29 Mar 2012

McCully says $9m spend on MFAT restructure needed

1:26 pm on 29 March 2012

Foreign Affairs Minister Murray McCully admits the $9.2 million cost to restructure the ministry is a significant amount of money, but says it is neccessary if it is going to make savings.

The Labour Party says revelations by the minister in Parliament on Wednesday about the cost prove restructuring at the Ministry of Foreign Affairs and Trade (MFAT) is a waste of time and money.

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Labour and New Zealand First say the Government should also take notice of a letter opposing the proposal, which has been signed by 49 of New Zealand's top diplomats.

Mr McCully says MFAT has already taken $135 million a year out of its budget since 2008 and told Radio New Zealand's Morning Report programme on Thursday it needs to spend $9.2 million in order to save another $24 million.

"The public, I think, expect us to try and get the balance right here between making some savings, getting some modernisation and making sure that we don't destroy the talent base that New Zealanders have invested a good deal in over the last decades."

But Labour's foreign affairs spokesperson Phil Goff says it is a waste of money and Mr McCully should be held responsible.

"That's more than $9 million wasted and he cannot absolve himself from responsibility. He voted that money to MFAT for that purpose.

"He's been involved right from the start; the thing has proven to be a shambles and he can't now in a pathetic way simply blame his chief executive officer."

New Zealand First leader Winston Peters is also not impressed by how much is being spent on the restructuring.

Both men say the letter written by 49 heads of mission reveals how strongly diplomats oppose the proposed changes.