Should $17k of public money be spent on a pōwhiri in a cost of living crisis?

Wednesday, 23 August 2023

Karen Vercoe was welcomed to her new role as deputy chief executive at the Department of Internal Affairs with a $17,323 pōwhiri.

The Department of Internal Affairs spent more than $17,000 on an event to welcome its new deputy chief executive.

Karen Vercoe took up the role in April, and the agency invited 300 guests to the pōwhiri in central Wellington.

It comes just days after the Ministry for Pacific Peoples was revealed to have shelled out $40,000 to farewell a former chief executive – and $13,000 was spent to welcome him to his new job.

DIA said its 13,800m² head office in the city’s St Paul’s Square wasn’t large enough to host Vercoe’s reception, so it spent $2300 on hiring nearby Pipitea Marae.

A further $7526.75 went to hospitality company Manaaki Management for catering “and internet”.

Taranaki Whānui Ltd – the commercial arm of local iwi – was paid $2087.25 for cultural services, and an “admin hui”.

The ceremony was livestreamed to a further 117 people, and the $5067.89 bill for that went to production company AV Media.

Secretary of Culture and Heritage Leauanae Laulu Mac Leauanae was farewelled from his old job – and welcomed to his new role – with events costing more than $72,000.

Another $341.09 went on four taxis and four shuttle vans for guests.

Vercoe left her role as chief executive of Te Arawa Lakes Trust for the job, assuming responsibility for the Te Urungi Māori, strategy and performance branch.

“It was a significant event for the Department as this is a new and important role,” a spokesperson for DIA said in a statement in response to questions from The Post about the budget.

Peter Hughes won’t say if $17,000 is too much to spend on a welcome event.

It was attended by about 150 staff and 150 guests.

“The pōwhiri was held at Pipitea Marae as we did not have capacity in our buildings in Wellington to host this many people,” the statement said. “Visitors paid for their own travel, accommodation, food and other expenses.”

The Post also asked what budget is set aside for pōwhiri, if there is a spending limit and for what staff seniority they are organised.

Those questions weren’t answered. “While there was no budget created for the pōwhiri, the Department was mindful of costs and keeping spending within responsible limits,” the spokesperson said.

The heat is on the public service over wasteful spending, particularly as the tax take is falling, and households and businesses struggle in a cost of living crisis.

Finance Minister Grant Robertson reportedly met with senior civil servants to urge restraint, and both National and ACT are promising cuts should they win October’s general election.

Public Service Commissioner Peter Hughes recently criticised a lavish party for departing Ministry of Pacific Peoples' chief executive Leauanae Laulu Mac Leauanae in October.

The nearly $40,000 spend-up included $7555 in gifts – which the chief executive later returned – more than $3000 on photography, flowers and ceremonial drummers, and upwards of $7000 for travel and accommodation for 12 guests.

A further $13,000 of public money was then spent on another party – to welcome Leauanae to his new role at the Ministry for Culture and Heritage.

That agency paid $7500 – which Hughes said was acceptable. But Pacific Peoples spent a further $5000 on it and that was deemed inappropriate.

After a review, Hughes said it did not meet the requirement of being “moderate and conservative,” there was no evidence of a budget and limited expenditure oversight.

A spokesman for the Commissioner refused to answer questions about whether DIA’s spending was reasonable or what would be at would be a “moderate and conservative” use of public funds.

It was up to chief executives to follow official guidance on spending.