Health NZ to cut $204 million of contractor and consultant spend; agency using contractors to fill roles

The Government’s expected to exceed its $400 million target in relation to cutting contractor and consultant spending, compared with the 2023/24 financial year. Health New Zealand – Te Whatu Ora is forecasting a $204m cut compared to that financial year, making up more than half of the Government’s on-track goal. The public health agency has been using contractors to fill vacant roles, something the Association of Salaried Medical Specialists is opposing.

Half of the Government’s target to cut $400m of spending on contractors and consultants is set to be slashed from just one agency. Health New Zealand – Te Whatu Ora is aiming take the scalpel to contractor and consultant spending amid the Government’s savings drive. It’s forecasting a full-year spend on contractors and consultants of $447m, a reduction of $204m compared with what was spent in the 2023/24 financial year.



The Government department had budgeted $290.8m on contractors and consultants for the 2024/25 financial year. In the year to February, Health NZ spent $338m on contractors and consultants.

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