14 March 2025
James Webb
[FYI request #29603 email]
Dear James
Thank you for your Official Information Act request, received on 18 December 2024. You
requested:
Please provide all advice your office has received on staff cuts in the public sector.
Please provide all briefings, reports, and updates your office has received on public
sector staff cuts. This should include al formal and informal channels.
Please provide all communications between staff in your office on public sector
updates. This should include al emails, instant messages and texts.
Please provide all communications you have sent relating to public sector staff cuts
and updates your office has received. Please include any initial communications if
your response is to external communications.
Information being released
Please find enclosed the following documents:
Item Date
Document Description
Decision
1.
2.
13 June 2024
3.
22 August 2024
4.
13 June 2024
5.
9 May 2024
6.
10 May 2024
7.
8.
26 May 2024
9.
I have decided to release the documents listed above, subject to information being withheld
under one or more of the fol owing sections of the Official Information Act, as applicable:
section 9(2)(f)(iv) to maintain the current constitutional conventions protecting the
confidentiality of advice tendered by Ministers and officials,
section 9(2)(g)(i) to maintain the effective conduct of public affairs through the free
and frank expression of opinions, and
section 9(2)(g)(i ) to maintain the effective conduct of public affairs through
protecting Ministers, members of government organisations, officers and employees
from improper pressure or harassment.
Information publicly available
The fol owing information is also covered by your request and is publicly available on the
Treasury website:
Item Date
Document Description
Website Address
10.
8 April 2024
Document: Budget
Ministers 4 Slides - 8 April
2024 - Budget 2024
Information Release
Accordingly, I have refused your request for the documents listed in the above table under
section 18(d) of the Official Information Act, as the information requested is or wil soon be
publicly available.
In addition, some relevant information has been removed from documents listed in the
above table and should continue to be withheld under the Official Information Act, on the
grounds described in the documents.
Information to be withheld
There documents listed in the table below are also covered by your request. I have decided
to withhold the documents in full under section 9(2)(f)(iv) of the OIA, to maintain the current
constitutional conventions protecting the confidentiality of advice tendered by Ministers and
officials.
Item
Date
Document Description
Proposed Action
1.
Annex A - Workforce Implications of
Withhold in ful
Budget 2024 as at 18 May
under section
9(2)(f)(iv)
2.
Withhold in ful
under section
9(2)(f)(iv)
In making my decision, I have considered the public interest considerations in section 9(1)
of the Official Information Act.
This reply addresses the information you requested. Under section 28(3) of the Act, you
have the right to ask the Ombudsman to review any decisions made under this request.
The Ombudsman may be contacted by email [email address] or by cal ing
0800 802 602.
Yours sincerely
Hon Nicola Wil is
Minister of Finance
Table of contents
1.
Budget 2024_ FTE
1
2.
Final workforce PR
3
3.
Re_ Public Service FTE Reduction
5
4.
RE_ Request for updated workforce implications of Budget 2024
9
5.
Updated Workforce Implications of B24 - High-level overview.
11
6.
Updated Workforce Implications of Budget 2024 Package.
13
7.
Workforce Implications of Budget 2024 - Table by Agency
16
8.
Workforce Implications of Savings Process in Budget 2024 as at 18 May - 2
17
9.
Workforce Implications of Savings Process in Budget 2024 as at 18 May
19
Item 1
Page 1 of 20
From:
Hamish Dick
To:
^Parliament: Rachael Bowie; ^Parliament: Paula Oliver; ^Parliament: Joseph Ascroft
Cc:
^Parliament: Grant Johnston; ^Parliament: Christina Connol y; ^Parliament: Simon McLoughlin
Subject:
Budget 2024: FTE
Attachments:
image001.jpg
Hi al ,
Picking up from last week’s discussions re FTE changes at Budget 2024.
Key messages:
The Treasury and PSC have updated data for Budget 2024 FTE changes.
We recommend that this data is not used in public Budget Day communications. This is for three main reasons:
s 9(2)(g)(i)
A number of agencies have indicated a strong preference for FTE information to not be released, given
that internal change processes are stil ongoing (so numbers are subject to change). Some Crown Entities
are also yet to be notified of final Budget 2024 decisions, so there are meaningful limitations around the
reporting of this information.
