Chair, Cabinet Government Administration and Expenditure Review Committee
Public Service Legislation: Paper 1 - Overview of Proposals
Proposal
1 On 15 May 2018, the Cabinet Government Administration and Expenditure Review Committee agreed to reform the State Sector Act 1988, with a view to its repeal and replacement with a new Public Service Act [GOV-18-MIN-0013.01 refers].
2 The accompanying suite of papers propose changes to the statutory framework governing the Public Service. These changes are to enable better outcomes and services for New Zealanders, to ensure the public service can respond to the needs of the community in future and remains worthy of the confidence of successive governments and the public. This paper provides an overview of the proposals.
3 This paper seeks agreement to issue drafting instructions to the Parliamentary Counsel Office in accordance with the relevant Cabinet decisions arising from the suite of papers. These instructions would be to replace the State Sector Act 1988 with a new Public Service Act.
Executive Summary
4 New Zealand’s public service performs well by international standards in responsiveness to government, effectiveness for New Zealanders, and integrity. The proposals in these papers are not about fixing a system that is fundamentally broken. Rather, they are about improving from a high base; ensuring the public service is making the biggest possible difference to the wellbeing of New Zealanders, delivering services that are easy to access and joined up around their needs, and serving an ever more diverse and changing community.
5 It is also about reconnecting with a spirit of service to the community and unifying the public service around a common purpose, principles and values. These will ensure the public service operates with integrity and earns the trust, confidence and respect of New Zealanders.
6 Work has commenced to build a more effective and unified public service. Some steps have been taken towards working in partnership to deliver on shared outcomes and providing more accessible services for citizens.
7 But we have reached the limit of what can be achieved with the current statute. We need to change the basic system settings and tackle the underlying issues that form barriers to progress. This is needed to ensure the public service contributes to the wellbeing objectives of government as much as possible.
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8 A review of the statutory framework for the public service, the State Sector Act 1988, has been completed. Public consultation occurred based on the aims of:
8.1 affirming the constitutional role of the public service in supporting New Zealand’s democratic form of government;
8.2 creating a modern, agile and adaptive New Zealand public service; and
8.3 delivering better outcomes and better services.
9 The review identified the enablers we need to transform our public service to join up services around New Zealanders’ needs, secure public trust and confidence, and ensure the public service remains well placed to serve New Zealand into the future.
10 The key enablers are: public service culture and behaviour, an updated framework for employment, effective leadership, and a greater range of options for configuring fit-for-purpose public service organisations.
11 The review also identified the desirability of including a wider range of public agencies within the ambit of a single unified New Zealand public service.
12 Alongside these enablers the review has emphasised the need for the public service to help strengthen the Māori/Crown relationship.
13 I propose to replace the State Sector Act 1988 with a new Public Service Act. The State Sector Act was enacted over thirty years ago. It has been amended 13 times, resulting in a patchwork of uneven provisions that are difficult to understand and apply.
14 The Act does not set out a clear or consistent vision for the public service. It was designed for its time and there have been major social, economic and technological changes since then, many of them on a global scale. Moreover, the Act is based on a business model that has provided some benefits to efficiency and effectiveness at the agency level but is insufficient to enable a modern public service.
15 Collectively the proposed changes in papers 2-7 outlined below support a significant re-orientation in the framework governing the public service, shifting the focus from the actions and activities of individual agencies working alone, towards a unified public service, based on a common spirit of service and a highly developed capability for alignment between its component agencies. The following diagram provides a roadmap of the papers and the areas covered by each. A high-level intervention logic for the proposals is set out at Annex 1.
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16 A level of agency autonomy will continue to exist, allowing chief executives to flexibly tailor departments to their particular functions. The legislative changes proposed are enabling rather than prescriptive. They will provide the tools and instruments to bring about change in a managed way to meet current and future requirements. We will not see the new statute driving sudden large-scale change in the system.
17 After Cabinet agrees to this paper, my officials will issue instructions to enable the Parliamentary Counsel Office to draft the Bill. The Attorney-General has authorised commencement of drafting ahead of the Cabinet process. I will report back to Cabinet in August 2019 with a draft Bill and a timeline for the parliamentary process.
Need for reform
Current state
18 New Zealand’s public service performs well by international standards in terms of both integrity and effectiveness. Levels of public confidence in the public service are correspondingly higher than in other comparable jurisdictions.
19 One reason for this is the current public management system substantively created in the late 1980s and ‘90s. These reforms sought to embed the theory of the marketplace and business-like management models in public organisations. Its core principles were accountability, contractualism, managerialism and decentralisation. While many other jurisdictions adopted similar practices, New Zealand went further and faster than any other government.
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20 There is consensus that these reforms, based on the State Sector Act 1988 and Public Finance Act 1989, were successful in enhancing the performance of the system. The public service became more efficient in delivering outputs that were the responsibility of a single agency and more responsive to changes in direction by the elected government.
21 However, these improvements were accompanied by new problems. The narrowing of each department’s focus to its own particular outputs incentivised officials to focus on their own agency rather than instilling a larger sense of the wider public service with its unifying common mission and spirit of service. This has resulted in some challenges:
21.1 Closely related services are provided by different agencies and people find themselves having to interact with multiple agencies to get relevant information or to address a single problem. Multi-agency services organised around ‘life events’ are being established but more slowly than desirable.
21.2 It is hard for government to address complex social issues that span agency boundaries such as climate change, mental health and family violence. These require multiple agencies to work together in a coordinated manner. Though the system has improved, sophisticated cross-agency collaboration is slower than it needs to be.
21.3 Agencies differ significantly in terms of operating models, information and data systems and human resource management. Consequently, a high level of capability is developed to address agency-specific tasks but much less to address cross-public service needs. Variation between organisations also tends to reinforce public servants’ identification with their department rather than as part of a unified service serving the interests of New Zealanders.
21.4 There is a culture of frequent structural changes and reorganisations resulting in productivity dips, loss of institutional memory, and consequent issues with the depth of experience available to address the problems of the day and provide Government with the best advice possible.
21.5 There is an erosion of the deep expert and technical expertise needed to ensure each department and agency can perform in its own areas of specialisation.
21.6 The system lacks a sufficiently strong ‘centre’ that can guarantee adherence to the values and ethics underpinning the public reputation of the public service and its constitutional role in serving successive governments loyally and impartially.
22 These issues are not new. They have been highlighted by successive reviews over the past 30 years including the Logan Report (1991), the Ministerial Advisory Group on the Review of the Centre (2001) and the Better Public Services Advisory Group (2011).
23 I have emphasised the need to make improvements in a way that does not compromise the underlying strengths of the system we have now. In particular, the
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experience of the last three decades has shown the value of a relatively high level of decentralisation and agency autonomy. My aim is to build high alignment alongside autonomy, not to replace one with the other.
24 In terms of alignment between agencies I believe that, despite some progress, we are not yet seeing the step change needed to deliver better results and services for New Zealand. The public service now operates in a fast changing and unpredictable context where major social, demographic and technology driven changes are reshaping the world as we know it. These ‘megatrends’ present us both with new opportunities to seize as well as emerging issues and risks to address.
25 So now more than ever, we need to consider ways to keep up and get ahead of rapid change. This requires a new approach that joins the New Zealand public service together with citizen focused outcomes and services at its core. The government’s focus on wellbeing underlines the need to address the issues identified above.
26 The core architecture of the public sector management system – the State Sector Act 1988 and Public Finance Act 1989 – was created more than 30 years ago. It has been continually adapted and refined ever since, building additional complexity on top of the same foundation. The State Sector Act 1988 has been amended 13 times.
27 This sequence of amendments has resulted in a patchwork of uneven provisions that are difficult to understand and apply and do not set out a clear or consistent vision for the public service. Rather than build on the current legislation and add to the complexity, I believe a step change is required to rebalance the regulatory system and make the legislation fit for purpose, now and into the future.
28 Rapid societal changes over the past 30 years mean we must act now to ensure the public service is fit for the future. Globalisation means that New Zealand is now part of a more open world in which flows of ideas, people and technologies impact widely and quickly. The result is a fast changing and far more diverse New Zealand community, and a developing set of issues and priorities to which governments expect the public service to respond. The State Sector Act was designed for its time.
29 The current Act is based on a business model that has provided some benefits to efficiency and effectiveness at the agency level but does not support the needs of a modern public service.
Objectives of reform
30 This is not about fixing a system that is fundamentally broken. It is about acknowledging there are areas where we can, and should, do better.
31 A new Public Service Act, in the context of a broader change agenda, presents an opportunity to achieve a unified public service, and to work across boundaries to deliver better outcomes and services. The ideal is a model characterised by high agency autonomy and high alignment supported by a culture of service to New Zealand and New Zealanders.
32 To help achieve this objective I have also asked officials to design ways of bringing a wider range of public agencies within the ambit of a unified public service. In
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particular I am interested in ensuring that Crown Agents are drawn as far as possible into the ambit of the common culture, leadership, and organisational arrangements of the core public service.
33 In September 2018, I approved the release of a discussion document outlining a range of legislative proposals designed to meet defined objectives. These were:
33.1 affirming the constitutional role of the public service in supporting New Zealand’s democratic form of government
33.2 creating a modern, agile and adaptive New Zealand public service
33.3 delivering better outcomes and better services.
34 The discussion document included some major themes including:
34.1 a focus on securing better services for New Zealanders, and enabling the system to better achieve outcomes, by overcoming fragmentation and agency ‘silos’
34.2 an emphasis on building the foundations of the public service by bringing together and expressing clearly the purpose, principles, and values by which the public service operates and public servants are expected to behave
34.3 ways of ensuring that the public service contributes positively to helping the Crown strengthen its relationship with Māori.
Feedback from public consultation
35 Public consultation took place between 3 September and 12 October 2018. More than 300 submissions were received. The State Services Commission also directly engaged with more than 1,100 people in Auckland, Wellington, Whangarei, Hamilton, New Plymouth, Gisborne and Christchurch. This involved public servants, Crown entities, members of the public, NGOs, Māori public servants and Pasifika public servants.
36 Engagement across the country highlighted there was strong support for the overall direction of the reforms and a real appetite for change. A common theme was that the legislation should be high-level and enabling rather than detailed and prescriptive.
37 There was a high level of support across the following areas:
37.1 The inclusion of purpose, principles and values in legislation to support a public service-wide ethos.
37.2 Provisions to create a diverse workforce and inclusive workplaces.
37.3 New organisational arrangements to create an agile and adaptive public service.
37.4 A standalone clause recognising the role of Māori in the public service.
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37.5 Strengthening the public service’s capability to serve successive governments through a Long-Term Insights Briefing.
