Super-agency to focus on business

Prime Minister John Key has unveiled a new government agency - the Ministry of Business, Innovation and Employment - merging four current government departments.

From July 1, the Ministry of Economic Development, Department  of Labour, Ministry of Science and Innovation  and the Department of Building and Housing will be merged into the new Ministry of Business.

Mr Key also announced he is lowering the cap on full-time positions government admin staff to 36,475 - down from the 39,000 set when National came into power in 2008.

The cap counts most people working in government departments and in some Crown entities, however it does not include frontline staff such as teachers, police, hospital and prison staff.

State Services Minister Jonathan Coleman says he is confident staffing numbers will stay under the new cap, given the tight budgets in the public sector.

Its creation means businesses can deal with one government agency, rather than the many they currently deal with.  

"This new department will help to drive the government's priority of building a more productive and competitive economy," says Mr Key.

"It will strengthen the public services ability to work on business policy, regulation and engagement, so the government will get a much more coordinated and focused resource.

"It will be easier for New Zealand businesses to engage with government, rather than dealing separately with a number of different agencies when they are seeking advice or support."

Current staff at the four separate ministries will be absorbed into the new ministry. Mr Key said it was possible there would be no job cuts, but acknowledged there was always "churn" within government agencies.

Casualties are more likely at the top, as three chief executive roles will disappear. 

The government is will not be appointing a minister to oversee the Ministry for Business.

However, Bill English and Steven Joyce are the next best thing, as they have recently been announced to be the ministerial pair who are overseeing the government's economic growth agenda. .

Mr Joyce said his business experience and previous involvement in working through the merger process gave him a good background to help oversee the merger.

Auckland Chamber of Commerce chief executive Michael Barnett said he thought the new, single ministry for business should streamline the process for business dealings with government.

Better public services

Mr Key announced the new ministry at an Auckland Chamber of Commerce lunch in Auckland, focusing on his new expectations for the public service.

He has set out 10 challenges he expects to get results on in next 3-5 years, under four broad goals:

• Reducing long-term welfare dependency. (He wants to see a significant drop from the current 215,000 people who have been on a benefit for more than a year)
• Supporting vulnerable children
• Boosting skills and development
• Reducing crime

Some of the changes will require amendments to the State Sector Act and the Public Finance Act, he says.

Mr Key also announced he is lowering the cap on full-time positions government admin staff to 36,475 - down from the 39,000 set when National came into power in 2008.

The cap counts most people working in government departments and in some Crown entities, however it does not include frontline staff such as teachers, police, hospital and prison staff.

State Services Minister Jonathan Coleman says he is confident staffing numbers will stay under the new cap, given the tight budgets in the public sector.