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Revealed: Govt’s $108m spend up on office renovations and refurbishments

Author
Jason Walls,
Publish Date
Thu, 13 Jul 2023, 5:00AM
Photo / Edward Swift
Photo / Edward Swift

Revealed: Govt’s $108m spend up on office renovations and refurbishments

Author
Jason Walls,
Publish Date
Thu, 13 Jul 2023, 5:00AM

Government departments are spending tens of thousands of dollars on high-end couches, phone booths, meeting pods and video conferencing booths in offices across the country.  

New figures, compiled from hundreds of pages of documents from dozens of Government Departments annual review documents, show last year – the Government spent $108 million on office renovations, refurbishments, and redecorations. 

That includes hundreds of pieces of office furniture, such as $16,700 for a seating booth at the Ministry of Business, Innovation and Employment; $14,200 for a Wardrobe unit and $22,700 for a bookcase, both at the Ministry of Justice. 

The Public Service Commission spent $35,700 on a “4-person meeting pod”. 

The spending has caught the irk of National’s Simeon Brown, who says this is a significant amount of money for the Government to be spending during a cost-of-living crisis.  

“They should be focusing on the basics – not making their offices plush.” 

He said the total Government-wide figure should be under $100 million per year.

The Minister in charge of the Public Service, Andrew Little, said he is confident Government departments understand his expectations about responsible and prudent spending. 

“Ultimately decisions around operational spending are matters for the Chief Executives of Government departments.” 

But he pointed out the total spend has actually been trending down over since 2018. 

Last year's $108 million was up from $86 million in the 2020/21 financial year, and $106 million the year prior.  

But the total was way down on the $161 million which was spent in 2018/19. 

The biggest spending Government department last year was Statistics New Zealand, which billed taxpayers $26 million for renovations, refurbishments, and redecorations. 

But much of that spend is down to the fact the department moved into a new building over that period.  

Some $34,000 was spent on a “six-person meeting pod”- a further $12,000 was forked out for an “acoustic phone booth”. 

A spokesperson for Stats NZ said the acoustic phone booth is a soundproof booth that provides complete privacy for “sensitive conversations”. 

“Much of the Stats NZ day-to-day work is market sensitive and we work in an open plan environment.” 

Meanwhile, the Ministry of Women spent $18,825 on a sound booth – that is, a four-person private sound booth that has a table and a bench for private meetings.  

“Staff at the Ministry work in an open plan office and therefore require private meeting room space,” a spokesperson said. 

“An alternative to installing the sound booth would have been to lease more office space.” 

The Public Sector Service itself is singing a similar tune when asked about its $35,700 4-person meeting pod.  

“The raw numbers don't tell the full story,” a spokesman said.  

“Including the use of single phone booths and four-person meeting pods in our overall workplace model means we have fewer fixed rooms and can accommodate more people on the floor.  

“The Commission otherwise would need to lease another floor, which based on our current rent would cost an estimated $440,000 per year.” 

According to the figures – the Ministry of Justice has spent more than $150 million since the 2017/18 financial year on office renovations, refurbishments, and redecorations. 

Deputy Secretary of Corporate & Digital Services Tina Wakefield said the Ministry occupies around 100 buildings around the country, including courthouses, call centres, national office and offices for functions like Coronial Services.   

“The buildings house around 4500 people, including both Ministry staff and the judiciary. 

“The Ministry’s property portfolio requires ongoing renovation, refurbishment and redecoration, as part of a substantial regular work programme.”  

She noted that the $14,200 wardrobe was purchased from an “authorised furniture and equipment catalogue,” for Auckland District Court in early 2022.   

According to the figures, close to $580 million has been spent on office renovations, refurbishments, and redecorations since 2017/18.  

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