Taxpayer Costs Reach $270K for Public Research Agency Rebrands

New public research organisations in New Zealand have incurred costs exceeding $270,000 for logo designs, websites, and rebranding efforts, despite the existence of a free government branding option. Data released under the Official Information Act indicates that the expenditures have raised concerns regarding fiscal responsibility, especially in light of taxpayer funding.

The three agencies involved are Earth Sciences New Zealand, The Bioeconomy Science Institute, and The Public Health and Forensic Science Institute, each of which allocated tens of thousands of dollars towards branding initiatives. Specifically, Earth Sciences New Zealand reported spending $71,596 and logged 364 staff hours in branding work. The Bioeconomy Science Institute’s expenses reached $89,636, which included $42,735 in legal fees. Meanwhile, the Public Health and Forensic Science Institute incurred costs totaling $68,714.

Government Rebranding Overhaul

These expenditures occurred in the context of a comprehensive overhaul of New Zealand’s science system, which merged six of the seven Crown Research Institutes into three larger entities as of July 2023. The restructuring saw Niwa and GNS Science combine into Earth Sciences New Zealand, while AgResearch, Manaaki Whenua, Plant & Food Research, and Scion formed the Bioeconomy Science Institute. The former ESR has transitioned into the Public Health and Forensic Science Institute.

Shane Reti, the Science Minister, stated he was not informed of the costs prior to their occurrence. He expressed his expectation that these new public research organisations operate in a financially responsible manner and strive for efficiencies to focus on impactful research.

The spending appears at odds with guidance issued by the Ministry of Business, Innovation and Employment and the Public Service Commission, which recommend that agencies utilize a shared government identity that includes a standard logo featuring the New Zealand Coat of Arms.

The Taxpayers’ Union, which obtained the financial figures through requests made under the Official Information Act, has criticized the expenditure as “ego-driven” and “wasteful.” Investigations coordinator Rhys Hurley remarked that the organisations are “burning through taxpayer cash for flashy logos and websites, despite the free Coat of Arms being freely available to use.”

Responses from the Agencies

In response to the scrutiny, Iain Cossar, the programme director for science system reforms at MBIE, indicated that the ministry had advised the former Crown Research Institutes to be “fiscally prudent” regarding branding decisions. He emphasized the importance of ensuring that customers and stakeholders can easily identify and connect with these organisations.

Mark Piper, Chief Executive of the Bioeconomy Science Institute, confirmed to The Post that the agency has spent $46,900 on brand development and $51,000 on legal advice and trademark registrations to secure its name and logo. He defended the branding efforts, stating that a strong brand is essential for the institute, given that approximately half of its revenue comes from non-government sources.

The Public Health and Forensic Science Institute reported an additional $32,000 in expenses since the initial responses to the OIA, bringing its total to $100,714. A spokesperson for the institute noted that as a public research organisation, it does not apply the NZ Government Identity per the Public Service Commission Guidance. They pointed out that the government identity could coexist with an organisation’s brand but would not serve as an alternative if rebranding was necessary.

Earth Sciences New Zealand stated that it is not a government agency and, therefore, is not obligated to use the New Zealand Government identity.

As these organisations continue to solidify their identities, the impact of their spending on public perception and future funding remains to be seen.