The concept of mergers to create ‘mega structures’ to achieve greater efficiency and cost-effectiveness in the government sector would become the norm if a series of proposals of the National-led government are implemented over the next three years.
Prime Minister John Key announced the first of these initiatives on March 15, 2012 at a luncheon meeting hosted by the Auckland Chamber of Commerce.
He said that the creation of a new ‘Super Ministry’ would integrate the existing ministries of Economic Development, Labour, Science and Innovation and Building and Housing.
Called ‘Ministry of Business, Innovation and Employment,’ the new entity will implement integrated policies to build a more competitive and internationally focused economy. The ministry will become operational on July 1, subject to due diligence and final approval by the Cabinet.
Boosting business growth
Economic development minister Steven Joyce said, “If we want more and better jobs for New Zealanders, we need to encourage more businesses to be based here. That means making it easier for businesses and companies to access innovative ideas, markets, capital, skilled workers, resources, and the supporting public infrastructure. The Government has a comprehensive business growth agenda to assist business, and a single focused business-facing government ministry will further boost our momentum.”
Mr Key said that the new ministry of Business, Innovation and Employment will ensure a clear, coordinated and focused government policy leadership with a commitment to economic growth and innovation.
“The new Ministry will reduce the complexity involved in working between agencies and between agencies and business. At present when businesses engage with government they work with multiple government agencies, which takes away valuable time, as well as incurring unnecessary duplication of effort. This is time that could better be served in allowing companies to work on their businesses rather than on their government relations.”
According to Mr Joyce, the new ministry will aim to lift overall productivity and support the growth of competitive businesses.
“This is a crucial element in creating more jobs, higher wages and boosting our standard of living. The principal benefits (of such a ministry) would include stronger policy leadership of the government’s business growth agenda, making it easier for business to engage with the government, strengthening the government’s ability to work on big cross-sector issues and realising efficiency gains over time,” he said.
Integrated approach
The government will appoint an Acting Chief Executive (from July 1) to oversee the smooth transfer of duties and responsibilities in the new ministry and effective integration of ministerial functions.
Mr Key said that the new ministry will create an integrated agency in due course, while continuing to deliver on existing work programmes.
“Clear priorities and a timetable will be set to guide internal integration and the concurrent delivery of economic growth objectives. In the interim, individual Chief Executives will remain accountable for their Departments,” he said.
Jobs to go
While the jobs of ministers currently holding the portfolios would remain unaffected, hundreds of civil servants employed in these ministries are likely to be made redundant. Mr Key later told John Campbell on ‘Campbell Live’ (on March 15) that the government had not determined the number of jobs likely to be hacked because of the merger of ministries.
Foreign Affairs and trade ministry chief executive John Allen announced last month that his ministry would be trimmed leading to a number of job cuts.
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Photo Courtesy: National Party of New Zealand
