Jasper Brownley
[FYI request #27850 email]
10 September
Dear Jasper,
OIA 24-25-09: Further information on redundancy
Thank you for your email of 30 July 2024 to New Zealand Trade and Enterprise (NZTE),
making a request under the Official Information Act 1982 (the Act). You requested the following
information:
Regarding my previous request about redundancy pay outs:
1. In your reply you state the redundancies were due to a: "NZTE led initiative designed to
realign the organisation following the loss of a COVID-19 specific funding package". Is it
therefore correct you paid out 71 redundancies packages at 4 months each, even though you
knew, when hiring those additional people, that your funding was only temporary?
2. Why weren't fixed term positions offered for this short-term temporary increase in funding
given the COVID funding was never going to be permanent to counter the need for any
redundancy payouts?
3. What was the sum total of those taxpayer funded four-month redundancy payouts?
4. You replied that 'this minimum financial package is to ensure we have - to the extent we can
- cared for our people during what is a challenging time'. Why was this time deemed more
challenging to your people than those going through the current government cost-cutting
measures?
Answers to questions 1 and 2 are as follows.
• It would be misleading to suggest that temporary funding was used to hire 71 permanent
roles that were then all made redundant when funding ceased.
• The COVID-19 funding was for a four-year period. Some of the roles hired with the
additional COVID-19 funding were on a fixed term basis and others were hired on a
permanent basis; decisions were made on a case-by-case basis.
• The 2023 reorganisation involved looking across NZTE’s operations to ensure our
expenditure matched customer need. Redundancies did not simply relate to those who
were hired as a result of COVID-19 funding. For example, with COVID-19 funding NZTE
expanded its presence in high GDP per capita markets like the United States and Australia,
where exporters could earn a premium and customer demand was rising. Through the 2023
reorganisation NZTE maintained its presence in these markets and reduced its presence in
markets with declining customer demand.
T: +64 4 816 8100
F: +64 4 816 8101
W: nzte.govt.nz
W: newzealand.com/business
Level 15, The Majestic Centre, 100 Wil is Street, Wellington 6011, New Zealand, PO Box 2878, Wellington 6140, New Zealand
Answer to questions 3 and 4 are as follows.
• As at 19 August 2024, the total cost of redundancies as part of the 2023 change process
was $3.48 million (all international money converted into NZD). In some cases,
internationally, local labour law meant that redundancy payments were greater than 4
months.
• The 2023 change process was a global, NZTE-led process designed to realign the
organisation to address the removal of a COVID-19 specific funding package, it was not
driven by a broad cost reduction directive. The 2024 organisation changes were driven by
a broad cost reduction directive across the public service. In this context, it would not be
appropriate to deviate from the standard New Zealand redundancy term of three
months.
You have the right under section 28(3) of the Act to seek an investigation and review by the
Ombudsman. Information about how to make a complaint is available at:
www.ombudsman.parliament.govt.nz or freephone: 0800 802 602.
Yours sincerely
Melissa Trochon
Director – Board & Ministerial
