Golden parachute and whale of a pay rise for MoBIE CEO
Revelations today that MoBIE Chief Executive David Smol received a $68,000 golden parachute before getting his new business cards printed puts paid to Steven Joyce’s spin that the monster public sector merger was about delivering efficiencies, Labour’s Economic Development spokesperson David Cunliffe says.
“The business case for MoBIE never added up but Steven Joyce asked New Zealanders to blindly trust his rationale for mashing these economy-critical agencies together.
“Now the public has learned that Mr Joyce’s CEO, David Smol, received an eye-watering $68,000 pay-out when the Ministry of Economic Development logo was taken off the signs – only to be reappointed as CEO when the MoBIE logo went up and with a $120,000 pay rise as a sweetener.
“David Smol now takes home up to $589,999 every year. That’s equivalent to almost 17 classroom teachers or 11 nurses,” David Cunliffe said.
Mr Cunliffe says no personal criticism of David Smol is intended. “He is a dedicated public servant with whom I have worked closely in the past. But the obscene golden parachute shows how out of touch the Government’s priorities with taxpayers’ money have become.
“It was claimed that MoBIE would deliver efficiencies and grow the economy – which we all know it hasn’t achieved. Manufacturing and exporting is in crisis, real median incomes are down, the earnings gap with Australia is wider, the current account deficit is worse, and New Zealand is poorer. Meanwhile MoBIE is printing little glossy pamphlets.
“While thousands and thousands and thousands have been thrown on the unemployment scrapheap MoBIE has dished out thousands and thousands and thousands of dollars in a golden parachute and a whale of a pay rise for one man,” David Cunliffe said. “That’s just plainly wrong.”
 MoBIE is a “federation” merger of the Ministries of Economic Development and Science & Innovation and the Departments of Labour and Building & Housing.