PSA MEDIA RELEASE
February 23, 2009
For Immediate Use

PSA alarmed that govt making public service cap permanent

The PSA is alarmed that Finance Minister Bill English is today saying that there will be a permanent cap on the number of staff and a permanent cap in funding for government departments.

Finance Minister Bill English states in today’s New Zealand Herald that he has told the chief executives of government departments that: "For the rest of their careers, there isn't going to be more money or more people.”

Mr English says the government’s call for restraint in the public service in response to the recession is now permanent and the public service will have to provide “more services with the same or fewer people and the same or less funding."

“Mr English is saying that it doesn’t matter how much the demand for public services grows as the recession bites, as the population grows, as the need to combat climate change increases, the public service is permanently capped in terms of staff and funding,” says PSA National Secretary Richard Wagstaff.

“That is a recipe for disaster at a time when countries around the world are turning to their public services to help them ride out the global economic down turn.”

“It also shows that the government is using the recession to push through its agenda of having smaller government.”

“As President Obama said in his inaugural address it’s not a question of how big the government is, it’s how effective the government is.”

“Rather than taking an unworkable approach to public services based on its ‘smaller government’ agenda the government needs to work with public service workers who are committed to providing effective services and value for money.”

“This is demonstrated by our largest government department, the Ministry of Social Development, which is involved in a ‘value for money’ programme that involves an increased used of information technology to deliver its welfare services more efficiently, at a lower cost, and in a more user friendly way, ” says Richard Wagstaff.

ENDS

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