130 health jobs to go

BY TRACY WATKINS AND MARTIN KAY
Last updated 13:24 17/03/2010
JOB LOSSES: The ministry is among those expected to suffer the deepest cuts, with reforms announced last year expected to slash at least 500 jobs over time.
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JOB LOSSES: The ministry is among those expected to suffer the deepest cuts, with reforms announced last year expected to slash at least 500 jobs over time.

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The Ministry of Health is proposing to axe 130 positions between now and July next year, as new figures show nearly 1500 public service jobs have been cut in the past year.

Outgoing Director-General of Health Stephen McKernan said staff had been briefed on a proposal to restructure the ministry today, including plans to reduce the number of full time positions to 1290 by July 2011. There would be a reduction of about 35 positions this year. There are currently 1420 full time staff.

Mr McKernan said the proposed new structure was to support changes to the health system that began in October last year.

"While the proposal would change some roles and disestablish a number of positions, exact numbers will not be known until all ministry staff have had the opportunity to provide feedback and the structure is finalised around mid to late May."

The proposals are the latest in a series of job cuts within the public service under the Government's drive to trim costs.

PUBLIC SERVICE JOBS CUT

Nearly 1500 jobs have been cut from the public service in the past year, new figures show.

State Services Minister Tony Ryall said there were now 37,379 full-time equivalent jobs in the core public service compared to 38,859 in  March 2009.

The present number of is 1480 below the March 2009 figure, which the Government said would be the maximum in the 36 departments and five crown entities covered by National's cap on the public service.

The Public Service Association said the present rate fuelled fears the Government was cutting, not capping, the public service.

But Mr Ryall said there had been an increase of 540 full time jobs in frontline services in departments including Child, Youth and Family, Work and Income, and Community Probation and Psychological Services - a key aim of the cap.

He said the growth in public service jobs under Labour - about five per cent or 1800 jobs a year - had been unsustainable.

"Under Labour's trend there would be 2,700 more public servant positions than there are now. At an estimated average cost of $63,000 for a Public Service salary, that's around $170 million in staff costs saved and available for reinvestment in frontline services."

He said the Government expected to see further reductions in staff numbers as departments coped with limited budgets.

PSA national secretary Brenda Pilott said the cap policy was a "farce" and the axed job would lead to greater workloads and harm service delivery.

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She said that of the 1480 jobs gone in the past year, 809 were people who were made redundant, 565 vacant jobs that were cut and 106 staff that left but were not replaced.

"On top of the jobs the government says it cut last year our monitoring shows that a further 1000 jobs were axed in the wider state sector," she said.

The further cuts were from agencies not covered by the cap, such as district health boards and state-owned enterprises TVNZ and NZ Post.

"The government claims its moving workers from the backroom to the front line in the public service but its own figures show the reverse is happening," Ms Pilott said.

"Having fewer public sector staff increases the workload for those who remain. We're concerned about the impact this will have on delivering services to the public."

ACC JOB CUTS EXPECTED

ACC is expected to announce next Monday the closure of branch offices in Blenheim and Thames, putting more than a dozen jobs at risk.

An interim "stocktake" report on the future of the corporation was handed to ACC Minister Nick Smith last month but he has asked for more detailed work to be done before a final report in June.

The review group, chaired by former Labour minister David Caygill, will report on the merits of introducing competition to the work account, which covers businesses and the self-employed.

Prime Minister John Key and ACT leader Rodney Hide indicated last year that more sweeping changes in ACC were possible, including opening other areas, such as the motor vehicle account, to private insurers.

The review will also look at the role of private and non-government sectors, including iwi, in accident management and compensation.

Senior ministers have privately conceded that temperatures will rise throughout the state sector later this year as the impact of the cuts is felt.

They include rumoured cuts of more than 100 jobs at the Education Ministry, as it seeks to save $25m over three years, and a similar number at TVNZ as it looks at ways to increase profit by up to $40m.

Executives from the state broadcaster are expected to outline options to staff over the next few weeks. They are also working on plans to separate the commercial and public broadcasting arms.

Mr Key has indicated a decision is likely soon on plans to merge several government agencies to save cash and trim staff.

These are believed to include the National Library and Archives, the Food Safety Authority and the Foundation of Research, Science and Technology.

40 comments
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Dave   #40   10:31 pm Mar 17 2010

There is plenty of dead wood in most government departments, no one will notice 130 less, well maybe the cafes. Min Health and Min Ed, both have too many paper shufflers and not enough front liners, go Johno!

