Corporate treating of Treasury requires audit

The New Zealand Debt Management Office must be independently audited to ensure they have secured the best borrowing deals for New Zealand in light of revelations that they have been regularly treated to lunch, dinner, sports and theatre tickets, and leisurely games of golf, the Green Party said today.

Treasury's Gift and Hospitality Register was released today after the existence of the Register was revealed following earlier questioning from Dr Norman in the Finance and Expenditure Select Committee. The Register shows Treasury staff received a total of 234 treats in the last year valued at $50 or more, a majority from the major banks.

The banks and law firms are not giving these gifts because they are altruistic. They want something in return.
"The disturbing frequency and value of gifts regularly given to senior staff within the Debt Management Office — 164 gifts in total — is something that should be closely looked at," said Green Party Co-leader Dr Russel Norman.

"In one year alone, Westpac, ANZ, BNZ, Barclays, and Deutsche Bank made 118 gifts to Debt Management Office staff. These included lunches, dinners, and theatre and sports tickets.

"Such a culture of treating is outside of state sector rules and raises questions of a potential conflict of interest.

"An independent audit is needed to put this matter to rest."

The New Zealand Debt Management Office (NZDMO) was established in 1988 within Treasury and is responsible for managing the Government's debt. They are tasked with getting the best possible deal on Government borrowing. A small change in the terms and conditions of these multi-million dollar loans can have a substantial influence on the final cost of borrowing to the taxpayer.

"The banks and law firms are not giving these gifts because they are altruistic. They want something in return," said Dr Norman.

"The average New Zealander would look at this level of gift giving and expect some answers. An audit of the Debt Management Office's behaviour is the best way to clear this up."

News of the extent of corporate treating at the Debt Management Office comes on the heels of revelations that senior government ministers and their staff continue to regularly accept generous corporate hospitality from Westpac Bank at a time when the Government's master banking contract, held by Westpac, is under review.

"Ministers, their staff, and senior public servants need to accept that they must work to a higher ethical standard when it comes to corporate treating. We need to keep our politics honest," said Dr Norman.

State Service Code of Conduct (see page 29):
http://www.ssc.govt.nz/sites/all/files/Understanding-the-Code-of-Conduct-April2010.pdf