Goff Phil: Questions for Oral Answer — Questions to Ministers 
Goff Phil: Questions for Oral Answer — Questions to Ministers 
[Volume:678;Page:1232] 
3. 
Hon PHIL GOFF (Labour—Mt Roskill) 
 to the  
Minister of Foreign Affairs 
: Does he have confidence in the Chief Executive of the Ministry of Foreign Affairs and Trade? 
Hon MURRAY McCULLY (Minister of Foreign Affairs) 
: 
 Yes. 
Hon Phil Goff 
: Does he accept responsibility for a botched restructuring process described by media commentators yesterday as being a complete mess and which he in his letter of yesterday to John Allen said has damaged confidence professionalism and morale in the ministry; or is that all John Allen’s fault? 
Hon MURRAY McCULLY 
: The quote from the member is taken slightly out of context. What I will say is that the proposals advanced by the ministry leadership had some very positive features that will be profoundly important for the future of the ministry and some other features that caused me concern. I conveyed my views in both respects at the time before the commencement of the consultation process and yesterday the consultation process having finished I set out those views in a four-page letter in a very transparent way. I take responsibility for the views that I expressed in that letter and also in the communications I made prior to the consultation process starting. 
Hon Phil Goff 
: When the Minister told this House yesterday that the proposal that had been circulated from the ministry staff “comes from ministry management and not from me” is it correct as the ministry spokeswoman said today that he has been involved in these restructuring proposals “throughout the process” that he appointed Mr Allen from the private sector with instructions to radically restructure the Ministry of Foreign Affairs and Trade and that the Public Finance Act makes the $40 million in cuts it is expected to make his responsibility? 
Hon MURRAY McCULLY 
: Mr Speaker I am not sure which of those questions you would like me to answer—[ 
Interruption 
]  
Mr SPEAKER 
: Order! The Minister needs to answer only one. 
Hon MURRAY McCULLY 
: I want to make it very clear that the proposals advanced for change within the ministry were developed by change teams established under the direction of the chief executive of the Ministry of Foreign Affairs and Trade as is required by the State Sector Act. 
Mr SPEAKER 
: Before I call the Rt Hon Winston Peters—I apologise to the member—I tell members that this sniping across the House will stop. There was some unacceptable sniping earlier on from my right and that was unacceptable interjection from my left. I will draw the line there. Any further sniping or interjection is out of order and members will be in some trouble. 
Rt Hon Winston Peters 
: Can the Minister tell us who will be attending the current Budget round chief executive Allen or him so that the country can learn how this previously appropriately funded ministry has been sold down the drain? 
Hon MURRAY McCULLY 
: If I understand the member’s question correctly I should perhaps put it this way. In 2008 an additional $212 million a year in current Budget terms was allocated to the Ministry of Foreign Affairs and Trade. In my first year in this portfolio we took $115 million of that off the table and a further $20 million in subsequent years. If the $25 million proposed for further savings was to be taken there would still be in excess of $60 million of the so-called step change funding held by the ministry. 
Hon Phil Goff 
: Was John Allen telling the truth when in his briefing to the Minister as the incoming Minister of Foreign Affairs he said that the Government requires operating savings of $40 million a year from the Ministry of Foreign Affairs and Trade which represents I understand about 10 percent of its total budget? 
Hon MURRAY McCULLY 
: As I have told the House previously the communication from the Government to Mr Allen was in the form of a letter from the chief executive of Treasury and the State Services Commissioner and the savings sought in that letter were $24 million. 
Hon Phil Goff 
: I raise a point of order Mr Speaker. My question was: was Mr Allen telling the truth in his briefing to the Minister that he had to find operating savings of $40 million? That question was not answered. 
Mr SPEAKER 
: Order! I thought I heard the Minister answer very clearly. He said the Government actually in a letter to the Ministry of Foreign Affairs and Trade had stated that it required $24 million of savings. That seems to be a very precise answer to the member’s question. 
Hon Phil Goff 
: Why would Mr Allen as chief executive tell the Minister that he was required to find $40 million a year in savings if that is not the truth? 
Hon MURRAY McCULLY 
: If the member had listened to some of the previous responses given by Mr Allen he would know that in addition to the $24 million sought by the chief executive of Treasury and the State Services Commissioner Mr Allen and the management team of the ministry formed the view that they would need to make some additional savings so that they could reprioritise expenditure within the ministry because budgets going into the future were flat-lined. He has publicly given that explanation himself before. 
Hon Phil Goff 
: I seek leave of the House to table Mr Allen’s statement in the briefing paper that operating savings of $40 million a year were to meet Government requirements. 
Mr SPEAKER 
: Leave is sought to table that statement from the briefing paper to the incoming Government. Is there any objection to that course of action? There is no objection. 
Document by leave laid on the Table of the House.