Numbers:
Impact Summary for 2024/25
Net Staff
Net Redundancies
Net Impact on
Public Sector
Added
Expected
Staff
s 9(2)(f)(iv)
Net staff added: Additional staff due to Budget 2024 funding (this excludes funding provided to retain existing staff,
which is an additional *
*s 9(2)(f)(iv)
Net redundancies expected: Reduction of existing FTE (this excludes vacant roles to be disestablished, which is an
additional *
s
s 9(2)(f)(iv)
Similarly, how you define the counterfactual wil have a significant impact on the numbers. (E.g., do you count
funding that supports the continuation of existing roles?)
Suggested approach to Budget Day comms:
Don’t communicate FTE numbers.
If asked, the Minister could say, yes, as has been previously communicated, the Treasury did provide advice
during the Budget decision-making process that suggested Budget decisions could result in a smal net increase
in FTE across the public sector. This advice was based on the information agencies included in their Budget
savings and spending submissions. Of course, the final net change in FTE is subject to a range of factors,
including internal staffing decisions, that are outside the direct control of Government.
The Government set savings targets for agencies, not specific FTE targets. The extent to which savings are
achieved through a reduction in FTE is ultimately a decision for each agency (and their responsible Minister).
Because change processes are ongoing, and because final FTE decisions for a number of agencies are yet to be
taken (in particular Health New Zealand), and because it is incredibly difficult (if not impossible) to accurately
disaggregate FTE decisions that arise from Budget 2024, and FTE decisions that are taken as part of broader
change processes, it would not be appropriate for the Government to communicate these numbers on Budget
Day.
Item 1
Page 2 of 20
If analysts/media do want to know the FTE change for a specific agency, that is a question that should be
directed towards that agency and/or the responsible Minister.
Overal , however, analysis does indicate that Budget decisions wil result in the creation of hundreds, if not
thousands, of new roles. These roles wil largely be on the frontline, through the real ocation of resources from
the back office.
Next steps:
Let me/Simon know if you’d like to discuss. We’re also happy to discuss this with MoF.
You could request that the Treasury continues to work with PSC to refine its FTE analysis, including post-Budget
when final Health New Zealand numbers wil become available (along with the final numbers from other
agencies’ change processes).
Many thanks,
Hamish
Hamish Dick
Private Secretary – Finance
Office of Hon Nicola Wil is
Minister of Finance
Level 7.2 Executive Wing, Parliament Buildings, PO Box 18041, Wel ington 6160, New Zealand
M: s 9(2)(g)(i )
E: [email address]
Item 2
Page 3 of 20
From:
Rachael Bowie
To:
^Parliament: Christina Connol y; Grahame Armstrong ([email address]);
^Parliament: Hamish Dick
Cc:
^Parliament: Grant Johnston; ^Parliament: Paula Oliver; ^Parliament: Kishan Naran
Subject:
Final workforce PR
Date:
Thursday, 13 June 2024 2:38:49 pm
Attachments:
image001.png
Thanks everyone – here’s our final PR which wil be going shortly.
Hon Nicola Willis
Minister for the Public Service
13 June 2024
Latest data shows size of public service
decreasing
Spending on contractors and consultants continues to fal and the size of the
Public Service workforce has started to decrease after years of growth,
according to the latest data released today by the Public Service Commission.
Workforce data for the quarter from 31 December 23 to 31 March 24 shows a
decrease of 0.6 percent (or 416 FTEs) indicating workforce size peaked in
December.
“We knew that the recent increase in the number of back-office public service
roles was unaffordable and needed to be reined in,” Public Service Minister
Nicola Willis says.
The ful impact of Budget 2024 decisions is yet to be realised which is why the
nine months to 31 March 2024 still shows a smal net increase of 3.4 percent in
FTE since June 2023 to 65,283 FTEs.
“I expect to see the impact of the Budget start to flow through in the coming
months and continue into the next financial year with further decreases,” Nicola
Wil is says.
“Our ongoing savings and efficiency drive wil continue to put downward
pressure on the size of the workforce, which is likely to see a further reduction in
FTEs.
“These are tough decisions and I feel for anyone losing their job, but the
Government simply had to reduce public spending because it was living beyond
its means.”
The data also shows for the year to 31 March, contractor and consultant
expenditure is the lowest share of total workforce spend that it has been since
Public Service Commission records began in 2018 – down from 13.1 percent in
2022/23 to 8.5 percent.
Item 2
Page 4 of 20
Spending total ed $700.5 million in the nine months to March 2024 - $249.8
million capital expenditure, and $450.7 mil ion operating expenditure which is
down 34 percent on an annualised basis.
“I am anticipating a further decrease in the annual spend by the end of this
financial year. The Government’s expectation is for this decrease to continue.”
