Department refuses pay-off call

Press, 14 September 1988, Page 3

Department refuses pay-off call

By

GLEN PERKINSON

■> in Wellington The Conservation Department’s pursestrings are pulled so tight it cannot afford a oneweek stay of 164 redundancies, it says. The department was so hard pressed for cash that even a week’s extension of time for workers offered voluntary redundancy and other packages was out of the question, it said. The hard line taken by the department is blamed on last year’s budget blow-out of $3.5 million although other estimates tip the excess spending at three times that. The Opposition wanted to know yesterday why the department could not hold off on redundancies until after a management consultant’s report on the department’s management and alternative costsaving methods was concluded. “The Press” reported the plight of departmental staff in Marlborough, offered voluntary redundancy packages, who stand to lose thousands of dollars because of the September 23 deadline on their employment. The Opposition member of Parliament for Wallace, Mr Derek Angus, questioned yesterday the Minister ol Conservation, Ms Clark, on the department’s enforcement of redundancy deals before the findings of a report on the state of the department was released. The report is being prepared by the consultant, Coopers and Lybrand Associates, Ltd. Speaking on behalf of Ms Clark, the Minister of Social Welfare, Dr Cullen, told Mr Angus, “It would not be possible to finance these positions within the confines of the 1988-89 budget.” Dr Cullen told the House that the department had taken other measures to bring its spending into line with

its budget, such as selling surplus property. Nevertheless, staff cuts had still proved necessary.- : ■■■:, A* departmental spokesman, Mr Jim Kidson, told “The Press” last evening there was nothing further it could do for the workers declared surplus. However, the new director-general of the department, Mr David McDowell, would visit the staff in Marlborough today to discuss their grievances. Mr Kidson could not say if the staff would be given the extra week’s work they have demanded. Because the staff will be made redundant before October 1 they will not benefit from ' tax changes introduced then. These changes to the status of redundancy payments could save many of the targeted staff more than $7OOO. “The budget cannot stand up to keeping these people on,” Mr Kidson said. "Each week’s delay would involve further money being paid out in salaries. Things are that tight. “This decision needed to be taken urgently because of the wages and salary costs to the department. To have delayed it would have meant another eight weeks pay and extra time for the review of the report. “I don’t know if we can say ~ that it would send the department under but with the effect of last year’s $3.5 million overspent, actiton had to be taken on jobs. “Trimming staff was the last resort,” he said. The decision to offer the 164 staff voluntary redundancy packages had been made “months ago” and the situation had been discussed with staff then. The department had already extended the employment deadline an extra week from September. 16 to September 23. _