More public service jobs to go

The Government expects to axe hundreds more public service positions in the next year as fiscal constraints continue, State Services Minister Tony Ryall said today.

The Government cut 1480 state sector jobs last year, and has signalled nearly 500 more jobs would go over the next year, leaving about 37,000 jobs in the public sector.

In its May budget, the Government said most departments would get no funding increase over the next three to five years.

Mr Ryall said today the original estimate of state sector job losses in the next year was likely to increase.

"I think we'll see that number grow in the next few months as various departments look at how they're going to live within no funding increases and getting best value for the taxpayers," he told TV3's The Nation.

"I think we'll see several hundred more over that 500, that's a reflection of the fact that individual government departments are looking at how best they can organise themselves with no funding increases, the reason being that times are still very tight."

Finance Minister Bill English has previously said the reduction in state sector positions was ongoing.

However, there would be an increase in some public sector jobs such as police officers, prison officers, community probation staff and WINZ staff.

There was no official freeze on public sector pay rises, which had been restrained "during this quite difficult economic period", Mr Ryall said.

- NZPA