Taxpayers set to benefit from savings.
Public Service Minister Judith Collins announced that the government's move to reduce spending on consultants and contractors is on track to save $800 million over two years, more than double the initial target. This comes as data released by the Public Service Commission shows a 4 percent decrease in the core public service workforce between December 2023 and December 2024.
The reduction of 2,731 employees largely impacted back-office roles, which was offset by an increase in frontline staff. Between 2017 and 2023, total salary costs for the core public service workforce grew by a staggering 72 percent to about $6.1 billion per year. Minister Collins emphasized that the government will continue to focus on delivering frontline services while controlling contractor and consultant spending.
The savings are expected to be redirected towards core services such as healthcare, law enforcement, and education. The Public Service Commission's data highlights the government's efforts to rein in excessive spending and ensure public servants manage taxpayers' money wisely.