26 Jan 2024

The public service agencies asked to cut spending

9:38 pm on 26 January 2024
Nicola Willis

Finance Minister Nicola Willis asked all departments in December to identify savings. Photo: RNZ / Samuel Rillstone

Finance Minister Nicola Willis is looking to slash annual public service spending annually by $1.5 billion and has asked "all departments" to identify savings.

National campaigned on slashing "back-office expenditure" across 24 public agencies, as part of its "Back Pocket Boost" tax plan.

The Public Service Association says it is a "very short-sighted approach". Labour public services spokesperson Ayesha Verrall says the minister is "sneaking in larger cuts than she signalled before the election".

Agencies have been asked to identify savings options of either 6.5 or 7.5 percent.

If their full-time equivalent staff numbers (FTE) have increased by more than 50 percent since 2017 were allocated the 7.5 percent target.

Treasury says the percentage savings target was applied to an eligible spend base, including departmental and non-departmental funding.

Here's how much each agency has been asked to make cuts by:

Agencies asked to make 7.5 percent cuts

  • Ministry for Culture and Heritage
  • Ministry for Pacific Peoples
  • Ministry for Women
  • Whaikaha - Ministry for Disabled people
  • Ministry for Primary Industries
  • Ministry of Education
  • Ministry for the Environment
  • Ministry of Defence
  • Ministry of Business, Innovation and Employment
  • Ministry of Housing and Urban Development
  • Ministry of Transport
  • Public Service Commission
  • Statistics New Zealand

Agencies asked to make 6.5 percent cuts

  • Department of Conservation
  • Department of Internal Affairs
  • Department of the Prime Minister and Cabinet
  • Education Review Office
  • Executive Board for the Elimination of Family Violence and Sexual Violence
  • Inland Revenue Department
  • Justice Cluster (Crown Law Office, Department of Corrections, Ministry of Justice, New Zealand Police, Serious Fraud Office)
  • Land Information New Zealand
  • Ministry of Foreign Affairs and Trade
  • Ministry of Health
  • Ministry of Māori Development - Te Puni Kōkiri
  • Ministry of Social Development
  • New Zealand Customs Service
  • New Zealand Defence Force
  • Office of the Clerk of the House of Representatives
  • Oranga Tamariki - Ministry for Children
  • Parliamentary Counsel Office
  • Parliamentary Service
  • Te Arawhiti - Office for Māori Crown Relations
  • The Treasury
  • Te Arawhiti - Office for Māori Crown Relations
  • Department of Conservation
  • Department of Internal Affairs