Media Statement
For Immediate Release

12 May 2009

Changes announced as part of Ministry’s ongoing Value-for-Money Programme

The Ministry of Social Development has today announced it is starting a process of consultation with staff and management about proposals for targeted structural change as part of its ongoing Value-for-Money programme.

Ministry Chief Executive Peter Hughes said the purpose of the proposed changes was for the Ministry to operate more efficiently and redirect resources to the frontline where they are needed most.

“Since 2005, the Ministry has had an ongoing Value-for-Money programme which has meant we have dealt with forecasted cost pressures in a managed way.

“The reality of the current economic environment is that more and more New Zealanders are accessing our services. We need to meet this additional demand by providing more resources at the frontline. This means the Ministry now needs to go faster and further in our plans to manage our costs over time.”

Under the Ministry’s proposals, there will be some changes to the organisation’s structure. With the exception of a limited number of specialist roles, no frontline jobs would be affected under the proposals.

“For the majority of our staff it is business as usual. Most of the changes we are proposing affect managers, staff working in the Ministry’s head office or administrative support roles. In a worst case scenario, we are anticipating up to 200 redundancies but I would expect it to be less.

“We are setting up a dedicated support service for staff directly affected by the changes. This will provide support to each staff member based on their individual needs. Redundancies will be a last resort. As an alternative, we will aim to ensure that every person gets at least one good job offer in the Ministry or the broader public service.”

Mr Hughes said the Ministry was already managing some of the increased demand within its existing operations.

“By July 2009 there will be 100 more case managers in Work and Income to help manage the increase in demand for services to get people back into work.

“Our intent is that, when we have finished this process, we will be able to focus on the future with certainty about how we will fund the Ministry’s operations,” he said.

ENDS

© Scoop Media