New Zealand Budget 2013 - PwC

Better Public Services for less?Solid but unspectacular progressState Services Minister Hon Jonathan Coleman said earlier this year that finding savings and efficienciesin our public services is important for returning to surplus, as New Zealand’s State Services represent onequarter of our country’s real economy.504540353025201510Public Sector Employment (000s)For National, a big part of finding these savingsand efficiencies comes from reducing the numberof employees in the public service.National argued for a reduction in public servicestaff numbers in its election campaign of 2008and once in Government, introduced a cap oncore public service numbers of 38,859 positions.In March 2012, this cap was reset at 36,475positions. As at December 2012, the numberstood at 36,081 – a 7% decrease from December2008.In terms of total public service numbers, thisdecrease is somewhat smaller. The latest reporton numbers (from December 2012) shows adrop from 45,297 to 44,325 since National wereelected, which represents a 2.1% reduction overthis period 1 .1997 2000 2003 2006 2009 2012Source: State Services CommissionIn a similar vein, Mr Coleman is on a mission toreduce the public service office space footprint inWellington, estimating a 30% reduction in spacewill save $338m over 20 years 2 .In 2012, the Prime Minister identified deliveringBetter Public Services within tight financialconstraints as one of the Government’s fourpriorities for this term. The Better Public Serviceschange programme involves every agency,ministry and department, and aims to providebetter value for money for New Zealanders fromthe public services.The Government has set ten measurable targetsacross five areas:• reducing long-term welfare dependency• supporting vulnerable children• boosting skills and employment• reducing crime, and• improving interaction with Government.We expect a Better Public Services snapshotreport to be released later this year, but somefigures have already been released. TheGovernment argues it is on track to achievemany of the ten results. We note there is alot of work to do in some areas to make thishappen. For example, one area being targetedis improvements in front line delivery foremployment support.The Government has set a target of a 30%reduction in the number of people receiving ajob-seeking support benefit for more than 12months – this will mean a reduction from 78,000to 55,000 by 2017.1 State Services Commission. Capping data to 31 December 2012. Available at www.ssc.govt.nz/capping-dec122 Hon Jonathan Coleman’s press release: Office strategy to save space equal to three Reserve Bank buildingswww.beehive.govt.nz/release/office-strategy-save-space-equal-three-reserve-bank-buildings7