Job cuts process begins as Auckland Council looks for $295m budget savings

Auckland Council and its agencies are starting to move on job cuts as part of a drive to close a forecast $295 million deficit in the budget which takes effect in July.

While it is early days in the process, the urban regeneration agency Eke Panuku will this week start talks with staff affected by the cutting of around 20 jobs.

“Our priority is to support our staff through what is for all of us a difficult and challenging time,” said David Rankin, the chief executive.

Eke Panuku has to cut around $5m from its running costs, and will slow down some of its town centre upgrades across the city.

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Some of the 20 jobs to go may include existing vacancies.

Big funding cuts will also hit the economic and culture agency Tātaki Auckland Unlimited, which will lose up to $44.5m – all but eliminating its major events work and much of its economic development programme.

“We do not know what the potential impacts are at this point – they may include reductions in roles, changes in reporting lines or restructures in the delivery of roles,” said chief executive Nick Hill.

The agency is still working with its board on ways to tackle the proposed funding gap, which may also including boosting revenue through new and additional charges.

TAU also runs major facilities such as Auckland Zoo, the city’s art gallery and stadiums.

“Given the size of the financial challenges that Tātaki Auckland Unlimited faces, we need to start actioning some changes now, so the organisation is ready by 1 July – when the new budget starts,” said Hill.

At the council itself, which is likely to make savings of $130m if the budget passes in its current form, the numbers around job losses is not yet clear.

“The next few months will require significant adjustment to the way work is delivered,” said Jim Stabback, the chief executive.

“We know this will result in some positions being disestablished. However at this stage we do not know how many positions will be affected and in which areas,” said Stabback.

The biggest agency, Auckland Transport, said no staff restructuring moves were under way yet, with four months until the next budget year, but the council has flagged savings of up to $32.5m might be needed.

A new chief executive, Dean Kimpton starts in April and a strategic review will be an early priority.

Auckland Council’s most challenging budget in its 12-year history is out for public consultation until the end of March, and also proposed big cuts to community funding, and the possible sale of the $2 billion stake in Auckland International Airport.