New Zealand’s Health Department to Slash Backroom Roles to Fund Tax Plan

Around 270 back office positions within New Zealand’s public health sector will be disestablished as part of the government’s efforts to claw back 6.5 percent in cost savings to fund their greater tax relief program.
Prime Minister Chris Luxon told reporters on April 2 that the government wants “medical doctors, not more spin doctors,” referencing the impending cuts that will affect administrative positions within the Ministry of Health.
The National Party campaigned strongly, along with coalition partner ACT, on the need to trim the fat on a “bloated” public sector they said was riddled with unnecessary bureaucracy, and an over-reliance on contracted consultants who cost taxpayers $400 million in 2022.
The National Party pledged a $594 million (US$358 million) on average per year reduction in spending on back-office functions in government departments, excluding non-core and frontline agencies.
The Public Service Association stated that 59 of the jobs in the firing line are from within the Public Health Agency, 46 in Corporate Services, 41 in Government and Executive Services, 41 in Regulation and Monitoring, 39 in Strategy Policy and Legislation, 34 in Clinical and Community Mental Health, and 31 in Evidence Research and Innovation.
Mr. Luxon was keen to stress that front-line health workers and publicly available services would not be affected, but he said the current public service model needed to be streamlined.
Finance Minister Nicola Willis added: “No government can live beyond its means indefinitely. And our priority as a government is ensuring that new spending is prioritised towards front-line services and towards income relief for hard-working New Zealanders.”
On March 22, the ACT party appeared to welcome the news of the job cuts, posting on their X account: “Good. The number of bureaucrats at MPI increased by 52 percent—or 1,277—between 2017-23. The average salary at MPI is about $102,000.”
“The proposals to axe the Suicide Prevention Office and specialist health workers in mental health make a mockery of the Government’s new portfolio of Minister for Mental Health. We call on Minister Matt Doocey to overturn these cuts which are simply being made to fund tax cuts that New Zealand cannot afford,” Mr. Leo said.
Many of the affected staff are expected to take up a voluntary redundancy scheme that was announced by the Ministry for Social Development.
“After this voluntary redundancy process, it is likely there will be a further process targeting role reductions in some areas, mainly within our National Office in Wellington,” Ms. Kilmister said.
“This is a difficult time for staff.”