Super-ministry to cost many jobs
HUNDREDS more state sector jobs are set for Prime Minister John Key’s sword with the creation of a super-ministry merging four existing agencies.
The new Business, Innovation and Employment Ministry, overseen by Steven Joyce, brings together the ministries of Economic Development and Science and Innovation with the Labour Department and the Building and Housing Department.
No numbers have yet been put on the likely savings or job losses, which will become clear after a ‘‘due diligence’’ process due to be completed next month.
However, the ‘‘efficiency dividend’’ the Government seeks from its state sector reforms means the 3200 affected employees face a nervous wait, with indications the merged ministry could shed between 5 per cent and 10 per cent of its staff.
The most vulnerable would appear to be those employed in legal, finance or human relations roles.
The Government yesterday reaffirmed the cap on core public sector jobs had been cut to 36,475.
Meanwhile, the Public Service Association has called for an investigation into building and housing chief executive Katrina Bach by the State Services Commission to be made public despite the merger.
It has been conducting an inquiry for seven months into the handling of claims that Ms Bach allegedly swore at and manhandled a former employee.
PSA national secretary Brenda Pilott said PSA members were surprised that the department had been included in the merger and it was not clear how it fitted in a ministry focused on business and innovation.’
But a government spokesman said the department was heavily involved in construction and building, which was an important part of the economy.
Mr Joyce said the new ministry would focus on lifting overall productivity and supporting business growth, which would lead to more jobs and higher wages.
But a new 10-point plan for the public sector released by Mr Key, drawing on a report from the Better State Public Services Advisory Group, is light on economic targets.
Mr Key said details of the targets covering crime, health, education and interactions with the state sector would be published, starting in six months.
He expected ministers and chief executives would be held to account for achieving the aims.
‘‘If we couldn’t get the results we wanted, I’m sure there could be personnel changes but the most significant change would be on the Government.’’
There would be a consultation period over the changes. ‘‘Some people will feel threatened by that and others won’t. But ... I don’t think we should stop doing things because they’re challenging.’’
The advisory group report noted that overall productivity growth had lagged behind that of comparable countries, notably Australia, and recommended one of the targets be to double labour productivity growth.
Elsewhere it also considered a target based on fresh water, but highlighted difficulties implementing it. The Government did not include any environmental targets among the 10.
Elsewhere the advisory group indicated other targets, which could be adopted by the Government. Editorial The PSA’S view
They included: A reduction in infant mortality, running at 4.92 per 1000 live births (and 6.1 for Maori), compared to the OECD average of 4.6.
A 20 per cent reduction in crime-related statistics, a 15 per cent improvement in disposal times at the courts and a 10 per cent reduction in reoffending.
The report also recommends the State Services Commissioner be appointed Head of State Services.
Changes to the accountability regime covering public service chief executives should be made to bring about more collaboration and move away from the independent management and operation of departments.
The Government is expected to introduce an omnibus law to amend the State Sector Act, the Crown Entities Act and the Public Finance Act in line with the recommendations.