Public servants told to lift game

BY VERNON SMALL
Last updated 05:00 21/07/2009

Overhaul of state sector needed

Guyon Espiner on state sector plans

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A quarter of a million public servants have been told more jobs are on the line as the Government considers greater use of private contractors to deliver state services.

In a hard-hitting speech echoing the Government's "more for less" push, Treasury secretary John Whitehead has told state servants to lift their game or have change forced on them.

"Nothing should be off the table: for example, contracting out delivery as we do with some social services and others, like Australia, do with private prisons, may be more effective."

Cuts during this year, which have resulted in up to 1500 job losses in the state sector, were the easy part. Tougher decisions were ahead, he said.

There was a stark alternative to public servants mobilising themselves. "The stakes are very high, and if we don't rise to the challenge and make real progress, change will occur but it will be done to us rather than by us."

The number of core public sector employees increased 44 per cent between 2000 and 2007.

"These figures dwarf the numbers involved in public sector restructurings announced in the current year. Redundancies attract headlines, creeping growth doesn't."

The Government has capped the number of core state sector workers at 38,859. The wider state sector has 247,500 fulltime-equivalent employees.

The speech drew a sharp reaction from the Opposition and state sector unions.

PSA national secretary Brenda Pilott said the strong privatisation signal was misplaced. "He believes this will lift productivity. We reject that view. We're amazed that Mr Whitehead says we should be privatising public services when bad management in the private sector has created the worst global recession since the Great Depression."

Labour state services spokesman Grant Robertson said it signalled the resurgence of The Treasury's influence over the public sector.

"Where's State Services Commissioner Iain Rennie? Why is the secretary of the Treasury delivering this speech, not the person in charge of our public sector?"

The speech paved the way for privatisation, further deep cuts and showed "a slavish belief the private sector has the answers".

But Mr Whitehead said the public service needed to get out of its traditional comfort zone in the current economic crisis.

"We must take the opportunity to build a leaner, more productive public service and we need to get on with it now."

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Productivity must increase and the state sector must grow more slowly than the private and export sectors.

That may mean adapting private sector ideas, techniques and experience.

Mr Whitehead said there were signs of "green shoots" in the economy, which was probably in its seventh quarter of recession. But international markets were already casting a wary eye over private debt levels.

To help New Zealand compete internationally and lower costs to exporters, the quality of public spending had to be improved.

There had been too much focus on new spending and not enough on the huge base of existing spending.

This year's Budget included spending on policies introduced five or 15 years ago "that may no longer be as effective or fit Government objectives".

Agencies should ask what needed to be done and if they were the right ones to do it.

"We will need to give ministers some free and frank advice on the value of some existing policies and programmes. They may have some tough decisions to make."

Mr Whitehead denied there was a 5 per cent target for "reprioritisation, savings or anything else".

But all chief executives could think hard about better utilising 5 per cent or even 10 per cent of their funding. "I know I have."

- © Fairfax NZ News

82 comments
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John   #82   08:39 pm Jul 21 2009

Do you really want public servants to work harder? In my experience the harder they work the more they produce. Now this is not actually a good thing as mostly what they produce is new rules and regulations that stop the rest of us getting on with our businesses and our lives. If we fire them we have still have to pay them the dole, so best solution may be to keep them on the payroll but take away their travel budgets and their cell phones and cars and computers and absolutely forbid them to do anything!

Maree   #81   08:15 pm Jul 21 2009

I've worked in the Public sector for 4 years, but was always aware I could earn over 50% more in the Private Sector. With the recession, I chose to stay with what I thought was job security and pride in being part of delivering top services. I've now decided to take my skills to the highest bidder in the private sector. I have a work ethic, skills and experience that are of value so job security is not even a bogey to me The Public Service will return to it's position of total lack of delivery owing to under-staffing of state sector cuts the National Government is renowned for. Talk about throwing the baby out with the bath water.

Totally Kiwi   #80   07:32 pm Jul 21 2009

A private Work and Income? Watch the fraud increase. Well done you pencil pushing fatso's, well done!

Reality Check   #79   05:26 pm Jul 21 2009

Rach @ #71 Good point. Did ANYONE read it ? Oops, that would be that WORK thing again, I heard it gives you swine flu, better let a journalist tell me what they thought they heard or read, as journos never lie and are unbiased, I'll believe everything they say, then I'll put my highly researched comment online for all the world to see, Geez I'm clever

The TruthSayer   #78   04:55 pm Jul 21 2009

OK, Comrades. Communist Party of NZ unite !! 9 years of Comrade Helen has made the public service the way it is. Quick way to save money ? Cut all funding to Maori,if they want services dedicated to them, they pay !!Healthcare, Police, compulsory Military Service only Govt funded, privatise the rest, cut the Welfare handout, flatten taxes. But whats that, the NZ cry, "we'll have to work ? Say its not so, who'll pay for my KFC ?"

Cynical   #77   04:21 pm Jul 21 2009

This report you've referenced is interestingly, a media report. I can understand why you'd like to quote it like it's gospel, but you can't beleive everything you read in the papers. The paper that your article refers to takes into account a number of intrinsic factors, and cites a 17% difference. This difference is not between people in similar roles, but between people with similar attributes. Read the article, its very interesting, and slightly more accurate than the news report that covers it.

Peter   #76   04:17 pm Jul 21 2009

Thanks Rachel for the link. Would I be correct in assumng you are employed by the communications unit of Treasury? I ask this question because having read John Whitehead's speech it would appear that the media quoted the most intelligent part of it.

Take the growth of the public spending.

The major driver are politians and not public servants. For example it was a political decision not a public servant decision to increase the length of sentences. Keeping people in prision is extraordinarily expensive. All I can say to Sian Elias the Chief Judge -'You go Girl!'

When you look at how much you can interact with the public sector through the internet and call centres the evidence is pretty clear that a lot of effort is being put into delivering services efficiently.

Again, I reiterate, John Whitehead show us the evidence that services are being inefficiently delivered and then do something about it. Because if the current administration privatises the provision of public services and there is no gain, then it will suffer the same fate at the hands of electors as the 1984-1990 Labour administration and the 1990-1999 National administration.

Cynical   #75   04:07 pm Jul 21 2009

Em, the title of that report rings alarm bells in my head (doesn't seem terribly objective). However I don't have reports to back up my claims, only empirical evidence based on a quick scan of a few of my friends, all of whom graduated from university at the same time. I am aware my sample is small, but it seems to me the ones that found themselves in the public sector are not remunerated any higher than those in private. Whats worse is they are stigmatised and less respected than their private sector peers.

nsk   #74   04:04 pm Jul 21 2009

Em # you are a complete fool. The public serice pays crap. Private is where the money is.

Lets look at it like this. lets outsource government depts to the private sector. Dumb idea. Private contractors charge ridiculous amounts, especially for anythin in IT. They dont have the pasion to care about the department becasue they arent really a part of it.

We have contractors who earn mega bucks at our dept and they do less than the normal worker but for 4 times the salary.

Em u are stupid

sartor   #73   03:23 pm Jul 21 2009

Have worked in both the public and private sector for more than 30 years.Prior to deregulation there was certainly a lot of slack in both sectors but I haven't seen much of it since. What I have seen is a lot of stressed-out,harrassed workers working ridiculous hours (60- 70 a week) for low pay and no recognition. Yet the gliding on image still endures because it takes a generation or more for public perceptions to catch up with social realities.


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