Media contact: Rachael Bowie 021 814 166
Item 3
Page 5 of 20
From:
Christina Connol y
To:
^Parliament: Hamish Dick; ^Parliament: Grant Johnston; ^Parliament: Simon McLoughlin
Subject:
Re: Public Service FTE Reduction
Date:
Thursday, 22 August 2024 11:55:53 am
Attachments:
image001.jpg
Nothing further from PSC - the Minister wanted to stick with the post Cab numbers last time it
was brought up at an agency meeting.
We're unlikely to get a new number until later in the year when the Workforce Data is released.
Christina Connolly
Private Secretary (Public Service)
Office of Hon Nicola Willis, Minister of Finance, Minister for the Public Service, Minister for
Social Investment, Associate Minister of Climate Change
From: Hamish Dick <[email address]>
Sent: Thursday, August 22, 2024 11:51 AM
To: Christina Connol y <Christina.Connol [email address]>; Grant Johnston
<[email address]>; Simon McLoughlin
<[email address]>
Subject: Public Service FTE Reduction
G’day,
FTE/workforce Q&A is pasted below. This was provided to MoF ahead of Budget Day.
On Monday 27 May, MoF also communicated the following at post-Cab:
Delivering additional funding support for essential frontline services has required us to
make some tough decisions. This has included changes which reduce the number of
departmental roles in several Government agencies.
While we did not embark on our savings exercise with a headcount reduction target in
mind, we knew that the recent increase in the number of back-office public service roles
was unaffordable and needed to be reined back.
Many of you have asked me about the number of roles being removed as a result of our
savings exercise. This number is still subject to change and will remain so after Budget
day. This is because changes to departmental workforce structures are under consultation
in many cases and are yet to be consulted on in others. It’s important these consultations
can go ahead in good faith.
However, I understand the interest in these figures so today I am communicating our latest
estimate of their overall impact. According to the most recent advice I have received,
the Government’s baseline savings exercise will remove around 2,250 roles from
Government departments, as well as closing around 1,150 vacancies. Further savings
initiatives, additional to our baseline exercise, will remove a little over 500 roles.
Our hearts go out to anyone losing their job, but Budget 2024 has required us to carefully
prioritise taxpayer dollars. Budget 2024 is unashamedly a Budget for the frontline.
Item 3
Page 6 of 20
Note: These numbers were based on pre-Budget Day advice so will have changed since; however,
MoF has not received any more recent advice on headcount reduction across the public service
(that I am aware of; PSC may or may not have provided something – cc @Christina Connolly).
No agency-specific information has been shared by MoF, and any such questions should be
directed to the relevant portfolio Minister.
Cheers,
Hamish
Workforce
Why do calculations of the public service headcount reduction differ?
Numbers being publicly reported in the media are not an accurate reflection of real impact on
people and are still subject to change.
They:
Vary on whether they include vacancies.
Are often still subject to consultation processes.
Do not account for possible redeployment into other roles being created by this
government. (Though not all people are suited for all roles).
Change numbers do not match Budget workforce implications as they include a broader range of
considerations including impacts of time-limited funding, managing unfunded cost pressures,
and achieving service delivery efficiencies to redeploy into Government priorities.
With the number of cuts to public service roles, how confident are you that you can deliver
your Budget commitments? Won’t you need the workforce to achieve these?
Budget 2024 has been an exercise in aligning Government spending to our priorities – delivering
cost-of-living relief and more effective public services for New Zealanders, while getting the
Crown’s books back in order.
The public service changes have focused on back-office functions (including contractor and
consultant spend) and reducing low value programmes not aligned with the Government’s
priorities.
We have reprioritised this money into frontline services that matter most to New Zealanders, for
example: health, education, law and order and disability supports.
Budget 2024 supports the Government to achieve its commitments in these priority areas.
On one hand we’re seeing job cuts in the public sector and on the other you’ve introduced
four new agencies, and some would argue, more bureaucracy. Is that counterproductive for
what you’re trying to achieve?
Overall, there has been a reduction in the size of the bureaucracy.
There has been a small increase in areas critical to the Government’s priorities, including
economic growth (i.e., infrastructure, regulatory quality) and improving outcomes (i.e., social
investment, charter schools).
The costs of new entities will largely be offset by reprioritised funding. For example:
The costs of the Ministry for Regulation are partially offset by reprioritised funding
from the closure of the Productivity Commission and transfer of the Treasury’s
Item 3
Page 7 of 20
regulatory functions.
