Public service bosses splash cash on wining and dining

Public service bosses have wined and dined on the taxpayer through the toughest economic times in decades, splashing out more than $180,000 for food and drink in two years.

Chief executives of 36 agencies have been told to stop shouting staff expensive meals on the public purse after details of their credit-card spending revealed dinners at more than $100 a head at some of Wellington's best restaurants.

Favourite haunts included Shed 5, Le Canard, Dockside, Bisque on Bolton and Logan Brown, which was judged New Zealand's best restaurant last year.

The spending came during a time when the Government was borrowing heavily to cover public sector budgets and cutting hundreds of jobs to make ends meet.

State Services Commissioner Iain Rennie said staff should not be rewarded with "big nosh-ups at Logan Brown" and he had concerns about the spending on hospitality by half the chief executives on at least one occasion.

"We must always think about who is ultimately paying the bill, namely the taxpayer ... the vast majority of taxpayers would find it very hard to meet, from their personal income, going to expensive restaurants and spending $100 a head. Public servants need to reflect on that."

He would not give examples, but details published yesterday reveal a $1119 three-course lunch held by former Food Standards Authority chief executive Andrew McKenzie for 10 directors at Logan Brown late last year.

The three-course "staff recognition lunch" was held in a private room. Mr McKenzie charged $61.50 to his card for drinks at the Bristol Hotel the same day.

He held a similarly expensive function for 10 directors at the end of 2008, spending $132.50 for drinks at Wellington's Hummingbird followed by $810.50 for lunch at Martin Bosley's Yacht Club Restaurant.

Dr McKenzie, who resigned as chief executive shortly before the authority merged with the Agriculture and Forestry Ministry this year, is overseas and could not be contacted.

However, NZFSA acting deputy director-general Carol Barnao said much of his discretionary credit-card spending was cost-recovered from the industry, which strongly supported the authority's work.

Former Research Science and Technology boss Helen Anderson and National Library head Penny Carnaby also racked up bills of more than $1000 for dinners in Wellington, though they included official visitors as well as staff. Solicitor-General David Collins and Treasury boss John Whitehead were among others holding meals at more than $100 a head.

Dr McKenzie had the highest bill for all costs over the period – $66,105 – followed by Dr Collins on $64,210. Most of the spending was for accommodation and other expenses for overseas travel.

The figures were revealed in an unprecedented publication of public service chief executives' credit-card details, which showed a total of $813,778.91 was spent on entertaining, travel, accommodation and other costs in the past two financial years. This included $182,022 on "entertaining, catering and hospitality".

Mr Rennie said all the spending was work-related and he had seen nothing requiring disciplinary action. But he had made it clear that spending on hospitality "should only ever be moderate".

"I do not think that using departmental credit cards in expensive restaurants is an appropriate way to encourage good performance or a culture of prudence with public funds."