Better Public Services Advisory Group Report - November 2011

In New Zealand, the system has not been as effective in delivering improved social,
environmental and economic outcomes as we might have wished. This is despite the fact that
our policy settings have routinely been judged as being as good, or better, than most OECD
counterparts in many respects. Issues such as our geographical isolation, small population
scale and economic structure have been adduced as impeding our ability to succeed where
others have. But that is what we have to work with – that is our hand of cards. Perhaps we
also need to revisit some of our policy settings. In the long run, good policy really matters in the
quest for good results.
The global financial crisis in late 2008 placed enormous – and continuing – pressure on
economies and societies everywhere, including New Zealand. And, although the negative
impacts of the crisis have been significant here, they have been worse in many other places. In
New Zealand, the pressing needs have been to stabilise and restore the nation’s economic
fortunes, regain confidence and growth and, at the same time, improve the performance of the
state sector in supporting New Zealanders in their lives and businesses.
The financial crisis only reinforced the prior need for a reassessment of the shape, extent and
performance of New Zealand’s state services, so that they are better able to support
New Zealanders’ aspirations. Good state services have a critical role in delivering jobs and
growth, and improved environmental and social results. At the same time, it is essential that the
New Zealand public service maintains its role as the custodian of the conventions of the
Westminster system of government, the rule of law, the political impartiality of public servants
and high levels of trust in government and its institutions.
The Better Public Services Advisory Group was established by the government in May 2011 to
provide advice on state sector reform. This report sets out that advice. The goal is a public
service and state sector that is achieving value-for-money, is innovative, provides high-quality
services and manages change effectively. We trust that this advice will assist Ministers in the
incoming government to make decisions on state sector reform that will ensure our state
services perform to the highest possible standard, and are fit-for-purpose and affordable over
the medium term.
We see this report as very much the starting point for an ongoing programme of reform over the
next five years. The objective is better services for New Zealanders, of a type and at a scale
that enables our society and economy to flourish. We are currently in a time of significant
international uncertainty and risk. But there are also enormous opportunities available to
New Zealand. This report is intended to ensure that the state services play their rightful role in
ensuring those risks are mitigated and the opportunities secured.
I would like to thank the members of the Advisory Group, especially the external members, for
their active participation in preparing this report, and for their many contributions, all of which
have been constructive. The Group has been bound by a strong sense of purpose – doing
better for New Zealand, by providing Ministers with some positive options for change.
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