Similarly, costs of the Social Investment Agency will be partially offset by reprioritised
funding from the transfer of the Social Wellbeing Agency’s functions.
Do the cuts stop here, or should people expect more to come while you’re in Government?
The Government's commitment to getting the books back in order and restoring discipline to
public spending will be ongoing.
My expectation is that fiscal sustainability is a constant, year-on-year effort, and Chief Executives
should continue to actively manage their organisations in a way that supports these efforts.
The Government has set no targets for FTE reductions. Agencies are expected to manage their
workforce effectively and with fiscal responsibility.
Many agencies are consulting with their staff on structure changes, and I acknowledge that this
has been difficult for those affected.
You campaigned on reducing contractor and consultant spend by $400 million per annum.
Have you achieved this at Budget 2024?
In 2023 the public sector spent nearly $2 billion on contractors and consultants – this was too
much.
We remain committed to see this reduced.
As part of their Budget 2024 savings, several (if not most) agencies submitted savings related to
reduced funding allocated to contractors and consultants.
And we know from our monitoring that spending is already reducing. For example, Departments
and Departmental Agencies reported half year spending that indicated we may see a potential
drop of over $200 million in the current year.
I expect agencies and Ministers to continue to limit this spending going forward. I have instructed
the Public Service Commission to continue to monitor and report on progress.
What Budget 2024 savings come from reduced contractor and consultant spend?
Many of the agency baseline back-office savings involve reduced contractor and consultant
spend.
Agencies have bundled up these savings up with other back-office efficiencies (e.g., from reduced
FTE, closing vacancies), and it has not been possible to isolate the precise amount that has come
from contractors and consultants in the Budget 2024 package.
I expect agencies and Ministers to continue to limit this spending going forward. I have instructed
the Public Service Commission to continue to monitor and report on progress.
Note: The following agencies mentioned contractor and consultant spend in their
initiative descriptions. This is an illustrative rather than exhaustive list, as many
agencies are likely to have taken savings from contractor and consultant spend but
not mentioned this in the initiative description:
Crown Law Office.
Ministry of Business, Innovation and Employment (as well as Financial Markets
Authority, Retirement Commission, External Reporting Board, Commerce
Commission, Emergency Caller Location Information).
Department of Conservation.
New Zealand Defence Force.
Ministry of Education (as well as Education New Zealand).
Inland Revenue Department.
Te Puni K kiri.
Oranga Tamariki.
Item 3
Page 8 of 20
Ministry of Social Development.
Ministry of Transport.
Ministry for Women.
Stats NZ.
Does announcing savings as part of the Budget cut across agencies’ employment law
obligations?
It is appropriate for Ministers to make decisions about the funding of agencies and work
programmes.
Chief Executives will make the decision about the implication of those changes in funding,
including staffing implications.
I expect agency Chief Executives to undertake the necessary, good faith consultation processes
and work through any implications with their staff of the funding decisions taken at Budget 2024.
Expectations about the size of public sector workforce change can only be indicative and will
change, because they do not, and cannot, presume the outcome of those processes.
Hamish Dick
Private Secretary – Finance
Office of Hon Nicola Willis
Minister of Finance
Level 7.2 Executive Wing, Parliament Buildings, PO Box 18041, Wellington 6160, New Zealand
M: s 9(2)(g)(i )
E: [email address]
Item 4
Page 9 of 20
From:
Kevin Cho [TSY]
To:
^Parliament: Hamish Dick
Cc:
Emily Fulford [TSY]; Stephen Bond [TSY]; Keiran Kennedy [TSY]
Subject:
RE: Request for updated workforce implications of Budget 2024
Date:
Thursday, 13 June 2024 5:20:43 pm
Attachments:
image001.png
Attachment is withheld in ful under s 9(2)(f)(iv)
Annex A - Workforce Implications of Budget 2024 as at 18 May.pdf
Sorry! Now attached.
From: Hamish Dick <[email address]>
Sent: Thursday, June 13, 2024 5:05 PM
To: Kevin Cho [TSY] <[email address]>
Cc: Emily Fulford [TSY] <[email address]>; Stephen Bond [TSY]
<[email address]>; Keiran Kennedy [TSY] <[email address]>
Subject: RE: Request for updated workforce implications of Budget 2024
Thanks Kevin. The attached seems to have dropped off. Could you please resend?
