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Andrew Little Still Splurging On Consultants For His Poorly-timed Health Restructure

Press Release – New Zealand National Party

Andrew Little must explain why he continues to splurge on consulting firms for the government’s poorly-timed health restructure instead of focusing on frontline services while we are in the midst of a pandemic, says National’s Health spokesperson, Dr Shane Reti.

In reply to a question from me, Andrew Little has revealed spending of $7 million on consultants in just a year including $6 million on 21 Ernst & Young staff. Not one of these dollars has delivered a single health outcome to date.

“That $ 7 million could have funded nine resourced ICU beds which is more beds than what is currently available in any of Hutt Valley, Lakes, Mid Central, Northland, South Canterbury, Tairawhiti, Wairarapa, West Coast or Whanganui DHBs.

“The government’s costly distraction with restructuring the health system in the middle of a Pandemic may explain why our Intensive Care Units were so unprepared for Delta. New Zealand has around a third of the ICU beds of Great Britain per capita.

“They should have focused on beefing up our ICU capacity instead of consultancy fees but is hardly surprising from a government that has totally failed to prepare our health system for a Delta outbreak

It is incomprehensible that this government thinks it is a good idea to restructure the health system in a pandemic. Put resources where they’re needed!”

The answer to my Written Parliamentary Question on Consultants Fees is copied below.

Reply 39563 (2021) has been answered to Dr Shane Reti 12 Oct 2021
Portfolio: Health (Hon Andrew Little)
Question: Which consulting firms, if any, have advised the health sector restructuring Transition Unit and how much have each been paid?
Reply: I am advised that the following consulting firms have provided advice to the Health and Disability Transition Unit: • Arkus Communications Limited • Ernst & Young Limited • Finora Management Limited • Kāhui Tautoko Consulting • Korn Ferry • Mischewski Consulting • NZ Institute of Economic Research • PAAS Partners Limited • Sapere Research Group • Senate Communications Limited • Shea Pita & Associates • Sonia Wansbrough & Associates • Sue Suckling Holdings Limited • Te Amokura Consultants The total spend (including actual contract fee, expenses, All of Government fee spend to 30 June 2021, and estimated spend to 31 August 2021) against the consulting firms listed above with the Health and Disability Review Transition Unit is set out in the table attached. Please note that the financial information for Ernst & Young Limited listed above differs from my reply to written parliamentary question 39564 (2021). The information for written parliamentary question 39564 (2021) is the actual spend at 30 June 2021. The information for written parliamentary question 39563 (2021) is updated to reflect actual spend at 30 June 2021 and estimated spend to 31 August 2021.

Table 39563: The total spend (including actual contract fee, expenses, All of Government fee spend to 30 June 2021, and estimated spend to 31 August 2021) against the consulting firms that have provided advise to the Health and Disability Review Transition Unit.

Consulting Firm $, excl. GST
Arkus Communications Limited 155,200.00
Ernst & Young Limited 5,722,520.26
Finora Management Limited 324,737.69
Kahui Tautoko Consulting 51,465.56
Mischewski Consulting Limited 2,148.75
NZ Institute of Economic Research 139,887.53
PAAS Partners Limited 4,028.71
Sapere Research Group 244,391.01
Senate Communications Limited 245,000.76
Shea Pita & Associates 29,381.31
Sonia Wansbrough & Associates 67,690.00
Sue Suckling Holdings Limited 205,245.71
Te Amokura Consultants Limited 55,380.00

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