Nathan Guy National Party MP

17 September 2006

Kimberley: Labour misuses millions

National Party Horowhenua-based MP Nathan Guy says Labour is misusing millions of dollars on consultants as it attempts to relocate residents from the Kimberley Health Centre.

“Consultants employed by Housing New Zealand are costing the taxpayer an average of around $123,000 per house.

“One house, on the outskirts of Levin, generated a consultancy fee of $230,000 – more than 20% of the total cost associated with the purchase and re-modification of the house.

“This money would be much better spent caring for former Kimberley residents and ensuring better conditions and training for their caregivers.”

In total, some $8 million has been spent on consultants when the total budget for the building or renovating of 65 homes is $55 million.

“I absolutely support these former residents moving into our community, but this massive bill isn’t for bricks and mortar, it’s for advice,” says Mr Guy.

“HNZ employs hundreds of staff, and Labour has previously criticized its use of external consultants.

“Is this finally an admission that, despite its bloating of the bureaucracy over the past seven years, Labour still hasn’t got the right people in the right jobs?”

ENDS

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