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Government ministries are moving ahead with plans to cut spending, confirming jobs will go to meet Beehive expectations.
Public Service Minister Nicola Willis has sent a clear message to Wellington, ordering all government departments to cut costs by 6.5 per cent to 7.5 per cent on average, in an effort to “restore respect for taxpayer money by stopping wasteful spending”.
The Department of Internal Affairs currently employs more than 2700 staff, as well as spending $122 million on consultants and contractors from June 2022 to June 2023.
The organisation has set-up a team to oversee cost-cutting efforts, enlisting nine existing staff members to manage the task while continuing work in their usual roles.
In a statement to the Herald, a spokesperson said staff were “receiving no additional compensation for being part of the programme team”.
“We cannot comment at this stage on the scope of the changes or how long they will take as details of baseline reductions are still Budget-sensitive.
“They may involve a reduction in kaimahi [staff], and we are engaging with the PSA.”
A leaked memo to staff last week, seen by the Herald, also states that job losses may be on the table. It says while leaders are “looking at reductions that don’t directly affect people in the first instance [...] it is likely that some kaimahi will be affected”.
The message to staff also signalled a change in attitude to spending, stating “over coming years, we should expect greater focus on restraint, reprioritisation, value-for-money, alignment to priorities and efficiencies in the long term.”
Public Service and Finance Minister Nicola Willis. Photo / Mark Mitchell
The DIA performs many of New Zealand’s administrative functions, including managing births, deaths and marriages information, administering passports and citizenship, enforcing censorship and gambling laws, and providing services and policy advice to government ministers.
MBIE pushes on with voluntary redundancy scheme
The Ministry of Business, Innovation and Employment is pushing on with cuts through a voluntary redundancy scheme.
Previous internal communication revealed by NZME shows MBIE chief executive Carolyn Tremain wanting to bring down discretionary spending by 15 per cent.
MBIE’s latest headcount sits at 6396. The ministry spent $104m on consultants and contractors in the year to June 2023.
Applications for MBIE’s voluntary redundancy scheme opened on Tuesday, January 23, and closed on Monday, February 12. People who applied for voluntary redundancy will be informed of their fate next week.
Chief people officer Jennifer Nathan said the process was “entirely voluntary”, and there was no set uptake target.
MBIE is expected to publicly confirm the total number of voluntary redundancies in early March.
“MBIE’s focus continues to be on delivering value for money, using our funding responsibly and delivering the best results for New Zealanders,” Nathan added, in a statement.
Kāinga Ora reforms revealed through official communications
Kāinga Ora is promising to “continue to adapt” to meet the Government’s priorities.
In a statement, strategy, finance and policy general manager Gareth Stiven said the organisation has a solid base, and “has been reducing internally focused change programmes and resources over the last 18 months”.
Kāinga Ora put in recruitment restrictions last November “for all roles that are not frontline or customer-facing”, with more than 300 roles removed from budgets.
The agency promises it is monitoring work programmes and will continue to adapt to meet the Government’s priorities and direction.
Documents relating to the agency’s cost-slashing exercises have been released to NZME under the Official Information Act.
On November 10, chief executive Andrew McKenzie told all workers a recruitment pause was in place, effective immediately and until further notice.
McKenzie told staff during the election there was a “clear direction” for government entities to be constrained in their spending. Staff were informed they must be careful on the roles they recruit for.
As of November 10, McKenzie said the organisation was “no longer in a growth phase”.
These decisions were made despite a lack of official direction from the Government.
A separate memo 20 days later, from Kāinga Ora’s Gareth Stiven, detailed the agency was “yet to receive any direction from the incoming Government” but noted reducing Crown Agency spending would be a key focus.
On the same day, chief executive Andrew McKenzie told staff in a pānui [announcement] he would be meeting with new Housing Minister Chris Bishop and Associate Minister of Housing (Social Housing) Tama Potaka, “to understand their aspirations”.
McKenzie confirmed to staff the Government was in support of an independent review into the housing authority’s financial situation, procurement, and asset management, which has since been publicly announced.
Every business group within the organisation has been asked to “clearly explain their value”, quantified by data, delivery and impact.
The total public service headcount, according to data from the Public Service Commission, shows 64,222 employees across the sector.
Ethan Manera is a multimedia journalist based in Wellington. He joined NZME in 2023 and is interested in politics, local issues, and the Public Service. Ethan is always on the lookout for a story, he can be emailed at ethan.manera@nzme.co.nz or messaged on X (formerly Twitter) @ethanjmanera
Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022 and has a keen interest in city council decisions, social housing and transport.
