Public sector restructuring on hold

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The Government has delayed decisions on proposed public service restructuring for at least a week while it gets more details on possible cash savings and job losses.

The plans, which include mergers in three areas and a move toward more shared services throughout the state sector, were to have gone before the Cabinet on Monday, but have been delayed until more information comes from the States Services Commission.

Details of what further work has been required were not available, but it is understood to include more information on how much will be saved by the changes and the number of jobs likely to go.

Prime Minister John Key said on Monday that he had not seen those details, although the proposals were due to go before the Cabinet's business committee that night.

A spokeswoman for State Services Minister Tony Ryall said the committee began discussing the changes, but decided they wanted to be more fully briefed "and that's what's happening".

A commission spokeswoman said she could not say what further information had been sought, but it was expected to be with Mr Ryall next week.

The Dominion Post revealed last week that proposed changes include merging the National Library and National Archives, and possibly Land Information and Statistics, into Internal Affairs and bringing the Food Safety Authority back into the Agriculture and Forestry Ministry. The Foundation of Research, Science and Technology will merge with the Research, Science and Technology Ministry.

The plans have taken the Public Service Association by surprise. National secretary Belinda Pilott complained this week of learning about them through the media.

Labour state services spokesman Grant Robertson said taking the proposals to the Cabinet business committee without detailed costings was "bizarre", and the Government was right to seek more details.

"Maybe it shows that the Government's realising that they need to be a bit more cautious about this and actually talk to some of the stakeholders involved.

"I'd urge them to take their time and try to get to grips with the impact of what they're doing, rather than rushing into decisions."

- © Fairfax NZ News