In 2019/20, Public Service agencies spent a total of $974.9 million on contractors and consultants. This was an increase of 6% on the 2018/19 spend of $923.2 million, with the impact of COVID-19, increased capital expenditure and one-off capital projects contributing to the increase. Total expenditure comprises operational expenditure of $628.4 million (up 2% from $616.5 million in 2018/19) and capital expenditure of $346.5 million (up 13% from $306.7 million in 2018/19).

Operating expenditure on contractors and consultants was 11.7% of total Public Service workforce spend ($5,388.4 million), a reduction from 12.8% in 2018/19 and 13.4% in 2017/18. This reduction was due to contractor and consultant operating expenditure increasing at a slower rate over the past year than total workforce spend.  This measure represents the balance between using external resources and building capacity and capability in the public service.

Contractor and Consultant Expenditure ($ million)

 

FY2018/19

FY2019/20

Agencies

OPEX

CAPEX

Total

OPEX

CAPEX

Total

Cancer Control Agency

 

 

 

$0.4

none

$0.4

Crown Law Office

$1.0

$0.0

$1.0

$1.5

$0.1

$1.6

Department of Conservation

$13.7

$0.6

$14.3

$12.4

$0.9

$13.3

Department of Corrections

$18.4

$41.1

$59.5

$20.7

$25.6

$46.3

Department of Internal Affairs

$33.0

$24.3

$57.3

$59.0

$17.7

$76.7

Department of the Prime Minister and Cabinet

$2.2

none

$2.2

$2.8

none

$2.8

Education Review Office

$0.7

none

$0.7

$1.3

$0.2

$1.6

Inland Revenue Department

$136.8

$69.1

$206.0

$111.5

$72.3

$183.8

Land Information New Zealand

$13.0

none

$13.0

$6.8

$4.0

$10.8

Ministry for Culture and Heritage

$2.7

$0.1

$2.8

$4.7

$0.5

$5.2

Ministry for Pacific Peoples

$1.0

none

$1.0

$2.2

none

$2.2

Ministry for Primary Industries

$52.3

$3.6

$55.9

$50.2

$3.3

$53.5

Ministry for the Environment

$12.5

none

$12.5

$23.4

$0.2

$23.6

Ministry for Women

$0.6

none

$0.6

$0.8

none

$0.8

Ministry of Business, Innovation and Employment

$76.5

$22.2

$98.7

$70.2

$38.7

$108.9

Ministry of Defence

$1.4

$0.5

$1.8

$1.2

$1.0

$2.2

Ministry of Education

$61.9

$93.9

$155.8

$57.5

$109.8

$167.2

Ministry of Foreign Affairs and Trade

$19.1

$4.3

$23.3

$14.4

$4.3

$18.7

Ministry of Health

$18.1

$7.2

$25.3

$25.0

$17.2

$42.2

Ministry of Housing and Urban Development

$12.8

none

$12.8

$14.7

none

$14.7

Ministry of Justice

$25.5

$5.2

$30.7

$21.4

$7.1

$28.5

Ministry of Māori Development-Te Puni Kōkiri

$13.2

none

$13.2

$18.5

$0.7

$19.3

Ministry of Social Development

$25.7

$20.3

$46.0

$38.5

$23.4

$61.9

Ministry of Transport

$7.8

$0.7

$8.5

$16.5

none

$16.5

National Emergency Management Agency

 

 

 

$0.8

$0.0

$0.8

New Zealand Customs Service

$7.7

$9.6

$17.3

$6.6

$13.4

$20.1

Office for Māori Crown Relations-Te Arawhiti

$2.3

none

$2.3

$4.7

$0.0

$4.7

Oranga Tamariki-Ministry for Children

$25.9

$0.2

$26.1

$19.6

$2.9

$22.4

Public Service Commission

$2.2

none

$2.2

$2.1

none

$2.1

Serious Fraud Office

$0.7

none

$0.7

$0.5

none

$0.5

Social Wellbeing Agency

$5.3

$0.3

$5.6

$1.8

none

$1.8

Statistics New Zealand

$12.6

$1.0

$13.6

$6.6

$2.3

$8.9

Te Kāhui Whakamana Rua Tekau mā Iwa-Pike River Recovery Agency

$1.6

$0.6

$2.1

$2.9

none

$2.9

The Treasury

$8.1

$1.9

$10.0

$7.3

$0.9

$8.2

Total Public Service

$616.5

$306.7

$923.2

$628.4

$346.5

$974.9

Note that some 2018/19 figures have been revised since they were first published. The reported total expenditure has changed from $914.2 million to $923.2 million.

Public Service expenditure on contractors and consultants data for the 2017/18 year was the first to be published using new Commission guidance on how to report contractor and consultant expenditure. Before the new guidance, there was inconsistency in how agencies were reporting their contractor and consultant expenditure.

The focus is on operating expenditure, as the large one-off investments that capital expenditure typically represents are likely to have a different mix of public servants and contractors/ consultants and the resulting expenditure is likely to be volatile over time due to the fixed-term nature of these projects.

Definitions:

Operating expenditure (OPEX) – this is the money spent for contractors and consultants that are not for the purpose of acquiring or developing assets.

Capital expenditure (CAPEX) – this is the money spent to acquire resources to develop assets, tangible and intangible, through procurement of contractors and consultants.

Total workforce spend is defined as the sum of salary expenditure for permanent and fixed-term employees, and operational expenditure on contractors and consultants.

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