• Posted on: 28/08/2023
  • 1 minute to read

Public sector chief executives have been urged to consult their workers to identify the savings demanded by the Finance Minister today, says the Public Service Association.

"While it’s never a good time to cut spending on public services, we understand as revenue falls during challenging economic times, savings need to be found," said Duane Leo National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.

Public sector agencies have been directed to find permanent savings of one or two percent off their existing baselines with a number of agencies excluded. Chief executives have been told to consult with public sector unions like the PSA.

"We welcome the Finance Minister’s directive to public sector chief executives to carefully work through where efficiencies can be found by tapping into the knowledge of those who know their operations best and that’s the workers.

"However, we are hopeful this drive to find savings does not mean any cuts to existing jobs.

"This programme shows how reckless it is for National and ACT to make sweeping promises about large and expensive tax cuts during tough times. These can only be funded by deep and wide cuts to the services New Zealanders rely on.

"Today’s announcement is a more responsible response to our economic challenges without threatening services and jobs of our trusted and efficient public sector," said Duane Leo.