Grant Robertson
State Services Spokesperson

More cuts to come for public services

The Budget makes clear that New Zealanders will be facing cuts to public services far beyond those already announced by the National Government, Labour State Services Spokesperson Grant Robertson says.

The 2009 Economic and Fiscal Update (pg 106) highlights further reviews of the delivery of public services as having a positive impact on the overall fiscal position. This is in addition to the $2 billion of cuts announced last week.

“This means only one thing, more cuts to services, more cuts to jobs. This will mean a reduction in the quality of services that ordinary New Zealanders receive,” Grant Robertson said.

“National has already been responsible for cutting public services, including more than 1400 jobs. National’s promise of capping but not cutting public services was simply misleading. It was made by John Key when he was fully aware of the global recession. It was a cynical statement to try to placate the concerns of everyday Kiwis.

“This Budget should have been about protecting and creating jobs, instead it outlines further substantial funding cuts for a range of departments that offer frontline services to the New Zealand public. The Department of Conservation has had its budget cut by $54 million. DOC is a key part of our tourism industry, and is at the frontline of protecting our national heritage. It will struggle to perform that role with these cuts.

“The Ministry of Economic Development has had an 8% cut, amounting to nearly $12 million. This Budget was meant to be about stimulating the economy and creating jobs, yet one of the agencies that has the main responsibility for driving that growth is being slashed.

“These cuts are of course in addition to the reductions in jobs and services in other key agencies such as the Ministry for Social Development (including in Community Services and Care and Protection) and Inland Revenue Department. These are the agencies that are meant to be assisting people to get through the recession.

“The wholesale cutting of services and staff is short-sighted. In a recession the Government needs to invest in people and jobs. This requires strong public services that deliver to ordinary New Zealanders what they need and deserve. National is selling all of us short, and we will pay for it in the long run.

“This Budget marks a return to the 1990s for the public service. Core staff are being cut, and expensive consultants charging thousands of dollars a day will rule the roost,” Grant Robertson said.

ENDS

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