- 904 workers made redundant since late 2023 –
redundancy cost $36.5m - At least
$8.6 million spent on consultants and contractors for
restructuring
The Government has spent
$36.5 million to make Kāinga Ora workers redundant while it
runs down public housing, new figures released to the PSA
under the Official Information Act show.
At least 904
workers have been made redundant since the Government came
to power in late 2023.
On top of that, other
information released to the PSA under the OIA shows the
agency spent $8.6 million on consultants and contractors
between July 2024 and June 2026, while it pushed through
restructures that have seen almost a third of its workforce
shown the door (see details below).
“This is money
wasted to gut a critical public agency at a time of
desperate need for social housing, it’s shameful,” said
Fleur Fitzsimons, National Secretary for the Public Service
Association Te Pūkenga Here Tikanga Mahi.
“That $36.5
million would have bought more than 45 three-bedroom family
homes in South Auckland, putting a warm, dry roof over the
heads of around 180 people.
“Instead, it’s paid to
show skilled, experienced workers the door.
“The
biggest cuts have hit the teams that plan and build new
homes and keep the organisation running. Gutting the
Construction and Innovation team tells you everything about
this Government’s commitment to building public housing:
there isn’t one.”
Advertisement – scroll to continue reading
The total bill including
consultants of $45 million could be higher. More than four
months ago, the PSA asked Kāinga Ora what it has spent on
all consultants and contractors, by month, since the change
of government in late 2023. Kāinga Ora extended its
deadline to 3 September, then missed it prompting a
complaint to the Ombudsman.
The Ombudsman told the PSA
on Tuesday that Kāinga Ora had breached its statutory
obligations and told the agency to promptly communicate its
decision to the PSA. Kāinga Ora has now responded, but its
figures for 2023/24 are not broken down by month, so
spending between the change of government and June 2024 is
not included in the $8.6 million. The total bill is likely
higher.
“It’s the same story across the public
service,” said Fitzsimons. “Health NZ spent $58 million
forcing out health workers it needed. Now Kāinga Ora has
spent $36.5 million doing the same. The Government is
spending money it says it doesn’t have to cut services New
Zealanders rely on.
“That’s how reckless this
Government has been. Come this Saturday, New Zealanders have
a chance to choose a new government that will rebuild public
housing, not tear it down.”
Background on
redundancies
– An OIA response to the PSA shows
Kāinga Ora paid $36.5 million in redundancies to at least
904 people between 1 December 2023 and 30 June 2026. Monthly
figures under 10 were withheld, so 904 is a minimum.
–
National Services, People Governance and Capability,
Construction and Innovation, and Finance account for more
than half of all redundancies.
– More than 1,100
Kāinga Ora jobs including vacancies have been cut since
2024, almost a third of its workforce.
– Barfoot &
Thompson’s March 2026 suburb report puts the average sale
price for a three-bedroom house in Manurewa at $733,871.
$36.5 million would buy 49 homes at that price. Around 180
people assumes a family of four in each of 45
homes.
Background on consultants and
contractors
– An OIA response to the PSA shows
Kāinga Ora spent $8.6 million on consultants and
contractors between July 2024 and June 2026.
– Figures
for 2023/24 were not broken down by month, so spending
between the change of government in late 2023 and June 2024
is not
included.