38 Concerns were raised in the following areas:
38.1 Scope of the public service: There was strong support for a unified public service driven by a shared purpose, principles and values. There were mixed views, however, about expanding the public service to include Crown entities because of perceived constraints around independence and political neutrality.
38.2 Māori/Crown relationship: There was strong support for the need to recognise the Māori/Crown relationship, but divergent views about the appropriate way to do this, including many who would like to go further and see specific reference to the Treaty of Waitangi in the new legislation.
38.3 Broader levers for change: There was strong support for legislative change, but many highlighted that this will not be sufficient to deliver the cultural and behavioural changes needed. Broader levers, such as those contemplated in the broader transformation programme for the public service, will also be required to achieve the objectives of reform.
39 Public feedback has informed the development of the proposals in the suite of accompanying Cabinet Papers. I intend to publish a summary of the submissions in May 2019 after Cabinet has made final policy decisions.
40 Some submitters wanted an opportunity to engage with the detailed proposal. A draft of the Bill will be circulated for targeted consultation before introduction to Parliament.
Driving change
41 This legislative reform is part of a wider programme of public service reform based on the initiatives already in place. These increase the capability of the system for collective leadership. This includes the development of the existing State Services Leadership Team (SSLT) that brings together the Commissioner and public service chief executives to work collaboratively on common issues. The proposed Public Service Act will strengthen and clarify the mandate of this group to support their leadership of the system.
42 The SSLT is well-positioned to drive and oversee the changes necessary to implement and embed the proposed legislative reforms. As a whole, the group will take responsibility for embedding the proposed changes to the leadership of the public service. The group may take a stronger role in leadership of the reforms ahead of the strengthened leadership mandate. This will ensure that the public service has already begun to adapt to a new way of working by the time that the legislative changes take effect.
43 Some changes can be made without legislative amendment. For example, of the issues outlined in paragraph 21 above at least two (building specialist expertise
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within departments and reducing reliance on restructuring) require a non-statutory approach.
44 However, within the overall programme, there are some things that can only be achieved through rewriting legislation, including removing statutory provisions that act as impediments to the direction of change we need. This is not limited to the State Sector Act. The Minister of Finance intends to seek agreement to a programme of work to reform the public finance system that will complement the change to a new Public Service Act.
45 The review of the State Sector Act identified enablers of transformation that can be strengthened by provisions in a new Public Service Act. The key enablers are changes in public service culture and behaviour, more effective leadership, changes to employment and workforce frameworks, and a greater range of options for configuring fit-for-purpose public service organisations.
46 Following public consultation and further policy work I have developed and refined the proposals for how we achieve the objectives outlined above. Attachment One to this paper sets out the overall intervention logic. Each of the papers in this package address one of the key enablers of change. Each connects proposed statutory provisions, to impacts, and then to the three objectives for the new Act.
Paper 2: A unified public service. This paper contains proposals to reassert a unified public service identity, which will help safeguard the constitutional conventions governing the public service, promote ethical conduct, and better enable cross-agency collaboration on services and outcomes for New Zealanders.
Paper 3: Te Ao Tūmatanui. This paper proposes a stand-alone provision that recognises the responsibility of the public service to help strengthen the Māori/Crown relationship.
Paper 4: Public service employment and workforce. This paper proposes measures to align, where this is desirable, employment and terms and conditions of employment across the unified public service; provide oversight of pay equity in the public service; and develop a diverse public service workforce.
Paper 5: Leadership of the public service. This paper proposes to strengthen collaborative leadership across the public service including through an expectation that public service chief executives work as a team on the stewardship of the public service as whole.
Paper 6: Organisations of the public service. This paper proposes new organisational forms within the public service to better enable joined up planning, policy and expenditure decisions, and joint delivery of services across a sector or grouping of related agencies.
Paper 7: Miscellaneous provisions, consequential amendments, transitional provisions and savings. This covers technical matters and proposes that certain provisions of the State Sector Act unaffected by proposals in Papers 2-6, are carried over into the new statute. Where existing State Sector Act provisions are proposed to be carried over with modifications these are covered in the appropriate paper 2-6.
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Paper 7 also includes consequential amendments to other Acts, as well as transitional provisions and savings relating to the whole legislative package.
47 The way in which the proposals in the papers have impacts on the system, that in turn contribute to the outcomes, are described below in a summary of each paper. This is supplemented by the intervention logic flow diagram appended to this paper.
Affirm the constitutional role of the public service in supporting New Zealand’s democratic form of government
48 The public service serves successive governments loyally and impartially; this is its role in supporting democracy within our constitutional arrangements.
49 Public confidence is fundamental; it is the authorising environment of the public service and on it depends much of the public service’s ability to advise governments and implement their policy decisions.
50 I believe we need to be proactive and take real steps to enhance legitimacy, rather than take it for granted. This requires communicating what the public service is all about and what its core values are.
51 Purpose, principles, and values apply to the public service as a whole and must be adhered to in all its constituent agencies. Failure in one agency reflects on all. For this reason, I emphasise the need for a unified public service.
52 Paper 2 on a unified public service proposes that the new Public Service Act clearly establish the purpose, foundational principles and core values that underpin the public service and that enable it to retain trust and confidence through successive Governments. To this end I propose that the new Act contain:
52.1 a statement of purpose to set out the constitutional role of the public service
52.2 a set of principles which codify in one place the expectations of how the public service will operate
52.3 statements establishing public service values and affirming the rights of public servants, supported by strengthened mechanisms for establishing common behaviours
53 I propose that the principles be: political neutrality, free and frank advice to Ministers, appointment on merit, open government, and stewardship. The first three are proposed to be independent duties of chief executives. The principles of open government and stewardship need to be in conjunction with Ministers.
54 I also propose that the application of the purpose and principles be broadened to encompass a wider range of State sector agencies. The proposal is for a broadened New Zealand public service which will include Crown agents as well as departments.
55 Paper 2 also, together with Paper 3 on Te Ao Tūmatanui, establishes certain common tasks and obligations for the public service:
55.1 Supporting the Crown to further develop its relationship with Māori.
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55.2 Supporting the government formation process with timely and high-quality information as required.
55.3 Providing stewardship information on future trends affecting public service ability to deliver for New Zealanders.
56 Proposals in Paper 4 on employment and workforce frameworks also support the objective of a common public service identity.
Create a modern, agile and adaptive New Zealand public service
57 While retaining the strengths of the existing system, I believe we need to implement new ways of working to address current and future challenges. For this the public service needs ability to move quickly and effectively to address changing government priorities and the developing needs of a highly diverse New Zealand community.
58 Key to this is building alignment and interoperability across public service agencies. To enable agencies to flexibly shape and reshape their individual and common functions we need them to:
58.1 be able to plan work and direct resources deliberately and effectively
58.2 adopt and use same, similar, or compatible systems to facilitate flexibility in cross-agency working.
59 Paper 5 on leadership presents the most impactful proposals towards this objective. The paper proposes a set of expectations, obligations and mechanisms for public service leaders to collectively lead the public service rather than just their own individual agencies. Also, the proposal to strengthen the role of cross-system functional leads is designed to enhance, over time, the interoperability of the public service.
60 The proposal for Interdepartmental Executive Boards, in Paper 6 on organisational arrangements, will also enhance the ability of the public service to plan and collaborate on outcomes for New Zealanders, and to direct resources to that end. The paper provides for additional flexible options for configuring organisations that can more agilely change to meet government priorities.
61 The proposals on employment and workforce in Paper 4 support interoperability by facilitating the flexible movement of people around the system and by ensuring inclusive and fair workplaces which will attract talented people and enable them to contribute their best.
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Deliver better outcomes and better services
62 I believe we need to get better at providing services on a cross-agency basis and solving complex problems that do not fit neatly within a single agency. We have major issues around agencies’ ability to join up seamlessly. One example is the recent report on mental health services that identified lack of coordination, gaps and overlaps between agencies as a major feature of our existing system.
63 I propose enabling the public service and public servants to more effectively join up around citizens’ needs and to respond to cross-cutting issues that cross agency boundaries.
64 Paper 6 on organisational arrangements recommends a wider range of options than the standard department and departmental agency models we have now, and that can more effectively join the system up around planning for outcomes and delivering joined up services.
65 The new legislative provisions will be enabling rather than prescriptive. They will provide the tools and instruments to carry forward the reform programme that is already underway. The new statute will enable us to bring about change in a managed way to meet current and future requirements. We will not see the new statute driving sudden large-scale change in the system.
66 The policy and legislative proposals for each area are set out in each paper and will form the basis of drafting instructions, following Cabinet agreement.
Consequent changes to designations
67 Because I intend that the new statute be titled the Public Service Act I also propose that in its provisions we change the titles of the State Services Commission, State Services Commissioner, and Deputy State Services Commissioner to reflect the new terminology, ie, Public Service Commission, Public Service Commissioner, and Deputy Public Service Commissioner.
Public consultation
68 Public consultation took place between 3 September and 12 October 2018. More than 300 submissions were received. The State Services Commission also directly engaged with more than 1,100 people in Auckland, Wellington, Whangarei, Hamilton, New Plymouth, Gisborne and Christchurch. This involved public servants, Crown entities, members of the public, NGOs, Māori public servants and Pasifika public servants. Engagement across country highlighted there was support for the overall direction of the reforms and a real appetite for change.
69 As noted above I intend to circulate a draft of the Bill for targeted consultation before introduction to Parliament.
Departmental consultation
70 Officials have consulted with all public service departments and selected Crown agents. Detail on feedback is presented in the further papers in this package.
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Financial implications
71 Financial implications of the detailed proposals are addressed in the further papers in this package.
Human rights
72 The proposals in this paper are consistent with the New Zealand Bill of Rights Act 1990 and the Human Rights Act 1993.
Legislative implications
73 Legislation is required to implement the proposals set out in Papers 2-7, including replacing the current State Sector Act 1988 with a new Public Service Act. Specific proposals require new legislation (eg, for new organisational forms) or changes to existing provisions (eg, responsibilities of public service chief executives), and consequential amendments to other Acts (eg, to replace references to the “State services” in a number of other Acts).
74 The legislation programme for 2018 included a New Zealand Public Service Bill with a priority 6 categorisation (instructions to Parliamentary Counsel Office in 2018). The range of potential amendments expanded and a bid has been submitted to include a Bill on the legislation programme for 2019 with a priority 4 categorisation (to be referred to a select committee in 2019). The Attorney-General has authorised the Parliamentary Counsel Office to receive drafting instructions before final policy decisions by Cabinet.