From: Kevin Cho [TSY] <[email address]>
Sent: Thursday, June 13, 2024 5:01 PM
To: Hamish Dick <[email address]>
Cc: Emily Fulford [TSY] <[email address]>; Stephen Bond [TSY]
<[email address]>; Keiran Kennedy [TSY] <[email address]>
Subject: Request for updated workforce implications of Budget 2024
[SEEMAIL][SENSITIVE]
Hey Hamish,
This email is to outline our recommended approach on the Minister’s request to update the
workforce implications of Budget 2024 to inform her engagement with FEC to be included as
part of her weekend bag.
The recommended approach for the update would be to refer to the previous Annex A provided
which included workforce implications as at 18 May alongside the caveats (attached). This is
because:
There is limited time to turnaround the information col ection request.
There are unlikely to be significant changes to workforce implications as the col ection was
based on Budget 2024 initiative decisions agreed by Cabinet.
The information was updated when most agencies had begun or announced their change
processes and changes are likely to be minor fol owing consultation processes.
We would reiterate our previous advice that we recommend the information is only shared at
the aggregated level. This enables portfolio Ministers and agencies to lead on agency specific
engagement and communications related to workforce changes given that some agencies are
stil progressing change processes and workforce implications continue to evolve.
If information does need to be updated, we think the main areas of change could be:
Agencies that have completed or announced change processes since 18 May – MoJ, MfE,
Item 4
Page 10 of 20
ERO etc.
Health NZ Cost Pressure funding workforce implications
However, we do not readily hold information that would need to be updated. We also do not
recommend a ful information col ection exercise due to the limited timeframe in which to
commission al agencies to update information and Treasury to col ate and turnaround
information provided.
We do intend to continue to update the information we hold fol owing the completion of B24.
PSC wil be better placed to provide updates on workforce implications going forward given their
role in surveying and monitoring workforce changes across the public service and their
engagement in change processes being undertaken in agencies.
Happy to chat if you have any questions!
Kind regards,
Kevin Cho | Analyst – Budget | Te Tai hanga – The Treasury
Tel: s 9(2)(g)(i )
| Email: [email address]
CONFIDENTIALITY NOTICE
The information in this email is confidential to the Treasury, intended only for the addressee(s), and may also be
legally privileged. If you are not an intended addressee:
a. please immediately delete this email and notify the Treasury by return email or telephone (64 4 472 2733);
b. any use, dissemination or copying of this email is strictly prohibited and may be unlawful.
Item 5
Page 11 of 20
From:
Kevin Cho [TSY]
To:
^Parliament: Hamish Dick
Cc:
Keiran Kennedy [TSY]; Emily Fulford [TSY]; Jas Singh [TSY]
Subject:
Updated Workforce Implications of B24 - High-level overview.
Date:
Thursday, 9 May 2024 12:41:04 pm
Attachments:
image001.png
[SEEMAIL][SENSITIVE]
Hey Hamish,
As requested, we have received updated agency returns to update the workforce implications
against the final Budget 2024 Package. Below is the high-level information. We are working with
PSC to QA numbers and discuss the commentary provided. Please note that the numbers have
been rounded and outline the impact for 2024/25, which is consistent with the methodology of
FTE numbers provided through the Budget 2024 Cabinet Paper.
Across both the public service and Crown entities, we estimate there wil be an s 9(2)(f)(iv)
from new spending and cost pressure initiatives of which s 9(2)(f)(iv) wil be
retention of existing FTES. s 9(2)(f)(iv)
We estimate a s 9(2)(f)(iv)
from the savings initiatives of which s 9(2)(f)(iv) are
anticipated from disestablishment of vacancies. s 9(2)(f)(iv)
The difference is largely driven by agencies s 9(2)(g)(i)
who are now able to
provide FTE implications of their savings initiatives.
Therefore, the net impact is anticipated to be s 9(2)(f)(iv)
The net number wil also depend on whether we
are including disestablishment of vacancies and retention of FTEs into the calculation.
The FTE impacts on public sector agencies being reported on RNZ is currently 4019 How many
public sector roles are going, and from where? | RNZ News. The differences are likely to stem
from agencies which have not released FTE impact s 9(2)(g)(i)
and the fact
that reported numbers wil be inclusive of the wider change processes being undertaken at
agencies whereas our col ection has focused on the impact of the Budget 2024 Package.
