PSC Proposes Cuts to Public Sector Digital Capability Team

The Public Service Commission's proposal to cut nearly 30 per cent of Government Digital Delivery Agency (GDDA) roles when the government is driving digital transformation is irresponsible, the PSA says.

The timing of the change proposal is also highly questionable given that a caretaker government is in place, Public Service Association Te Pūkenga Here Tikanga Mahi national secretary, Duane Leo, said.

"It is highly inappropriate for the Public Service Commission, which is supposed to guide Government agencies on how to act when there's a caretaker government, to be pushing ahead with a significant change proposal.

"The proposals include the politically contentious axing of the Māori Digital and Crown relationships unit and spreading its work across the Public Service Commission," Leo said.

The GDDA was established within the PSC in April 2026 "to accelerate the use of digital capabilities across the Public Sector". It took over the responsibilities of the former Government Chief Digital Office, which was part of the Department of Internal Affairs.

GDDA staff were informed today that under the PSC proposal, 158 permanent GDDA roles (24 vacant) could be reduced to 113. In addition, 14 fixed-term positions would be reduced to just one.

"These decisions will have huge ramifications not only for the affected staff, but for the next Government's ability to deliver its digital strategy," Leo said.

"Reducing the GDDA by nearly a third is incredibly short-sighted, especially for the agency responsible for leading the public sector's digital capability.

"It's a huge loss of experience and institutional knowledge in critical areas that should be helping expand digital technology capability across the public service."

The proposal shifts the GDDA from delivering digital services that underpin digital transformation to purely providing advice and guidance to government agencies.

"This approach weakens rather than strengthens the GDDA's ability to support system-wide digital transformation in the public service," Leo said.

The proposed shift from delivery means that the Government Digital Services Delivery unit will be axed.

This unit supports critical digital services for people and businesses. These services include: www.govt.nz, the government's 'front door' to the public; data.govt.nz, a catalogue of open data; jobs.govt.nz, which advertises public sector roles; and marketplace.govt.nz, where businesses sign up to be public service suppliers.

"The proposal is unclear as to how these services will continue to be supported," Leo said.

The proposal also includes a net increase of 18 roles in the PSC's Enabling Services team, which provides corporate services such as finance, communications IT and governance support.

Consultation on the proposed changes opens Wednesday 11 November and closes Wednesday 2 December. The final structure is not proposed to be in place until mid-April next year.

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