OT boss funds own flights in face of savings targets
Thursday, 7 March 2024
Oranga Tamariki chief executive Chappie Te Kani is paying for work flights around the country out of his own pocket, in order to talk to staff in person about cost saving proposals and changes, with job cuts not ruled out at the ministry tasked to care for vulnerable children.
Te Kani’s extraordinary move comes after Oranga Tamariki-Ministry for Children stopped all non-essential travel and put a freeze on “back office” hiring. In a statement to The Post last week Te Kani confirmed that his department was required to “reduce spending by 6.5%”, with more changes needed to meet the target.
Finance Minister Nicola Willis has said that any savings made by Oranga Tamariki will stay in the department to be used for front-line services.
An Oranga Tamariki spokesperson said Te Kani was “prioritising getting around the country to meet with staff personally to discuss proposed changes”.
“Because we currently have travel restrictions in place, he has decided to fund this travel personally,” the spokesperson said.
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Children’s Minister Karen Chhour could not comment on the issue as it was an operational matter.
The Post understands that travel restrictions are being brought in and enforced across the public sector and Zoom meetings encouraged as a fast way to reduce costs.
Air New Zealand CEO Greg Foran said last month that the Government’s belt-tightening was expected to flow through to its business.
Foran said about 40% of its domestic business was for business, government, and small-medium enterprise travel, and that when one-third of that was looking to reduce travel it would flow through to Air New Zealand
“What we're seeing is a tightening of spending.”
Te Kani previously confirmed to The Post he told staff on Friday changes needed to meet the Government’s cost saving target could include a proposal to reduce staff numbers. Oranga Tamariki is already facing frontline staffing issues – down 160 social workers.
Frontline staff and those reporting to them would not be part of the process, he said. And Nicola Willis confirmed on Tuesday that any savings found in Oranga Tamariki would be reinvested into frontline services.
Meanwhile, select committee grillings continue to revolve around the distinction between ‘’back office’’ versus ‘’front line’’ staff.
ACC, the country’s accident compensation scheme, which is also mulling job cuts, appeared in front of MPs on Wednesday, with its chief executive Megan Main describing the ‘’back office’’, which makes up about 28% of staff, as “enabling”.
“I’ve heard it called the backbone … I quite like that”.
It comes as internal Fire and Emergency’s (Fenz) emails sent in December showed its frontline was “not necessarily immune” to the Government’s public service cost cuts – but it would be a last resort.
Asked if there could be cuts to the fire service, Willis hit back on Wednesday, saying “absolutely not”.
“Frankly, this is just mischief making.”
She said the Department of Internal Affairs, which had been given a target to reduce back office costs, wrote to Fire and Emergency, “which receives the vast bulk of its funding from levy not from the Crown”.
“They haven't set them a number, and then FENZ have themselves … been looking for efficiencies as I think they would do in the usual course of business.”
A fiery debate in the House followed, with Willis telling Labour’s public service spokesperson Ayesha Verrall, “I can't see why the member is so offended by an email that says ‘front-line services are to be protected’ and ‘unless clearly obvious that efficiencies can be gained without affecting services’.”