75 The current State Sector Act 1988 does not state explicitly that it is binding on the Crown. However, I propose that the new Act state explicitly that it will bind the Crown. There are a variety of obvious reasons, such as the Act will define the public service, most of which will be part of the legal Crown; it will set out responsibilities and duties of Public Service chief executives, including responsibilities that are owed to the appropriate Minister of the Crown and a duty to act independently of Ministers (eg, with decisions concerning individual employees); and it will continue to provide immunity from liability for public service chief executives and employees in certain circumstances, but with implications for the Crown in accordance with section 6 of the Crown Proceedings Act 1950.
Regulatory impact analysis
76 The Regulatory Impact Statement is attached.
77 A cross-agency Quality Assurance Panel with representatives from the Treasury and the Civil Aviation Authority has reviewed the Regulatory Impact Assessment “State Sector Act Reform” produced by the State Services Commission (SSC) and dated April 2019. The review team considers that it partially meets the Quality Assurance criteria.
78 The QA panel’s assessment against each of the criteria is as follows:
78.1 Clear and concise: While the RIA is long, the length is proportionate to the number and complexity of over a dozen issues. We strongly recommend the
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inclusion of an executive summary, as it is unlikely that the average reader will be easily able to navigate a RIA that size.
78.2 Convincing: There are large assumptions that the proposed solution to an issue will address the problem or opportunity. We acknowledge that the proposals are enabling in nature and that regulations will be made to implement the changes. We expect this subsequent regulation to be supported by quality impact analysis, as more detailed analysis of potential impacts should then be possible.
78.3 Complete: The RIA contains the necessary information. The implementation section focuses mainly on the role of a Public Service Leadership Team to implement and embed the proposed changes. Some proposals will require agencies and the wider public sector to make significant changes to how their organisations are run, and there is little analysis of possible flow-on costs or the cumulative cost of the changes. There will, therefore, be a considerable onus on further work programmes to work closely with agencies to implement the changes.
78.4 Consulted: SSC has consulted extensively on the proposals, and revised many of the options on the basis of stakeholder feedback.
79 The QA panel has not seen the draft Cabinet submissions at the time this assessment was finalised. Due to the large number of issues and options, we have sought and received assurances from the State Services Commission that the preferred options in the RIA align with the recommendations in the Cabinet papers.
Gender implications
80 This paper has no gender implications. Gender implications are addressed as appropriate in the further papers of this package.
Disability perspective
81 This paper has no disability implications. Disability perspective is addressed as appropriate in the further papers of this package.
Publicity
82 The communications approach around the reforms and associated issues will be managed by my office, in consultation with other Ministers as appropriate, including release of this suite of cabinet papers.
Recommendations
The Minister recommends that the Committee:
1 note that the Cabinet Government Administration and Expenditure Review Committee agreed to reform the State Services Act 1988, with a view to its repeal and replacement with a new Public Service Act [GOV-18-MIN-0013.01 refers].
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2 note that New Zealand’s public service performs well by international standards in responsiveness to government, effectiveness for New Zealanders, and integrity.
3 note that proposals in these are about ensuring the public service is making the biggest possible difference to the lives of New Zealanders, delivering services that are easy to access and joined up around their needs, and serving an ever more diverse and changing community.
4 note that the proposals will also reconnect the public service with a common spirit of service to the community, and unify the public service around a common purpose, principles and values.
5 note that the State Sector Act 1988 in some respects enhanced the performance of the system, but these changes were accompanied by new problems resulting from a narrow focus on single agency outputs to the detriment of a sense of the wider public service with its unifying common mission and spirit of service.
6 note that the need for change has been highlighted in reviews over the past 30 years – the Logan Report (1991), the Ministerial Advisory Group on the Review of the Centre (2001) and the Better Public Services Advisory Group (2011).
7 note that a review of the State Sector Act 1988 has been completed with the aims of:
7.1 affirming the constitutional role of the public service in supporting New Zealand’s democratic form of government
7.2 delivering better outcomes and better services
7.3 creating a modern, agile and adaptive New Zealand public service.
8 note that the key enablers of transformation in the public service are; public service culture and behaviour, an updated framework for employment in the public service, effective leadership, and a greater range of options for configuring fit-for-purpose public service organisations.
9 note that the review also identified the desirability of including a wider range of public agencies within the ambit of a single unified New Zealand public service.
10 note that, alongside these enablers, the review has emphasised the need for the public service to help strengthen the Crown’s relationship with Māori.
11 note that the overall direction for reform received strong support in the consultation and responses revealed a real appetite for change.
12 note that, rather than build on the current legislation, a step change is required to rebalance the regulatory system and make the legislation fit for purpose, now and into the future.
13 agree that it is necessary to replace the existing State Sector Act 1988 with a new Public Service Act that aligns with, and better supports, desired practice.
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14 agree to consequential changes to titles in the new statute: State Services Commission to become Public Service Commission, State Services Commissioner to become Public Service Commissioner, and Deputy State Services Commissioner to become Deputy Public Service Commissioner.
15 note that new legislation is part of a wider change programme in the public service with a package of State sector reforms, including proposed changes to the Public Finance Act 1989, which will support the Government’s ambition to embed a stronger focus on improving New Zealanders’ wellbeing.
16 note that the proposals will not undermine the strengths of the existing public service founded on the State Sector Act. A high level of agency autonomy will continue to exist, allowing chief executives to flexibly tailor departments to their particular functions. The legislative changes proposed are enabling rather than prescriptive. They will provide the tools and instruments to bring about change in a managed way to meet current and future requirements
17 note that I intend to circulate a draft of the Bill for targeted consultation, before introduction to Parliament
18 note that the five accompanying papers detail the legislative and administrative changes to the State Sector Act 1988 to support the objectives for a new Public Service Act. The papers are:
18.1 Paper 2: A unified public service
18.2 Paper 3: Te Ao Tūmatanui
18.3 Paper 4: Public service employment and workforce
18.4 Paper 5: Leadership of the public service
18.5 Paper 6: Organisations of the public service
18.6 Paper 7: Miscellaneous provisions, consequential amendments, transitional provisions and savings
19 note that each paper connects proposed statutory provisions to impacts, and then to the three objectives for the new Act.
20 note that the proposed Bill has a priority 4 categorisation on the legislation programme for 2019 (to be referred to a select committee in 2019).
21 agree that the proposed Act will bind the Crown.
Drafting Instructions
22 authorise the Minister of State Services to issue drafting instructions to Parliamentary Counsel Office to create a new Public Service Act to give effect to the Cabinet decisions arising from the accompanying papers.
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23 authorise the Minister of State Services to make decisions on both minor and policy decisions, consistent with the decisions in these papers
24 authorise the Parliamentary Counsel Office to make technical or drafting changes, that arise during the drafting of the legislation.
25 note that I will report back to Cabinet in August 2019 with a draft Bill and timeline for the parliamentary process.
Authorised for lodgement
Hon Chris Hipkins
Minister of State Services
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Annex 1 – Intervention Logic and Summary of Proposals
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I N C O N F I D E N C E CAB-19-MIN-0223
Cabinet
Minute of Decision
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Report of the Cabinet Government Administration and Expenditure Review Committee: Period Ended 10 May 2019
On 13 May 2019, Cabinet made the following decisions on the work of the Cabinet Government Administration and Expenditure Review Committee for the period ended 10 May 2019:
GOV-19-MIN-0024 First Voluntary National Review on New Zealand’s Progress Toward the Sustainable Development Goals
Portfolio: Foreign Affairs
CONFIRMED
GOV-19-MIN-0017 Delivering Better Responses to Emergencies NationalStructurers
Portfolios: State Services / Civil Defence
CONFIRMED
GOV-19-MIN-0016 Public Service Legislation: Paper 1 – Overview of Proposals
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0018 Public Service Legislation: Paper 2 – A Unified Public Service
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0019 Public Service Legislation: Paper 3 – Te Ao Tūmatanui Improving the Public Service’s Responsive to Māori
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0020 Public Service Legislation: Paper 4 – Public Service Employment and Workforce
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0021 Public Service Legislation: Paper 5 – Leadership of the Public Service
Portfolio: State Services
CONFIRMED[Referred for further consideration]
1 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:41:36
I N C O N F I D E N C E CAB-19-MIN-0223
GOV-19-MIN-0022 Public Service Legislation: Paper 6 – Organisations of the Public Service
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0023 Public Service Legislation: Paper 7 – Miscellaneous provisions, Consequential Amendments, TransitionalProvisions and Savings
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0015 Joined-Up Approach to the Regional Arm of Government
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 20 May 2019]
Michael WebsterSecretary of the Cabinet
Hard-copy distribution:Cabinet Government Administration and Expenditure Review CommitteeMinister of Civil Defence
2 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:41:36
I N C O N F I D E N C E CAB-19-MIN-0241
Cabinet
Minute of Decision
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Report of the Cabinet Priorities Committee: Period Ended 24 May 2019
On 27 May 2019, Cabinet made the following decisions on the work of the Cabinet Priorities Committee for the period ended 24 May 2019:
CPC-19-MIN-0013 Monitoring our Government’s Policies of Focus: Monthly Report
Portfolio: Prime Minister
CONFIRMED
CPC-19-MIN-0006 Public Service Legislation: Paper 1 – Overview of Proposals
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
CPC-19-MIN-0007 Public Service Legislation: Paper 2 – A Unified Public Service
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
CPC-19-MIN-0008 Public Service Legislation: Paper 3 – Te Ao Tūmatanui Improving the Public Service’s Responsiveness to Māori
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
CPC-19-MIN-0009 Public Service Legislation: Paper 4 – Public Service Employment and Workforce
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
CPC-19-MIN-0010 Public Service Legislation: Paper 5 – Leadership of the Public Service
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
CPC-19-MIN-0011 Public Service Legislation: Paper 6 – Organisations of the Public Service
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
1 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:44:50
I N C O N F I D E N C E CAB-19-MIN-0241