Steve   #39   09:15 pm Mar 17 2010

Good news. Bring back more nurses and doctors in the hospitals. But feel sorry for those who will lose their jobs. Hope the Government can up with a quick solution to help those who will lose their jobs to find other employment.

wilbur ross   #38   07:16 pm Mar 17 2010

It continues to beggar belief the comments from people here saying "good job" when they hear about people losing their jobs, and the comments about these people who do nothing, based on what evidence, spin put out by a MP who has no idea what it means to lose their jobs. John Key said he would do his best to protect people from the sharp edges of the recession, but not if you happen to work in the public sector, then its all on, easy meat! Nice work John pumping up the unemployment levels and ruining lives....such a nice genial man!

Arden   #37   06:20 pm Mar 17 2010

SusieQ #22: A 3.8% cut in the total number of employees can hardly be regarded as "cutting the public service to the bone". Nor is it a "deep cut" as described by the left wing script writers at 3 News!

Peter   #36   05:45 pm Mar 17 2010

Richard #12 Labour is and was not a communist government. Under national in the 1990's if you are that old. The increse in over load for staff in all sectors of public offices. I.e Winz Health MOe Justice etc was a nationalists' motive. Where we need to stop, alter, change etc, is the miltary spending which is not for NZ's growth. Of course there is abundance of extra staff. This is caused by having better services or people in these positions are looking after their position. Natural course of events will demise due the retirement of the baby boomers. The need to cut back is at the top of all these services not at the bottom where it does hurt "joe Bloggs'.

This old trodden rubbish about left and right was a construct to divide and conquer, and you Richard are still believing in it and what is more surprising you blast it on stuff. Move on and and leave the baggage where it stands in the past.

HB   #35   05:35 pm Mar 17 2010

SpaceMonkey #17's analogy is seriously flawed -- the pit crew of a race team ARE front line workers themselves, not bureaucrats. His analogy would apply if doctors and nurses were being cut leaving only the specialists in place. A more accurate F1 analogy would be the F1 team cutting PR, HR, advertising etc. jobs -- Which wouldn't be a bad thing if that part of the business had been increased by thousands of employees over the past decade with no notable benefit.

richarquis   #34   04:57 pm Mar 17 2010

@ Richard #12 - Would you give the "communist" line a rest? It was never true, and the repetition is tiresome and unintelligent. A government that takes an interest in social services as well as fiscal is not by definition communist. Get your head out of the sand.

mello   #33   04:49 pm Mar 17 2010

Maree #11 states:

"He [Stephen McKernan] has resigned because of political interference in axing of jobs at the Ministry."

Maree, do you actually have factual evidence to support the above statement, as this is not only a very serious accusation to make, but a potentially libelous statement under the Defamation Act, 1952.

If you have the evidence let's see it please. Otherwise you may wish to publicly retract your statement.

I suggest you also get to grips with the State Services Commission selection and recruitment procedures for engaging senior public servants. It is not a loose process open to 'political interference' as you suggest, nor are senior public servants employed directly as political appointees by the Government.

Governments do make political appointments to quangos such as SOE Boards that are outside the ambit of the core civil service. This is an accepted practice, and one that is employed by both political parties when in power.

Governments are also in the habit of employing soon-to-be retired-from-parliament MPS in foreign affairs posts such as London and Canada - but this is a very different scenario from installing "lackeys" in senior core public service roles.

But don't let the facts get in the way of your ignorance and/or Labour/PSA trolling now, will you.

John   #32   04:43 pm Mar 17 2010

Good move and long overdue. Now lets restructure the number of MP's we have as well. Theres at least 30 too many of these overpaid, self centered individuals and along with their personal State funded staff we could probably save another $300 million annually. Also lets bring the retiring benefits & perks MP's get back into line with what other short term senior management Kiwis get on retirement.

real world worker   #31   04:17 pm Mar 17 2010

A mate of mine recently showed me a list of works carried out by a government department (he works there). He asked me how much I would charge to carry it out. I said $35,000 and that would be all costs paid and making a good margin for me. He then told me this department had spent over $700,000 and counting to do the same work-and that did not include the indirect costs of managers, pay clerks etc.

This is true and I could hardly beleive it was true. The fact is the civil servants have had their snouts in the trough with no accountability for a least 10 years. That was appraching a million bucks that could have been left in the tax payers hands to pay real people to do real work or to have provided front line services somewhere. The "pit crew" that allows this has been incredibly spoilt and indulged by the previous government. The sad thing is they really think they are doing something worthwhile when in fact they are wasting their time and the tax dollars of the increasing few export earners that keep the tide of red ink at bay.

We do not need endless ranks of middle managers who needlessly shuffle paper. Many years ago when i was a government servant the biggest impediment to producing frontline services was the endless job justification paperwork handed down from above. Sack more of them and spend the money on the doctors, nurses, teachers and other in the frontline.


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