Saturday, February 15, 2025

New spending data reflects downsized public sector

New workforce data shows spending on contractors and consultants fell by $274 million, or 13%, across the public sector in the year to June 30. 

Over the course of the year, the number of public servants grew slightly to 63,537 but the new figures reveal a year of two halves – ballooning growth under the last government offset by a 3.3% reduction under this government, said Finance Minister, Nicola Willis.

“The annual increase of 0.7%, or 421 employees, compares to average increases of almost 5% over the previous five years,” said Ms Willis.

“This shows the steps the Government is taking to restore discipline to public expenditure and drive more value for money are working.”

The growth in public service numbers in the first half of 2023/24 was largely due to the decisions, work programmes and priorities of the previous government, she said.

“The latest data also reflects a shift of back-office resources to the frontline.”

“There has been a 10.8% decline in the number of clerical and administrative staff and an 8.3% drop in policy advisors. 

“This has been offset by increases in service delivery roles, including a 16.9% increase in contact centre workers who are often the first point of contact for members of the public. There has been a 5.7% increase in the number of inspectors and regulatory officers and a 1.5% increase in the number of social, health and education workers.”  

Minister Willis says she expects the downward trend to continue.

“The 3.3% decrease in the overall size of the public service between December and June aligns with the Government’s commitment to a public service focused on performance and the delivery of essential services for New Zealanders.”

“We’ve had to make some tough decisions. I feel for anyone who has lost their job, but no government can live beyond its means indefinitely, and we have to restore discipline to public spending by spending taxpayers’ money as carefully as they do,” she said.

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