The PSA is backing calls from a group of respected economists for the Government to halt its damaging spending cuts programme which they say is helping to prolong the recession.
The economists, drawn from universities, unions and the private sector, are calling on the Government to urgently revisit its fiscal policy stating the economic rationale for spending cuts and deferral of key infrastructure projects was ‘unclear’.
“The Government’s ideological obsession with cutting spending regardless of the consequences is again being exposed for what it really is – reckless and rushed,” said Fleur Fitzsimons, Assistant Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
“The cuts have caused deep harm to individuals and their families not just because of the brutal job losses which psychologically destroy people but because people see the important work they were doing not getting done.
“The economists correctly state that government spending and infrastructure investment was already failing to keep pace with population and demographic changes.
“The Government in just one year has laid off thousands of public service workers around the country and severely cut spending across the public service.
“It is done this with no thought as to the vital work these workers and agencies carry out to support New Zealanders and grow our economy.
“We are losing skilled workers, many with decades of experience – scientists, social workers, environmental experts, policy analysts, Māori advisors, health specialists, online harm experts and many others.
“This hollowing out of the public service means we are undermining our ability to meet the serious challenges we face from climate change, rising health costs, the infrastructure deficit and our ageing population.
“The Government should heed the lessons of the past. Austerity never works.
“The economists are right – the Government is blind to the consequences of its fiscal policy which will damage New Zealand for generations to come.”
Read the letter to the Prime Minister from economists
