19 May 2012

'Consultancy culture' cost $525m last year - Labour

6:46 pm on 19 May 2012

Labour Party MPs say the Government has overseen a blowout in the use of consultants in the public service.

Labour has reviewed the financial reviews of government departments, and says spending on consultants and contractors has risen from $336 million a year, five years ago, to $525 million last year.

The party's state services spokesperson, Chris Hipkins, says it can't possibly be more efficient to make someone redundant one day and then pick them up as consultants a few days later.

Mr Hipkins says the "consultancy culture" is so out of hand that the Treasury even hired a consultant to review the use of consultants.