Several agencies have advised they are stil undergoing consultation and change processes so
they FTE numbers related to savings decisions are unlikely to be the final figures and are subject
to change. They raised significant concerns around reporting of the figures at an agency level as
they have not been consulted internal y with their staff and are unlikely to have done so before
Budget Day. Some agencies have not communicated Budget information to their Crown Entities
s 9(2)(g)(i)
in the absence of confirmed Budget minutes so we do not have ful information
on those changes. Our recommendation would be to use the aggregate totals rather than agency
breakdown in any communication material. One way to mitigate this risk is pass this request
through to Portfolio Ministers to work with the agencies on as part of supporting their Minister’s
preparation for Budget day.
For the savings initiatives, the FTE impact cannot clearly be attributed to a decrease in back-
office or frontline roles. We can provide commentary once we have worked through the
Item 5
Page 12 of 20
comments on the nature of the savings exercise related to FTEs undertaken at agencies and how
it aligns to the Minister’s savings priorities.
We wil aim to send you the detailed agency breakdowns once we have discussed and shared
with PSC by tomorrow morning at the latest we are aiming for COP today.
Previously we reported in the Cabinet Paper that the workforce implications of the Package
were:
“The workforce implications for Budget 2024 align with our coalition priority to improve the
effectiveness, efficiency, and responsiveness of public services. The savings initiatives wil result
in an estimated reduction of s 9(2)(f)(iv)
mainly in frontline roles across Health, Corrections, Revenue, and Police”
Any questions, please let me know!
Kind regards,
Kevin Cho | Analyst – Budget | Te Tai hanga – The Treasury
Tel: s 9(2)(g)(i )
| Email: [email address]
CONFIDENTIALITY NOTICE
The information in this email is confidential to the Treasury, intended only for the addressee(s), and may also be
legally privileged. If you are not an intended addressee:
a. please immediately delete this email and notify the Treasury by return email or telephone (64 4 472 2733);
b. any use, dissemination or copying of this email is strictly prohibited and may be unlawful.
Item 6
Page 13 of 20
From:
Kevin Cho [TSY]
To:
^Parliament: Simon McLoughlin; ^Parliament: Hamish Dick
Cc:
Stacey Wymer [TSY]; Keiran Kennedy [TSY]; Emily Fulford [TSY]; Jas Singh [TSY]
Subject:
Updated Workforce Implications of Budget 2024 Package.
Date:
Friday, 10 May 2024 5:28:49 pm
Attachments:
image001.png
Updated Workforce Implications of Budget 2024.xlsx
[SEEMAIL][SENSITIVE]
Good evening Simon and Hamish,
As discussed just now with Simon – we expect the office and MOF wil have a number of
questions about this data and if need be we can meet to discuss next week re next steps.
Fol owing on from our email earlier this week re headline numbers. Please find the more
detailed data breakdown on Budget 2024 FTE Implications.
We have discussed the information with PSC and below is the updated data which incorporates
al agency returns. Please note that the numbers have been rounded and outline the impact for
2024/25 which is consistent with the methodology of FTE numbers provided through the Budget
2024 Cabinet Paper.
Across both the public service and Crown entities, agencies estimate there wil be an
s 9(2)(f)(iv)
from new spending and cost pressure initiatives of
which approximately s 9(2)(f)(iv) wil be funding for retention of existing FTEs. This means
there is a s 9(2)(f)(iv)
for new positions. s 9(2)(f)(iv)
Agencies estimate a s 9(2)(f)(iv)
from the savings initiatives of which 1,450 FTE
are anticipated from disestablishment of vacancies. s 9(2)(f)(iv)
The difference is largely driven by agencies s 9(2)(g)(i)
who are now
able to provide FTE implications of their savings initiatives.
Therefore, the net impact is anticipated to be s 9(2)(f)(iv)
The net number wil
also depend on whether we are including disestablishment of vacancies and retention of
FTEs into the calculation.
Noting there are choices on how to frame the above.
The main changes from the previous numbers provided yesterday are:
s 9(2)(f)(iv)
As we have discussed the data is heavily caveated. Caveats from us on the updated FTE
col ection:
Data relates to FTEs at June 2025 (the end of next financial year).
Not al agencies were able to respond in the timeframes required.
Item 6
Page 14 of 20
Monitored Crown Agencies are aggregated for each monitoring agency.
Significant changes have been identified between initial budget initiative assessment in
mid-February and this col ection. Some of this wil relate to agencies having greater
certainty now than when the initiative was original y submitted, but other changes may
reflect decisions that are unrelated to Budget.
Agencies were asked to report numbers of staff funded and FTE reductions from savings:
This does not reflect the entirety of workforce change occurring throughout the
public sector at the moment. FTE reductions may occur in excess of these numbers.