CPC-19-MIN-0012 Public Service Legislation: Paper 7 – Miscellaneous provisions, Consequential Amendments, Transitional Provisions and SavingsPortfolio: State Services
2 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:44:50
I N C O N F I D E N C E CAB-19-MIN-0248
Cabinet
Minute of Decision
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
On 4 June 2019, following reference from the Cabinet Priorities Committee [CPC-19-MIN-0006], Cabinet:
Background
1 noted that in May 2018, the Cabinet Government Administration and Expenditure Review Committee agreed to reform the State Services Act 1988, with a view to its repeal and replacement with a new Public Service Act [GOV-18-MIN-0013.01];
2 noted that New Zealand’s public service performs well by international standards in responsiveness to government, effectiveness for New Zealanders, and integrity;
3 noted that proposals in the papers under CAB-19-SUB-0248 to CAB-19-SUB-0254 (the proposals) are about ensuring the public service is making the biggest possible difference to the lives of New Zealanders, delivering services that are easy to access and joined up aroundtheir needs, and serving an ever more diverse and changing community;
4 noted that the proposals will also reconnect the public service with a common spirit of service to the community, and unify the public service around a common purpose, principlesand values;
5 noted that the State Sector Act 1988 in some respects enhanced the performance of the system, but these changes were accompanied by new problems resulting from a narrow focus on single agency outputs to the detriment of a sense of the wider public service with its unifying common mission and spirit of service;
6 noted that the need for change has been highlighted in reviews over the past 30 years – the Logan Report (1991), the Ministerial Advisory Group on the Review of the Centre (2001) and the Better Public Services Advisory Group (2011);
Review of the State Sector Act
7 noted that a review of the State Sector Act 1988 (the Review) has been completed with the aims of:
7.1 affirming the constitutional role of the public service in supporting New Zealand’s democratic form of government;
7.2 delivering better outcomes and better services;
1 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:45:22
I N C O N F I D E N C E CAB-19-MIN-0248
7.3 creating a modern, agile and adaptive New Zealand public service;
8 noted that the key enablers of transformation in the public service are:
8.1 public service culture and behaviour;
8.2 an updated framework for employment in the public service;
8.3 effective leadership;
8.4 a greater range of options for configuring fit-for-purpose public service organisations;
9 noted that the Review also identified a desire to include a wider range of public agencies within the ambit of a single unified New Zealand public service;
10 noted that, alongside the enablers in paragraph 8 above, the Review has emphasised the need for the public service to help strengthen the Crown’s relationship with Māori;
11 noted that the overall direction for reform received strong support in the consultation and responses revealed a real appetite for change;
12 noted that, rather than build on the current legislation, a step change is required to rebalancethe regulatory system and make the legislation fit for purpose, now and into the future;
13 agreed that it is necessary to replace the existing State Sector Act 1988 with a new Public Service Act that aligns with, and better supports, desired practice;
14 agreed to the following consequential changes to titles in the new statute:
14.1 State Services Commission to become Public Service Commission;
14.2 State Services Commissioner to become Public Service Commissioner;
14.3 Deputy State Services Commissioner to become Deputy Public Service Commissioner;
15 noted that new legislation is part of a wider change programme in the public service with a package of State sector reforms, including proposed changes to the Public Finance Act 1989, which will support the government’s ambition to embed a stronger focus on improving New Zealanders’ wellbeing;
16 noted that:
16.1 the proposals will not undermine the strengths of the existing public service founded on the State Sector Act;
16.2 a high level of agency autonomy will continue to exist, allowing chief executives to flexibly tailor departments to their particular functions;
16.3 the legislative changes proposed are enabling rather than prescriptive and will provide the tools and instruments to bring about change in a managed way to meet current and future requirements;
2 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:45:22
I N C O N F I D E N C E CAB-19-MIN-0248
Legislative implications
17 noted that the Minister of State Services intends to circulate a draft of the Bill for targeted consultation before introduction to Parliament;
18 noted that:
18.1 the accompanying papers under CAB-19-SUB-0249 to CAB-19-SUB-0254 detail the legislative and administrative changes to the State Sector Act 1988 to support theobjectives for a new Public Service Act;
18.2 each paper connects proposed statutory provisions to impacts, and then to the three objectives for the new Act.
19 noted that that the Public Service (Aotearoa New Zealand) Bill holds a category 4 priority on the 2019 Legislation Programme (to be referred to a select committee in 2019);
20 agreed that the proposed Act will bind the Crown;
21 invited the Minister of State Services to issue drafting instructions to Parliamentary CounselOffice to create a new Public Service Act to give effect to the Cabinet decisions in the papers under CAB-19-SUB-0248 to CAB-19-SUB-0254;
22 authorised the Minister of State Services to make decisions on both minor and policy decisions, consistent with the decisions in CAB-19-MIN-0248 to CAB-19-MIN-0254;
23 authorised the Parliamentary Counsel Office to make technical or drafting changes, that arise during the drafting of the legislation;
24 invited the Minister of State Services to report back to the Cabinet Legislation Committee in August 2019 with a draft Bill and timeline for the parliamentary process.
Michael WebsterSecretary of the Cabinet
Hard-copy distribution:Prime MinisterDeputy Prime MinisterMinister of State Services
3 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:45:22
I N C O N F I D E N C ECAB-19-SUB-0248
Cabinet
Summary
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
On 21 May 2019, following referral from the Cabinet Government Administration and Expenditure Review Committee, the Cabinet Priorities Committee referred the paper under this coversheet to Cabinet for further consideration at its meeting on 4 June 2019 [CPC-19-MIN-0006].
This is the first in a suite of seven related papers. The Impact Statement that accompanies this suite of papers is not attached, as all Ministers have received it with previous versions of this paper. A copy remains available on CabNet.
The Minister of State Services recommends that Cabinet:
1 note that in May 2018, the Cabinet Government Administration and Expenditure Review Committee agreed to reform the State Services Act 1988, with a view to its repeal and replacement with a new Public Service Act [GOV-18-MIN-0013.01];
2 note that New Zealand’s public service performs well by international standards in responsiveness to government, effectiveness for New Zealanders, and integrity;
3 note that proposals in the papers under CAB-19-SUB-0248 to CAB-19-SUB-0254 (the proposals) are about ensuring the public service is making the biggest possible difference to the lives of New Zealanders, delivering services that are easy to access and joined up aroundtheir needs, and serving an ever more diverse and changing community;
4 note that the proposals will also reconnect the public service with a common spirit of serviceto the community, and unify the public service around a common purpose, principles and values;
5 note that the State Sector Act 1988 in some respects enhanced the performance of the system, but these changes were accompanied by new problems resulting from a narrow focus on single agency outputs to the detriment of a sense of the wider public service with its unifying common mission and spirit of service;
6 note that the need for change has been highlighted in reviews over the past 30 years – the Logan Report (1991), the Ministerial Advisory Group on the Review of the Centre (2001) and the Better Public Services Advisory Group (2011);
1I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:38
I N C O N F I D E N C ECAB-19-SUB-0248
7 note that a review of the State Sector Act 1988 (the Review) has been completed with the aims of:
7.1 affirming the constitutional role of the public service in supporting New Zealand’s democratic form of government;
7.2 delivering better outcomes and better services;
7.3 creating a modern, agile and adaptive New Zealand public service;
8 note that the key enablers of transformation in the public service are:
8.1 public service culture and behaviour;
8.2 an updated framework for employment in the public service;
8.3 effective leadership;
8.4 a greater range of options for configuring fit-for-purpose public service organisations;
9 note that the Review also identified a desire to include a wider range of public agencies within the ambit of a single unified New Zealand public service;
10 note that, alongside the enablers in paragraph 8 above, the Review has emphasised the need for the public service to help strengthen the Crown’s relationship with Māori;
11 note that the overall direction for reform received strong support in the consultation and responses revealed a real appetite for change;
12 note that, rather than build on the current legislation, a step change is required to rebalance the regulatory system and make the legislation fit for purpose, now and into the future;
13 agree that it is necessary to replace the existing State Sector Act 1988 with a new Public Service Act that aligns with, and better supports, desired practice;
14 agree to the following consequential changes to titles in the new statute:
14.1 State Services Commission to become Public Service Commission;
14.2 State Services Commissioner to become Public Service Commissioner;
14.3 Deputy State Services Commissioner to become Deputy Public Service Commissioner;
15 note that new legislation is part of a wider change programme in the public service with a package of State sector reforms, including proposed changes to the Public Finance Act 1989, which will support the government’s ambition to embed a stronger focus on improving New Zealanders’ wellbeing;
16 note that:
16.1 the proposals will not undermine the strengths of the existing public service founded on the State Sector Act;
16.2 a high level of agency autonomy will continue to exist, allowing chief executives to flexibly tailor departments to their particular functions;
2I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:38
I N C O N F I D E N C ECAB-19-SUB-0248
16.3 the legislative changes proposed are enabling rather than prescriptive and will provide the tools and instruments to bring about change in a managed way to meet current and future requirements;
17 note that the Minister of State Services intends to circulate a draft of the Bill for targeted consultation before introduction to Parliament;
18 note that:
18.1 the accompanying papers under CAB-19-SUB-0249 to CAB-19-SUB-0254 detail the legislative and administrative changes to the State Sector Act 1988 to support theobjectives for a new Public Service Act;
18.2 each paper connects proposed statutory provisions to impacts, and then to the three objectives for the new Act.
19 note that that the Public Service (Aotearoa New Zealand) Bill holds a category 4 priority on the 2019 Legislation Programme (to be referred to a select committee in 2019);
20 agree that the proposed Act will bind the Crown;
Drafting Instructions
21 invite the Minister of State Services to issue drafting instructions to Parliamentary Counsel Office to create a new Public Service Act to give effect to the Cabinet decisions in the papers under CAB-19-SUB-0248 to CAB-19-SUB-0254;
22 authorise the Minister of State Services to make decisions on both minor and policy decisions, consistent with the decisions in CAB-19-MIN-0248 to CAB-19-MIN-0254;
23 authorise the Parliamentary Counsel Office to make technical or drafting changes, that arise during the drafting of the legislation;
24 invite the Minister of State Services to report back to the Cabinet Legislation Committee in August 2019 with a draft Bill and timeline for the parliamentary process.
Rachel Clarkefor Secretary of the Cabinet
Hard-copy distribution:The Cabinet
3I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:38
I N C O N F I D E N C E CPC-19-MIN-0006
Cabinet Priorities Committee
Minute of Decision
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
On 21 May 2019, the Cabinet Priorities Committee referred the submission under CPC-19-SUB-0006 to Cabinet for further consideration at its meeting on 4 June 2019.
