ACC biggest loser in widespread cuts

Operating budgets for ACC and the economic and social development sectors have been slashed by millions, while the Government prepares to make a separate demand on public sector bosses to find another $980 million in the next three years.

Budget 2011 shows $5.2 billion in savings from several sources, including changes to KiwiSaver, ACC, Working for Families and student loan eligibility rules.

Over three years $100 million will be saved by halting increases to aid spending through the Official Development Assistance.

The number of programmes run by ODA will drop from 30 to 24 and the number of smaller projects it funds will fall from 715 this year to 650 next year.

A further $30 million will be cut from the Ministry of Foreign Affairs and Trade in mostly unspecified savings after a review, though the ministry's budget has a $55 million increase, mostly in one-off costs including $10 million to host overseas guests for the Rugby World Cup.

There are also winners and losers among government departments in terms of operating budgets, the biggest winners being Health and Education (including tertiary).

ACC was the biggest loser and has been earmarked to save the Government $638 million in four years through fewer contributions to the non-earners' account.

The Ministries of Economic Development and Social Development have had more than $46 million each sliced from their operating budgets, mainly through programmes winding up, being chopped or being transferred.

Budget documents show funding stopping for economic development programmes including Rugby World Cup 2011 ($1.43 million), Managed funds domicile ($1.5 million), Wine to the World ($350,000), Cross Departmental Research Pool ($333,000), and Volunteer Website for Events ($260,000).

Acting Economic Development Minister David Carter said most, if not all, of those programmes were due to finish this year. "The only real loss we've had was $5 million taken off New Zealand Trade and Enterprise, and they have just done things far better than they were. They are doing more with slightly less."

Social Development Minister Paula Bennett said the ministry's only real loss was about $5 million, through consolidating policy advice.

LOSERS

ACC: -$94.17m

ECONOMIC DEVELOPMENT:

-$49.27m

SOCIAL DEVELOPMENT:

-$46.69m