2 Oct 2023

Wellington business leaders worry as public sector cuts bite

From Nine To Noon, 9:05 am on 2 October 2023
Closed businesses on Wellington's Lambton Quay

Closed businesses on Wellington's Lambton Quay Photo: RNZ/Clare Sziranyi

As cuts to the public sector begin to bite, Wellington business leaders are worried about the future for the capital's central business district.

In late August the government announced it would trim nearly $4 billion dollars from public spending, and instructed public sector agencies to cut 1 or two per cent off existing baselines, starting with contractors and consultants.

National has said it will cut expenditure on average across the public service by 6.5 percent - although it says this will not impact front line services.

Wellington businesses say they're experiencing a perfect storm of the budget cuts, more people working from home, infrastructure and earthquake issues, and changes to the Golden Mile, early work on which begins today.

That plan will see the road from  Parliament to the Embassy Theatre pedestrianised, and would only allow buses to travel through.

Kathryn discusses with Simon Arcus, Chief Executive, Wellington Chamber of Commerce and Carolyn Young, Chief Executive of Retail New Zealand.