PSA calls on WCC to reject slash-and-burn Deloitte report

The PSA is calling on Wellington City Council Chief Executive Matt Prosser to reject the Deloitte report, which suggests eliminating up to 330 positions.

Public Service Association Te Pūkenga Here Tikanga Mahi National Secretary Duane Leo says the report is fundamentally flawed.

"This is a flimsy PowerPoint presentation that lacks any depth, rigour or even a basic understanding of what the Council's role is. Hidden in the fine print, the report notes that its assumptions need to be validated and shouldn't be relied upon for decision‑making.

"The Chief Executive's cautious response shows he recognises the report's flaws and he has acknowledged that some recommendations are at odds with community wishes. He's right to be sceptical – this report should be rejected."

"Deloitte is recommending cutting 330 positions – nearly one in five staff – based on crude benchmarking that ignores Wellington provides services many other councils don't, including social housing, city safety programmes, and addressing homelessness. It also ignores the fact an extra 22,000 people come into the city every day for work."

"This is slash‑and‑burn cost‑cutting, not a serious analysis of how to improve the Council's operations."

Leo said the recommendations would devastate public services.

"You cannot remove one in five positions without serious impacts. Building consent times will blow out. Libraries will have reduced hours. Parks will be less well maintained. Council has already removed 58 roles this year and staff are stretched thin."

The PSA is particularly concerned about heavy reliance on automation and AI as a substitute for experienced staff, without any evidence it would work.

"Deloitte is assuming AI can deliver productivity gains of up to 50 % but they haven't done the work to show replacing experienced staff with ChatGPT would actually deliver those results. They're asking Council to invest millions in unproven technology while cutting the people who actually serve our communities. This is a recipe for disaster, particularly for vulnerable residents who need face‑to‑face support."

Leo said PSA members want to work constructively on genuine improvements.

"Our members deliver services to Wellingtonians every day. They know what works, what doesn't, and where real efficiencies can be found. But you don't get that knowledge by hiring consultants to produce PowerPoint presentations – you get it by sitting down with staff in good faith and listening to their expertise."

"We're calling on the Chief Executive to reject Deloitte's slash‑and‑burn agenda and work with staff and unions on realistic improvements that don't gut the organisation."

Note: The benefit assumptions the report sets out to justify savings have not been based on actual data – or in fact any data from WCC about its actual assets. Instead, they have made assumptions or used figures for savings taken from other councils around the world, many with little relevance to Wellington.

On page 32 there is a long disclaimer statement that says:

Deloitte have assumed WCC can cut 5 % from roading as that is what the UK Chartered Institute of Public Finance identified in a report for the Cumbria County Council's Highway Asset Management plan.They've based their assumption of 10 % savings on wastewater treatment plants on what the US Environmental Protection Agency's guidance on value engineering.They've based their assumption of 15 % savings on energy efficiency "as experienced in the Community of Madrid, Spain."For plant and equipment asset types, they've based this "on the experience of multiple US municipal governments where implementing Asset Investment Planning has led to savings of between 10 % and 30 %..."

The relevance of these examples to Wellington City Council do not appear to have been tested.

The disclaimer goes on to note that the savings assumptions require rigorous verification before being relied upon for decision‑making.