Proposed change to hit 365 vacant roles, ministry says
New Zealand's Ministry for Cities, Environment, Regions, and Transport (MCERT) is proposing the elimination of 400 jobs in a bid to make the newly launched agency "smaller and more focused."
The MCERT, established on 1 July, brings together the Ministry of Transport, the Ministry for the Environment, the Ministry of Housing and Urban Development, and the local government function of the Department of Internal Affairs.
It currently has 1,675 roles, but the ministry's proposal seeks to reduce this to 1,275 positions by April 2027.
Most of the reduction will impact 365 positions that are currently vacant, according to the ministry, but it acknowledged the uncertainty the changes will bring.
"Because the proposal changes how the whole Ministry is organised, most of our people will be affected in some way," said Chief Executive Jeremy Lightfoot.
"I know that brings real uncertainty for them, and I don't want to understate how hard that is."
Why the need to restructure
The MCERT was established as part of the government's ambitious reform agenda in housing, transport, urban development and the environment.
It is aimed at addressing a range of New Zealand's economic and environmental challenges, including housing affordability, the country's infrastructure deficit, and adaptation to climate change.
But MCERT faces the need to "live within" its own budget, including delivering the $50 million in annual savings by 2028/29 that the government has asked of it.
"The proposed structure is how we would organise ourselves to deliver on three outcomes: productive cities and regions, healthy environments, and thriving communities," Lightfoot said.
"It would be a smaller organisation with five groups: System Performance, Policy, Planning System, Delivery and Enabling Services. Related work and shared services would come together, with people working across teams where needed."
'Reckless' government cuts
The Public Service Association (PSA) has slammed the cuts, accusing the government of going back on its word that the formation of the ministry was not a cost-cutting exercise.
"Now the new ministry is cutting a quarter of its workforce and $50 million from its budget and admits it can't do the same volume of work," said Duane Leo, National Secretary for the PSA, in a statement.
"New Zealanders were sold one thing and are getting another."
The union also warned that the proposed cuts would further "bake in the severe understaffing" at MCERT and would also impact public service in New Zealand.
"Many of those affected are experienced professionals with decades of service. Once their knowledge is gone, it goes to Australia or the private sector, and it doesn't come back. This is the hollowing out of the public service in real time," Leo said.
"This restructure is full of uncertain outcomes. The Government hasn't assessed what this means for the services New Zealanders rely on. That's exactly why we urgently need a public good test before any restructure goes ahead."
Leo said the government should "halt" the process, describing the move as "reckless" as it takes place ahead of the election next month.
"The Government should halt this now. These cuts are yet again why we need a new government come 7 November that values the public service," it said.
Consultation on the proposed changes started on 14 October and will run until 3 November. The new structure will be implemented in March 2027, with people in place by April.
"Nothing is final until our people have had their say. Over the next few weeks our focus is on making sure they are treated fairly, are well supported, and have clear information to base their decisions on," Lightfoot said.
"We'll listen carefully to their ideas for doing things differently before final decisions are made in early December."
