MFAT tops Mood of the Boardroom survey most effective NZ Government ministry

Bede Corry is the new head of MFAT.

The Ministry of Foreign Affairs and Trade (Mfat) was rated by business leaders as the most effective Government ministry or department in the 2024 Mood of the Boardroom survey.

Chief executives and directors were asked to rate the effectiveness of key departments on a scale ranging from 1(not impressive) to 5 (very impressive).

Mfat came out on top scoring an average 3.73/5 and was rated “very impressive” by 9% of respondents.

It was closely followed by the Department of Prime Minister and Cabinet (DPMC) which scored an average 3.6/5.

Other top rating organisations were New Zealand Trade and Enterprise (3.47/5), Inland Revenue (3.43/5) and the Ministry for Primary Industries (3.34/5). MPI was rated as “very impressive” by 25% of chief executives, a reflection of the high regard its chief, Ray Smith, is held by business. Each of these five organisations has close contact with the business sector.

A change of guard has been underway this year at the top of many Government organisations.

In July, Bede Corry moved to head Mfat after a successful sojourn as New Zealand’s Ambassador to the US. At DPMC, Ben King — a former top Mfat executive and career diplomat — holds the reins. A predecessor at DPMC and Mfat, Brook Barrington, is the Secretary of Defence.

Notably, the Treasury which advises Finance Minster Nicola Willis on economic and fiscal policy was rated at 3.01/5 with 24% of respondents putting its effectiveness at 2/5. “Treasury is improving but it’s a pale imitation of the quality ideas shop it was a decade ago,” was one comment.

Treasury Secretary Caralee McLiesh did not seek reappointment when her term expired last month.

She has since taken a role as Auditor-General for Australia and a new Treasury head is being sought.

A respondent suggested it is “tough to be too harsh” as these departments have been developed to support the Government-of the-day “whether they agree with these policies or not”.

“Early days to truly reflect on each of these departments as they need to look at areas to reduce costs, introduce new systems/plans, and then measure performance,” said another.

When it comes to hiring a new Treasury Secretary expectations are clear. Willis is known to favour a successor who has the policy chops and verve of a Graham Scott or Murray Horn who led Treasury through the major economic reforms of the 1980s and early 1990s.

A Public Service Commission advertisement said, “this is a rare opportunity to lead at a crucial time as the Government looks to turn around the performance of the New Zealand economy and improve fiscal management across the public service. The Secretary is expected to be a change agent who will challenge the status quo to lift economic performance, improve public service fiscal management, and extract better value for money from Government investments”.

Respondents also downrated the Ministry of Business, Innovation and Employment (MBIE) at 2.56/5; it was 10th out of the 13 departments rated.

Other low performers were the Ministry of Transport and the Ministry of Education. The Ministry of Health was rated the lowest with an average score of just 2.07/5.

“The Ministry of Health needs to support HealthNZ to achieve the health reforms needed in New Zealand — not get in its way or constrain it,” was one comment.

Other Government chiefs to exit include Kāinga Ora chief executive Andrew McKenzie, Public Service Commissioner Peter Hughes, Defence Secretary Andrew Bridgman, Chief of Defence Air-Marshal Kevin Short, and Productivity Commission chair Ganesh Nana, whose agency was disbanded.

Nicole Rosie who is chief executive of NZ Transport Agency Waka Kotahi, has not sought reappointment when her term runs out. Change is also under way at the Ministry of Education.

“The Ministry of Education needs a cleanout.

“How we have let education settings deteriorate so far needs some accountability,” said a respondent.