The Government has spent $36.5 million to make Kāinga Ora workers redundant while it runs down public housing, new figures released to the PSA under the Official Information Act show.
At least 904 workers have been made redundant since the Government came to power in late 2023.
On top of that, other information released to the PSA under the OIA shows the agency spent $8.6 million on consultants and contractors between July 2024 and June 2026, while it pushed through restructures that have seen almost a third of its workforce shown the door (see details below).
"This is money wasted to gut a critical public agency at a time of desperate need for social housing, it's shameful," said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
"That $36.5 million would have bought more than 45 three-bedroom family homes in South Auckland, putting a warm, dry roof over the heads of around 180 people.
"Instead, it's paid to show skilled, experienced workers the door.
"The biggest cuts have hit the teams that plan and build new homes and keep the organisation running. Gutting the Construction and Innovation team tells you everything about this Government's commitment to building public housing: there isn't one."
The total bill including consultants of $45 million could be higher. More than four months ago, the PSA asked Kāinga Ora what it has spent on all consultants and contractors, by month, since the change of government in late 2023. Kāinga Ora extended its deadline to 3 September, then missed it prompting a complaint to the Ombudsman.
The Ombudsman told the PSA on Tuesday that Kāinga Ora had breached its statutory obligations and told the agency to promptly communicate its decision to the PSA. Kāinga Ora has now responded, but its figures for 2023/24 are not broken down by month, so spending between the change of government and June 2024 is not included in the $8.6 million. The total bill is likely higher.
"It's the same story across the public service," said Fitzsimons. "Health NZ spent $58 million forcing out health workers it needed. Now Kāinga Ora has spent $36.5 million doing the same. The Government is spending money it says it doesn't have to cut services New Zealanders rely on.
"That's how reckless this Government has been. Come this Saturday, New Zealanders have a chance to choose a new government that will rebuild public housing, not tear it down."
Background on redundancies
- An OIA response to the PSA shows Kāinga Ora paid $36.5 million in redundancies to at least 904 people between 1 December 2023 and 30 June 2026. Monthly figures under 10 were withheld, so 904 is a minimum.
- National Services, People Governance and Capability, Construction and Innovation, and Finance account for more than half of all redundancies.
- More than 1,100 Kāinga Ora jobs including vacancies have been cut since 2024, almost a third of its workforce.
- Barfoot & Thompson's March 2026 suburb report puts the average sale price for a three-bedroom house in Manurewa at $733,871. $36.5 million would buy 49 homes at that price. Around 180 people assumes a family of four in each of 45 homes.
Background on consultants and contractors
- An OIA response to the PSA shows Kāinga Ora spent $8.6 million on consultants and contractors between July 2024 and June 2026.
- Figures for 2023/24 were not broken down by month, so spending between the change of government in late 2023 and June 2024 is not included.
Previous statements
- 8 May 2026 - Heartless Govt proposes more job cuts at Kāinga Ora
- 23 February 2026 - Govt wastes $58m forcing out 2,800 health workers during funding crisis
