Editorial: Government housekeeping

OPINION: Nothing about the Government's plans to merge some of its agencies need justify Labour state services spokesman Grant Robertson's predictions of radical reorganisations causing massive upheaval, writes The Southland Times in an editorial.

That's a dramatic description for, let's face it, a bit of governmental housekeeping.

Regular reviews of the role and performance of government agencies should be the norm, not in some climate of reproach and recrimination, nor because of the listless ambitions of each new government seeking to distinguish itself, nor even because the core ambitions of a decent society change all that much all that quickly.

Technologies do change, though, and methodologies with them. Ways to deliver services can change mightily, or in minor but significant ways. And sometimes, people just come up with good ideas that nobody twigged to before.

The expectation is that the Government will next week have mergers in Internal Affairs, Research Science and Technology and the Agriculture and Forestry Ministry to announce.

Cost-cutting is clearly a significant part of the agenda, and this can easily be portrayed as a cynical exercise. Done badly, it could be. Done well, it would be nothing of the sort.

As things stand, Prime Minister John Key can fairly defuse Mr Robertson's Jeremiah lamentations by likening this to last year's health sector overhaul, in which moves such as pooling payroll and procurement were figures to cost, during five years, 500 jobs and save $700 million.

The Public Service Association is taking a moderate stance, as it should without the specifics yet being known. While PSA national secretary Brenda Pilott is not against restructuring, she questions whether significant savings can be made, or appropriate problems are really getting targeted, or if the whole reform isn't being carried out with unseemly and unnecessary haste.

Yes, well. In July, Treasury Secretary John Whitehead made the point that redundancies attract headlines, but creeping growth does not. In dollar terms, he said, core Crown spending increased almost $25 billion since 2002. The corresponding growth in public sector personnel was 44 per cent between 1999-2000 and 2006-07.

A weakness of our system, he said, was that "we haven't been very clear with ministers and the public about what they're getting and what it costs ... we have also focused too much on new spending and not enough on the huge base of existing spending".

This may give the impression of a rampant public sector over-reaching in every direction.

However, Mr Whitehead detected a reverse problem; too much misplaced timidity. Public sector culture had become risk averse when it came to trialing different approaches, introducing international and private sector lessons, and making tough calls.

Too focused, as well, on analysing policy rather than the actual management of these complex and expensive operations.

It seems likely that the minnow outfits are fairly safe from the upcoming reforms because the Government is looking to real gains from the larger agencies.

Some sour mirth might greet the realisation that the Government is now looking at a new state sector productivity commission to get better value out of departments. Yes, well, it does seem no administration is above setting up its own boutique agencies.

- © Fairfax NZ News

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