Wellington mayor surprised by Government's plan to slash public sector

9:56am
Wellington's Mayor Andrew Little.

Wellington's mayor says he was surprised by the Government's plan to slash public service jobs and is now seeking answers directly from Finance Minister Nicola Willis.

By Penny Smith of RNZ

Andrew Little confirmed a meeting with Willis had now been arranged for June 12 after he publicly called for talks over the future of the public service and the impact on Wellington's economy.

Little said ministers had spoken for years about modernising government technology, but argued recent references to AI lacked detail.

''I wasn't aware of it [the announcement] before it was made. Yes, it was a surprise,'' he said.

''It's not clear what ministers mean when they say they want to use more AI in government because that on its own is a pretty meaningless statement.''

Little said one of his main goals for the June meeting would be to better understand the Government's implementation timeline.

He also wanted to position Wellington's technology sector as part of the solution, arguing the city already had deep expertise in government-focused digital services and AI-related design work.

''We have a very strong tech sector, including a GovTech sector, businesses who understand government and understand modern technology, including AI, and how that can assist the government to improve services and create efficiency.''

Little pushed back against comments from Public Service Minister Paul Goldsmith, who had questioned whether New Zealand had AI companies operating at the scale of global platforms such as Claude or Copilot.

Finance Minister Nicola Willis. left, and Public Service Minister Paul Goldsmith.

He said the issue was not whether Wellington could build the next multinational AI engine, but whether local firms could improve how government services were designed and delivered.

''It's not just the machinery they use to deliver. It's about the service offering - how government departments can make things easier for residents, taxpayers and people interacting with them.''

The mayor said Wellington's tech ecosystem was a growing economic force, estimating that the sector contributed about $2 billion to the regional economy and employed roughly 2000 people.

He pointed to companies such as Xero as examples of successful firms that emerged from Wellington's startup culture.

Little was not concerned that newer entrants, such as Sharesies, Hnry and PartsTrader, may follow Xero's lead and head to the California.

''They stay because the support system is here and the community is here. That's where they get their support from, and that's why Wellington offers such a strength for that sector.''

Still, Little acknowledged the technology industry remained much smaller than Wellington's public sector workforce, which numbered in the ''tens of thousands'' and remained central to the capital's economy.

He said the challenge over the next three years would be ensuring workers affected by public sector cuts could transition into private-sector opportunities, particularly in technology and the creative industries.

''Some of that talent sits in the public service too. The foundations are here for some really exciting times ahead in terms of boosting businesses and providing alternatives to work that might otherwise be done in the public sector''

Little was elected as mayor in part due to his connections to central Government and promises to grow jobs and Wellington's economy.

He said Wellington residents were looking for leadership and stability as uncertainty grew around job losses and restructuring.

''I don't think anybody holds me responsible for the decisions of central Government. Once those decisions are made or announced, then what they want is local government leadership that respects the processes to get decisions made, to work with those in the community to provide an effective response and effective alternatives.''

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