MFAT cuts will damage our international reputation

Leaked documents due to go before Cabinet next week show the Government has revised its original plan and will now axe 146 foreign service jobs and close New Zealand’s embassy in Stockholm next month, says Labour’s Foreign Affairs spokesperson Phil Goff.

The Cabinet papers detail the Government’s final decisions on the MFAT changes, which are due to be publicly announced in eight days’ time, said Phil Goff.

“The restructuring process has been handled abysmally. It has done enormous damage to staff morale. A letter from Trade Negotiation Division employees I have obtained says staff retention is already a problem and there are urgent priorities that are being held up. Staff confidence has also been severely undermined.

“The documents confirm our embassy in Stockholm will be closed next month with an estimated saving of $1.1 million. Embassies in Madrid and The Hague may also be shut down at a later date. It is noted that this decision has implications for ‘our overarching goal of securing a comprehensive agreement with the European Union containing preferential trade provisions’.

“The papers reveal that 146 jobs will be cut, down from the 304 originally proposed. These cuts will affect 53 predominantly senior foreign policy/diplomatic roles and 93 corporate services staff. The loss of 53 foreign policy jobs will strip the Ministry of some of its most experienced and skilled people and undermine the quality of policy advice to Ministers.

“I understand the savings will now be around $12 million – half of the recent estimate of $24 million savings and much lower than the $40 million set out in the briefing paper to the Minister. This is minimal compared to the cost of the botched restructuring which is expected to be $9.2 million this year. I also have further advice showing another $3.3 million will be spent on change consultants in the coming year.

“This entire process has been botched from the beginning. The original recommendations were wrong and have had to be revisited as a result. A huge amount of time has been wasted and there has been enormous damage done to staff morale.

“It is a disgrace that Murray McCully has tried to distance himself from the changes throughout this saga. He was the architect of the original plan and has only eased back because of public pressure and concern.

“I’m concerned these changes will damage our international reputation and restrict our ability to conduct trade negotiations in New Zealand’s best interests,” said Phil Goff.