25 June 2021
Ministerial and Secretariat Services
45 Pipitea Street
Thorndon
Lional Jones
P.O. Box 805, Wel ington 6140, New Zealand
[FYI request #15542 email]
Phone +64 4 495 7200
dia.govt.nz
Dear Lional Jones
Official Information Act request 2021 0672
I refer to your Official Information Act (OIA) request of 30 May 2021 to the Department of
Internal Affairs (the Department), requesting the fol owing information:
1: Can you confirm if Judith Col ins was charged $171 per hour for the dol ar figure
quoted in the NZ Herald 24 May 2021, and the PM was only charged $68 per hour.
In your 2020 Annual Report you note the VIP transport service bring in revenue of
$8.77m against a forecast of $9.0m.
2: Does the revenue col ected from Judith Col ins in question 1 contribute to the
$8.77m revenue figure and if so, what was the proportion Judith Col ins contributed
to the figure against the PM's contribution?
3: What was the total annual operating budget for VIP transport in the year for
2020?
4: The OIA response mentioned above says there is a "separate annual available fee,
calculated proportionally against all jobs calculated". Can you please explain what
that actually means?
The 2020 Annual Report notes revenue of $8.77m. I assume the $68 and $171 per
hour make up that plus the "separate annual available fee".
5: For the year 2020 (and I assume these are all financial years quoted) can you
advise what was the split of the hourly fee and the annual available fee towards the
$8.77m figure and if there was any additional fees or revenue that went into it.
I searched limo rates in Wellington and the Limo Club pricing for their fleet show
similar cars with an hourly rate of minimum of $295 per hour. I spoke to their
operator and we discussed how you could operate at $68 per hour if you had to
cover costs. He said it was impossible. Even taking into account their profit margin
(which I would assume you don't have to worry about) there seems a massive
difference in hourly rates. We'd like to know the fol owing:
6: How many hours did you charge in the 2020 year?
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7: How many hours were the Crown limos in use but not charging the hourly rate in
the 2020 year? In other words, how many hours were they sitting ready to go but not
earning?
8: If you got rid of all the Crown limos or vans or other cars you use (and all the
associated costs) and just used limo or taxi services, based on the answer in question
6 would the taxpayer have spent less or more on getting your customers around, and
by how much? I guess you can assume $295 per hour for limos and $75 per hour for
taxis. Use your 2020 split between Crown cars and taxis/other services to work that
out.
9: Has there ever been work done to consider whether it would actually be cheaper
or more efficient to get rid of the Crown cars and just use hired limos and taxis? If so,
can I please see the report?
10: What do drivers get paid hourly?
11: What are the top 4 things VIP transport pay for annually and how much in 2020?
Full disclosure: I'm working with the TPU on this OIA.
Crown fleet service
The Department of Internal Affairs (the Department) provides a safe, secure and
confidential fleet management and transport service around New Zealand for Ministers,
senior members of the judiciary and other entitled users. VIP Transport provides 24 hours
a day, 7 days a week (24/7) operational capability across New Zealand.
The Crown fleet is comprised of chauffeur-driven vehicles, as well as self-drive cars for
Ministers and former Prime Ministers as per entitlements under the Travel Services within
New Zealand Determination 2020 and Members of Parliament (Former Prime Ministers’
Travel Services) Determination 2017. The service also organises taxis or other private
providers, where Crown fleet vehicles are either not available or practical. The Department
sources Crown fleet vehicles through MBIE’s All of Government motor vehicle purchasing
arrangements.
In addition to Ministers of the Crown, those entitled to use chauffeur-driven vehicles
include visiting dignitaries, Heads of State and Heads of Government; Governors-General,
former Governors-General and former Prime Ministers; the Leader of the Opposition, the
Speaker and Deputy Speaker of the House.
Entitled users are listed in the Speaker’s Directions 2020 and the Ministers’ Travel Services
within New Zealand Determination 2017; the Members of Parliament (Former Prime
Ministers’ Travel Services) Determination 2017; and, the Members of Parliament
Accommodation Services for Members and Travel Services for Family Members
Determination 2020.
Ministers are the largest group of entitled users. Clause 2.1 of the Ministers’ Travel Services
within New Zealand Determination 2017 provides that ‘
A Minister may use a chauffeur-
driven car arranged by VIP Transport at any time for any purpose, at the Minister’s
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discretion’. Ministers need to travel regularly to fulfil their obligations, and the confidential,
chauffeur-driven service allows Ministers to use this time efficiently.
These determinations are publicly available and can be found on the New Zealand
Parliament’s website at https://www.parliament.nz/en/pb/parliamentary-rules/directions-
determinations/.
Crown fleet charging information
Until July 2019, there were two charging regimes agreed with the entitled user’s responsible
agency, for example the Ministry of Justice for the judiciary and the Parliamentary Service
for the Speaker of the House and the Leader of the Opposition. These rates were $68 per
hour, which also incurred a separate annual availability fee charged to the user’s
responsible agency; and $171 per hour which did not incur the annual availability fee.
Since 1 July 2019, al users of VIP Transport have been charged the flat rate of $68 per hour.
The hourly rate charged by the Department covers fuel, mileage and staffing costs specific
to that job. All other costs of providing and maintaining the Crown fleet are covered by the
annual availability fee, this includes personnel, depreciation, and capital costs.
Response to your request
1. Can you confirm if Judith Col ins was charged $171 per hour for the dol ar figure
quoted in the NZ Herald 24 May 2021, and the PM was only charged $68 per hour.
Please note that Hon Judith Col ins was not the Leader of the Opposition and
therefore not an entitled user of VIP Transport in the time period (2019/2020
financial year) for which you have requested information. Hon Judith Col ins
became the Leader of the Opposition on 14 July 2020 and the entitled user charge
has been $68 per hour for her tenure in this role.
The two hourly rate charges to which you refer are no longer used. The charging
regime was updated on 1 July 2019 and all entitled users of VIP Transport are now
charged $68 per hour. Therefore, no, the amount you refer to was not the amount
charged to Hon Judith Col ins. The Parliamentary Service does not currently pay
the annual availability fee.
In your 2020 Annual Report you note the VIP transport service bring in revenue of
$8.77m against a forecast of $9.0m.
2. Does the revenue col ected from Judith Col ins in question 1 contribute to the
$8.77m revenue figure and if so, what was the proportion Judith Col ins
contributed to the figure against the PM's contribution?
All revenue collected by VIP Transport from the users of the service, including the
Leader of the Opposition, contributes to the total VIP Transport revenue figure.
Please note as outlined above, that Hon Judith Col ins was not an entitled user of
VIP Transport in the time period for which you have requested information. Hon
Judith Col ins became the Leader of the Opposition on 14 July 2020.
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I searched limo rates in Wel ington and the Limo Club pricing for their fleet show
similar cars with an hourly rate of minimum of $295 per hour. I spoke to their
operator and we discussed how you could operate at $68 per hour if you had to
cover costs. He said it was impossible. Even taking into account their profit margin
(which I would assume you don't have to worry about) there seems a massive
difference in hourly rates. We'd like to know the fol owing:
6. How many hours did you charge in the 2020 year?
The number of hours charged to entitled users of VIP Transport in the 2019/2020
financial year was 12,368. This compares with the total number of jobs completed
in 2019/20 by VIP Transport which was 14,578. In most recent years prior to 2020,
the number of hours charged per year has been between 16,000 and 23,000.
Please note that the VIP Transport chauffeur-driven service was not operating
during New Zealand’s nationwide Level 4 lockdown March - May 2020, nor during
any subsequent regional Alert Level 3 period.
7. How many hours were the Crown limos in use but not charging the hourly rate in
the 2020 year? In other words, how many hours were they sitting ready to go but
not earning?
The Department ensures that the Crown fleet has operational capability 24/7, so
it can provide the service specified in the Ministers’ Travel Services within New
Zealand Determination 2017, i.e. that
‘A Minister may use a chauffeur-driven car
arranged by VIP Transport at any time for any purpose, at the Minister’s
discretion’.
The whole time a Crown vehicle is engaged on a booked job, including any
relocation cost of the vehicle, is covered by either time charged directly to the
entitled user, or by the annual availability fee charged to the user’s responsible
agency.
8. If you got rid of all the Crown limos or vans or other cars you use (and all the
associated costs) and just used limo or taxi services, based on the answer in
question 6 would the taxpayer have spent less or more on getting your customers
around, and by how much? I guess you can assume $295 per hour for limos and
$75 per hour for taxis. Use your 2020 split between Crown cars and taxis/other
services to work that out.
This is not information held by the Department. I am therefore declining this part
of your request under section 18(e) of the Act, as the information is not held.
9. Has there ever been work done to consider whether it would actually be cheaper
or more efficient to get rid of the Crown cars and just use hired limos and taxis? If
so, can I please see the report?
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