Rachel ClarkeCommittee Secretary
Present: Officials present from:Rt Hon Jacinda Ardern (Chair)Rt Hon Winston PetersHon Kelvin DavisHon Grant RobertsonHon Phil TwyfordHon Dr Megan WoodsHon Chris HipkinsHon Carmel SepuloniHon Nanaia MahutaHon Tracey Martin
Office of the Prime Minister
Hard-copy distribution:Minister of State Services
1 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:44:25
I N C O N F I D E N C ECPC-19-SUB-0006
Cabinet Priorities Committee
Summary
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
On 9 May 2019, the Cabinet Government Administration and Expenditure Review Committee referred the attached submission to the Cabinet Priorities Committee on 21 May 2019 for further consideration [GOV-19-MIN-0016]. This is the first in a suite of seven related papers.
The Minister of State Services recommends that the Committee:
1 note that in May 2018, the Cabinet Government Administration and Expenditure Review Committee agreed to reform the State Services Act 1988, with a view to its repeal and replacement with a new Public Service Act [GOV-18-MIN-0013.01];
2 note that New Zealand’s public service performs well by international standards in responsiveness to government, effectiveness for New Zealanders, and integrity;
3 note that the proposals in the papers under CPC-19-SUB-0006 to CPC-19-SUB-0012 (the proposals):
3.1 are about ensuring that the public service is making the biggest possible difference tothe lives of New Zealanders, delivering services that are easy to access and joined uparound their needs, and serving an ever more diverse and changing community;
3.2 will reconnect the public service with a common spirit of service to the community, and unify the public service around a common purpose, principles and values.
4 note that the State Sector Act 1988 in some respects enhanced the performance of the system, but these changes were accompanied by new problems resulting from a narrow focus on single agency outputs to the detriment of a sense of the wider public service with its unifying common mission and spirit of service;
5 note that the need for state sector change has been highlighted in reviews over the past 30 years – the Logan Report (1991), the Ministerial Advisory Group on the Review of the Centre (2001) and the Better Public Services Advisory Group (2011);
6 note that a review of the State Sector Act 1988 (the review) has been completed with the aims of:
6.1 affirming the constitutional role of the public service in supporting New Zealand’sdemocratic form of government;
1I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:56
I N C O N F I D E N C ECPC-19-SUB-0006
6.2 delivering better outcomes and better services;
6.3 creating a modern, agile and adaptive New Zealand public service;
7 note that the key enablers of transformation in the public service are:
7.1 public service culture and behaviour;
7.2 an updated framework for employment in the public service;
7.3 effective leadership;
7.4 a greater range of options for configuring fit-for-purpose public service organisations;
8 note that the review also identified a desire to include a wider range of public agencies within the ambit of a single unified New Zealand public service;
9 note that, alongside the enablers in paragraph 7 above, the review has emphasised the need for the Public Service to help strengthen the Crown’s relationship with Māori;
10 note that the overall direction for reform received strong support in public consultation and responses revealed a real appetite for change;
11 note that, rather than build on the current legislation, a step change is required to rebalance the regulatory system and make the legislation fit for purpose, now and into the future;
12 agree to replace the existing State Sector Act 1988 with a new Public Service Act that alignswith, and better supports, desired practice;
13 agree to the following consequential changes to titles in the new statute:
13.1 State Services Commission to become Public Service Commission;
13.2 State Services Commissioner to become Public Service Commissioner;
13.3 Deputy State Services Commissioner to become Deputy Public Service Commissioner;
14 note that new legislation is part of a wider change programme in the Public Service with a package of State sector reforms, including proposed changes to the Public Finance Act 1989, which will support the Government’s ambition to embed a stronger focus on improving New Zealanders’ wellbeing;
15 note that:
15.1 the proposals will not undermine the strengths of the existing public service founded on the State Sector Act;
15.2 a high level of agency autonomy will continue to exist, allowing chief executives to flexibly tailor departments to their particular functions;
15.3 the legislative changes proposed are enabling rather than prescriptive, and will provide the tools and instruments to bring about change in a managed way to meet current and future requirements;
2I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:56
I N C O N F I D E N C ECPC-19-SUB-0006
16 note that the accompanying papers under CPC-19-SUB-0007 to CPC-19-SUB-0012 detail the legislative and administrative changes to the State Sector Act 1988 to support the objectives for a new Public Service Act;
Provisions and Savings
17 note that each paper under CPC-19-SUB-0007 to CPC-19-SUB-0012 connects proposed statutory provisions to impacts, and then to the three objectives for the new Public Service Act;
18 note that the Public Service (Aotearoa New Zealand) Bill holds a category 4 priority on the 2019 Legislation Programme (to be referred to a select committee in 2019);
19 agree that the proposed Act will bind the Crown;
Drafting Instructions
20 invite the Minister of State Services to issue drafting instructions to Parliamentary Counsel Office to create a new Public Service Act to give effect to the Cabinet decisions in the papers under CPC-19-SUB-0006 to CPC-19-SUB-0012;
21 authorise the Minister of State Services to make decisions on both minor and policy decisions, consistent with the decisions on the papers under CPC-19-SUB-0006 to CPC-19-SUB-0012;
22 authorise the Parliamentary Counsel Office to make technical or drafting changes that arise during the drafting of the legislation;
23 note that the Minister of State Services intends to circulate a draft of the Bill for targeted consultation, before introduction to Parliament;
24 invite the Minister of State Services to report back to the Cabinet Legislation Committee in August 2019 with a draft Bill and timeline for the parliamentary process.
Rachel ClarkeCommittee Secretary
Hard-copy distribution:Cabinet Priorities CommitteeOffice of the Prime MinisterMinister of State ServicesMinister for Workplace Relations and Safety
3I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:56
I N C O N F I D E N C E GOV-19-MIN-0016
Cabinet Government Administration and Expenditure Review Committee
Minute of Decision
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
On 9 May 2019, the Cabinet Government Administration and Expenditure Review Committee referred the paper under GOV-19-SUB-0016 to the next appropriate Cabinet Committee meeting forfurther consideration.
Rachel ClarkeCommittee Secretary
Present: Officials present from:Rt Hon Winston PetersHon Kelvin DavisHon Chris Hipkins (Chair)Hon Carmel SepuloniHon David ParkerHon Stuart NashHon Iain Lees-GallowayHon Shane JonesHon Kris FaafoiHon Julie Anne Genter
Officials Committee for GOV
Hard-copy distribution:Minister of State Services
1 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:38:05
I N C O N F I D E N C EGOV-19-SUB-0016
Cabinet Government Administration and Expenditure Review CommitteeSummary
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
Purpose This paper provides an overview of the proposed Public Service reforms and seeks approval to issue drafting instructions for a new Public Service Act.
Previous Consideration
In May 2018, GOV agreed to reform the State Services Act 1988 (the reforms), with a view to its repeal and replacement with a new Public Service Act;[GOV-18-MIN-0013.01]
In August 2018, Cabinet agreed the release of the State Services Act Review discussion documents attached under CAB-18-SUB-0386, subject to the amendments requested by Cabinet [CAB-18-MIN-0386];
In November 2018, GOV noted the update on consultation feedback on the reforms, agreed with the proposed direction of travel and invited the Minister ofState Services (the Minister) to report back to GOV in due course. [GOV-18-SUB-0081]
Summary This is the first of seven associated papers outlining proposed legislative Public Service reforms (the reforms). This paper provides an overview of the reforms (summary at Annex 1), and seeks approval to issue drafting instructions for a new Public Service Act (the new Act) to give effect to the proposals in the associated papers under GOV-19-SUB-0018 to GOV-19-SUB-0023 (outlined inparagraph 46). Public feedback has informed the proposals in these papers, with 300 people submitting on the discussion documents and a further 1,100 viadirect engagement with officials.
The new Act will affirm the constitutional role of the Public Service, deliver better outcomes and better services and create a modern, agile and adaptive public service. It is part of a wider programme intended to build a unified PublicService, with a spirit of service and unity around a common purpose, principles and values. Work is already underway on non-legislative changes.
In line with the proposal for a new Public Service Act, the Minister seeks agreement to change the names of the State Services Commission, Commissioner and Deputy Commissioner, to the Public Service Commission, Commissioner and Deputy Commissioner.
1I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:37:22
I N C O N F I D E N C EGOV-19-SUB-0016
Regulatory Impact Analysis
An Impact Statement is attached. A cross-agency Quality Assurance Panel considers that it partially meets the Quality Assurance Criteria (comments at paragraph 78).
Baseline Implications
None from this paper.
Legislative Implications
Legislation is required to give effect to the proposed changes. The Public Service (Aotearoa New Zealand) Bill holds a category 4 priority on the 2019 Legislation Programme (to be referred to a select committee in 2019).
Timing Issues The Minister intends to report back to LEG in August 2019 with a draft Bill andtimeline for the Parliamentary process.
Announcement The Office of the Minister of State Services will manage any communications, in consultation with other Ministers, as appropriate.
Proactive Release
The Minister intends to proactively release the paper under GOV-19-SUB-0016 at an appropriate time, subject to any redactions in line with the Official Information Act 1982.
Consultation Paper prepared by State Services Commission (State Services). All public service departments and selected Crown agents were consulted.
The Minister indicates that the Minister for Māori Crown Relations Te Arawhiti, Minister of Finance, Minister for Māori Development, Minister for Workplace Relations and Safety, New Zealand First and the Green Party were consulted.
The Minister of State Services recommends that the Committee:
1 note that in May 2018, the Cabinet Government Administration and Expenditure Review Committee agreed to reform the State Services Act 1988, with a view to its repeal and replacement with a new Public Service Act [GOV-18-MIN-0013.01];
2 note that New Zealand’s public service performs well by international standards in responsiveness to government, effectiveness for New Zealanders, and integrity;
3 note that the proposals in the papers under GOV-19-SUB-0016, and GOV-19-SUB-0018 to GOV-19-SUB-0023 (the proposals):
3.1 are about ensuring that the public service is making the biggest possible difference tothe lives of New Zealanders, delivering services that are easy to access and joined uparound their needs, and serving an ever more diverse and changing community;
3.2 will reconnect the public service with a common spirit of service to the community, and unify the public service around a common purpose, principles and values.