Some agencies have not been able to disentangle changes driven by Budget and
other changes. s 9(2)(f)(iv)
Col ectively this may explain gaps in change numbers reported through the media,
and what we are seeing delivered through Budget.
Data relating to FTE savings may change due to:
Change processes requiring consultation may change the numbers of roles being
disestablished
Rates of staff attrition are being assumed by many agencies, and may be incorrect.
These factors have meant that agencies were general y unable to provide
occupational analysis through the initial budget initiative assessment, including for
service delivery or non-service delivery roles. However, assumptions can be made
based on which agencies are funded for new or retained staff to support frontline
services, and a generalisation that the savings exercise which prioritised reductions
in back office functions.
The net figure of staff added/removed through the Budget may not represent actual
staffing additions. This assumes staff made redundant in one area are able to find
continued employment within the system, but this wil not always be the case.
A number of agencies indicated a strong preference that the FTE information is not
released as staff consultations have not yet taken place and/or Crown Entities are yet to
be notified of the final Budget 2024 Package. These agencies include:
s 9(2)(g)(i)
Kind regards,
Item 6
Page 15 of 20
Kevin Cho | Analyst – Budget | Te Tai hanga – The Treasury
Tel: s 9(2)(g)(i )
| Email: [email address]
CONFIDENTIALITY NOTICE
The information in this email is confidential to the Treasury, intended only for the addressee(s), and may also be
legally privileged. If you are not an intended addressee:
a. please immediately delete this email and notify the Treasury by return email or telephone (64 4 472 2733);
b. any use, dissemination or copying of this email is strictly prohibited and may be unlawful.
Item 7
Page 16 of 20
From:
Hamish Dick
To:
^Parliament: Paula Oliver; ^Parliament: Grant Johnston; ^Parliament: Simon McLoughlin; Nick Venter; ^Parliament:
Rachael Bowie
Subject:
Workforce Implications of Budget 2024 - Table by Agency
Attachments:
image001.jpg
Workforce Implications of Savings Process in Budget 2024 as at 18 May (1).pdf
Hi,
Treasury have provided updated numbers for the FTE implications of Budget 2024 savings, broken down
by Vote. I have shared this with the Minister, who wil be using aggregate numbers in her post-Cabinet
speech tomorrow.
Thanks,
Hamish
Hamish Dick
Private Secretary – Finance
Office of Hon Nicola Willis
Minister of Finance
Level 7.2 Executive Wing, Parliament Buildings, PO Box 18041, Wel ington 6160, New Zealand
M: s 9(2)(g)(i )
E: [email address]
Item 8
Page 17 of 20
From:
Kevin Cho [TSY]
To:
^Parliament: Hamish Dick
Cc:
Jas Singh [TSY]; Emily Fulford [TSY]; Keiran Kennedy [TSY]
Subject:
Workforce Implications of Savings Process in Budget 2024 as at 18 May
Date:
Sunday, 26 May 2024 6:13:42 pm
Attachments:
image001.png
image002.png
[SEEMAIL][SENSITIVE]
Hi Hamish,
Table with workforce implications of savings process in B24 as at 18 May has been uploaded to:
Headline estimated numbers are:
3,410 FTE reductions (including vacancies) as a result of baseline savings
510 FTE reductions (including vacancies) as a result of other savings
Total reduction of 3,920 FTE across savings processes at Budget 2024 based on data provided by
agencies.
We would stil recommend that MOF uses the aggregate number in Budget Day comms rather than
agency level data. Noting that the current version of Minster Seymour’s Budget Day PR has a placeholder
for an FTE savings’ number.
Please note, we have made some adjustments to the presentation of this data as we understand this
table is being considered for publication.
We have removed the new spending + cost pressure columns and agency comment columns as
discussed.
The FTE reduction and disestablishment of vacancies tables have been aggregated.
This is because, given the numbers are to be released publicly, there are concerns that
providing this level of specificity carries accuracy risk and how it may be interpreted.
If the Minister wishes to discuss disestablishment of vacancies, we suggest this is done at an
aggregated level:
We expect approximately, 35% of the FTE reductions of the savings (including
baseline and other savings) to be from disestablishment of vacancies. (approximately
40% for baseline savings and 5% for other savings, excluding Crown Entities)
We have excluded the Monitored Crown Agencies from the calculations. This is because:
Agencies have been inconsistent with the provision of the FTE information on Crown Entities
and therefore, the table is inconsistent in the way it treats Crown Entities whose FTE impacts
have been announced. The most significant of these are:
s 9(2)(f)(iv)
The data is based on agency submissions as at 18 May, any further changes to workforce at
agencies wil not be reflected in the table.
