11. Business Innovation and Employment Minister—Procurement Process and Untendered SpendingDr DAVID CLARK (Labour—Dunedin North) to the Minister for Economic DevelopmentBusiness Innovation and Employment Minister—Procurement Process and Untendered Spending11. Dr DAVID CLARK (Labour—Dunedin North) to the Minister for Economic Development: Is he answerable to this House for the more than $20 million in untendered contracts at the Ministry of Business Innovation and Employment reported in the previous year; if so how can he be sure those contracts represent best value for money when they were not tendered?Hon SIMON BRIDGES (Minister for Economic Development): I am the ownership Minister for the Ministry of Business Innovation and Employment (MBIE). I think what is true is that for a large entity within Government such as MBIE it is not unusual—indeed I do not disapprove of it having contractors and consultants and using them. I think there is a range of ways that it procures these services. Just because it is not in an open tender does not mean as the member seems to be suggesting that it is in any way not a robust procurement process. I would note actually—this is important because I do expect value for money in this area and for MBIE to be continuously driving on that—that MBIE has had a good record of managing down its procurement expenditure from I think some $48 million in 2012-13 to $38 million in the 2015-16 year.Dr David Clark: I raise a point of order Mr Speaker. This is a question on notice. The first bit he answered directly: he is the ownership Minister—i.e. he is answerable to the House. The second part asked how he could be sure that it represented the best value for money. What he went on to describe was why he believed it was value for money but he was unable to answer the part about why he thought it was the best value for money. I do not think he addressed that and it was on notice.Mr SPEAKER: I listened very very carefully to the answer and on this occasion I do not agree with the member raising the point. The question was addressed. The member has further supplementary questions; that is the way forward.Dr David Clark: Does he support spending $1.2 million on a single untendered contract and is this a practice he expects to continue under his watch?Hon SIMON BRIDGES: I have every confidence that MBIE has followed the rules of procurement in this area. What I would make very clear is that these are operational matters ultimately but I have no reason to believe that there is anything untoward here. I would also note as I said earlier that in a large organisation like this which quite literally is in a range of areas and requires expertise in areas from rockets to construction to labour to administration I would expect to see it using consultants and contracting. But I also expect value for money and have made that quite clear. I have had an assurance that it will continue with its track record of driving down the costs in this area.Dr David Clark: Can he explain to the House what coaching and evaluation support for customer-centric co-design initiatives" is and why the taxpayer is forking out $439 an hour for consultants to deliver this service?Hon SIMON BRIDGES: It sounds like the sort of course the member should go on. But what I would say to the member is that ultimately we can do this and go through courses and specific consultancy services but they are operational matters for MBIE. If the member has specific concerns in relation to them he has appropriate processes to raise them with me but I have every confidence that MBIE is firstly following the rules in this area and secondly actively driving down the costs. As we are seeing its record in this area is good.Dr David Clark: I raise a point of order Mr Speaker. I am seeking your clarification. I think the member was implying this was not an appropriate forum to ask these questions. You are saying it is an appropriate forum. I just ask that he respect that because he was implying that this was not an appropriate question to be asking on behalf of the taxpayer—where that money is going. [Interruption] Mr SPEAKER: Order! No the question was asked. There were actually two questions in there. The second part of the question was addressed very quickly by the Minister. He then went on to make comments that related more to the first part of the question. There is no doubt in my mind that the question has been addressed—clearly not to the satisfaction of the member. I think most of us will accept that but the way forward again is further incisive supplementary questions.Dr David Clark: Why has he directed his "please explain" letter to the ministry when his colleague Steven Joyce who has form with $140000 TV—[Interruption]Mr SPEAKER: Order! And now I do apologise. I cannot hear the question because of the interchange coming from my left and my right. I invite the member to start the question again.Dr David Clark: Why has he directed his "please explain" letter to the ministry when his colleague Steven Joyce who has form with $140000 TV screens $67000 signs barbecue sundecks blow-up sheep and hair straighteners continued in the last year to oversee untendered expenditure of more than $20 million of taxpayer money?Hon SIMON BRIDGES: Well because while I have got confidence that the rules of procurement are being followed here and while I have I think a sense of confidence based on the fact that actually MBIE's record has been to drive the costs down from $46 million or $47 million to $38 million since its inception the member has asked questions about these things he has raised a number of issues in relation to a number of particular matters and I just want to be sure and be satisfied that there is nothing in them. Given that it is the member asking the questions there probably is not."