Hon Nicola Willis
Minister of Finance

The brakes have been put on contractor and consultant spending and growth in the public service workforce, Finance Minister Nicola Willis says.

“Workforce data released today shows spending on contractors and consultants fell by $274 million, or 13 per cent, across the public sector in the year to June 30.

“Over the course of the year, the number of public servants grew slightly to 63,537 but the details reveal a year of two halves - ballooning growth under the last government offset by a 3.3 per cent reduction under this government.

“The annual increase of 0.7 per cent, or 421 employees, compares to average increases of almost 5 per cent over the previous five years.

“This shows the steps the Government is taking to restore discipline to public expenditure and drive more value for money are working. The growth in public service numbers in the first half of 2023/24 was largely due to the decisions, work programmes and priorities of the previous government.

“The latest data also reflects a shift of back-office resources to the frontline.

“There has been a 10.8 per cent decline in the number of clerical and administrative staff and an 8.3 per cent drop in policy advisors.

“This has been offset by increases in service delivery roles, including a 16.9 percent increase in contact centre workers who are often the first point of contact for members of the public. There has been a 5.7 per cent increase in the number of inspectors and regulatory officers and a 1.5 per cent increase in the number of social, health and education workers.”

Nicola Willis says she expects the downward trend to continue.

“The 3.3 percent decrease in the overall size of the public service between December and June aligns with the Government’s commitment to a public service focused on performance and the delivery of essential services for New Zealanders.

“We’ve had to make some tough decisions. I feel for anyone who has lost their job, but no government can live beyond its means indefinitely, and we have to restore discipline to public spending by spending taxpayers’ money as carefully as they do.”

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