Trans Tasman 2015 New Zealand Government Departments Review - Plenty of Surprises

This is the 6th annual review of NZ’s Government Departments by the Trans Tasman Editors and Senior Writers and a high profile Independent Board of Advisers.

This year the Independent Board of Advisers has selected Peter Hughes from the Ministry of Education as CE of the Year, while the Accident Compensation Corporation is Department of the Year.

Hughes has now been named CE of the Year three times, and his work at the Ministry of Education shows how important leadership is, and how many Government agencies are being let down by lack of a strong guiding hand at the top.

The Board of Advisers points the finger for this lack of leadership squarely at State Service Commissioner Iain Rennie, and there are suggestions Hughes would be a strong candidate for the role when Rennie’s term comes to an end.

The Advisers were glowing in their praise of him.

“An outstanding public service leader. An asset to every Minister he serves.”

“A great CEO - a difficult Minister.”

“The CE has helped the Minister’s performance through his skilled political management. Education has serious internal issues and the organisation has a big job ahead to get in touch with the sector and become future focused”

The Accident Compensation Corporation is the Government Department of the Year. It has fought back from significant privacy issues recently and got its finances back under control to the extent it has been able to reduce levies, and is now fully funded. It is seen as well run, with improving staff morale and is carrying out a vital role in New Zealand very effectively.

The Review of the Government Departments is divided into two halves.

In the first section a high powered Board of Independent Advisers looks at the state sector from a user’s point of view, running their eyes over the agencies based on a number of metrics. They answer a questionnaire, published in the Review, and provide their own rankings and comments on the departments, their CEs and the Ministers which run those Departments.

The other half of the Review is compiled by Trans Tasman’s editorial team - some of the sharpest minds in the game. They take a measured look at the Departments, where they have been over the past 12 months, and where they are going. The two groups have no contact with each other and their views are sometimes contradictory, but more often, coincide with one another on their analysis of the organisations involved.

This year the public service has approached a tipping point in terms of the State Services Commission and Iain Rennie’s term coming to an end. The Independent Board of Advisers is harsh in its criticism of Rennie, and considers he has lost authority with the Government, thus being unable to push any significant change. “Privately, Ministers are losing confidence in Rennie and this is mirrored by many Department CEOs.” There is a consensus Rennie is unlikely to get a third term. The question now is whether he will see the writing on the wall and not seek another term.

In terms of state sector reform there is no doubt Bill English is still the driving force, although the new Minister for State Services Paula Bennett has been a willing apprentice and is now snapping at her master’s heels. She is already playing a significant role in the new “citizen-centric” state service and this will develop with time.

But the Board of Advisers also noted some junior Ministers are not getting to grips with their Departmental work, and there is a general lack of genuine ability in Cabinet. Maggie Barry is singled out as a Minister John Key may have problems with. The Board rates her as particularly ineffective when trying to drive her policy ideas. Another theme is the extent to which more and more control of the running of the country and the economy is being concentrated in fewer hands. The expansion of the Ministry of Business, Innovation and Employment has worried the Board of Advisers, while the growth of the Department of Prime Minister and Cabinet is also a concern. The Advisers are unimpressed with MBIE’s performance.

“Too big to work”

“A massive task which has not been performed well.”

“Too large, relatively poor outcomes.”

“MBIE are struggling to come together as an integrated department. Too many silos and confusion about roles.”

“Three years and still work to do - is this working?”

The Advisers poured much of their venom at the SSC’s Iain Rennie - “It’s time for a leadership change. A high profile example of this was Iain Rennie’s misjudgment of the seriousness of Roger Sutton’s harassment of staff. He epitomises the attitude which causes and tolerates structural sexism in the workplace.”

He “Let the Government have too much sway over Chief Executive appointments, undermining the independence of the process and the public service appears to have become highly politicised under his watch.”

“Beyond redemption and hopeless.”

“Poor leadership - rarely injects new (outside - non-public service) blood into the public service leadership.”

“No spine or leadership.”

A major theme to emerge out of this year’s Review has been the difference good leadership makes. All the Advisers noted the difference at the Ministry of Education since Peter Hughes returned to the Civil Service. They also note leadership at Ministerial level is somewhat lacking, especially in junior ranks. The blame for much of this problem is laid at the door of the State Services Commission which is failing to set the tone, and has lost its authority with the Government.

Trans Tasman Political Alert is NZ’s leading weekly political report, with a reputation second to none. Every week it touches base with not only the top politicians, but the Government Departments and other key policy makers. For your special introductory offer to this brilliant, inspired and prescient publication, contact info@transtasman.co.nz

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