Four agencies have been aggregated under ‘other agencies’ as at the time of information col ection
(18 May) they expressed their concerns with the figures being made public. These include:
New Zealand Police
Education Review Office
Ministry of Transport
Ministry of Justice
The agency list also excludes the intel igence agencies (Government Communications Security
Bureau and the New Zealand Security Intel igence Service, *
) and the Social Wel being Agency,
* s 9(2)(f)(iv)
*
, as it wil become the Social Investment Agency (a stand-alone central agency) effective 1
July.
If there are any specific questions on the FTE change in the agency please refer to the comments
provided in the Annex A: Workforce Implications of Budget 2024 as at 18 May (T2024/1409 refers)
which can be incorporated into Q&A.
Item 8
Page 18 of 20
Due to rounding to the nearest 10 and the above adjustments, the numbers may be different from
what was provided previously.
Please note that the ‘public sector cuts’ figures reported in the media stands at 4,975 as at 24 May.
We can provide a table with an agency breakdown of what has been reported in the media if it
would be helpful.
Also if a table showing a different cut of agencies to aggregate the data into ‘agency categories’ eg
central agencies, population agencies, etc would be more useful, let us know
If you would like any technical changes to the table, please let me know. We’l update Minister Seymour’s
PR to ensure that numbers are consistent.
Thanks,
Kevin
Kevin Cho | Analyst – Budget | Te Tai hanga – The Treasury
Tel: s 9(2)(g)(i )
| Email: [email address]
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Item 9
Page 19 of 20
BUDGET-SENSITIVE
Workforce Implications of Savings Process in Budget
2024 as at 18 May
Baseline Savings
Other Savings^
FTE Reduction
FTE Reduction
(including
(including
Agency
disestablishment of
disestablishment
vacancies)
of vacancies)
Crown Law Office
s 9(2)(f)(iv)
Department of Conservation
Department of Corrections
Department of Internal Affairs
Department of the Prime Minister
and Cabinet
Inland Revenue Department
Land Information New Zealand
Ministry for Culture and Heritage
Ministry for Ethnic Communities
Ministry for Pacific Peoples
Ministry for Primary Industries
Ministry for Regulation
Ministry for the Environment
Ministry for Women
Ministry of Business, Innovation
and Employment
Ministry of Defence
Ministry of Education
Ministry of Foreign Affairs and
Trade
Ministry of Health
Ministry of Housing and Urban
Development
Ministry of Social Development
New Zealand Customs Service
New Zealand Defence Force
(Civilian)
Te Arawhiti
Page 1
Item 9
Page 20 of 20
BUDGET-SENSITIVE
Workforce Implications of Savings Process in Budget
2024 as at 18 May
Baseline Savings
Other Savings^
FTE Reduction
FTE Reduction
(including
(including
Agency
disestablishment of
disestablishment
vacancies)
of vacancies)
Oranga Tamariki-Ministry for
s 9(2)(f)(iv)
Children
Parliamentary Service
Public Service Commission
Serious Fraud Office
Statistics New Zealand
The Treasury
Other Agencies
Total
Notes and caveats:
^ Includes other savings processes in Budget 2024 and Mini Budget decisions.
1. The workforce implications are intended to reflect the result of the savings decisions at
Budget 2024. However, due to chal engies in separating savings decisions from wider
agencies processes that would have happened regardless of Budget 2024 decisions, some
agencies data includes wider change processes.
2. Note that some agencies are yet to undertake consultation on staff changes, these have
been aggregated as 'other agencies'. [NB: This is made up of four agencies]
3. The numbers in the table above are from agency data col ected at a point in time.
Change processes are stil underway at various agencies and final FTE impacts are subject
to change as a result of the change processes. Any further changes wil not be reflected in
the table.
4. Due to the these factors, the FTE impacts reported in this table are likely to be different
from what has been publicly reported to date.
5. Numbers over 10 have been rounded to the nearest 10 where possible and Crown
Entities are not included.
6. Where possible, data relates to the reduction of FTEs (and closure of vacancies) at June
2025 (the end of the 2024/25 financial year).
7. Security Intel igence Agencies (Government Communications Security Bureau and New
Zealand Security Intel igence Service) is not included in the above table due to sensitivities.
8. The Social Wel being Agency has been excluded as it wil become the Social Investment
Agency (a stand-alone central agency) effective 1 July.
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