Hundreds of public service positions to go
The axe is falling on the public service, with major job cuts looming.
Ahead of the 2023 general election, National campaigned on a tax cut package that would require it to cut almost $600 million from public spending.
Part of that involved lowering the public service head count.
Sources at the Ministry of Education, ACC, WorkSafe, Crown Law, MBIE and other departments have all confirmed to Stuff that jobs will go.
Yesterday, job cuts at MPI and the Ministry of Health were announced.
Ministry for Primary Industries
The ministry confirmed that it was starting “consultation” with staff. In an email to staff, primary industries director-general Ray Smith said he had been instructed to cut costs by 7.5% ahead of May’s Government Budget.
But Smith said the cuts to staffing at MPI would be 9%.
The 9% reduction to MPI’s workforce would come from not filling existing vacancies and making redundancies, he said.
MPI said it employed 3800 people. With cuts of 9%, Smith said 384 roles would be disestablished – although 40% of the roles were vaccant.
The details of those extensive cuts would be confirmed to staff yesterday afternoon.
In his email to staff, Smith said: “The Senior Leadership Team (SLT) and I have been working through credible savings options across our business units. We have been carefully managing costs as part of this work, which includes significantly reducing our contractor and consultant spend and only filling some positions.
“Beyond this, we have been looking at both the programme and people resource costs.”
MPI has wide-reaching responsibilities. It was tasked with growing and sustaining primary industries such as farming, forestry, fishing, wine and food production.
It also employed fisheries officers, responsible for patrolling marine protection areas and checking quotas. Its Biosecurity division hired officers at airports and ports, who check for invasive pests and disease which could decimate the primary industries.
Smith said those compliance roles would not be impacted.
“We are not proposing any reductions to our frontline services and statutory roles, such as veterinarians, animal welfare, fishery and food compliance officers,” he said.
When Stuff went to ask MPI’s bosses about the cuts yesterday morning, they wouldn’t talk.
Ministry of Health
Around 180 roles are set to be disestablished at the Ministry of Health.
Ministry staff were in a meeting yesterday where the Director-General of Health Dr Diana Sarfati told staff that 25% of roles were likely to be disestablished, a source who was in the meeting said. The cuts are a proposal at this stage. The ministry has been approached for comment.
Stuff reported last week that the ministry needed to propose job cuts to meet the Government's cost saving targets.
Ministry of Business, Innovation and Employment
Stuff has heard that teams across MBIE have also been called into meetings about their future.
But the minister in charge of MBIE, Melissa Lee, isn’t sure how many staff at her ministry will lose their jobs.
Lee yesterday said job cuts were an “operational” matter.
“They might be.
“They did actually tell me that there might be some, but it’s actually operational,” she said.
Asked if she knew how much the headcount would decrease, Lee said: “I can't remember if they actually did that.”
“I got told they were doing voluntary redundancies and there may be some other roles that may go,” she said.
Staff at MBIE have told Stuff that units which had been shielded from previous culls were pulled into restructure meetings yesterday.
“They were called into a surprise meeting this [Thursday] morning,” a source said.
“Now they’re getting rid of people covering policy work that the ministers want. Realistically, I do not know how the Government expects it can deliver on its services.
“They are cutting policy people and those who make legislation. They can't do the work without the workers.”
MBIE, which employs more than 6000 people, wants to find more than $400 million in savings.
Last week it confirmed about 110 people had chosen to take voluntary redundancies, but it appeared the ministry wanted further cuts given yesterday’s meetings.
New Zealand Customs Service
It was revealed in February that customs staff had been asked to volunteer for redundancy or early retirement to help cut costs ahead of the Government’s May Budget.
Customs, which describes itself as “New Zealand’s gatekeepers”, has about 1200 staff spread around the country.
Senior leadership told staff in a company wide virtual meeting that Customs had been asked by the Government to take cost cutting measures.
Customs could not tell Stuff how many people were expected to apply to be put out of work or how many jobs would eventually be axed in the process.
“Customs is at the beginning of this process with regards to seeking expressions of interest for voluntary redundancy or early retirement and no decisions or estimates on how many roles may be impacted or disestablished have yet been made,” a spokesperson said in February.
Two unions representing Customs workers, the Public Service Association (PSA) and E tū, said Customs can’t make the cuts without impacting critical services and losing valuable, experienced workers who are our first line of defence against those who threaten the safety of New Zealanders.
“These are people helping protect our air and sea borders from dangerous illicit drugs, organised criminal gangs, and who support our importers and exporters by facilitating trade, and smoothing the passage of New Zealand and overseas travellers,” Duane Leo, National Secretary for the PSA, said.