Chris Hipkins: 'Now is not the time for a big spend up'
Good morning from a partly overcast Wellington. Prime Minister Chris Hipkins has just started his Tuesday morning media round, with an interview on RNZ's Morning Report.
He is being asked about the $4 billion he announced would be trimmed from the public service at yesterday's post-Cabinet briefing. Each agency will reduce 1%-2% of its spending.
"This is the third round of savings we have identified this year," he said
He has also directed the public service to seriously cut back on its spending on contractors. The sector was able to do this, he said, because it had moved on from the pandemic response, where it used a higher proportion of contractors.
He said there were three more cost-of-living election promises to come. Labour has announced seven so far. But he said it won't be a "big-spending election".
"Now is not the time for a big spend-up".