Public sector cuts: Ministry of Māori Development told to find millions in cost savings beyond upcoming Budget, 38 jobs to go

Rules had already been put in place around “financial delegations, travel, vehicle use, contractor spend, tighter recruitment decisions and remuneration" prior to the election. Photo / Mark Mitchell

Communications from the Ministry of Māori Development - Te Puni Kōkiri reveal more cost-saving proposals are on the horizon, as staff learned today about the latest change proposal, which puts 38 fulltime equivalent roles on the line.

In a letter to other public sector leaders, the secretary for Māori development te tumu whakarae mō Te Puni Kōkiri, Dave Samuels, said prior measures including a recruitment pause have “reduced the scale of change required now and the vacancies have provided us with flexibility as we have considered our options”.

“Nonetheless, I confirmed to kaimahi [workers] today that it is inevitable that there will be the loss of some positions and some people.”

The proposal would decrease roles at the ministry by about 8 per cent, with final arrangements to be confirmed by the end of the financial year.

Samuels promised the ministry would still be able to follow its core values of maintaining capability to support the Government’s priorities, mataining regional strength and bringing similar work functions together.

Meanwhile, communications reveal how the ministry has been faring in its task to find millions of dollars to cut.

Near the end of February, staff were told an expectation to find cost savings was confirmed at the end of last year, “when the Minister of Finance directed us to identify savings of 6.5 per cent or $34.6 million per year from the 2024/25 financial year”.

The letter, seen by NZME under the Official Information Act (OIA), confirmed staff were asked to give feedback on how costs could be brought down.

“The ideas received covered six areas; catering, people, procurement, property, technology and travel. We have incorporated some of these ideas into our cost savings proposal,” the February letter confirmed, adding the ministry had prioritised minimising the impacts to community-led services as savings were explored.

A further FAQ document, sent to all staff, confirmed Te Puni Kōkiri had kept consultation on the cost-savings process to a select number of senior leaders. The document read “due to the Budget sensitivity of the process, the cost savings process was kept to a small group identified by ELT [executive leadership team] and relevant directors”.

Workers had been receiving regular updates on how the agency has been coping, amid decisions across other ministries and departments that have put thousands of roles on the chopping block overall.

Samuels told all staff in an email dated March 27 that cost-saving measures had been in effect for a number of months.

“These measures included a pause on recruitment, the centralisation of uncommitted contractor and consultant budgets, a focus on reducing costs related to travel and events and tightening financial delegations,” the email, released to NZME under the OIA, said.

Samuels was “genuinely grateful” to staff for their efforts on contributing ideas to help bring expenditure down.

“More is needed from Te Puni Kōkiri, however, and as I indicated to you last year, there will be implications for the employment of some kaimahi,” he said, inviting people to an all-staff hui at the end of April, which has been held today.

A spokesman for Finance Minister Nicola Willis said all agencies have been given savings targets.

“Whether they meet those targets or deliver more or less is subject to Budget decision-making. Decisions will released as part of the Budget,” he said.

The Herald had previously revealed communications from Te Puni Kōkiri to staff around the time of the election, in which new spending rules were put in place.

Months ago, a recruitment pause was set for a number of roles, with stricter sign-off requirements for international travel, costly events and the use of new contractors and consultants.

Meanwhile, the countdown to Budget Day is coming down to the wire, with just one month to go until financial decisions are made public by the Government.

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, public service agency reform and transport.