DIA cuts ‘fattening profits of law firms’

Union says Internal Affairs legal team will be among 28 casualties

The Department of Internal Affairs is proposing job cuts that could affect 28 staff across six of its eight branches to meet the Government’s cost-cutting expectations.

The Public Service Association (PSA) said commercial work now being done by a DIA legal team would be “fully outsourced to private law firms under proposed job cuts”.

“How does fattening the profits of law firms make sense when the Government is trying to cut spending? This is short-sighted and will end up costing taxpayers more in the long run,” PSA national secretary Duane Leo said.

Meanwhile, the Ministry for Pacific Peoples has confirmed it will shed 63 roles, 31 of which are vacant.

“The ministry has been given an indicative target to identify 7.5 per cent savings, due to its growth in size since 2017,” a spokesperson said.

“The ministry is proposing to reduce in size by 63 roles, 31 of which are vacant roles. We are currently consulting with staff on these proposed changes to our structure and will be offering the option of voluntary redundancy.

“Recruitment is paused while this process is under way.”

Final decisions will be made at the end of April and implemented by July 1. “We remain committed to championing the voices of Pacific communities, and maintaining programmes that help to empower Pacific peoples to thrive is our priority,” the spokesperson said. “We are confident that the proposed changes to our structure will enable us to remain closely connected to and support Pacific communities.”

An Internal Affairs spokesman said yesterday it was proposing changes in six of its eight branches in a “staged approach”.

“This is part of our response to the Government’s ongoing fiscal sustainability programme to embed a culture of responsible spending across Government. We are required to save 6.5 per cent of our baseline.”

So far, the proposed organisational changes would happen in the indexing team of the National Library, potentially affecting eight staff, and the Ma¯ori, strategy and performance branch, potentially affecting 20 staff.

“People changes account for less than half of the savings we have identified, with 60 per cent of the required savings found in efficiencies and curtailing expenditure.”

Changes in other branches are due to be announced by mid-May.

The PSA said the proposed DIA cuts are in its Te Urungi, Ma¯ori, strategy and performance branch, which will see 18 roles go in the legal team, with five net roles disestablished, two of which are vacant.

Other cuts are to the enterprise portfolio management office, where nine net roles would be disestablished, of which five are vacant. And the communications team, where four net roles would be disestablished.

The PSA said six roles are also proposed to be disestablished in the legal team — five in the commercial and corporate team — and one new role created.

The DIA is proposing to fully outsource the commercial work, the union said, adding this includes contracts for goods and services, procurement documents, licensing, funding arrangements, intellectual property and copyright issues, and confidentiality agreements.

Some commercial and corporate work is already outsourced, and the DIA has standardised contracts.

“Our view is that this legal work is clearly needed and should be retained in-house. The Government promised to clamp down on contractor spending so how does this make sense? This is spending more on contractors and consultants, not less,” Leo said.

DIA has previously announced it is proposing to disestablish nine roles in the National Library.

“Changes like these hollow out the core capability of the public service and its ability to deliver for New Zealanders because of the Government’s choice to fund tax relief for landlords and others,” Leo said.

The DIA is the latest in a string of government agencies to announce job cuts and slash spending to find $1.5 billion in savings across the public service.

The Herald earlier reported more than 1300 job cuts have been announced to meet the Government directive to prune spending.

The Ministry of Business, Innovation and Employment (MBIE) earlier confirmed 286 full-time equivalent roles have been removed in the past few months and has not ruled out more cuts.

This week, cost-saving proposals were announced at the Ministry for the Environment, Callaghan Innovation and Crown researcher Niwa.

Also this week, the Department of Conservation (DoC) joined the growing list of public service agencies confirming spending cuts and potentially showing employees the door. DoC has been directed to find 6.5 per cent savings from its budget.

The Ministry of Health is proposing to slash 134 roles, Treasury plans to axe 50 roles and proposals at the Ministry for Primary Industries suggest 384 roles could be cut. The Ministry of Transport, has had a net reduction of 24 jobs, though many were vacant roles.