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New Zealand MP says corrections spending ludicrous
By New Zealand Herald
Published: 04/25/2006

Revelations that the Corrections Department spent $31 million on consultants over the last four years makes a select committee inquiry even more important, says National MP Simon Power.

Mr. Power has been pressing for a parliamentary inquiry into the department since disclosures earlier this year that the budget for building four new prisons had blown out by $140 million (New Zealand Dollars, or about $87 million USD).

Corrections Minister Damien O'Connor has ordered an independent inquiry into that, but Mr. Power wants a wider investigation.

Consultancy spending figures, the Herald obtained consultants were paid $10.6 million in the last financial year alone.

The department's general manager of strategic services, Mike Martelli, said it was because of e-procurement and new payroll systems.

Mr Power said yesterday the spending was ludicrous.

"There is some good money being spent on weird stuff," he said. "Some of this spending on consultancy is not explained well at all," he said.

The department spent $21,000 on "something called 'recall process training', $119,000 on 'professional ethics workshops' and $13,000 on a 'Maori therapeutic program pilot.'

"This department is in crisis, and is it any wonder when it displays completely inept management such as this," he said.



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