Science, environment and Commerce Commission on the public service chopping block
Tuesday, 9 April 2024
Stuff can reveal that the Commerce Commission is looking to cull 10% of its staff, as public service restructuring continues.
The commission investigates market competition and is responsible for ensuring fair trading. The Labour Government tasked it with conducting “market studies”, to apply pressure to foreign-owned banks, the supermarket duopoly and fuel companies to cut costs.
The commission was one of three public sector departments which, on Monday, confirmed plans to cut staff.
Two science and environment-focused departments, Callaghan Innovation and the Ministry for the Environment, also confirmed plans to reduce staff numbers to meet the Government’s cost saving targets.
Why it matters
- The Government is facing pressure over how it’s handling this cost cutting drive. Most departments have been asked to cut between 6.5% to 7.5% of their costs.
The Opposition will argue cutting back on the Commerce Commission will hamper the Government’s ability to manage the cost of living. In recent weeks, the commission has been called to investigate Auckland Airport over whether it was driving up the cost of flying. And it has continued to keep a microscope on supermarkets.
Cuts to Callaghan Innovation, a state-funded research and development institute, will put pressure on the Government over its strategy to improve New Zealand business.
The breakdown
According to the Commerce Commission’s restructure proposal, seen by Stuff, the Crown entity planned to cut between 35 to 40 roles. It employed about 400 people, so could lose 10% of its employees under the proposal.
Commission sources said they were invited to apply for voluntary redundancy.
On Monday, staff at the Ministry for the Environment were also invited to apply for voluntary redundancy. But the ministry did not estimate how many staff it needed to get rid of.
At Callaghan, a proposed “reset” would impact about 30 scientists and engineers in its “Innovation and Expertise Hapū”.
By the numbers
With an estimated 70 roles being cut between the Commerce Commission and Callaghan, Stuff has confirmed 1121 jobs have been - or were proposed to be - cut from the public service in recent months.
Who said what
Commerce Commission boss Adrienne Meikle said the restructure would not impact “statutory functions” of the commission.
Ministry for the Environment deputy chief executive Laura Dixon said the organisation would need to cut its headcount.
“While the impact of the savings exercise on our work programme and jobs won’t be clear until after Budget 2024 on 30 May, we know our organisation will need to reduce in size. Staff have been told redundancies are likely,' she said.
On changes at Callaghan, Prime Minister Christopher Luxon said he wanted to see New Zealand innovations better commercialised.
“We have got some of the smartest people in the world. But we do a very, very poor job of commercialising that science for the benefit of New Zealanders and that’s what I want to see us change,” he said.
He said the ongoing cutbacks across the public service should not be coming as a surprise to ministers.
“They need to be aware of the savings that are happening within their portfolio,” he said.
The background
On Thursday, Mental Health Minister Matt Doocey scrambled to save the Suicide Prevention Office, after he was blindsided by news the Health Ministry planned to close it as a result of its cost cutting drive.
Over the weekend, the ministry said it had not fully briefed Doocey.
Learn more
- Stuff is keeping track of public service changes, through an updated article file here.