Colin,

I blogged on this to you last year when this question came up as well as today on the Standard.

I want to ask the public one question:

Why does the state sector now occupy over 65% (up from 35% 6 years ago) of Wellington's A Grade office space (with its rents sometimes over $2000 per square metre)?

Generally, these spaces were for large corporates - not government who wouldn't pay these high rents. Why can they now? How come there are so many more departments and people to house?

I'm not questioning anyone's ability, skill or work ethic but this begs the question, why is the state sector almost the second biggest industry in NZ outside of primary produce?

John Key: "It is time to focus public spending on frontline services that make a real difference to people's lives, rather than paper-shuffling and report-writing that does not."

Has he told Brian Connell and Katherine Rich?

It's just another factless argument from Key. The number of policy bods at some ministry went up X%, so what? was the increase necessary or not is the question, the mere increase in itself is not a sign of too much increase.

IRD has to run WfF and Kiwisaver now. MSD has a raft of new programmes it's runnning too. That's what happens when you have a government that does stuff rather than letting things slip behind like National did in the 1990s.

$500 million is an enourmous chunk of the wage bill for the core public service. You couldn't save that much without making cuts or slashing wages.

This morning, on TV1 Breakfast, at approx 7.20 am Paul Henry had his usual weekly interview with John Key.

Subject Brian Connell and the Speaker's trip to Europe. Then Key wanted to talk about 'bloated bureaucracy' as that was to be his speech later on today.

I did not think that JK was comfortable under questioning, particularly as PH did of course, try to link the Speaker's trip with 'BB'.

I think that this is why I am cautious when JK et al talk about what they are going to do to the 'BB' to save squillions. To be fair and reasonable to the processes the Public Service deliver to the public, you and me, such a prunning will be very slow. And I hope it is slow, should National lead the next Coalition. I would not rejoice in seeing any slash and burn. Rather I would prefer slow and thoughtful.

Sam

Sure IRD has to run WFF and Kiwisaver now but they have also grown in other areas with little or no restraint or accountability on their spending. In relation to WFF I have always maintained that they were overfunded for that scheme as they have been running similar schemes for 20 years or more and the additions at the last election were no more than an add on. Rather than increasing levels of Family Support all New Zealanders should have received tax cuts which would have required no more and undoubtedly less IRD staff over time as the incentives for taxpayers to "avoid tax" subsequently lessen. The tax collecting in this country is done by the taxpayers, banks, employers etc etc. As noted by one high profile tax barrister last year, 95% of IRD staff could call in sick tommorrow and for the rest of the year and the tax take would not be affected.

The growth in IRD and most government departmnets has got out of hand and while Mr Key's methods may be a rather blunt instrument it is certainly necessary.

The number of central government civil servants is reputed to have grown by about 40% in the 8 years since Labour came to power. I doubt that the economy has grown that much, when adjusted for inflation. This means that the wealth creating sectors of the economy are getting a smaller share of the economic pie, which has to be bad for everyone in the long run. A rhetorical question: If the civil service is to stop growing soon, what will happen to Wellington property prices relative to the rest of the country?

Has it been considered that with any new programme WFF set up a larger number of people are usually needed initially, and once the system has been streamlined, people leaving are then not replaced.

No doubt Key if he got into Government could then say he was reducing bureaucracy, when in reality it was through natural attrition.

"Remember that a government big enough to give you everything you want is also big enough to take away everything you have." Davy Crockett

While he's at it, he should cap government spending by x% of GDP, and cap increases in government/council charges to the CPI.

Everybody knows the axe must be taken to the W'ton excesses, and that includes the parliamentary extravaganza, these jokers should not be spared from the exercise and Key should realize that's how the people see that.

I can't believe how he is throwing away opportunities to score for open goal. He ought to have pulled Rich and Connell from that trip immediately and made a spiel about it. Now he's just slippin' and slidin' again.