New mega-ministry admits it can’t do the same job as it plans to cut 400 roles

The Government’s new Ministry for Cities, Environment, Regions and Transport (MCERT) has told staff today it won’t be able to keep doing the same level of work New Zealanders rely on, as it moves to cut 400 roles, nearly a quarter of its workforce.

MCERT was formed in July by merging the Ministry for the Environment, the Ministry of Transport, the Ministry of Housing and Urban Development, and the local government functions of the Department of Internal Affairs.

The change proposal given to staff today would cut its workforce from 1,675 roles to 1,275 and disestablish almost nine in ten permanent roles, forcing staff to apply for new jobs. The cuts follow MCERT needing to cut $50 million from its budget by 2028/29.

“When Ministers announced this merger, they said it was about removing duplication and fragmentation and that it was not a cost cutting exercise. Now the new ministry is cutting a quarter of its workforce and $50 million from its budget and admits it can’t do the same volume of work. New Zealanders were sold one thing and are getting another,” said Duane Leo, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.

“The Ministry’s proposal says, ‘a smaller organisation cannot simply undertake the same volume of work in the same way.’ That’s a department telling New Zealanders in black and white that work will stop.

“Less means doing less – how does that make sense when we have a housing crisis, a climate crisis and an infrastructure crisis?

“This is the ministry meant to lead New Zealand’s response to climate change, fix our housing shortage, and plan the roads, rail and infrastructure the country badly needs. The Climate Change Commission already says the 2026-2030 emissions budget is at increasing risk, and the Government wants to take a quarter of the people out of the main agency charged with fixing it.

“This proposal will bake in the severe understaffing that MCERT has already been experiencing with 365 already vacant positions and will go even further with a total permanent reduction of 400 roles. When the dust settles, the new organisation will have reduced its total roles by a quarter.

“Many of those affected are experienced professionals with decades of service. Once their knowledge is gone, it goes to Australia or the private sector, and it doesn’t come back. This is the hollowing out of the public service in real time.

“Staff will go into Christmas not knowing until February whether they still have a job. That’s a cruel way to treat people who have given so much to this country.

“This restructure is full of uncertain outcomes. The Government hasn’t assessed what this means for the services New Zealanders rely on. That’s exactly why we urgently need a public good test before any restructure goes ahead.

“Ripping apart a ministry in the middle of an election campaign is reckless. The Government should halt this now. These cuts are yet again why we need a new government come 7 November that values the public service,” said Leo.