4 note that the State Sector Act 1988 in some respects enhanced the performance of the system, but these changes were accompanied by new problems resulting from a narrow
2I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:37:22
I N C O N F I D E N C EGOV-19-SUB-0016
focus on single agency outputs to the detriment of a sense of the wider public service with its unifying common mission and spirit of service;
5 note that the need for state sector change has been highlighted in reviews over the past 30 years – the Logan Report (1991), the Ministerial Advisory Group on the Review of the Centre (2001) and the Better Public Services Advisory Group (2011);
6 note that a review of the State Sector Act 1988 (the review) has been completed with the aims of:
6.1 affirming the constitutional role of the public service in supporting New Zealand’sdemocratic form of government;
6.2 delivering better outcomes and better services;
6.3 creating a modern, agile and adaptive New Zealand public service;
7 note that the key enablers of transformation in the public service are:
7.1 public service culture and behaviour;
7.2 an updated framework for employment in the public service;
7.3 effective leadership;
7.4 a greater range of options for configuring fit-for-purpose public service organisations;
8 note that the review also identified a desire to include a wider range of public agencies within the ambit of a single unified New Zealand public service;
9 note that, alongside the enablers in paragraph 7 above, the review has emphasised the need for the Public Service to help strengthen the Crown’s relationship with Māori;
10 note that the overall direction for reform received strong support in public consultation and responses revealed a real appetite for change;
11 note that, rather than build on the current legislation, a step change is required to rebalance the regulatory system and make the legislation fit for purpose, now and into the future;
12 agree to replace the existing State Sector Act 1988 with a new Public Service Act that alignswith, and better supports, desired practice;
13 agree to the following consequential changes to titles in the new statute:
13.1 State Services Commission to become Public Service Commission;
13.2 State Services Commissioner to become Public Service Commissioner;
13.3 Deputy State Services Commissioner to become Deputy Public Service Commissioner;
14 note that new legislation is part of a wider change programme in the Public Service with a package of State sector reforms, including proposed changes to the Public Finance Act 1989, which will support the Government’s ambition to embed a stronger focus on improving New Zealanders’ wellbeing;
3I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:37:22
I N C O N F I D E N C EGOV-19-SUB-0016
15 note that:
15.1 the proposals will not undermine the strengths of the existing public service founded on the State Sector Act;
15.2 a high level of agency autonomy will continue to exist, allowing chief executives to flexibly tailor departments to their particular functions;
15.3 the legislative changes proposed are enabling rather than prescriptive, and will provide the tools and instruments to bring about change in a managed way to meet current and future requirements;
16 note that the accompanying papers under GOV-19-SUB-0018 to GOV-19-SUB-0023 detail the legislative and administrative changes to the State Sector Act 1988 to support the objectives for a new Public Service Act;
Provisions and Savings
17 note that each paper noted in paragraph 16 above connects proposed statutory provisions to impacts, and then to the three objectives for the new Public Service Act;
18 note that the Public Service (Aotearoa New Zealand) Bill holds a category 4 priority on the 2019 Legislation Programme (to be referred to a select committee in 2019);
19 agree that the proposed Act will bind the Crown;
Drafting Instructions
20 authorise the Minister of State Services:
20.1 to issue drafting instructions to Parliamentary Counsel Office to create a new Public Service Act to give effect to the Cabinet decisions in the papers under GOV-19-SUB-0016 and GOV-19-SUB-0018 to GOV-19-SUB-0023;
20.2 to make decisions on both minor and policy decisions, consistent with the decisions in these papers;
21 authorise the Parliamentary Counsel Office to make technical or drafting changes that arise during the drafting of the legislation;
22 note that the Minister of State Services intends to circulate a draft of the Bill for targeted consultation, before introduction to Parliament;
23 invite the Minister of State Services to report back to the Cabinet Legislation Committee in August 2019 with a draft Bill and timeline for the parliamentary process.
Rachel ClarkeCommittee Secretary
Hard-copy distribution:Cabinet Government Administration and Expenditure Review CommitteeMinister for Workplace Relations and Safety
4I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:37:22
I N C O N F I D E N C ECPC-19-SUB-0006
Cabinet Priorities Committee
Summary
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
On 9 May 2019, the Cabinet Government Administration and Expenditure Review Committee referred the attached submission to the Cabinet Priorities Committee on 21 May 2019 for further consideration [GOV-19-MIN-0016]. This is the first in a suite of seven related papers.
The Minister of State Services recommends that the Committee:
1 note that in May 2018, the Cabinet Government Administration and Expenditure Review Committee agreed to reform the State Services Act 1988, with a view to its repeal and replacement with a new Public Service Act [GOV-18-MIN-0013.01];
2 note that New Zealand’s public service performs well by international standards in responsiveness to government, effectiveness for New Zealanders, and integrity;
3 note that the proposals in the papers under CPC-19-SUB-0006 to CPC-19-SUB-0012 (the proposals):
3.1 are about ensuring that the public service is making the biggest possible difference tothe lives of New Zealanders, delivering services that are easy to access and joined uparound their needs, and serving an ever more diverse and changing community;
3.2 will reconnect the public service with a common spirit of service to the community, and unify the public service around a common purpose, principles and values.
4 note that the State Sector Act 1988 in some respects enhanced the performance of the system, but these changes were accompanied by new problems resulting from a narrow focus on single agency outputs to the detriment of a sense of the wider public service with its unifying common mission and spirit of service;
5 note that the need for state sector change has been highlighted in reviews over the past 30 years – the Logan Report (1991), the Ministerial Advisory Group on the Review of the Centre (2001) and the Better Public Services Advisory Group (2011);
6 note that a review of the State Sector Act 1988 (the review) has been completed with the aims of:
6.1 affirming the constitutional role of the public service in supporting New Zealand’sdemocratic form of government;
1I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:56
I N C O N F I D E N C ECPC-19-SUB-0006
6.2 delivering better outcomes and better services;
6.3 creating a modern, agile and adaptive New Zealand public service;
7 note that the key enablers of transformation in the public service are:
7.1 public service culture and behaviour;
7.2 an updated framework for employment in the public service;
7.3 effective leadership;
7.4 a greater range of options for configuring fit-for-purpose public service organisations;
8 note that the review also identified a desire to include a wider range of public agencies within the ambit of a single unified New Zealand public service;
9 note that, alongside the enablers in paragraph 7 above, the review has emphasised the need for the Public Service to help strengthen the Crown’s relationship with Māori;
10 note that the overall direction for reform received strong support in public consultation and responses revealed a real appetite for change;
11 note that, rather than build on the current legislation, a step change is required to rebalance the regulatory system and make the legislation fit for purpose, now and into the future;
12 agree to replace the existing State Sector Act 1988 with a new Public Service Act that alignswith, and better supports, desired practice;
13 agree to the following consequential changes to titles in the new statute:
13.1 State Services Commission to become Public Service Commission;
13.2 State Services Commissioner to become Public Service Commissioner;
13.3 Deputy State Services Commissioner to become Deputy Public Service Commissioner;
14 note that new legislation is part of a wider change programme in the Public Service with a package of State sector reforms, including proposed changes to the Public Finance Act 1989, which will support the Government’s ambition to embed a stronger focus on improving New Zealanders’ wellbeing;
15 note that:
15.1 the proposals will not undermine the strengths of the existing public service founded on the State Sector Act;
15.2 a high level of agency autonomy will continue to exist, allowing chief executives to flexibly tailor departments to their particular functions;
15.3 the legislative changes proposed are enabling rather than prescriptive, and will provide the tools and instruments to bring about change in a managed way to meet current and future requirements;
2I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:56
I N C O N F I D E N C ECPC-19-SUB-0006
16 note that the accompanying papers under CPC-19-SUB-0007 to CPC-19-SUB-0012 detail the legislative and administrative changes to the State Sector Act 1988 to support the objectives for a new Public Service Act;
Provisions and Savings
17 note that each paper under CPC-19-SUB-0007 to CPC-19-SUB-0012 connects proposed statutory provisions to impacts, and then to the three objectives for the new Public Service Act;
18 note that the Public Service (Aotearoa New Zealand) Bill holds a category 4 priority on the 2019 Legislation Programme (to be referred to a select committee in 2019);
19 agree that the proposed Act will bind the Crown;
Drafting Instructions
20 invite the Minister of State Services to issue drafting instructions to Parliamentary Counsel Office to create a new Public Service Act to give effect to the Cabinet decisions in the papers under CPC-19-SUB-0006 to CPC-19-SUB-0012;
21 authorise the Minister of State Services to make decisions on both minor and policy decisions, consistent with the decisions on the papers under CPC-19-SUB-0006 to CPC-19-SUB-0012;
22 authorise the Parliamentary Counsel Office to make technical or drafting changes that arise during the drafting of the legislation;
23 note that the Minister of State Services intends to circulate a draft of the Bill for targeted consultation, before introduction to Parliament;
24 invite the Minister of State Services to report back to the Cabinet Legislation Committee in August 2019 with a draft Bill and timeline for the parliamentary process.
Rachel ClarkeCommittee Secretary
Hard-copy distribution:Cabinet Priorities CommitteeOffice of the Prime MinisterMinister of State ServicesMinister for Workplace Relations and Safety
3I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:56
I N C O N F I D E N C E CPC-19-MIN-0006
Cabinet Priorities Committee
Minute of Decision
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
On 21 May 2019, the Cabinet Priorities Committee referred the submission under CPC-19-SUB-0006 to Cabinet for further consideration at its meeting on 4 June 2019.
Rachel ClarkeCommittee Secretary
Present: Officials present from:Rt Hon Jacinda Ardern (Chair)Rt Hon Winston PetersHon Kelvin DavisHon Grant RobertsonHon Phil TwyfordHon Dr Megan WoodsHon Chris HipkinsHon Carmel SepuloniHon Nanaia MahutaHon Tracey Martin
Office of the Prime Minister
Hard-copy distribution:Minister of State Services
1 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:44:25
I N C O N F I D E N C EGOV-19-SUB-0016
Cabinet Government Administration and Expenditure Review CommitteeSummary
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
Purpose This paper provides an overview of the proposed Public Service reforms and seeks approval to issue drafting instructions for a new Public Service Act.
Previous Consideration
In May 2018, GOV agreed to reform the State Services Act 1988 (the reforms), with a view to its repeal and replacement with a new Public Service Act;[GOV-18-MIN-0013.01]
In August 2018, Cabinet agreed the release of the State Services Act Review discussion documents attached under CAB-18-SUB-0386, subject to the amendments requested by Cabinet [CAB-18-MIN-0386];
In November 2018, GOV noted the update on consultation feedback on the reforms, agreed with the proposed direction of travel and invited the Minister ofState Services (the Minister) to report back to GOV in due course. [GOV-18-SUB-0081]
Summary This is the first of seven associated papers outlining proposed legislative Public Service reforms (the reforms). This paper provides an overview of the reforms (summary at Annex 1), and seeks approval to issue drafting instructions for a new Public Service Act (the new Act) to give effect to the proposals in the associated papers under GOV-19-SUB-0018 to GOV-19-SUB-0023 (outlined inparagraph 46). Public feedback has informed the proposals in these papers, with 300 people submitting on the discussion documents and a further 1,100 viadirect engagement with officials.
