Callaghan Innovation’s shutdown has so far cost taxpayers more than $10 million in redundancy payouts for 209 roles lost, according to recently published documents.
The crown-owned science and innovation entity has been a casualty of the Government’s overhaul of the science sector, which has also seen the merging of Crown Research Institutes into Public Research Organisations and a newly established advanced technology institute.
While some functions of Callaghan Innovation were retained, other parts have been wound up over the past year, with all funding expected to end by mid-2027.
Documents released to the Public Service Association (PSA) under the Official Information Act (OIA) revealed Callaghan Innovation’s dissolution has cost $10.69m in redundancies since November 2023.
Callaghan Innovation has confirmed the numbers in the OIA, made public by the PSA on Friday, but offered no further comment.
The OIA documents showed 36 redundancies in the 2023/24 financial year cost $2.87m, the axing of 162 roles in 2024/2025 cost $5.72m and so far this year, $2.1m has been spent with the loss of 11 roles.
More payouts were expected, as roles continued to be disestablished into 2026.
They said the future impact and total cost of Callaghan’s closure was unknown, as “redundancies continue to be processed on a regular basis”.
The documents said Callaghan had spent $68,913 since October 2023 on external consultants advising on restructures – the figure also included other legal advisory services.
The OIA showed roles at Callaghan had dropped from 367 to 158 – a reduction of 57 percent – over two years, with more than 60 jobs axed in February, followed by a proposal to cut a further 67 in April.
PSA national secretary Fleur Fitzsimons said the OIA had revealed the “staggering cost” of layoffs.
“This is an obscene waste of money from a government, which claims to want to spend taxpayer money wisely,” she said.
“More importantly, this is a critical loss of expert scientists and researchers, who had more to give New Zealand. It will set New Zealand back for years.”
According to the PSA, the 209 job cuts at Callaghan Innovation included the chief scientist, among 114 scientists and researchers, and contributed to the loss of 650 research roles in the public sector – a figure that the Science Minister’s office could not confirm.
Ben Wylie-van Eerd, a former Callaghan scientist and union delegate who was made redundant this year, said the country had lost talented scientists and engineers.
“Many of my colleagues have moved overseas, and have been snapped up quickly by organisations in Europe and Australia, where their skills are valued.
“Sadly, I don’t think they’ll be looking to come back any time soon.”
In response to the OIA, Science Minister Shane Reti said New Zealand’s science system was undergoing its most significant reform in more than three decades, which would make it more effective and create opportunities long-term.
“To better support and incentivise innovation for future economic growth, the government made the decision to disestablish Callaghan Innovation, and redistribute its key functions to other parts of the science, innovation and technology system.”
He said Callaghan Innovation was spread thinly across conflicting functions and “struggled to work to a clear, focused purpose”, tasked with delivering grants, advice, technical services and research, as well as innovation support for businesses.
Reti said the government had invested $70m for artificial intelligence research, and $71m for future materials and magnet technology, as part of the new Institute of Advanced Technology, and $42m for a new biodiscovery platform.
