Government Cap Important for Wellington

The Wellington Employers’ Chamber of Commerce supports the government’s objective of extracting more efficiencies from the public sector in spite of the short-term adjustment challenges this presents.

“While the cap on public servant numbers may hurt Wellington businesses in the short term it is the right thing for the city in the longer term,” said Chamber Chief Executive Ken Harris.

“New Zealand has one of the best civil services in the world. Making sure these skills are organised to create real public sector productivity gains is vital.

“With creative thinking, efficient Government services can become a competitive advantage for Wellington and New Zealand.

“The alternative of higher taxes and the employment of too many public servants is unacceptable. Higher taxes sap the ability of business to support a sustainable community and diverting talent away from the private sector creates skills shortages.

“It is important for Wellington that the city diversifies its economic base away from government and we would like to see a significant increase in private sector economic activity relative to public sector.

“Wellington’s business sector has been held back over recent years as the growth of government has made it harder for local businesses to attract good workers and office space.

“The Chamber’s most recent business confidence survey showed that in spite of relatively high unemployment rates, businesses are finding it harder to find labour – especially skilled labour.

“Notwithstanding the short-term adjustment difficulties, the freeing up of good people and suitable office space from the public sector will be positive for business and the city as a whole.

“Wellington is fortunate in that it accommodates one of the most highly regarded public sectors in the world. Its employees are amongst the highest skilled and highest paid in the region and they make an important contribution to the life of the city.

“If this is to continue, tough decisions that translate into real productivity improvement need to be made,” Mr Harris concluded.

ENDS

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