Public sector spends $5m on consultants for restructures
Thursday, 11 September 2025
More than $5 million has been spent by the public sector on consultants to restructure organisations over the last year.
The Post asked 70 departments, the executive branch (NZDF, Police and the Parliamentary Counsel Office) and Crown entities how much they spent on consultants during restructures in the last year.
Of the 70 public sector organisations that The Post went to, 50 had restructured between July 28, 2024 and July 28, 2025, 10 had not restructured, and 10 either extended the time to reply or had yet not replied.
Of those who restructured, 28 used consultants in relation to the restructure.
IRD had six restructures during that time and spent more than $1m on consultants for restructures.
“Two consulting companies and one contractor have been utilised to assist with organisational design and change processes in this period,” a document from IRD said.
“Inland Revenue has utilised the additional capability and capacity in this specialised human resources field, for their particular expertise and knowledge.”
Kāinga Ora had 11 targeted restructures initiated before July 28 2024 and completed within the time period, two more targeted restructures were initiated and completed during that time and one organisation wide was initiated and completed.
Two consultancy firms, Martin Jenkins and Nimbl Consulting were used in two restructures, for services such as “independent, expert advice” and support managing the change processes.
Martin Jenkins was paid $564,385 and Nimbl Consulting was paid $426,902.
At Te Tari Whakatau - The Office of Treaty Settlements, previously named Te Arawhiti, there were two restructures - the first was stopped “when Cabinet took decisions to transfer some functions to Te Puni Kōkiri”, an official document said.
“The second restructure process related to implementing Cabinet’s decisions. This included the transfer of some functions to Te Puni Kōkiri, as well as organisational redesign to suit the remaining functions of Te Arawhiti.”
For both, Te Arawhiti used consultant firms, Deloitte and Momentum Consulting Group Limited.
In total, it cost $668,000.
In relation to the total spending, acting Prime Minister David Seymour said “the problem is our labour laws are too complicated, and that's why [Workplace Relations Minister] Brooke van Velden is simplifying them”.
“The fact is that people right across New Zealand, small businesses, big businesses and government agencies have real trouble restructuring and trying to move people on when actually they're no longer contributing to the organisation.
“That's a cost that everybody pays.”
Green Party public service spokesperson Francisco Hernandez said it was “deeply ironic that a Government that has bragged about cutting consultant spending has racked up mega bills to degrade public service capacity”.