National says state fat must be trimmed

The Government has grown by more than 20 per cent in the past five years and National is targeting the state sector for cuts.

National's finance spokesman John Key said he would launch an audit of the sector - including schools and hospitals - to ensure that all spending was justified.

Mr Key said there were too many ministries and cuts could be made to areas such as business aid grants.

Labour said the increases come at a time when public services are being rebuilt after National slashed and neglected them during the 1990s.

Figures obtained by Act show that the number of staff in core Government departments has grown by 23 per cent from 30,702 in June 1999 to 37,865 in June 2004.

National obtained figures showing that staff in the wider state sector - including schools and hospitals - rose from 265,000 in 1998 to 302,000 in 2004, a 14 per cent rise.

Mr Key said that while the number of public servants was rising, other figures showed the wage bill had increased even more. Wages paid by core Government departments rose from $2.527 billion in 1999-2000 to $3.25 billion in 2003-2004, a 28.6 per cent rise.

"That's not nurses and teachers, that's the bureaucracy - the suits," he said. "Under Labour you've seen a state sector out of control."

But Mr Key said the biggest concern was the projected new spending of $22 billion over the next four years, much of which would flow into the state sector. "It's going to grow like wildfire. Labour thinks size equates to efficiency."

However, Government duty minister Rick Barker said he would welcome any audit of state spending.

"I've never been to a hospital yet where they tell me they've got too many doctors or nurses, or to any school where they've got too many teachers or support staff.

He said growth in the core state sector had come after National Administrations cut departmental spending in the 1990s.

National Governments had hired consultants at great expenses to do core state sector work and Labour had reversed that.

Mr Barker said the Government was doing more as well, with more police, customs, corrections and social workers. He said National's plans signalled a return to the "slash and burn" era.

Mr Key said he was questioning the quality of the spending and the outcomes.

That would mean cuts to spending in some areas affecting staff and programmes. One example could be business help grants administered by Government agencies.

"Elements of the corporate welfare and grants we think have essentially failed. But this is not a return to Ruth Richardson, slash and burn," he said, referring to the former National finance minister.

Act deputy leader Muriel Newman said TVNZ newsreader Judy Bailey's $400,000 pay rise was nothing compared to the extra millions now being spent on thousands of additional public servants under Labour.

"This is no lean and mean machine," she said.

Big government is alive and well, as is the culture of extravagance with many public servants earning very fat salaries."

Rising payrolls

Wider state sector, including schools and hospitals:

1998 staff: 265,000

2004 staff: 302,000

Increase: 14 per cent

Core state sector (govt departments only):

Wage bill 1999-00: $2.5b

Wage bill 2003-04: $3.25b

Increase 28.6 per cent

Source: National Party parliamentary questions