1 Jun 2011

Job cuts likely as state sector reforms continue

8:09 am on 1 June 2011

More reforms of the state sector are under way which could affect up to 17 government agencies, Crown entities and tribunals.

Between them they have Crown funding of about $200 million and about 900 fulltime staff.

The Government is proposing a merger of the Education Review Office and the Qualifications Authority, which have about 600 staff between them.

The merger proposal is one of a number of structural changes the Government wants to make as it moves to reduce the number of public sector agencies.

[image:2007:third:right]

It is also looking at scrapping five Crown entities and three tribunals, and says jobs are likely to be lost.

The Crown Health Financing Agency and the Charities Commission are two entities that would have their functions transferred to other government bodies.

Also under scrutiny is $14 million of funding for workforce and skills advice which is with the Labour Department at present.

State Services Minister Tony Ryall says the changes would result in savings over the medium term which would be offset by some initial upfront costs.

Mr Ryall says jobs are expected to go, but the Government does not have specific figures about how many and final decisions will be made after July.

"We do expect there will be fewer positions available in these agencies as they bring together their administrative functions."

$1bn savings needed - English

Finance Minister Bill English says the Government intends to save $1 billion over the next four years and these changes are part of the wider plan.

"It isn't really a choice - it's a necessity - with the constraint on Government finances."

Mr English says due diligence will be done on each of the proposals, which will be considered on a case-by-case basis, and the Government will only go ahead where there are gains to be made.

The minister told Checkpoint on Tuesday the changes are about cutting back office costs such as IT and human resources, not about ending up with a worse service.

The Public Service Association says departmental heads are already looking for savings, and will end up being expected to do more with less money.

State Services Commissioner Iain Rennie admits the savings goal imposed by the Government is large, but says it can be achieved.

Reform group announced

The formation of a new group to advise the Government on state sector reform has also been announced.

Five of the eight members are senior public servants. The group will be chaired by Department of Prime Minister and Cabinet chief executive Maarten Wevers.

Other sectors urged to collaborate

The Government is also urging agencies in the arts and culture sector to collaborate more closely, including a merger of audio-visual archiving from the Film Archive, Television New Zealand and Radio New Zealand.

Also included in the sweep is an agency that is totally independent of the Government - the Press Council - which is being encouraged to work more closely with the Broadcasting and Advertising Standards Authorities.

Reforms 'pathetic tinkering'

The ACT Party says the planned reforms are mere tinkering at the edges. MP Sir Roger Douglas says the planned reforms are pathetic, as they will save such a small amount of money and are unlikely to improve productivity.

"It's pathetic, really, when you think about what their savings are likely to be. We've had three years - and if this is the best they can do, then heaven help us. I guess the only thing we can say in its favour is that Labour would be a whole lot worse."

The Labour Party says it is concerned that the reforms will make it harder for people to gain access essential public services.

Labour says key services have already been cut under National - especially in the provinces. It says cuts like those planned do not actually save money, they just transfer the cost to individuals and families.

The Green Party says its main concern is the loss of those jobs while the economy is so sluggish.