Big-spender bills detailed

ODT graphic.
ODT graphic.

ODT graphic.
ODT graphic.
Dunedin City Council chief executive Jim Harland - the man paid $352,000 a year to manage the city's bureaucracy - has charged nearly $20,000 worth of travel, accommodation and other costs to his ratepayer-funded credit card.

The spending attached to his council-issued card has occurred over the past three years, according to council figures released this week.

Council's coffee culture

Mr Harland has also contributed to a second bill topping $100,000, attached to a second card's account, which is managed by a group of three personal assistants and used to pay the expenses of the council's senior management team.

Despite that, Mr Harland features only eighth on the list of the top 10 council top spenders, according to an Otago Daily Times analysis of the council information yesterday.

The count showed the three personal assistants topped the list, having together spent $101,724.41 over three years on everything from flights, accommodation and conference fees to gifts, flowers and coffee supplies.

The spending was for the council's five general managers, as well as Mr Harland and other senior managers, as required.

Next on the list was council water and waste services manager John Mackie, with $32,637.36, while council aquatic services manager Steve Prescott was third, with $31,344.95.

Mr Harland's spending using the council credit card in his name was $19,139.43, although it was not known yesterday how much of the second card's $101,724 bill was for him.

Mr Harland defended the spending again when contacted yesterday, saying he was comfortable ratepayers were getting a good deal.

Individual spending decisions were made by individual managers, just as in any organisation or household, but the council was audited by Audit New Zealand, he said.

"We all have different opinions of what's appropriate expenditure. There will be some items on there people think aren't appropriate ... that's the nature of life and that's the nature of decision-making.''

Mr Harland said the $101,724 bill attached to the card managed by the council's PAs supported the activities of the senior management team, but could not say yesterday how much his own costs contributed to that bill.

However, his spending was drawn from approved and monitored budgets, and "whether it's booked through my credit card or my PA card is immaterial''.



Most other senior managers on the list contracted by the ODT refused to comment, referring inquiries to Mr Harland.

Council financial controller Maree Clarke - fourth on the list - said she could not comment because "the agreement across the organisation is Jim [Harland] is going to be talking''.

"I need to leave it at that,'' she said.

Council water and waste services manager John Mackie said only: "All through Jim''.

Council economic development unit manager Peter Harris was almost the only manager prepared to speak, saying: "I don't have any problem having to justify my spending to the ratepayer.''

He said he was surprised to hear his tally was so high, having not seen a breakdown of the spending, but believed ratepayers were getting value for money.

"I'm a board member of the Economic Development Association of New Zealand. That requires me to travel to Wellington probably every six weeks.

"I would imagine there's a reasonable cost of travel in that, but the benefit to council far outweighs the cost.

"On the one hand, there's obviously some staff that have been highlighted, but administratively it's actually a very effective way of paying an expense. It actually saves the ratepayer money.''

His comments come after the council on Monday revealed figures showing its top 36 managers and four PAs had together swiped their way through 3400 transactions worth $534,500 in three years.

Mr Harland admitted about $7000 of the transactions were questionable, having been spent in cafes during meetings between small groups of staff, and that apologies and repayments had been made by some staff.

Another staff member also no longer worked for the council, in part due to inappropriate card spending in the past 18 months, and the details had been referred to police.

However, the actual cost of all 206 credit cards in the same period was expected to be higher, at "probably a couple of million or more'', Mr Harland said on Monday.

Contacted yesterday, he again defended the spending as appropriate, even when it came to the purchase of a $1000 piece of art for a council office, or numerous staff performance rewards totalling thousands of dollars.

He said a performance rewards budget, totalling 1.5% of the council's annual payroll of about $40 million, was available for the purchase of dinners, movie tickets or other rewards.

The system had been in place "a long period of time'', with the budget recalculated annually, tracked and reviewed monthly.

He did not know details of the art purchased, but said such items were sometimes bought from a "general'' budget category available for "staff furniture and corporate fit-outs and things of that nature''.

Asked why other senior managers would not answer questions about their spending, Mr Harland said it was his responsibility.

"I'm responsible for expenditure and employment. I'm also responsible for any disciplinary matters.

"If there's any issues, I need to ensure I discharge my responsibilities as a fair employer.''

chris.morris@odt.co.nz

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