The new Act will affirm the constitutional role of the Public Service, deliver better outcomes and better services and create a modern, agile and adaptive public service. It is part of a wider programme intended to build a unified PublicService, with a spirit of service and unity around a common purpose, principles and values. Work is already underway on non-legislative changes.
In line with the proposal for a new Public Service Act, the Minister seeks agreement to change the names of the State Services Commission, Commissioner and Deputy Commissioner, to the Public Service Commission, Commissioner and Deputy Commissioner.
1I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:37:22
I N C O N F I D E N C EGOV-19-SUB-0016
Regulatory Impact Analysis
An Impact Statement is attached. A cross-agency Quality Assurance Panel considers that it partially meets the Quality Assurance Criteria (comments at paragraph 78).
Baseline Implications
None from this paper.
Legislative Implications
Legislation is required to give effect to the proposed changes. The Public Service (Aotearoa New Zealand) Bill holds a category 4 priority on the 2019 Legislation Programme (to be referred to a select committee in 2019).
Timing Issues The Minister intends to report back to LEG in August 2019 with a draft Bill andtimeline for the Parliamentary process.
Announcement The Office of the Minister of State Services will manage any communications, in consultation with other Ministers, as appropriate.
Proactive Release
The Minister intends to proactively release the paper under GOV-19-SUB-0016 at an appropriate time, subject to any redactions in line with the Official Information Act 1982.
Consultation Paper prepared by State Services Commission (State Services). All public service departments and selected Crown agents were consulted.
The Minister indicates that the Minister for Māori Crown Relations Te Arawhiti, Minister of Finance, Minister for Māori Development, Minister for Workplace Relations and Safety, New Zealand First and the Green Party were consulted.
The Minister of State Services recommends that the Committee:
1 note that in May 2018, the Cabinet Government Administration and Expenditure Review Committee agreed to reform the State Services Act 1988, with a view to its repeal and replacement with a new Public Service Act [GOV-18-MIN-0013.01];
2 note that New Zealand’s public service performs well by international standards in responsiveness to government, effectiveness for New Zealanders, and integrity;
3 note that the proposals in the papers under GOV-19-SUB-0016, and GOV-19-SUB-0018 to GOV-19-SUB-0023 (the proposals):
3.1 are about ensuring that the public service is making the biggest possible difference tothe lives of New Zealanders, delivering services that are easy to access and joined uparound their needs, and serving an ever more diverse and changing community;
3.2 will reconnect the public service with a common spirit of service to the community, and unify the public service around a common purpose, principles and values.
4 note that the State Sector Act 1988 in some respects enhanced the performance of the system, but these changes were accompanied by new problems resulting from a narrow
2I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:37:22
I N C O N F I D E N C EGOV-19-SUB-0016
focus on single agency outputs to the detriment of a sense of the wider public service with its unifying common mission and spirit of service;
5 note that the need for state sector change has been highlighted in reviews over the past 30 years – the Logan Report (1991), the Ministerial Advisory Group on the Review of the Centre (2001) and the Better Public Services Advisory Group (2011);
6 note that a review of the State Sector Act 1988 (the review) has been completed with the aims of:
6.1 affirming the constitutional role of the public service in supporting New Zealand’sdemocratic form of government;
6.2 delivering better outcomes and better services;
6.3 creating a modern, agile and adaptive New Zealand public service;
7 note that the key enablers of transformation in the public service are:
7.1 public service culture and behaviour;
7.2 an updated framework for employment in the public service;
7.3 effective leadership;
7.4 a greater range of options for configuring fit-for-purpose public service organisations;
8 note that the review also identified a desire to include a wider range of public agencies within the ambit of a single unified New Zealand public service;
9 note that, alongside the enablers in paragraph 7 above, the review has emphasised the need for the Public Service to help strengthen the Crown’s relationship with Māori;
10 note that the overall direction for reform received strong support in public consultation and responses revealed a real appetite for change;
11 note that, rather than build on the current legislation, a step change is required to rebalance the regulatory system and make the legislation fit for purpose, now and into the future;
12 agree to replace the existing State Sector Act 1988 with a new Public Service Act that alignswith, and better supports, desired practice;
13 agree to the following consequential changes to titles in the new statute:
13.1 State Services Commission to become Public Service Commission;
13.2 State Services Commissioner to become Public Service Commissioner;
13.3 Deputy State Services Commissioner to become Deputy Public Service Commissioner;
14 note that new legislation is part of a wider change programme in the Public Service with a package of State sector reforms, including proposed changes to the Public Finance Act 1989, which will support the Government’s ambition to embed a stronger focus on improving New Zealanders’ wellbeing;
3I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:37:22
I N C O N F I D E N C EGOV-19-SUB-0016
15 note that:
15.1 the proposals will not undermine the strengths of the existing public service founded on the State Sector Act;
15.2 a high level of agency autonomy will continue to exist, allowing chief executives to flexibly tailor departments to their particular functions;
15.3 the legislative changes proposed are enabling rather than prescriptive, and will provide the tools and instruments to bring about change in a managed way to meet current and future requirements;
16 note that the accompanying papers under GOV-19-SUB-0018 to GOV-19-SUB-0023 detail the legislative and administrative changes to the State Sector Act 1988 to support the objectives for a new Public Service Act;
Provisions and Savings
17 note that each paper noted in paragraph 16 above connects proposed statutory provisions to impacts, and then to the three objectives for the new Public Service Act;
18 note that the Public Service (Aotearoa New Zealand) Bill holds a category 4 priority on the 2019 Legislation Programme (to be referred to a select committee in 2019);
19 agree that the proposed Act will bind the Crown;
Drafting Instructions
20 authorise the Minister of State Services:
20.1 to issue drafting instructions to Parliamentary Counsel Office to create a new Public Service Act to give effect to the Cabinet decisions in the papers under GOV-19-SUB-0016 and GOV-19-SUB-0018 to GOV-19-SUB-0023;
20.2 to make decisions on both minor and policy decisions, consistent with the decisions in these papers;
21 authorise the Parliamentary Counsel Office to make technical or drafting changes that arise during the drafting of the legislation;
22 note that the Minister of State Services intends to circulate a draft of the Bill for targeted consultation, before introduction to Parliament;
23 invite the Minister of State Services to report back to the Cabinet Legislation Committee in August 2019 with a draft Bill and timeline for the parliamentary process.
Rachel ClarkeCommittee Secretary
Hard-copy distribution:Cabinet Government Administration and Expenditure Review CommitteeMinister for Workplace Relations and Safety
4I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:37:22
I N C O N F I D E N C E GOV-19-MIN-0016
Cabinet Government Administration and Expenditure Review Committee
Minute of Decision
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
On 9 May 2019, the Cabinet Government Administration and Expenditure Review Committee referred the paper under GOV-19-SUB-0016 to the next appropriate Cabinet Committee meeting forfurther consideration.
Rachel ClarkeCommittee Secretary
Present: Officials present from:Rt Hon Winston PetersHon Kelvin DavisHon Chris Hipkins (Chair)Hon Carmel SepuloniHon David ParkerHon Stuart NashHon Iain Lees-GallowayHon Shane JonesHon Kris FaafoiHon Julie Anne Genter
Officials Committee for GOV
Hard-copy distribution:Minister of State Services
1 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:38:05
I N C O N F I D E N C E CAB-19-MIN-0223
Cabinet
Minute of Decision
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Report of the Cabinet Government Administration and Expenditure Review Committee: Period Ended 10 May 2019
On 13 May 2019, Cabinet made the following decisions on the work of the Cabinet Government Administration and Expenditure Review Committee for the period ended 10 May 2019:
GOV-19-MIN-0024 First Voluntary National Review on New Zealand’s Progress Toward the Sustainable Development Goals
Portfolio: Foreign Affairs
CONFIRMED
GOV-19-MIN-0017 Delivering Better Responses to Emergencies NationalStructurers
Portfolios: State Services / Civil Defence
CONFIRMED
GOV-19-MIN-0016 Public Service Legislation: Paper 1 – Overview of Proposals
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0018 Public Service Legislation: Paper 2 – A Unified Public Service
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0019 Public Service Legislation: Paper 3 – Te Ao Tūmatanui Improving the Public Service’s Responsive to Māori
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0020 Public Service Legislation: Paper 4 – Public Service Employment and Workforce
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0021 Public Service Legislation: Paper 5 – Leadership of the Public Service
Portfolio: State Services
CONFIRMED[Referred for further consideration]
1 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:41:36
I N C O N F I D E N C E CAB-19-MIN-0223
GOV-19-MIN-0022 Public Service Legislation: Paper 6 – Organisations of the Public Service
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0023 Public Service Legislation: Paper 7 – Miscellaneous provisions, Consequential Amendments, TransitionalProvisions and Savings
Portfolio: State Services
CONFIRMED[Referred for further consideration]
GOV-19-MIN-0015 Joined-Up Approach to the Regional Arm of Government
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 20 May 2019]
Michael WebsterSecretary of the Cabinet
Hard-copy distribution:Cabinet Government Administration and Expenditure Review CommitteeMinister of Civil Defence
2 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:41:36
I N C O N F I D E N C E CAB-19-MIN-0241
Cabinet
Minute of Decision
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Report of the Cabinet Priorities Committee: Period Ended 24 May 2019
On 27 May 2019, Cabinet made the following decisions on the work of the Cabinet Priorities Committee for the period ended 24 May 2019:
CPC-19-MIN-0013 Monitoring our Government’s Policies of Focus: Monthly Report
Portfolio: Prime Minister
CONFIRMED
CPC-19-MIN-0006 Public Service Legislation: Paper 1 – Overview of Proposals
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
CPC-19-MIN-0007 Public Service Legislation: Paper 2 – A Unified Public Service
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
CPC-19-MIN-0008 Public Service Legislation: Paper 3 – Te Ao Tūmatanui Improving the Public Service’s Responsiveness to Māori
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
CPC-19-MIN-0009 Public Service Legislation: Paper 4 – Public Service Employment and Workforce
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
CPC-19-MIN-0010 Public Service Legislation: Paper 5 – Leadership of the Public Service
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
CPC-19-MIN-0011 Public Service Legislation: Paper 6 – Organisations of the Public Service
Portfolio: State Services
CONFIRMED[Referred to Cabinet on 4 June 2019]
1 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:44:50
I N C O N F I D E N C E CAB-19-MIN-0241
CPC-19-MIN-0012 Public Service Legislation: Paper 7 – Miscellaneous provisions, Consequential Amendments, Transitional Provisions and SavingsPortfolio: State Services
2 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:44:50
I N C O N F I D E N C ECAB-19-SUB-0248
Cabinet
Summary
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
On 21 May 2019, following referral from the Cabinet Government Administration and Expenditure Review Committee, the Cabinet Priorities Committee referred the paper under this coversheet to Cabinet for further consideration at its meeting on 4 June 2019 [CPC-19-MIN-0006].
