PHOTO: Finance Minister Nicola Willis. FILE
📉 WELLINGTON, April 16, 2025 — In a move sending shockwaves through the economic and political arenas, New Zealand’s cost-cutting government has wielded the axe — slashing the Reserve Bank’s budget by a staggering 25%. 😮
💼 Finance Minister Nicola Willis confirmed that the government and the Reserve Bank of New Zealand (RBNZ) have agreed on a new five-year funding plan, capping annual spending at $NZ150 million — a significant drop from what was previously proposed.
🧾 The dramatic decision follows Treasury advice that the RBNZ’s $1.03 billion funding request lacked “value for money,” and claimed staffing levels had ballooned unnecessarily — especially in HR and comms.
📊 “The Reserve Bank has grown hugely in recent years,” said Willis, citing a jump from 255 staff in 2017/18 to 660 at the start of 2025.
😡 But not everyone’s on board. Fleur Fitzsimmons from the Public Service Association slammed the cuts as “madness”, warning of skilled job losses and reduced outcomes without proper justification.
📉 Critics like the Taxpayers’ Union argue the RBNZ has underperformed despite bloated budgets:
“Headcount exploded by 2.5x since 2018, and yet they oversaw the worst downturn in 30 years,” said spokesperson James Ross. “Too many cooks have clearly spoiled the broth.”
🎯 The move puts pressure on incoming governor Christian Hawkesby, who replaces Adrian Orr, reportedly ousted after tensions with the government over bank capital requirements.
🏛️ RBNZ Chair Neil Quigley acknowledged the challenge, stating the bank would need to “redesign our way of working to optimise resources.”
📉 This comes as part of a wider cost-cutting crusade by New Zealand’s right-leaning coalition, which promised to trim the public service following what it described as excessive growth under Jacinda Ardern’s Labour government.
📉 According to Radio NZ, a massive 9,520 public sector jobs have already been axed by December 2024 — and more may be on the chopping block.