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Government Cuts – Underfunded, understaffed, and struggling – PSA survey confirms grim impact of cuts

Government Cuts – Underfunded, understaffed, and struggling – PSA survey confirms grim impact of cuts

Source: PSA

 77% say Government is not funding services well enough
 Only 5% believe restructuring has helped agencies deliver better services
 Big Budget head count cuts will make service delivery worse
On the eve of a Budget that will lock in the sacking of 8,700 public servants and further decimate public services, a damning survey of the workers who deliver services reveals the mounting toll of damage already done.
The survey, conducted in March, found that three out of four public service workers say the Government is not providing sufficient funding to enable public and community services to do a good job, and a similar number say two years of restructuring has not helped them deliver better services to New Zealanders.
“These results are devastating but they will not surprise New Zealanders who are already seeing the quality of services deteriorate as workers are stretched to breaking point by the Government’s relentless cuts,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pukenga Here Tikanga Mahi.
“Over half of workers say their agency’s ability to deliver has got worse in the last year. Corners are being cut. Institutional knowledge is walking out the door. Only the bare minimum is being done. And the Government’s response? Ignore all that and take a wrecking ball to the public service by axing one in seven workers in the Budget.
“Nicola Willis last week called public servants ‘smart cookies’ who would welcome these changes. Well, these smart cookies have a message for her: just 5% think your restructuring has made things better. If the Minister listened to the people who deliver public services instead of patronising them, she would know her cuts are decimating the services New Zealanders depend on.
“Workers describe teams running on fumes, morale plummeting, and sickness increasing from burnout. One worker said their agency had abandoned quality in favour of quantity and was operating ‘more like a fast-food restaurant than a government department.’
“Another despaired at the loss of support staff, saying ‘having managers and leaders coordinate meeting rooms, travel bookings and other admin tasks is not effective or efficient.’
“The Government claims AI and department mergers will fill the gap. Not one AI expert in the past week said AI could replace thousands of workers. It’s fantasy.
“The Government’s priorities are clear. Give tax breaks to landlords and big tobacco, while the workers who keep this country running are sacked, overworked and undervalued. They are paying the price of poor choices, but all New Zealanders will foot the bill.
“We say to the Government: New Zealanders deserve the truth. Tell them which services they’re going to lose. Tell them before the election, not after. And stop treating the people who serve this country with such little respect,” said Fleur Fitzsimons.
Key survey findings:
The survey of 3,320 Public Service workers was conducted in March 2026 as part of the PSA’s annual all-member survey.
– 77% disagree that restructuring has helped agencies deliver better for New Zealanders
– 77% disagree that the Government is funding services well enough
– 58% say their agency is not adequately staffed to do a good job
– 56% say their agency does not have enough staff for safe and reasonable workloads
– 54% say their organisation is not well-funded to deliver for New Zealanders
– 52% say their agency’s ability to deliver has got worse over the last year.
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.

MIL OSI