Business North Harbour hosted Finance Minister Hon Nicola Willis at Harbour Hockey on the 19th of May for an exclusive pre-Budget announcement ahead of Budget 2026, where the Government outlined significant public sector cuts and restructuring plans to modernise the public service and deliver better value for money for taxpayers.
Opening the sold-out event, while attendees lunched on salads, fish and chicken dishes, Business North Harbour CEO Kevin O’Leary acknowledged the difficult environment many businesses continue to face, noting that many are still “scrambling just to survive” amid ongoing financial pressures, high material costs, rising interest rates, and reduced consumer spending linked to the cost-of-living crisis.
Hon Nicola Willis Unveils Plans for AI Expansion, Ministry Mergers and Job Reductions
Hon Nicola Willis addressed the room, also acknowledging the challenges businesses and communities have faced and that many have been through a hard slog over the past few years. Highlighting the difficult economic conditions caused by COVID-19, high inflation, rising interest rates, and the broader economic downturn, Willis also references global instability, including actions by the current occupant of the White House and the fuel crisis, as additional pressures affecting businesses.
The main announcement included plans for nearly 9,000 public sector job losses over the next three years, agency mergers, and increased use of AI and automation across government departments. The changes were positioned as part of wider efforts to reduce spending and reshape how public services operate.
After the Q&A, Willis moved outside where the NZ press asked questions about the use of AI within her own office and the concerns around privacy, plus questions around the scale of the proposed cuts, which had already raised trepidations around the impact on jobs, frontline services, and communities across New Zealand, particularly at a time when many households and sectors remain under pressure.
Tuesday’s event provided attendees with the opportunity to hear directly from the Finance Minister and reflect on the wider economic and social implications these decisions may have for businesses, workers, and the broader community.
This was also a quick turnaround event, with the Business North Harbour team doing an outstanding job organising and hosting a full room of attendees for such an important announcement.
