Health Department in New Zealand Cutting Administrative Positions to Support Tax Proposal
Mr. Luxon emphasized that front-line health workers would not be impacted but acknowledged the need to streamline the current public service model.
A total of 270 back office positions within New Zealand’s public health sector will be eliminated as part of the government’s plan to achieve 6.5 percent in cost savings to support their tax relief program.
Prime Minister Chris Luxon stated on April 2 that the government aims for “medical doctors, not more spin doctors,” in reference to the upcoming cuts affecting administrative roles within the Ministry of Health.
The National Party, in collaboration with coalition partner ACT, advocated for reducing the size of the public sector, which they deemed as overly bureaucratic and reliant on costly contracted consultants.
The National Party committed to reducing spending on back-office functions in government departments by an average of $594 million annually, excluding non-core and front-line agencies.
The Public Service Association identified the number of positions at risk in various sectors such as Public Health Agency, Corporate Services, Government and Executive Services, Regulation and Monitoring, Strategy Policy and Legislation, Clinical and Community Mental Health, and Evidence Research and Innovation.
Mr. Luxon stressed that front-line health workers and public services would remain unaffected, emphasizing the need to streamline the existing public service model.
Finance Minister Nicola Willis stated, “No government can live beyond its means indefinitely. And our priority as a government is ensuring that new spending is prioritized towards front-line services and income relief for hard-working New Zealanders.”
ACT party welcomed the job cuts, citing a significant increase in bureaucrats at MPI and emphasizing the necessity of tough decisions by the current government.
The Public Service Association’s National Secretary criticized the proposed cuts, particularly highlighting the potential impact on essential services like the Suicide Prevention Office.
Many affected staff are expected to participate in a voluntary redundancy scheme offered by the Ministry for Social Development.
Deputy Chief Executive Nadine Kilmister mentioned the likelihood of more redundancies following the initial voluntary process, primarily focusing on role reductions within the National Office in Wellington.
This challenging period is acknowledged as a difficult time for staff members.
