Government mandated funding cuts that will see Inland
Revenue’s budget slashed by 20% over three years leaves an
axe hovering over the jobs of hundreds of workers, the PSA
says.
An intranet message to Inland Revenue staff from
Commissioner Peter Mersi said that the cumulative savings
required by the Government from 2026/27 to 2028/29 and
rising costs means, “we will need to operate within a 20%
reduction to our baseline budget in 2028/29”.
“This
means that to deliver the level of savings required, we will
need to consider reductions in both workforce numbers,
alongside other costs,” the message says.
These
savings cannot be made without reducing the workforce, the
message says.
The Government is requiring Inland
Revenue to cut its baseline budget by 2% this year, an
additional 5% in 2027/28 and another 5% in 2028/29. Inland
Revenue leadership will be putting proposals for cutting its
budget to its Minister by the end of the year.
Public
Service Association Te Pūkenga Here Tikanga Mahi National
Secretary, Duane Leo, says sending workers a signal that
their jobs may be cut in the future without providing any
details puts a massive strain on them.
“It means
Inland Revenue’s more than 4000 staff are now all working
under threat of losing their jobs and facing the prospect of
struggling to keep up with the mortgage and put food on the
table in the near future.
“The workers that remain
will face increased stress of having to pick up even more
work, while Inland Revenue has signalled that it will also
reduce overtime, which it is currently using to manage its
workloads,” Leo says.
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“Inland Revenue staff already
work incredibly hard to deliver on Government priorities.
Whether it’s implementing tax and social policy changes,
delivering new Government initiatives, or meeting increasing
expectations around compliance and revenue collection, there
is constant pressure to do more,” Leo says.
“Against
that backdrop, the prospect of further budget reductions and
potential job losses is creating significant concern for
members. Many are questioning how Inland Revenue can
continue to meet increasing expectations while reducing both
funding and staffing levels, Leo said.
“The workers at
Inland Revenue aren’t just numbers to be managed on a
spreadsheet. They are real people. They deserve better than
this Government’s reckless, slash and burn approach to
cuts regardless of the consequences.
“Stopping this
brutal approach that creates stress and uncertainty for
hundreds of workers is why the
PSA is calling for a mandatory public good test before
government agencies can embark on major restructures and cut
jobs,” Leo says.
“The email to staff said that to
manage workload amongst a reduced number of staff, some
activities would be stopped and others would be managed with
more efficient ways of working.
The message’s
reference to efficiencies will be read in the current
climate by staff as incorporating artificial intelligence
technology, Leo says.
“As we’ve said before, we
don’t support using AI as an excuse for getting rid of
workers rather than making them more productive.
“No
country in the world has evidence that AI can replace public
sector workers at the scale this Government is betting on.
Countries like Singapore, which the Government often cites
as a role model, use AI to improve public services not to
reduce headcount,” Leo says.
“The PSA completely
opposes any new cuts at Inland Revenue. New Zealanders
deserve a public service that is funded enough to fulfil
basic functions like tax collections.”
About
PSA:
The Public Service
Association Te Pūkenga Here Tikanga Mahi is Aotearoa
New Zealand’s largest trade union, representing and
supporting more than 95,000 workers across central
government, state-owned enterprises, local councils, Health
NZ and community
groups.
