PSA seeks urgent meeting over razor gang

The union representing public servants has sought "urgent clarification" of what the new Labour Government's razor gang will do.

The Government will review state-sector spending as it tries to find savings to help pay for the policy deals it struck with NZ First, United Future and the Greens.

The group will be led by Finance Minister Michael Cullen and assisted by two other senior ministers, Phil Goff and Trevor Mallard. Dr Cullen said this week that the Government might also have to "slow down" other projects it was planning.

The Public Service Association said yesterday that it was seeking an urgent meeting with Dr Cullen about the Government's plans.

PSA national secretary Brenda Pilott said the union wanted to clarify the scope and focus of the review.

"Our members have been concerned to read media reports about the formation of a ministerial razor gang to audit spending across the public sector.

"This language evokes strong memories the last Bill Birch-led public sector slash-and-burn exercise and the disastrous consequences which resulted."

The Herald sought comment from Dr Cullen but received no response.

Ms Pilott said New Zealand had one of the most efficient public services in the world, using less staff than a decade ago and consuming less of the economy than public sectors in most OECD nations.

"Finding significant savings without affecting services will be a very difficult job."

National's finance spokesman, John Key, said there was a "rich irony" in the PSA going to the Government about its planned razor gang.

"The PSA invested heavily in a campaign against National during the election. Now it's finding out just how trustworthy its so-called mates really are.

"Throughout the election campaign Labour refused to be honest and upfront about the impact of its spending. And even today, Helen Clark and Michael Cullen are still speaking at cross-purposes over the depth of the planned cuts."

Mr Key said that while the Prime Minister was denying yesterday on radio that there would be significant cuts, Dr Cullen had failed to quash rumours that savings in the order of $400 million were being considered.

The Treasury warned months ago that taxpayers were carrying a bloated public service, Mr Key said.

"Productivity and waste were also identified as public-sector issues. At best, Labour has been in denial. At worst they have set out to deliberately deceive us all about the impact of their spending."

Greens co-leader Rod Donald said he did not know what the razor gang would do.

"I suspect this is as much a positioning statement to head off National as it is a slash-and-burn approach to the public service, but by the same token I'm sure they will identify areas where there could be efficiency gains."