Compass' multimillion-dollar Government contracts explained (by CICTAR) - New Zealand Herald investigates

The New Zealand Herald has been looking into the finances of UK owned Compass Group, the world’s largest global contract food service company. Helped by CICTAR’s Ed Miller who comments extensively in the NZ Herald’s recent report and video feature.

The New Zealand Government is a significant customer for the school lunch provider, whose most recent public financials put its total New Zealand revenue at $296.5m. and has been under fire for ‘multiple failings in delivering its $80m a year school lunch contract’.

Whilst cutting costs, at the expense of workers and children’s nutrition, Compass in New Zealand paid a $53.3m dividend to its UK parent company in 2024 and paid $6m in royalties to its ultimate parent in the UK.

CICTAR’s Ed Miller is quoted: “Taxpayers should decide whether they think such profits and royalties are an appropriate use of public

funds, The next time one of these contracts is being tendered, it would be worthwhile for officials to consider the extent this company is paying tax on profits or using mechanisms not available to local companies…The human and political costs of the programme’s failures appear to be greater than the savings achieved.”

Watch the interview with Ed (at 9.5 minutes) here