Public sector cuts: Around 30 jobs may be impacted by Callaghan Innovation restructure

Callaghan Innovation staff have said they are "hugely concerned" about the change proposal.

Lower Hutt-based Crown agency Callaghan Innovation is planning on going back to its “core purpose” in a proposed restructure.

In a statement, the agency said the Callaghan Innovation Board has directed the organisation to refocus on being an innovation agency and advanced technology institute “to ensure it can continue to deliver the services making the biggest impact on innovation ecosystem development”.

The statement confirms Callaghan is under cost pressures and needs to manage “ageing infrastructure”.

The Herald recently reported 86 scientists and staff called on Research, Science and Innovation Minister Judith Collins to intervene in the so-called “strategic reset” taking place, with fears it would lead to job losses.

The agency, which provides funding grants and expertise, employs roughly 380 people - 200 of which are considered to be scientists. Grants from Callaghan are administered by the Ministry of Business, Innovation, and Employment (MBIE).

MBIE itself has been seeking 7.5 per cent cost savings and has opened a voluntary redundancy scheme twice thus far, with 111 people approved to leave the agency through the scheme. Not all who applied for voluntary redundancy have been approved.

Callaghan says it has taken a detailed look at its foundational documents to guide the change process, which staff have reportedly been fearful about.

“When Callaghan Innovation was created, there was a clear expectation that our main focus should be to support industry-led science and technology-based innovation and its commercialisation,” the agency said.

Callaghan Innovation has confirmed it wants to work with the private sector to use science, technology and innovation to turn profits and bolster the New Zealand economy.

The agency has acknowledged the process has “not been easy”. In a statement, it said “this is a difficult time for many of our scientists and engineers, who are widely respected for their contributions and high-level of expertise in their respective fields”.

Public service agencies are being urged to find cost savings between 6.5 and 7.5 per cent, as the Government seeks $1.5 billion in savings per annum to deliver on its policies.

The jobs of 30 scientists and engineers at Callaghan Innovation are the latest casualties of the Government’s drive to reduce its investment in research and development.

National secretary for the Public Service Association (PSA) for Te Pūkenga Here Tikanga Mahi Duane Leo said: “It’s surprising that the Government talks big about driving a productive economy, but yet it wants to pull back sharply on science and research.

“These are scientists and engineers who are working in important areas like biotech and industrial chemistry. They create new products out of our agricultural industries as well as innovating in other parts of the economy.

“This is all about jobs for the future and growing the economy. It is just such short-term thinking. The strongest economies in the world invest strongly in research and development, but our government is prepared to sacrifice that for some misguided goal of cutting taxes for landlords and others.”

The PSA said it believes many of those potentially facing redundancy will leave New Zealand for jobs overseas.

The Ministry for the Environment has also confirmed a voluntary redundancy process is in place, from today.

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.