Auckland Council executives rack $520,000 on overseas trips

Author: Bernard Orsman, NZ Herald,
Publish Date: Wed, 21 Feb 2018, 12:59PM

Auckland Mayor Phil Goff wants council bosses to end business class travel and fly premium economy on long flights.

The revised rule comes as a Herald survey of overseas travel by the chief executives and leadership teams of Auckland Council and the six council-controlled organisations (CCOs) shows they are taking fewer offshore trips after Goff began a crackdown last year.

The survey found council and CCO bosses racked up $524,487 on overseas trips to Asia, the United States, Canada, Europe and Australia in the first 11 months of Goff's leadership from November 2016 to mid-September last year.

Goff is still concerned with the level of spending and told the Herald that staff across the entire council will fly economy for flights of less than eight hours and premium economy for any over eight hours.

"Business class will be available if the relevant chief executive determines that the staff member must work immediately on arrival and there is no reasonable alternative," he said.

This is similar to the current rule allowing executives to fly business class, but Goff's message to fly premium economy will make chief executives think twice before signing off expensive travel bills.

Goff has also instructed chief executives to cut international travel by 30 per cent this financial year.

"We are developing new policy on sensitive expenditure including gifts, hospitality and travel, and this will go before the governing body on March 22," he said.

Auckland Mayor Phil Goff is putting the hard word on council chief executive Stephen Town(right) to cut travel costs. (New Zealand Herald Photograph)

Regional Facilities Auckland (RFA), whose business units bring concerts, exhibitions and conferences from overseas, topped the survey with 29 trips totalling $191,283. It was followed by Auckland Transport with 19 trips costing $168,526.

Auckland Tourism, Events and Economic Development (Ateed), criticised by Goff last year over soaring travel costs of $926,606 has trimmed spending by senior executives.

In 2016, Ateed chief executive Brett O'Riley made seven overseas trips costing $62,134. In the 10 months before he left Ateed, O'Riley made two overseas trips costing $14,009.

New Ateed chief executive Nick Hill said greater rigour and accountability had been introduced to overseas travel, including a 10 per cent reduction target.

The new management team was also focused on strategies and priorities that had contributed to cutting overseas travel.

It was still crucial for Ateed to represent Auckland globally from time to time to attract visitors, investment and jobs to Auckland, said Hill, saying video conferencing was used wherever possible.

At Auckland Council, chief executive Stephen Town continued his frugal practice of keeping expenses to a minimum by not undertaking any overseas travel. His office spent $71,326 on overseas travel for former group chief financial officer Sue Tindal and chief operating officer Dean Kimpton, who flew business class beyond Australia.

Panuku Development Auckland executives made five trips costing $43,913, Watercare Services' eight trips cost $25,275 and Auckland Council Investments Ltd, which manages the council's shares in Auckland Airport and Ports of Auckland, made no trips.

Regional Facilities Auckland brings overseas concerts like Paul McCartney to Auckland.

RFA chief executive Chris Brooks said it worked with international promoters and galleries throughout the world to attract concerts and exhibitions, which meant people like Auckland Live director Robbie Macrae had to travel overseas.

Macrae's work took him to Glasgow, London, New York, Guangzhou, Australia and to the Edinburgh Festival for various negotiations with international promoters and agents.

Brooks went on a 12-day trip to Perth, Singapore, London and Nice in March/April last year costing $19,165 when three nights at the Sanderson Hotel in London's Soho, including expenses, cost $3158.

Brooks said the trip was to generate business. He could not name any business that had been generated, saying "these things take two to three years".

RFA said international travel was necessary to attract $68 million of commercial revenue, saying the big shows come from Broadway and London and international investors have to be convinced Auckland is a viable market.

"To compete in tough international markets we need to adopt accepted industry practices, which normally involve regular attendances at trade shows plus face-to-face negotiations and informal hosting opportunities."

International travel expenses

Auckland Council

Stephen Town, chief executive
Number of trips - 0

Sue Tindal, group chief financial officer
Number of trips - 3
Flights - $26,464 (two business class, one economy)
Accommodation - $7212
Expenses - $1929

Dean Kimpton, chief operating officer
Number of trips - 2
Flights - $18,864 (two business class)
Accommodation - $3943
Expenses - $340

Patricia Reade, director people and transformation
Number of trips - 5
Flights - $3834 (five economy class)
Accommodation - $3599
Expenses - $1458

Phil Wilson, director governance
Number of trips - 1
Flights - $912
Accommodation - $620
Expenses - $189

Karl Ferguson, director communications and engagement
Number of trips - 2
Flights - $1092 (two economy class)
Accommodation - $736
Expenses - $134

Total
Number of trips - 11
Flights - $51,166
Accommodation - $16,110
Expenses - $4050
Grand Total - $71,326

Panuku Development Auckland

Roger McDonald, chief executive
Number of trips - 2
Flights - $14,186 (two business class)
Accommodation - $3581
Expenses - $1476

