Better Public Services Advisory Group Report - November 2011

Better outcomes
1.5 One of the strengths of the “new public management” reforms implemented in
New Zealand in the late 1980s and early 1990s is the sharp focus on delivering services
(outputs) to citizens and business 7 . Unfortunately, performance has been less
impressive in gaining traction on the big outcomes that matter. For example 8 :
• New Zealand spends nearly 20% more of its gross domestic product (GDP) than the
average OECD country on law and order. But, levels of victimisation, burglary and
assaults are still at least 40% above the OECD average.
• Nearly one student in three leaves school without having gained the skills they need to
succeed in a modern economy, and the education system underperforms for too many
Māori, Pasifika and students from poorer homes 9 .
• Total numbers on welfare remain stubbornly high. Even as progress has been made
on reducing unemployment, numbers on the Domestic Purposes Benefit and Sickness
and Invalids Benefits have increased.
• Despite spending more than the OECD average on health, infant mortality rates are
4.92 per 1,000 live births and 6.1 for Māori, compared to the OECD average of 4.6.
• Overall productivity growth has lagged that of comparable countries notably, but not
limited to, Australia.
1.6 What happens in the state services has a significant bearing on all of these outcomes.
This report attempts to identify the main impediments to better outcome performance
and makes a series of recommendations designed to bring about better performance.
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8
9
Refer Secretariat Issues Paper for comment on the 1980s state sector reforms: The Core Elements of
New Zealand's Public Sector Management Model as Originally Formulated.
Sources: Justice: OECD Factbook 2010; OECD Government at a Glance 2011; Ministry of Health Annual Report for
the year ended 30 June 2011; OECD Health Data 2010.
Source: http://www.educationcounts.govt.nz/statistics/schooling/school_leavers2/highest-attainment-numbers-2009
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