This is the first in a suite of seven related papers. The Impact Statement that accompanies this suite of papers is not attached, as all Ministers have received it with previous versions of this paper. A copy remains available on CabNet.
The Minister of State Services recommends that Cabinet:
1 note that in May 2018, the Cabinet Government Administration and Expenditure Review Committee agreed to reform the State Services Act 1988, with a view to its repeal and replacement with a new Public Service Act [GOV-18-MIN-0013.01];
2 note that New Zealand’s public service performs well by international standards in responsiveness to government, effectiveness for New Zealanders, and integrity;
3 note that proposals in the papers under CAB-19-SUB-0248 to CAB-19-SUB-0254 (the proposals) are about ensuring the public service is making the biggest possible difference to the lives of New Zealanders, delivering services that are easy to access and joined up aroundtheir needs, and serving an ever more diverse and changing community;
4 note that the proposals will also reconnect the public service with a common spirit of serviceto the community, and unify the public service around a common purpose, principles and values;
5 note that the State Sector Act 1988 in some respects enhanced the performance of the system, but these changes were accompanied by new problems resulting from a narrow focus on single agency outputs to the detriment of a sense of the wider public service with its unifying common mission and spirit of service;
6 note that the need for change has been highlighted in reviews over the past 30 years – the Logan Report (1991), the Ministerial Advisory Group on the Review of the Centre (2001) and the Better Public Services Advisory Group (2011);
1I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:38
I N C O N F I D E N C ECAB-19-SUB-0248
7 note that a review of the State Sector Act 1988 (the Review) has been completed with the aims of:
7.1 affirming the constitutional role of the public service in supporting New Zealand’s democratic form of government;
7.2 delivering better outcomes and better services;
7.3 creating a modern, agile and adaptive New Zealand public service;
8 note that the key enablers of transformation in the public service are:
8.1 public service culture and behaviour;
8.2 an updated framework for employment in the public service;
8.3 effective leadership;
8.4 a greater range of options for configuring fit-for-purpose public service organisations;
9 note that the Review also identified a desire to include a wider range of public agencies within the ambit of a single unified New Zealand public service;
10 note that, alongside the enablers in paragraph 8 above, the Review has emphasised the need for the public service to help strengthen the Crown’s relationship with Māori;
11 note that the overall direction for reform received strong support in the consultation and responses revealed a real appetite for change;
12 note that, rather than build on the current legislation, a step change is required to rebalance the regulatory system and make the legislation fit for purpose, now and into the future;
13 agree that it is necessary to replace the existing State Sector Act 1988 with a new Public Service Act that aligns with, and better supports, desired practice;
14 agree to the following consequential changes to titles in the new statute:
14.1 State Services Commission to become Public Service Commission;
14.2 State Services Commissioner to become Public Service Commissioner;
14.3 Deputy State Services Commissioner to become Deputy Public Service Commissioner;
15 note that new legislation is part of a wider change programme in the public service with a package of State sector reforms, including proposed changes to the Public Finance Act 1989, which will support the government’s ambition to embed a stronger focus on improving New Zealanders’ wellbeing;
16 note that:
16.1 the proposals will not undermine the strengths of the existing public service founded on the State Sector Act;
16.2 a high level of agency autonomy will continue to exist, allowing chief executives to flexibly tailor departments to their particular functions;
2I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:38
I N C O N F I D E N C ECAB-19-SUB-0248
16.3 the legislative changes proposed are enabling rather than prescriptive and will provide the tools and instruments to bring about change in a managed way to meet current and future requirements;
17 note that the Minister of State Services intends to circulate a draft of the Bill for targeted consultation before introduction to Parliament;
18 note that:
18.1 the accompanying papers under CAB-19-SUB-0249 to CAB-19-SUB-0254 detail the legislative and administrative changes to the State Sector Act 1988 to support theobjectives for a new Public Service Act;
18.2 each paper connects proposed statutory provisions to impacts, and then to the three objectives for the new Act.
19 note that that the Public Service (Aotearoa New Zealand) Bill holds a category 4 priority on the 2019 Legislation Programme (to be referred to a select committee in 2019);
20 agree that the proposed Act will bind the Crown;
Drafting Instructions
21 invite the Minister of State Services to issue drafting instructions to Parliamentary Counsel Office to create a new Public Service Act to give effect to the Cabinet decisions in the papers under CAB-19-SUB-0248 to CAB-19-SUB-0254;
22 authorise the Minister of State Services to make decisions on both minor and policy decisions, consistent with the decisions in CAB-19-MIN-0248 to CAB-19-MIN-0254;
23 authorise the Parliamentary Counsel Office to make technical or drafting changes, that arise during the drafting of the legislation;
24 invite the Minister of State Services to report back to the Cabinet Legislation Committee in August 2019 with a draft Bill and timeline for the parliamentary process.
Rachel Clarkefor Secretary of the Cabinet
Hard-copy distribution:The Cabinet
3I N C O N F I D E N C E4rdol5z8ux 2019-06-17 13:36:38
I N C O N F I D E N C E CAB-19-MIN-0248
Cabinet
Minute of Decision
This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.
Public Service Legislation: Paper 1 - Overview of Proposals
Portfolio State Services
On 4 June 2019, following reference from the Cabinet Priorities Committee [CPC-19-MIN-0006], Cabinet:
Background
1 noted that in May 2018, the Cabinet Government Administration and Expenditure Review Committee agreed to reform the State Services Act 1988, with a view to its repeal and replacement with a new Public Service Act [GOV-18-MIN-0013.01];
2 noted that New Zealand’s public service performs well by international standards in responsiveness to government, effectiveness for New Zealanders, and integrity;
3 noted that proposals in the papers under CAB-19-SUB-0248 to CAB-19-SUB-0254 (the proposals) are about ensuring the public service is making the biggest possible difference to the lives of New Zealanders, delivering services that are easy to access and joined up aroundtheir needs, and serving an ever more diverse and changing community;
4 noted that the proposals will also reconnect the public service with a common spirit of service to the community, and unify the public service around a common purpose, principlesand values;
5 noted that the State Sector Act 1988 in some respects enhanced the performance of the system, but these changes were accompanied by new problems resulting from a narrow focus on single agency outputs to the detriment of a sense of the wider public service with its unifying common mission and spirit of service;
6 noted that the need for change has been highlighted in reviews over the past 30 years – the Logan Report (1991), the Ministerial Advisory Group on the Review of the Centre (2001) and the Better Public Services Advisory Group (2011);
Review of the State Sector Act
7 noted that a review of the State Sector Act 1988 (the Review) has been completed with the aims of:
7.1 affirming the constitutional role of the public service in supporting New Zealand’s democratic form of government;
7.2 delivering better outcomes and better services;
1 I N C O N F I D E N C E 4rdol5z8ux 2019-06-17 13:45:22
I N C O N F I D E N C E CAB-19-MIN-0248
7.3 creating a modern, agile and adaptive New Zealand public service;
8 noted that the key enablers of transformation in the public service are:
8.1 public service culture and behaviour;
8.2 an updated framework for employment in the public service;
8.3 effective leadership;
8.4 a greater range of options for configuring fit-for-purpose public service organisations;
9 noted that the Review also identified a desire to include a wider range of public agencies within the ambit of a single unified New Zealand public service;
10 noted that, alongside the enablers in paragraph 8 above, the Review has emphasised the need for the public service to help strengthen the Crown’s relationship with Māori;
11 noted that the overall direction for reform received strong support in the consultation and responses revealed a real appetite for change;
12 noted that, rather than build on the current legislation, a step change is required to rebalancethe regulatory system and make the legislation fit for purpose, now and into the future;
13 agreed that it is necessary to replace the existing State Sector Act 1988 with a new Public Service Act that aligns with, and better supports, desired practice;
14 agreed to the following consequential changes to titles in the new statute:
14.1 State Services Commission to become Public Service Commission;
14.2 State Services Commissioner to become Public Service Commissioner;
14.3 Deputy State Services Commissioner to become Deputy Public Service Commissioner;
15 noted that new legislation is part of a wider change programme in the public service with a package of State sector reforms, including proposed changes to the Public Finance Act 1989, which will support the government’s ambition to embed a stronger focus on improving New Zealanders’ wellbeing;
16 noted that:
16.1 the proposals will not undermine the strengths of the existing public service founded on the State Sector Act;
16.2 a high level of agency autonomy will continue to exist, allowing chief executives to flexibly tailor departments to their particular functions;
16.3 the legislative changes proposed are enabling rather than prescriptive and will provide the tools and instruments to bring about change in a managed way to meet current and future requirements;
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I N C O N F I D E N C E CAB-19-MIN-0248
Legislative implications
17 noted that the Minister of State Services intends to circulate a draft of the Bill for targeted consultation before introduction to Parliament;
18 noted that:
18.1 the accompanying papers under CAB-19-SUB-0249 to CAB-19-SUB-0254 detail the legislative and administrative changes to the State Sector Act 1988 to support theobjectives for a new Public Service Act;
18.2 each paper connects proposed statutory provisions to impacts, and then to the three objectives for the new Act.
19 noted that that the Public Service (Aotearoa New Zealand) Bill holds a category 4 priority on the 2019 Legislation Programme (to be referred to a select committee in 2019);
20 agreed that the proposed Act will bind the Crown;
21 invited the Minister of State Services to issue drafting instructions to Parliamentary CounselOffice to create a new Public Service Act to give effect to the Cabinet decisions in the papers under CAB-19-SUB-0248 to CAB-19-SUB-0254;
22 authorised the Minister of State Services to make decisions on both minor and policy decisions, consistent with the decisions in CAB-19-MIN-0248 to CAB-19-MIN-0254;
23 authorised the Parliamentary Counsel Office to make technical or drafting changes, that arise during the drafting of the legislation;
24 invited the Minister of State Services to report back to the Cabinet Legislation Committee in August 2019 with a draft Bill and timeline for the parliamentary process.
Michael WebsterSecretary of the Cabinet
Hard-copy distribution:Prime MinisterDeputy Prime MinisterMinister of State Services
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