Source: PSA
– Saving $2.4 billion means services will have to be cut
– Impacts to be felt nationwide – 55% work outside Wellington
– One in seven jobs could be gone by 2029
The Finance Minister’s irresponsible plan to sack around 9,000 public service workers within the next three years will decimate services New Zealanders rely on around the country.
In pre-Budget speech Nicola Willis has unveiled a radical plan to savage the public service by merging departments, using more AI and setting a target to reduce the public service headcount to about 55,000 – about one in seven roles could go.
“This is an act of wilful destruction of the public service, and all New Zealanders will pay a price for this reckless plan in fewer services they rely on,” said Duane Leo National Secretary for the Public Service Association Te Pukenga Here Tikanga Mahi.
“The Government claims savings of $2.4 billion – that’s money gone from services simple as that. Less, means less. Lower quality, slower and fewer services.
“Will there be fewer biosecurity officers keeping pests and diseases out of the country? Fewer people stopping online harm, child exploitation and scams? Fewer inspectors keeping workplaces safe? Fewer people answering your calls? Fewer people catching tax cheats? Which conservation projects will stop? Which communities will lose access to the services they depend on?
“This is not just about jobs in Wellington, 55% of public service workers support communities around New Zealand – 21% in Auckland, 10% in Canterbury. These cuts will be cruel and deep and felt across the nation.”
See 2026 Public Service Fact sheet attached.
“This is all about choices. This Government has chosen to give tax breaks to landlords and big tobacco and pay for that through cutting public services. How can this be smart economics when our population is growing, when recent storms show climate change is with us, and when our infrastructure challenges have never been bigger?
“Willis talks about using digitisation and AI as a justification for sacking thousands of workers. AI will not fill the gap. Just ask the experts. We need an AI strategy that maximises the benefits and prevents negative impacts for workers and the public. Linking AI to an arbitrary headcount target does exactly the opposite – it turns technology into a threat rather than a tool.
“Department mergers are a recipe for more chaos. Every restructure costs money, drives experienced people out the door, and grinds critical work to a halt for years.
“New Zealanders deserve to know before the election, not after – which services will be cut? Which communities will be worse off? If the Government is so confident this is the right path, it should tell voters exactly what it means for them. Show us the evidence,” said Duane Leo.
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.