NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

John Roughan: This government of state servants is bravely tackling its toughest decision yet

John Roughan
By John Roughan
Opinion Writer·NZ Herald·
14 May, 2021 05:00 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Finance Minister Grant Robertson says increased spending in the Budget will be directed where need is greatest. Photo / Mark Mitchell

Finance Minister Grant Robertson says increased spending in the Budget will be directed where need is greatest. Photo / Mark Mitchell

John Roughan
Opinion by John Roughan
Former editorial writer and columnist, NZ Herald
Learn more

OPINION:

Sitting over a beer after tennis one night last week, a player who works for a district health board said, "Have you heard about the nurses' strike?"

"No," I replied with surprise.

"Yes," he said, "they're all geared up, it's going to happen."

A penny dropped and I told him something he hadn't heard. "Today the Government announced restrictions on public sector pay increases for the next three years. Only those under $60,000 will get a rise, those over $100,000 get nothing, those in between – maybe, if they can make a special case."

Advertisement
Advertise with NZME.

I'd heard the news earlier that evening and it made sense now. We've almost forgotten this Government was hit by a wave of astronomical state service pay claims when it first came to office. At this point in 2018 teachers were claiming 16 per cent over two years. Nurses were not revealing the size of their claim but also threatening action.

By July, nurses were staging one-day strikes, by August primary teachers were doing the same. And they were just the shock troops for a concerted push by state service unions to put the squeeze on the first Labour-led Government they had seen for a decade.

Three years ago the new Government gave in. Stuart Nash told Mike Hosking this week the 2018 settlements cost $4 billion for the teachers and nurses alone. He mentioned this more than once.

Advertisement
Advertise with NZME.

Grant Robertson, when he announced the pay restraint in a speech previewing the Budget next week, did not make the reason clear and commentators remain confused. There are probably two reasons: one fiscally and industrially tactical, the other socially and politically strategic.

Robertson said the Budget will be finely balanced between careful management of the economy (read public debt) and a stimulus to accelerate the recovery from Covid-19. Increased spending, he said, would be directed to where the need is greatest.

Discover more

Opinion

John Roughan: NZ Rugby should play local and sell global

08 May 01:44 AM
Opinion

John Roughan: Why there is no future in isolation

30 Apr 05:00 PM
Opinion

John Roughan: Does post-lockdown inertia mean we've lost the travel bug?

02 Apr 04:00 PM
Opinion

Letters: Where will tourists stay?

02 May 05:00 PM
Prime Minister Jacinda Ardern and Deputy Prime Minister Grant Robertson during their post-Cabinet press conference at Parliament. Photo / Mark Mitchell
Prime Minister Jacinda Ardern and Deputy Prime Minister Grant Robertson during their post-Cabinet press conference at Parliament. Photo / Mark Mitchell

Clearly there are greater needs than another pay increase for everyone in the public sector. It was tactically wise to make this known before the unions started campaigning for public support again and it has put the Government on the front foot for the next round of negotiations.

Labour governments are particularly vulnerable to pressure from state sector unions for electoral reasons and this one has accommodated state servants' interests than most. As soon as they took office it relieved them of Bill English's service targets and declared they'd been "underfunded". (Aren't we all?)

It is a government that depends on public servants more than most because it seems to think its role is to make decisions in principle and it's up to officials to work out how they might be made practical. It's only recently, by setting up an "Implementation Unit" in the Beehive, that the Government has acknowledged things are not getting done.

It's a government that deeply believes public services should be delivered only by state servants and are best run by a centralised national monolith. The decision to abolish district health boards is only the most recent - and meritorious - example.

Workforce training decisions have been taken from industry organisations and given to polytechs, which have been merged into a single national institution. School boards of trustees have lost zoning rights and the Education Ministry is now drawing new zones to reduce competition for pupils.

Social housing is now run entirely by the state housing corporation, excluding charitable organisations that want funding to help meet the need. In just about every field of government activity, it prefers the state to provide.

Advertisement
Advertise with NZME.

This mindset is now infecting the Covid-19 vaccination programme, where private practitioners with their staff, facilities and contact with patients, have been spurned in favour of a centrally managed national distribution.

This is very much a government of state servants for state servants. In its decision to limit their pay it probably calculated that having done so much to enlarge their numbers, increase their funding, relieve them of targets and protect them from competition, it can ask this much.

It is the bravest decision the Ardern Government has yet made – braver even than lockdowns. Decisions are easier in a crisis, inaction becomes more frightening than action. It is decisions people don't have to make but should make that measure their mettle.

This one is so courageous commentators are picking Jacinda Ardern will cave in as she did on capital gains tax. But the strategic benefits to her of public sector pay restraint may be more compelling.

Politically, the decision should impress the National voters who crossed over last year. Socially, it demonstrates Labour is serious about tackling inequality. If this Government cannot reduce inequality in the incomes of its own sector – employing about 13 per cent of the total workforce – it will be an admission that all its talk of inequality is just that, all talk.

Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Latest from New Zealand

New Zealand

'Really struggling': Power rationing becomes norm for some pensioners

02 Jul 08:29 AM
New Zealand

'We might have lost him': Gisborne boy suffers another setback in cancer battle

02 Jul 08:00 AM
Premium
New Zealand

Asterisks, footnotes and claims of 'weasel words': Inside the battle for region's housing future

02 Jul 07:00 AM

There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently

sponsored
Advertisement
Advertise with NZME.

Latest from New Zealand

'Really struggling': Power rationing becomes norm for some pensioners

'Really struggling': Power rationing becomes norm for some pensioners

02 Jul 08:29 AM

Electricity costs have risen almost 9% since June last year.

'We might have lost him': Gisborne boy suffers another setback in cancer battle

'We might have lost him': Gisborne boy suffers another setback in cancer battle

02 Jul 08:00 AM
Premium
Asterisks, footnotes and claims of 'weasel words': Inside the battle for region's housing future

Asterisks, footnotes and claims of 'weasel words': Inside the battle for region's housing future

02 Jul 07:00 AM
Enraged 'mistress' kills innocent motorist while chasing man's wife over family photo

Enraged 'mistress' kills innocent motorist while chasing man's wife over family photo

02 Jul 06:43 AM
From early mornings to easy living
sponsored

From early mornings to easy living

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP