The Ministry of Business, Innovation and Employment has admitted it failed to disclose key information to Parliament regarding a cancelled IT project earlier this year, though its chief executive firmly denies any intentional attempt to mislead lawmakers.
Appearing before the Privileges Committee on Tuesday evening, MBIE chief executive Nic Blakeley acknowledged the ministry got things wrong when it omitted news of the axed $35 million Biometric Capability Update (BCU) project during a March appearance before Parliament’s Education and Workforce Committee. Instead of telling MPs the project was dead, the ministry told the committee there was no public review regarding its progress. Speaker Gerry Brownlee referred the matter to the Privileges Committee in June after Labour’s Phil Twyford and the Education and Workforce Committee raised it as a matter of privilege.
Budget Sensitivities and Negotiations Cited
Blakeley told the committee that the ministry operated under a “genuinely held belief” that Budget and commercial sensitivities restricted what staff could say in a public forum. At the time of the March hearing, MBIE was still in negotiations over a final payment to Japanese tech company NEC regarding the terminated project. Blakeley conceded that the ministry should have adopted a different approach or requested a secret hearing with the public removed from the room, admitting that the failure to communicate openly was a failing.
National’s Scott Simpson pointed out during the hearing that Twyford had already submitted questions and filed Official Information Act requests prior to the meeting, which should have served as a clear flag for preparation. Blakeley agreed, noting it was surprising in hindsight that no written material on the BCU existed to show that they weren’t well enough prepared. ACT’s Parmjeet Parmar questioned whether Blakeley was satisfied with the information provided, to which Blakeley responded that he did not think he was doing anything wrong at the time, given the perceived limitations.
Did You Know? The $35 million Biometric Capability Update (BCU) project was managed by another part of MBIE, while Immigration New Zealand handled separate components of the broader identity programme.
Immigration Leadership Perspectives
Also appearing at the inquiry via Zoom from the United Kingdom, now-retired head of Immigration New Zealand Alison McDonald defended her stance during the March proceedings, stating that in her mind, the overarching programme had not stopped. McDonald explained that the biometric capability project was managed by another part of MBIE rather than Immigration New Zealand. She noted she was fronting for the agency because the responsible deputy secretary had just resigned and Blakeley had only just started in an acting capacity.
McDonald accepted that when Twyford asked specific questions about milestones, she should have paused and realized he was inquiring about the IT project rather than the broader work programme. “I honestly thought I was trying to help the committee understand that we were moving in a different direction. On reflection, that was the wrong thing to do,” McDonald said, adding that she found suggestions of intentionally misleading Parliament extremely distressing. Meanwhile, Immigration Minister Erica Stanford has accused the ministry of deliberately withholding information from her and the previous Labour government, stating ahead of the hearing that she expected the officials to tell the truth.
Frequently Asked Questions
Why did MBIE not mention the cancelled IT project in March?
According to MBIE chief executive Nic Blakeley, the ministry believed ongoing negotiations with Japanese tech company NEC regarding a final payment and commercial sensitivities limited what could be disclosed in a public forum.
Who referred the matter to the Privileges Committee?
Speaker Gerry Brownlee referred the matter to the Privileges Committee in June after Labour’s Phil Twyford and the Education and Workforce Committee raised it as a matter of privilege.
What was the cost of the cancelled project?
The cancelled Biometric Capability Update (BCU) project cost $35 million.
How will this inquiry impact future disclosures by government ministries to parliamentary committees?
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