Rod Marler, director design and place
Number of trips - 2
Flights - $14,202 (two business class)
Accommodation - $206
Expenses - $289

Allan Young, director development
Number of trips - 1
Flights - $8185 (one business class)
Accomodation - $1713
Expenses - $75

Total
Number of trips - 5
Flights - $36,573
Accommodation - $5500
Expenses - $1840
Grand Total - $43,913

Regional Facilities Auckland

Chris Brooks, chief executive
Number of trips - 6
Flights - $18,542 (one business class, four economy, one covered by supplier)
Accommodation - $4765
Expenses - $3637

Mohamed Mansour, director Auckland Conventions
Number of trips - 4
Flights - $25,552 (three business class, one economy)
Accommodation - $10,514
Expenses - $4756

Paul Nisbet, director Auckland Stadiums
Number of trips - 4
Flights - $11,985 (one business class, three economy)
Accommodation - $7445
Expenses - $2454

Robbie Macrae, director Auckland Live
Number of trips - 8
Flights - $39,698 (five business class, three economy)
Accommodation - $15,398
Expenses - $6272

Simon Tran, chief finance officer
Number of trips - 2
Flights - $13,645 (one business class, one economy)
Accommodation - $4957
Expenses - $1906

Jonathan Wilcken, director Auckland Zoo
Number of trips - 1
Flights - $3257 (one economy)
Accommodation - $1002
Expenses - $617

Rhana Devenport, director Auckland Art Gallery
Number of trips - 4
Flights - $11,185 (one business class, three economy covered by Devenport, Auckland Art Gallery Foundation, Art Gallery of South Australia)
Accommodation - $366
Expenses - $3330

Total
Number of trips - 29
Flights - $123,864
Accommodation - $44,447
Expenses - $22,972
Grand Total - $191,283

Watercare Services

Raveen Jaduram, chief executive
Number of trips - 2
Flights - $3284 (two economy class)
Accommodation - $1451
Expenses - $272

Martin Smith, general manager strategy and planning
Number of trips - 2
Flights - $1043 (two economy class)
Accommodation - $904
Expenses - $0

Marlon Bridge, general manager retail
Number of trips - 2
Flights - $1693 (two economy class)
Accommodation - $985
Expenses - $75

Stephen Webster, general manager infrastructure delivery
Number of trips - 1
Flights - $11,098 (one business class)
Accommodation - $2898
Expenses - $544

Rebecca Chenery, business transformation manager
Number of trips - 1
Flights - $694 (one economy class)
Accommodation - $249
Expenses - $0

Total
Number of trips - 8
Flights - $17,813
Accommodation - $6488*
Expenses - $974
Total - $25,275
*Includes taxis/transport costs

Auckland Transport

David Warburton, chief executive
Number of trips - 5
Flights - $25,523 (two business class, three economy)
Accommodation - $9238
Expenses - $1022

Richard Morris, chief financial officer
Number of trips - 1
Flights - $5391 (one business class)
Accommodation - $329
Expenses - $2202

Greg Edmonds, chief infrastructure officer
Number of trips - 3
Flights - $22,286 (two business class, 1 economy)
Accommodation - $5440
Expenses - $2783

Wally Thomas, chief stakeholder relationships officer
Number of trips - 1
Flights - $780 (one economy class)
Accommodation - $1861
Expenses - $370

Roger Jones, chief technology officer
Number of trips - 5
Flights - $49,558 (five business class)
Accommodation - $13,093
Expenses - $10,067

Mark Lambert, chief transport services officer
Number of trips - 2
Flights - $12,857 (one business class, one economy)
Accommodation - $3198
Expenses - $833

Simon Harvey, chief people officer
Number of trips - 1
Flights - $12,968
Accommodation - $0
Expenses - $0

Claire Stewart, chief investment officer
Number of trips - 1
Flights - $535 (one economy)
Accommodation - $827
Expenses - $333

Total
Number of trips - 19
Flights - $116,930
Accommodation - $33,986
Expenses - $17,610
Grand Total - $168,526

Ateed

Brett O'Riley, chief executive
Number of trips - 2
Flights - $11,057 (one premium economy, one n/a)
Accommodation - $2952
Expenses - n/a

NIck Hill, new chief executive
Number of trips - 1
Flights - $3502 (business class one-way, premium economy one-way)
Accommodation - $653

Dean Butchers, general manager business attraction & investment
Number of trips - 2
Flights - $5889 (one premium economy, one airline credit)
Accommodation - $3546
Expenses - $1324

Patrick McVeigh, general manager business, innovation and skills
Number of trips - 2
Flights - $6959 (one premium economy, one economy)
Accommodation - $4588
Expenses - $130

Steve Armitage, general manager destination
Number of trips - 1
Flights - $756 (one economy class)
Accommodation - $808
Expenses - $0

Total:
Number of trips - 8
Flights - $28,163
Accommodation - $12,547
Expenses - $1454
Total - $42,164

Auckland Council Investments Ltd

No overseas travel in period covered