The public service has slashed spending on contractors and consultants by more than a third in the last 12 months. Photo: Unsplash
The public service has slashed spending on contractors and consultants by more than a third compared to last year, amounting to more than $640 million.
Public Service Minister Judith Collins is celebrating the latest figures, saying the government is committed to getting better value for money.
She said the decrease amounted to about $915m, or 42 percent, over the government's term, more than double its savings target of $400m.
"We committed to ensuring taxpayers get better value for money from their public service, and that every dollar is used in the best way possible," Collins said.
"I have made clear the government's expectation that contractor and consultant spending be kept below the new lower level of $1.25b across the public sector."
Over the past year, the public service has also shrunk by about 1.4 percent - down about 880 jobs.
The largest decreases were at the Education Ministry (down 552 FTEs, or 12.6 percent), Ministry of Business, Innovation and Employment (down 391 FTEs, or 6.3 percent), and Oranga Tamariki (down 307 FTEs, or 6.3 percent).
In contrast, the Department of Corrections saw a 6.4 percent increase - up 660 jobs - largely due to the recruitment of corrections officers.
Collins said it demonstrated the coalition's shift in focus from the back-office to the frontline.
Redundancy payments totalled more than $80m across about 1500 people.
"Redundancy costs need to be seen in the context of overall savings, with public sector costs reducing by $1.5 billion a year - savings which are ongoing," Collins said.
"These changes are about delivering better value for money and ensuring the public service is focused on delivering the services New Zealanders need and which make a difference in their lives. Today's results are a sign that our approach is working."
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
