The day of 1000 cuts: What the latest public sector shrinkage means
Proposed cuts to the public sector now tally more than 3000, after more than 1000 roles disappeared from Oranga Tamariki and the Ministry of Education in a single day of shrinkage.
But while sector leaders fear for the safety of children and argue cuts have now spilled too far into the front line, an economist says they should be viewed in the context of the Government’s “gigantic” fiscal problems.
“The 3000 cuts so far take the public sector staffing back by about a year and a half of growth,” New Zealand Initiative chief economist Dr Eric Crampton said. “It is still massively larger than it was in 2019, which was under a Labour government.”
Yesterday’s proposals signalled net losses of 565 roles at the Ministry of Education and 447 at Oranga Tamariki in the space of a few hours.
Oranga Tamariki chief executive Chappie Te Kani said the cuts “put children at the centre of all we do”.
But the head of an independent organisation that advocates for young people in care could not understand this.
“How can they dress this up as child-focused? Play it as the truth,” said Tracie Shipton, chief executive of Voyce (Voice of the Young and Care Experienced) – Whakarongo Mai. “Front line workers cannot be a stable workforce without good strong structural support around them,” said Shipton, who is an experienced social worker.
Shipton said the proposed cuts impacted people in teams who were critical for making sure rangatahi (youth) and tamariki in care had a voice. “You know who will be most affected? Those in care.”
Speaking to media in Thailand, Prime Minister Chris Luxon said he did not believe the proposed cuts at either ministry were excessive, saying “New Zealanders expect us to cut down the waste”.
He would not directly answer a question on whether he could ensure no child would be unsafe due to the proposed cuts.
“In the case of Oranga Tamariki, we have a big job to do to look after our most vulnerable children. That’s been a challenging organisation, but making sure those resources are deployed and forward deployed into better caring for those children is what we’re trying to do here.”
Proposed cuts at OT are understood to include some Māori specialist roles, which public sector workers’ union the PSA said were vital for upholding commitments to Te Tiriti and a section of the Oranga Tamariki Act (7AA) that the Government is considering repealing and outlines requirements to improve outcomes for young Māori.
Luxon said the Budget in May would reveal more investment into Oranga Tamariki and the education ministry.
“We’re going to continue to invest more in Oranga Tamariki. But we are expecting better outcomes and better results.”
Crampton said the Government had a huge fiscal problem to solve after spending over Covid-19 outpaced tax increases. “The structural deficit that New Zealand now has is the second worst in the developed world,” Crampton said, after the United States.
New Zealand’s was more than 5%, he said. To fix it, either government spending would have to come down by up to 5% of GDP, so it again matched government revenue, or taxes would need to increase by the same amount, or a combination of the two, Crampton said.
Asked what the cuts might mean for Wellington, Crampton said: “It would be a mistake to view public sector staffing as a stimulus programme for Wellington and cafes and bars.”
Of the proposed 565 net full-time roles to go at the Education ministry, 225 were vacant.
The ministry would not initially confirm the figures but eventually reneged, with Education Secretary Iona Holsted telling staff “the vacuum this leaves will be filled by misinformation”.
Holsted said teams in policy and property units had recently finished their consultation processes and the feedback was under consideration. Proposals for other groups are still to be released. The losses represent a 12% reduction in the education ministry’s workforce, the PSA said.
The union’s assistant secretary Fleur Fitzsimons said it was a “black day” for the public sector. “The total job losses are now more than 3000 and that’s probably artificially low.”
Fitzsimons said the cuts at both ministries bled into the front line, despite both ministries rejecting this. “It is absolutely clear that the workers who are proposed to lose their jobs provide vital support to teachers and schools. They provide the healthy school lunches programme, and they do critical work reviewing and supporting our curriculum.
“They are the front line of education in New Zealand.”
The proposal would have “devastating long-term consequences for children and young people and their families” Fitzsimons said.