Taxpayer Funded Rebranding Costs Exceed $270,000 for New Agencies

Publicly funded research organizations in New Zealand have incurred costs exceeding $270,000 for logo design, website development, and rebranding efforts. This spending comes despite the availability of a free government branding option. Data released under the Official Information Act highlights significant expenditures by Earth Sciences New Zealand, The Bioeconomy Science Institute, and The Public Health and Forensic Science Institute.

In detail, Earth Sciences New Zealand spent $71,596, alongside 364 hours of staff time, on its logo and website. The Bioeconomy Science Institute’s expenses totaled $89,636, which included $42,735 in legal fees for trademark protections. Meanwhile, the Public Health and Forensic Science Institute allocated $68,714 for its rebranding. The New Zealand Institute for Advanced Technology is still in the process of completing its rebrand.

Government Overhaul and Financial Responsibility

These expenditures arose during a major overhaul of New Zealand’s science system that merged six of the seven Crown Research Institutes into three new entities as of July 2023. The restructuring combined Niwa and GNS Science into Earth Sciences New Zealand, while AgResearch, Manaaki Whenua, Plant & Food Research, and Scion formed the Bioeconomy Science Institute. The former ESR transitioned into the Public Health and Forensic Science Institute.

Shane Reti, New Zealand’s Science Minister, expressed concern over the lack of prior notification regarding these costs. “I have made my expectation clear to the Boards of these new public research organizations that they are to operate in a financially responsible manner and look for efficiencies where possible,” he stated. This sentiment underscores the government’s intent to focus on impactful research rather than branding costs.

The expenditures appear to contradict guidance from the Ministry of Business, Innovation and Employment, which encourages agencies to adopt a shared government identity that incorporates the New Zealand Coat of Arms. Critics, including the Taxpayers’ Union, have labeled the spending as “ego-driven” and “wasteful.” According to investigations coordinator Rhys Hurley, these institutions are “burning through taxpayer cash for flashy logos and websites, despite the free Coat of Arms being available for use.”

Justifications from Agency Leaders

In response to the criticism, Iain Cossar, the ministry’s programme director for science system reforms, indicated that previous Crown Research Institutes were advised to be fiscally prudent regarding branding decisions. “Ensuring that customers and stakeholders can clearly identify and connect with these organizations remains a priority,” he noted.

The Chief Executive of the Bioeconomy Science Institute, Mark Piper, confirmed that the agency has spent a considerable $46,900 on brand development and an additional $51,000 on legal advice and trademark registrations. “The legal work gives us confidence that we can use our new name and identity, and protects us from future issues,” he explained. Piper emphasized the importance of a strong brand, especially since around half of their revenue originates from non-government sources.

Piper asserted that the organization is managing costs carefully during this rebranding process. “The freedom-to-operate legal work was required for our name and would have been necessary regardless of whether we adopted the government identity or developed our own,” he added.

Additionally, the Public Health and Forensic Science Institute reported an extra $32,000 in spending since the initial OIA response, bringing its total to $100,714. A spokesperson clarified that “Public Research Organizations are not Government agencies, so do not apply the NZ Government Identity per the Public Service Commission Guidance.” They pointed out that the government identity is meant to be used alongside an organization’s brand.

Earth Sciences New Zealand similarly stated that it is “not a government agency,” thus negating the requirement to utilize the New Zealand Government identity.

As the debate continues, these organizations face scrutiny over their financial decisions and the implications for taxpayer funding. The call for transparency and fiscal responsibility remains strong as New Zealand navigates its revamped scientific landscape.