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Home / New Zealand / Politics

Public sector cuts: What government agencies are spending on staff Christmas parties, if anything

Azaria Howell
By Azaria Howell
Political Reporter·NZ Herald·
4 Dec, 2024 12:48 AM7 mins to read

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The search for three missing climbers on Aoraki/Mt Cook remains on hold and Sevu Reece has been discharged without conviction following an incident at a Cup Day party last year.
  • Thousands of jobs have been cut from the public sector this year as the Government demands greater fiscal restraint.
  • As a result, some agencies have decided not to hold an end-of-year Christmas function for staff.
  • Others are asking staff to pay to attend, or to bring their own food or alcohol.

As the Government continues its drive to cut costs, many public servants are going without a Christmas do this year or are dipping into their own pocket to fund one – minus alcohol.

The Herald asked government agencies how they would be celebrating Christmas for staff this year on the back of widespread job losses and cutbacks.

Their replies made it clear spending is front of mind when it comes to festive celebrations, with little appetite to spend anything.

One of the biggest ministries, the Ministry of Business, Innovation and Employment (MBIE), confirmed it told staff in October it would not be providing a subsidy for an end-of-year function.

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Richard Griffiths, deputy secretary of corporate services, finance and enablement, said the decision was not a reflection on the value of staff work but was “made in recognition of the current fiscal environment”.

Workers at the Ministry of Housing and Urban Development are also going without this Christmas.

Customs is not arranging or funding a party but said teams could choose to organise their own get-togethers if they wish to.

For Crown Law staff, they can pay to attend their BYO Christmas do.

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In a statement, the agency said festivities are being held in the office with some costs paid for from its social committee’s fundraising efforts over the year.

“Staff need to bring their own drinks, and a small entry fee covers finger food.”

Crown Law previously contributed about $25 per person for an event for Auckland and Wellington-based office workers.

The Herald recently reported on festive plans for staff in private law firms, including end-of-year gifts and bonuses of 3-15% of each staff member’s salary.

Denton’s chairman Hayden Wilson said their function would be held in a privately hired licensed venue with beer, wine, spirits and non-alcoholic options.

Private law firms will be putting on functions for staff while Crown Law workers will need to BYO. Photo / 123RF
Private law firms will be putting on functions for staff while Crown Law workers will need to BYO. Photo / 123RF

Workers at Te Arawhiti, the Office for Māori Crown Relations, need to pay $7 each to attend their end-of-year staff party, being held offsite. The office’s social committee has fundraised throughout the year to cover most of the costs.

It expects the function to be similar in scale and size to years prior.

Te Arawhiti’s social committee decided not to request financial support from the agency this year. Previously, it had paid about $20 per head, covering about half of the costs.

The Charter School Agency, which started work in July this year, is planning a Christmas lunch at an external site which staff also have to pay for.

“All costs will be met by attendees,” agency chief executive Jane Lee said in a statement.

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The new Ministry for Regulation is holding its first Christmas do this year, with staff asked to bring a plate of food to share in the office.

“Refreshments” are being provided by the ministry’s senior leadership team.

Any gathering for those working for the Department of Prime Minister and Cabinet will also be funded by individuals.

The Ministry for Culture and Heritage’s end-of-year event will be “entirely funded by staff contributions”.

Both the NZSIS and GCSB are not contributing to any Christmas function.

Meanwhile, the barbecue is being fired up at some KiwiRail offices for the festive season while other sites are having a morning tea.

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A KiwiRail spokesperson said it would not be providing funding for staff parties, “reflecting the need for budgetary restraint in the current economic environment”.

The state-owned enterprise said it has previously provided a per-head subsidy towards Christmas parties.

Agencies that are still aiming to spend taxpayer money on their functions quoted a budget between $7.50 and $25 per person.

Ministry of Health staff were treated to a karaoke machine and giant Jenga for their end-of-year do.

The afternoon tea and activities, based at the agency’s Wellington office, came out to $5500 – a cost of $9.15 per person.

The ministry said the catered food “is consistent with the Ministry of Health’s National Healthy Food and Drink Policy”.

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A “modest amount” of alcohol was provided at the function thanks to the MoH’s executive team chipping in “out of pocket”.

MBIE said scrapping a Christmas do was not a reflection on the value of staff work but recognises the current fiscal environment. Photo / Michael Cunningham
MBIE said scrapping a Christmas do was not a reflection on the value of staff work but recognises the current fiscal environment. Photo / Michael Cunningham

The Ministry of Education has coughed up $7.50 per person on end-of-year morning of afternoon teas, to recognise staff efforts and “mark the holiday season”.

Acting corporate leader Rob Campbell said the food and non-alcoholic refreshments were in line with ongoing savings efforts.

Both the Ministry for Pacific Peoples and the Ministry for Women budgeted $10 per person for their celebrations – in their offices.

Staff at the Department of Internal Affairs are in for a morning or afternoon tea worth an estimated $12 per head, the same as what was provided last year.

The Ministry of Justice and Ministry for Ethnic Communities have budgeted $15 per person – but that can’t be spent on alcohol.

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It’s the same story at the Ministry for Primary Industries, which reduced its per-person funding last year down to $20 per head.

“Any spending must be properly receipted and none of the subsidy can be spent on alcohol,” MPI’s director of people and capability Kaye Ryan said.

Teams within the Ministry for the Environment have been given a $20 per person allowance for “kai or an activity”, but not alcohol.

No alcoholic drinks are being funded as part of celebrations at Aroturuki Tamariki, the Independent Children’s Monitor. The agency has budgeted $20 a person, with some staff opting to bring along homemade food to share, or drinks.

The $20 per person allocation is also in place at the Education Review Office, for the purchase of food and non-alcoholic drinks.

Corrections is spending up to $25 a head for food and non-alcoholic drinks as each site and manager puts on their own individual party.

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“Some prison sites put on an end-of-year barbecue for staff at the site,” Corrections said in a statement.

Function expenditure must be approved by a senior leader, and the function must be documented with expenditure and attendee names.

The Department of Conservation is taking the KiwiRail approach, with a barbecue. Deputy director-general of organisational support Mike Tully said “like we do every year, DoC will take a practical, low-key approach to Christmas functions”.

“We tend to hold BBQs at DoC offices, allowing up to $20 per staff member attending for food and non-alcoholic drinks,” Tully said. He confirmed each office was responsible for planning its own function, with some teams organising parties at their own cost.

A total spend of $2120 is being contributed from the Ministry of Defence for venue hire and additional food items, at an off-site venue.

The ministry’s social club’s fundraising means each attendee gets two drinks each.

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The New Zealand Defence Force’s social club has budgeted $2500 of non-public funds for their event. Attendees must pay for their own drinks.

Agency spending has been under scrutiny this year with a directive to drive more value from taxpayer money and divert spending to front-line services.

Thousands of roles in the public sector have been cut since the change of government, with cost-saving efforts to continue well into the new year.

Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022 and has a keen interest in city council decisions, public service agency reform and transport.

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