Luxon rules out merging Ministry for Pacific Peoples this term

Prime Minister Christopher Luxon confirms his government will not merge the Ministry for Pacific Peoples (MPP) during its current term.

Speaking on Pacific Mornings, Luxon says while the Public Service Commission regularly explores ways to improve efficiency.

“That’s [the MPP merger] not going to happen in our term, in this term,” Luxon says.

His comments follow the Public Service Commission review on ways to reduce fragmentation in the public sector and strengthen agencies so they can focus on their “core businesses”.

A sensitive briefing paper for the Minister for the Public Service in March 2024 shows that the Commission recommends considering any departments with fewer than 100 staff for the consolidation first.

After recent budget cuts, the MPP falls below that threshold, putting it directly within the scope.

The Ministry for Pacific Peoples is the principal advisor on policies and interventions that improve outcomes for Pacific Peoples. Photo/Supplied

Since the coalition Government took office, the MPP has faced more than $60 million in budget cuts and a staff reduction from 156 to 99 staff members.

When asked if the Government can still claim to support better outcomes for Pacific peoples while reducing MPP’s budget, Luxon argued the focus is on the frontline results, not bureaucracy.

“I'm interested in Pacific kids being able to be better positioned to have great futures and better jobs going forward from here, I'm interested in Pacific kids being able to buy houses.

Watch Christopher Luxon's full interview below.

“That's why house pricing is stable, that's why rents are down, that's why 6000 people are off State House waitlists and that's why 2200 kids are out of motels and improper homes.”

Luxon also defends his Government’s new JobSeeker rules which includes parents earning over $65,000 to financially support 18-19 year olds despite concerns it could leave Māori and Pacific youth worse off.

He says the wider plan to help young Pacific and Māori into work hinges on education reform.

“The message is very simple, we just don’t want to consign young people to welfare, and if you get on JobSeeker before the age of 25, the research says you're going to be on benefit for 18 years over the course of your lifetime and that's not what we want.”

Labour leader Chris Hipkins calls the policy “out of touch” in a weak labour market.

Listen to Chris Hipkins' full interview below.

Speaking on Pacific Mornings, Hipkins says Labour will release a youth employment plan but ruled out punishing those unable to find work.

“There are 36,000 fewer jobs today than there were on election day and that is under this government’s leadership,” Hipkins says.

“I think the reality is they should be focused on getting people back to work by creating jobs, rather than penalising people for not taking jobs that don't exist.

“We know that Maori and Pacific people have been disproportionately affected by that reduction in jobs.”

Latest figures from Statistics New Zealand indicate that Pacific unemployment stands at 12.1 per cent, more than double the national average.

Data from Stats NZ shows unemployment among Pacific people has surged to 10.8 per cent, nearly twice the national rate of 5.1 per cent. Photo/PMN News/Ala Vailala

The national unemployment rate reached 5.2 per cent in the June quarter, up 0.5 per cent points from a year earlier and the highest level since 2020.

Over the same period, unemployment among Pacific peoples jumped 3.8 per cent.

He criticised Luxon’s “get off the PlayStation” comments as “remarkably out of touch” when many young New Zealanders are already leaving the country to find jobs.

“I don't want to see any young people languishing on an unemployment benefit either, but I think that punishing them for not taking jobs that don't exist isn't the answer.”