IRD to cut 30% jobs over 3

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Forums › Finance and wealth management › IRD to cut 30% jobs over 3 - 5 years

gzt

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#217978 20-Jul-2017 21:14

I heard this on the news today. Between 2000 and 3000 jobs depending on who is counting:

[Stuff: The tax department currently employs 5647 staff, but expects to employ only 3700 people by 2021, a previously-secret budget document supplied to a select committee shows. The Public Services union (PSA) said in a statement that as many 4000 employees at the tax department would see their jobs change as a result of a final proposal that was put to staff across the country on Wednesday afternoon.

It's a large number at one go. So large in fact that I'm a bit suspicious that large chunks will be handed over to 3rd parties, or the place will end up in a mess or both.

tehgerbil

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#1826201 20-Jul-2017 21:22

From talking to a mate whose fiance works at the IRD, it's been rather overblown by the media.

From what I understand, they expect automation to significantly have an impact on most of the core systems.

The IRD have a wealth of data they can tap in to to see trends and patterns. It makes sense for them to be able to utilise this information to provide a better solution.

To be honest, I suspect a few companies will be in the same boat, and will have significant lay-offs due to automation by 2021 but don't have the ability to see that far into the future.

richms

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#1826215 20-Jul-2017 21:27

Automation. Now the luddites will all say this is a bad thing.

Richard rich.ms

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#1826216 20-Jul-2017 21:28

Excellent saving for the taxpayer.

I notice that the IRD are remarkably fast to ask for money when you owe them and that sadly when the shoe is on the other foot, not quite so fast nor as generous with interest on your money as they are with themselves when you owe them. Perhaps their new systems will speed things up.

gzt

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#1826248 20-Jul-2017 22:08

tehgerbil:
From what I understand, they expect automation to significantly have an impact on most of the core systems.

Government departments saying the new computer system will save time and money are often spectacularly wrong in the short and medium term.

On the other hand, if they have some systems running really well and projected uptake is what they are talking about then it makes more sense.

Perhaps it's a combination of the two but not a lot of detail in the news today.

frankv

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#1826308 21-Jul-2017 07:22

gzt:
tehgerbil:

From what I understand, they expect automation to significantly have an impact on most of the core systems.

Government departments saying the new computer system will save time and money are often spectacularly wrong in the short and medium term.

Yeah, I'm sure that the people selling the $1.5b system sold it on the basis of savings in manpower. As times go by, any number of reasons will surface as to why that just isn't possible.

SaltyNZ

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#1826347 21-Jul-2017 09:13

gzt:
tehgerbil:
From what I understand, they expect automation to significantly have an impact on most of the core systems.

Government departments saying the new computer system will save time and money are often spectacularly wrong in the short and medium term.

On the other hand, if they have some systems running really well and projected uptake is what they are talking about then it makes more sense.

Perhaps it's a combination of the two but not a lot of detail in the news today.

Projects to replace and consolidate the sprawling, poorly understood infrastructure that has grown up in an organisation even a tenth the size of the IRD are doomed to fail in the short to medium term. That is the law. Any vendor who says otherwise is lying to you. And any system which has its own specialist legal profession: doubly so.

In the long term they succeed by turning into a new system of sprawling, poorly understood infrastructure.

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These comments are my own and do not represent the opinions of 2degrees.