Jobs might go after policy advice review

State Services Minister Tony Ryall. Photo / Mark Mitchell

Jobs could "quite possibly" be lost as a result of a Government review of the cost of policy advice across its departments and agencies, State Services Minister Tony Ryall says.

A review was announced today, after total Government spending on policy advice was estimated to have jumped by more than 70 per cent between 2003 and 2009 - from about $510 million to $880 million.

It was important to consider how policy advice could deliver value for money for the taxpayers, Mr Ryall said.

While the Government said it was approaching the issue with an open mind, it was clear it considered expenditure was too high, and Mr Ryall would not rule out jobs being lost "potentially".

What we do know is that we are operating in a capped environment in the public service and there are jobs going as we move resources to the frontline," he told reporters.

"So, quite possibly as a result of this review there will be a conclusion that people working on policy are not needed and those resources would better put getting services for the public.

"This review is beyond just people who are so-called policy analysts, it does include the cost of policy advice from consultants, taskforces, groups etc, so it's wider than a number of individuals.

"If it's good policy advice and it's contributed to the public good that's all very excellent, but what the taskforce is going to look at is we've had this big increase in the amount of money spent on policy advice under the previous Government.

What we're wanting to do is to make sure we're getting best value for money."

Finance Minister Bill English said the review would ensure expenditure on policy advice was aligned with things the Government was worried about, $880 million was a lot to spend on policy advice when it could be obtained cheaply from all over world.

Policy advice expenditure was now nearly three-quarters of the Government's total annual police budget and close to annual spending on social housing.

"We spend $50 billion a year running the public sector and it is important that we are getting value for taxpayers as well as better frontline services," he said.

The Government had an "open mind" about the review, what it might find and how the Government might respond, Mr English said.

The review would be conducted by former Treasury secretary Graham Scott, KPMG Australia partner Patricia Faulkner and Pat Duignan, who is a member of the ACC investment committee and Commerce Commission.

The review - expected to cost $124,000 - was to report by December.

Regulatory Reform Minister Rodney Hide welcomed the review and its potential to reduce unnecessary costs across the public sector.

ACT's confidence and supply agreement with National provided for a series of taskforces to review all base government spending, he said.

Mr Scott was ranked fifth place on ACT New Zealand's party list for the 2005 election, but the party did not gain enough votes for him to enter Parliament.

Mr Ryall said he was a senior public servants, who offered skill and experience.

While it was useful that the review was in the confidence and supply agreement, it was "the sort of sensible thing that Governments would be wanting to do in these difficult economic times".

Labour state services spokesman Grant Robertson said cuts would be made in the absence of a real plan to grow the economy.

"Morale is already extremely low in the public sector and having the axe swing again will inevitably lead to poorer services."

- NZPA