DCC leads others in use of credit cards

Dunedin City Council staff are more likely to have their hands on a ratepayer-funded credit card than their colleagues in other councils across New Zealand, figures show.

Inquiries by the Otago Daily Times have confirmed the Dunedin City Council relies more heavily on the cards than other major councils across New Zealand, as well as its neighbouring councils in Otago and Southland.

It was revealed last week the Dunedin City Council had 206 cards spread across its 687 full-time equivalent (FTE) staff, amounting to nearly one card for every three staff.

The cards were used to pay for millions of dollars worth of legitimate council expenditure, ranging from flights and accommodation to stationery.

However, it was also revealed 36 senior council staff and four personal assistants had together spent $100,500 on food, coffee, entertainment and drink over the past three years, including $7000 on questionable staff meetings in city cafes.

Mr Harland admitted some staff had apologised and made repayments as a result, but defended the credit-card use as a more transparent and cost-effective accounting procedure.

However, other councils appear not to be pursuing the system with the same enthusiasm.

At the other end of the spectrum, the Otago Regional Council's 125 full-time equivalent (FTE) staff did not have access to a single council credit card, while Queenstown Lakes District Council's 123 FTE staff had access to just one credit card, which was held in a secure room.

"The mayor doesn't have one, the chief executive doesn't have one - it's just the one card," QLDC communications manager Meaghan Miller said.

The Clutha and Waitaki District Councils had only one card each, while the Central Otago District Council had nine cards used by five senior managers and four other senior staff.

Nationally, Dunedin also appeared to be punching above its weight, when compared with Wellington City Council, which had a similar number of cards (203) but spread across almost twice as many staff (1264 FTE).

Invercargill City Council had 12 cards for its 283 FTE staff, Christchurch City Council 410 cards for 1848 FTE staff, Hamilton City Council 71 cards for 857 FTE staff and Auckland City Council 326 cards for 2303.5 FTE staff.

It was a similar story in the private sector.

Forsyth Barr - the naming rights sponsor for Dunedin's new stadium - had just six cards across about 70 staff in Dunedin, and 30 cards across 250 staff nationally.

Forsyth Barr managing director Neil Paviour-Smith, of Wellington, said he had been surprised by the apparent lack of checks and balances revealed by media scrutiny of council spending across New Zealand.

"It does surprise me how these kind of things have been able to go on for so long for the kinds of expenditure they are.

"When you see the family Christmas ham on credit cards [by Manukau City Mayor Len Brown] ... it just seems there's a culture where certain spending is entitled," he said.

Mr Paviour-Smith said his company used cards to cover reasonable staff costs associated with work-related travel and entertaining, but gatherings by small groups of staff in city cafes "would be poor form".

"Where it's two or three colleagues going out for a coffee, that's where I would be inclined to draw the line.

I would say `don't expect the company to be paying for the privilege, otherwise you can meet in the office'.

"Expecting your organisation to spend money in cafes, or staff to get together over the road, I think is a bit on the nose and wouldn't be the norm in the private sector."

Otago Chamber of Commerce chief executive John Christie said when contacted some of the council's credit-card use appeared "quite valid", but he questioned the overall number of cards available to council staff.

In the private sector, the number of cards available within a company - and their use - would depend on the type and size of the business, but one card for every three staff would not be typical, he believed.

"There would have to be pretty good reasons why that would be the case.

Elsewhere, Port Otago did not use a single credit card to cover costs associated with its 300 FTE staff, relying instead on monthly accounts and reimbursing staff costs, chief executive Geoff Plunket said.

"That way we can see our spending across the building."

The Southern District Health Board - with a budget of about $800 million - had just two cards for its 3554 FTE staff, while the Otago Museum had just one "very highly regulated" card for its 55 FTE staff, museum exhibitions, development and planning director Clare Wilson said.

The University of Otago tipped the scales with 1064 cards, but spread among 3683 FTE staff, University financial services director Grant McKenzie said.

The cards were considered a cost-effective way of managing work-related purchases, covered by a policy forbidding personal use.

Monthly statements were approved by supervisors, Mr McKenzie said.

chris.morris@odt.co.nz