The Labour Party says the state sector could lose capability by contracting out more of its services and would not necessarily save money.
The Government-appointed Better Public Service advisory group is advising that state agencies could deliver better quality services by contracting them out.
But Labour's state services spokesperson Chris Hipkins says that is not necessarily so.
He says the Government has been focused on lowering the number of public servants, which means it needs to contract out more work.
Mr Hipkins is welcoming other recommendations from the group, including agencies working together toward specific results.
