More than $300 million has been paid to the big four consultancy firms since Labour took office, with nearly $100m spent by ministries last year alone, National’s Public Service spokesperson Simeon Brown says.

“The Government’s costly restructures and wasteful spending has seen vast amounts of taxpayer dollars go to Big Four global consultancy firms, Deloitte, PwC, EY and KPMG.

“Despite Chris Hipkins promising as Public Service Minister in 2018 the Government would cut spending on contractors and consultants, the Big Four have raked in $316.8m from the core public service since Labour came to office.

“Deloitte is the biggest beneficiary of Labour’s wasteful and undisciplined spending on premium consultants, with the company earning a whopping $115.8m since Labour first became the Government. PwC was hot on its heels, taking in $93.6m from government spending.

“EY and KPMG took in $69.9m and $37.6m respectively.

“Spending by the core public service across the big four totalled more than $97m in 2021/22 alone, more than double the spending in 2018/19.

“The figures exclude Crown entities such as Waka Kotahi (NZTA) and Kāinga Ora, meaning the real figure spent across the entire government is likely to be significantly higher.

“While Kiwis have been battling with the cost of living crisis, Labour has been spending up on consultants, leaving taxpayers questioning what they’re getting for all this money.

“For example, spending on consultants and contractors at the Ministry of Education is up $95m to $237m while educational achievement goes backwards and regular attendance at schools is shockingly low.

“While there will always be a place for some consultant spending in Government, the tens of millions spent on a cycle bridge across Auckland Harbour and the abandoned RNZ/TVNZ merger show how much waste there is in the system.

“National will reduce spending on consultants and contractors, saving taxpayers $400m a year across a range of government departments and Crown entities.

“To achieve this, National will direct public sector agencies to end the culture of relying on contractors being paid at a premium cost to do the regular jobs of public servants, stop enacting the costly and unnecessary restructures and mergers that Labour is obsessed with, and slash the endless working groups and task forces that are synonymous with this Government.

“Under National, public sector agencies will also be required to report their spending on consultants and contractors every quarter.

“National will restore discipline and responsibility to the public service. Kiwis deserve a Government that will deliver better outcomes, not spray money around like a garden hose.”

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