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Merger redundancies cost $12m, Labour says

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Merger redundancies cost $12m, Labour says

3News NZ

Steven Joyce is in charge of the new Ministry of Business, Innovation and Employment

Steven Joyce is in charge of the new Ministry of Business, Innovation and Employment

The Government spent $12 million on redundancies as it merged departments with the new Ministry of Business, Innovation and Employment, Labour says.

State services spokesman Chris Hipkins says it's an "enormous bill" for taxpayers and the Government has no coherent plan to improve public services.

He says that on top of the redundancy payments, the Ministry of Economic Development spent $19m on consultants and contractors as it prepared for its merger.

"This process is as inefficient as they come. National's public sector restructuring has been ad-hoc and motivated by empire building," he said today.

Fourth-ranked cabinet minister Steven Joyce is in charge of the new ministry and Mr Hipkins says he hasn't finished shuffling people around.

"The creation of the new ministry will mean a second or even third round of restructuring for some of the employees involved."

NZN

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Comments

24/08/2012 12:35:03 a.m.

lani wrote:

There is nothing 'efficient' about what the Government has been doing to the public sector. Employing consultants at ludicrous rates, restructuring organisations without taking the time to understand what they do and what the risks are, replacing face-to-face contact with hotlines that leave you dangling on hold for an hour, listening to terrible music. Most departments currently have a 'recruitment freeze, which means if someone leaves (and they're leaving in droves), they are not replaced. This is not well-planned and considered change that will result in a more efficient public service; it is arbitrary, unplanned, and often expensive change that is damaging the services we provide to the public and damaging the morale of those providing the service .

23/08/2012 10:54:22 p.m.

michael wrote:

there is something not right about a man in his 40s who looks like he is in his early 60s.Mr Joyce .that is caused by a hard sinful heart.

23/08/2012 3:47:40 p.m.

michael wrote:

there is something not right about a man in his 40s who looks like he is in his early 60s.Mr Joyce .that is caused by a hard sinful heart.