Ministries confirm staff cuts, after crowd sourcing savings ideas
Thursday, 4 April 2024
The Ministry for Social Development (MSD) is asking staff to apply for voluntary redundancies, despite earlier “cost savings” including cutting back on cleaners.
MSD chief executive Debbie Power invited staff to apply for redundancy on Thursday, and said further cuts to the ministry’s head office would be likely.
These cuts were scheduled despite the ministry’s top brass asking their 9000 staff to brainstorm ideas to save money without reducing the workforce.
As a result of the crowd-sourcing, MSD stopped cleaning its offices as often, got rid of plunger coffee and coffee machines, and started supplying only basic milk - meaning it would be water only for those with lactose intolerance.
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The shape of the cuts at MSD are hugely significant for the public service, as it is the second largest ministry - behind Corrections, which employs 10,000 people.
MSD’s announcement arrived on the same day that Dr Diana Sarfati, the Director General of Health, confirmed 134 jobs would go from the Ministry of Health.
Why it matters
- Most Government departments have been asked to cut costs by between 6.5% and 7.5%, ahead of Finance Minister Nicola Willis’ first Budget in May.
Already, Stuff has confirmed more than 800 roles are being cut across various Government departments as a result of this cost savings push.
Willis and Prime Minister Christopher Luxon have promised no “front line” services would be impacted, but the Public Service Association (PSA) said this level of savings would impact service delivery in areas such as border control, education and social work.
The breakdown
In February, MSD chief executive Debbie Power crowd-sourced ideas from staff about how to save money. Through an Official Information Act request, Stuff asked to see those responses - but was denied - as Power said she had received “over 500 responses”.
However, the ministry did release information about the ideas it decided to latch onto.
Deputy chief executive Nadine Kilmister told staff the ministry would be cleaning its offices less often as of March 1. It would also cut back on tea, coffee and milk, and get rid of office plants.
“We will have standard tea bags, standard milk – no alternatives, and instant (not plunger) coffee,” she said. Stuff understands that meant alternative milks and the “nice teas” that were in select meeting rooms have been taken away.
With the cuts to cleaners, she said they were reverting to “our pre-Covid cleaning regime”.
Kilmister said further cuts would be made to the travel, transport and catering policies.
The ministry did not say how much money it was actually saving by scaling back on office stationery, milk, coffee and cleaning.
On Wednesday, sources have confirmed to Stuff that job losses would be required.
Through a statement, Kilmister said: “We will update staff on any cost-saving measures when there is something further to add.”
On February 29, when Power last addressed the cost saving plan, she said the cleaning, coffee and stationary changes would be factored “into the conversations we’re having now with our ministers”.
“Decisions on our final savings package will be made by Cabinet as part of the Budget 2024 process, with decisions announced on Budget Day at the end of May. In the meantime, we will get moving on some of your ideas,” she said at the time.
By the numbers
Some ministries have already confirmed the number of roles they would be cutting:
188 roles have gone at MBIE.
384 roles are set to go at the Ministry for Primary Industries (MPI).
134 roles are set to go at the Ministry of Health, although it was not clear where.
18 roles are set to go from Crown Law.
9 roles are going from the Ministry of Ethnic Communities.
63 roles are going from the Ministry for Pacific Peoples.
What next?
Almost all Government departments were expected to make cuts. The shape of those cuts would become clearer as Budget Day, May 30, neared.
A key ministry to watch is Oranga Tamariki, the Ministry for Children. Chappie Te Kani, the Secretary for Children, has been travelling to meet staff - on his own dime - to discuss the cuts at the ministry. But the cuts have not yet been confirmed publicly, or communicated to the wider organisation. The ministry operates many front line roles, including child protection services and youth justice.
Learn more
- Stuff is keeping track of public service changes, through an updated article file here.