NZ | Government | 2500 jobs to save $20m

A squeeze on state service backroom functions has saved just $20 million in two years, Treasury boss Gabriel Makhlouf has revealed.

The Government has shed more than 2500 jobs in the past three years and ordered chief executives to shave their IT and human resources bills as part of a drastic overhaul of the public service.

But despite ambitious plans to save $1billion over three years, a `benchmarking’ report to be published next week will show 31 agencies and departments have managed to reduce spending by just $20m.

In his first major speech since taking over at No1 The Terrace, Mr Makhlouf told the Institute of Chartered Accountants in Wellington yesterday: “Some individual agencies have made substantial gains, reducing up to $8m in the cost of some functions. But overall, reduction in expenditure is limited – around $20m in inflation-adjusted terms.” …

via 2500 jobs cut, but only $20m saved | Stuff.co.nz.