice of words from Nats to distance John Key from what is becoming a major issue for them. The part of Internal Affairs that deals with the VIP cars is Ministerial Services. The Minister responsible for Ministerial Services is John Key. This is his patch.

I agree with Trevor that it is an absurd notion that no-one in the Beehive knew that this was going on. When I worked in the PMs office we had very regular contact with Ministerial Services on all manner of things, and a major purchase like this would have been one of those things. I know that the level of coordination in the Prime Minister’s office these days is pretty sloppy, so I guess its possible they are simply not thinking about these kinds of issues, but still find it incredible if it did slip through.


John Key on wages

Posted by Chris Hipkins on May 4th, 2010

In May last year John Key made these comments on wage growth:

“We will be looking at wage moderation across the state sector at all angles…Clearly the more pressures there are on wages the more difficult it will be for departmental managers to keep current staffing levels…restraint is going to be necessary right across the public sector.”

So is John Key living up to his own standards, or is this just a rule for everyone else? Consider these facts:

  • As of June 2009 the number of staff working in the Beehive earning over $100,000 a year had doubled since the same time in 2008 when Labour was in government
  • 16 ministerial staff received a pay rise in 2009, yet Key is refusing to release any information about them

Why does John Key think that those working in ministerial offices should be subject to different standards to those working in the rest of the public sector? Or does he just believe that there should be one rule for himself and another for everyone else?

Note: I haven’t asked Key to provide any information that would identify individual staff. I’ve simply asked what % increase the staff got and what salary bands they were in. Perhaps Key just thinks the answer is too embarrassing?


Credit where it is due

Posted by Chris Hipkins on February 10th, 2010

Yesterday I blogged about John Key not answering a bunch of written parliamentary questions that I had put to him before Christmas. Well, that obviously rang a few bells over in Key’s office because the answers were hand-delivered to my office yesterday afternoon. Credit where it is due, Key has fronted up, and from a quick scan, it looks like he has given pretty comprehensive answers to most of my questions. I’ll read through them over the next few days and blog further, but in the meantime, kudos to Key for fronting up.


Will Key ever answer questions?

Posted by Chris Hipkins on February 9th, 2010

Parliament resumes today after the summer recess. Hopefully that will prompt John Key to finally stump up with answers to the Written Parliamentary Questions I put to him before Christmas. I asked him 67 questions late last year. In all cases he said he couldn’t give me an answer within the 6 days required by the written questions system, but he assured me I’d get the information as soon as possible.

It’s now 8 weeks since I asked the questions, but alas no answers have arrived. The questions were legitimate questions asking him to account for the spending of his ministers at a time when they were telling us all to tighten our belts.

We saw last year that National Ministers do not practice what they preach on fiscal responsibility and the public deserves to know what they are spending, e.g. the Bill English rort to finance his family home and the last minute changes to let ministers use self-drive cars meant to help them serve their electorates in Wellington.

Labour answered these types of questions when asked by a National Opposition so what is Key hiding?

Here is a quick summary of the topics that I asked Key about:

  • Pay rises for staff working in Ministerial offices (remember other public servants have a wage freeze)
  • Use of VIP cars during National’s first year in office
  • Refurbishment costs for ministerial offices
  • Spending on gifts, beer, wine and spirits by ministers
  • Purchase of self-drive vehicles and related issues
  • Issues relating to Key’s changes to ministerial housing allowances

John Key talks a lot about transparency and accountability but it is all talk. The reality is neither he nor his ministers think that the rules that apply to others apply to them. Key’s ongoing refusal to answer basic written parliamentary questions just proves that.


Ministers splash out on new self-drive cars

Posted by Chris Hipkins on January 5th, 2010

In another bold (if not unsurprising) display of hypocrisy, the new National-led government splashed out on a bunch of new self-drive cars upon taking up office. Figures obtained under the Official Information Act show that National purchased 20 new self-drive cars following the election at an average cost of $44,501, a total spend of $890,031.

By comparison in 2005 the then Labour government purchased 15 self-drive cars at an average cost of about $37,500. Between 2006 and the 2008 election, 17 cars were purchased at an average cost of just over $40,000.

So why the significant increase in the average cost of cars? It can’t be because car prices are going up. Stats NZ figures show car prices remained static during that period and demand was lower, so it really should have been a buyer’s market.

It’s yet another example of the National-led government living the high life while they tell hard-working Kiwis to tighten their belts and prepare for more cuts to public services.

I’ve asked John Key more questions about self-drive cars, including the latest change that allows ministers to keep them in Wellington, but alas so far he has refused to answer.


Ministers get pay rises despite freeze

Posted by Chris Hipkins on December 29th, 2009

In November 2009 John Key argued that MPs and Ministers need to lead by example when it came to tightening our belts:

“As I said in January when I raised the issue with the [Remuneration] Authority, it is only right that in these changing economic times, as ordinary New Zealanders tighten their belts, MPs and Ministers must also play their part”.

However despite the rhetoric, a few weeks before Christmas, four of his ministers got a pay rise thanks to Key’s new funding regime for ministerial residences, with more of them set to benefit as they enter the new system over the next 12 months.

Based on a comparison of their previous claims and their new allowances, all four of the first ministers to enter the new regime get a tax free pay increase. Pita Sharples gets $173 per week, David Carter $204 per week, and Maurice Williamson $84 per week. It’s harder to calculate the fourth minister, Nathan Guy, because he only recently seems to have started claiming.

All of them are in the same residence that they were in as MPs and in the early part of their ministerial tenures. They previously got a parliamentary allowance based on receipts to a maximum of $24,000. They now get $30,000 with no need for receipts.

Even more ridiculous, if any of them wants to really pump up their allownace all they need to do is move house. Then their new tax-free allowance increases from $30,000 to $37,500, even if they moved into a house that was actually cheaper than their present one!

At a time when John Key and his colleagues have frozen wages for others, it’s a bit rich for them to then grant themselves a new housing allowance that amounts to more than some ordinary Kiwis would earn in a year.


Question watch #1

Posted by Chris Hipkins on December 21st, 2009

On the 8th of December I lodged a number of Written Parliamentary Questions to John Key in his capacity as Minister Reponsible for Ministerial Services. They all involved spending on services provided to ministers (eg. self-drive cars, VIP cars, ministerial housing etc). I had assumed that given the “Double Dipton” debacle they’d be keen to be seen as open and transparent.

So far John Key has replied to all of them with the same answer: “I am unable to provide the member with the information requested in the timeframe available. I will provide the member with the answer as soon as possible.”

All of the questions were lodged on the 8th of December, so he’s already had several weeks. In almost all cases there are examples of similar questions having been asked of Helen Clark in the past. I’m sure John Key isn’t going to argue that he should be subject to a lower standard of accountability than his predecessor, so I’ll look forward to getting his answers before he takes off for his holiday in Hawaii.


Should Red Alert out ministerial staff who make comments

Posted by Trevor Mallard on December 12th, 2009

I recently outed someone who commented on Red Alert on an issue they were very close to but used a pseudonym. Admin thought it was unusual. Clare told me she wanted to talk about it. Grant was more direct. I was admonished.

But now an interesting issue has arisen.

Ministerial staffers are commenting on Red Alert from the Beehive - during normal working hours – using pseudonyms.

We have always known they monitor our blog. Several Ministers read it daily as well.

But is it really part of their job to comment? And if it is should they be transparent as we are when we post here and comment on other blogs.

And if they aren’t should we out them?

Interesting issue – causing debate in our team. We would welcome your views.