The Public Service Commissioner said all options are on the table. Photo / Mark Mitchell
The Public Service Commissioner is reiterating that all options are on the table when it comes to finding efficiencies in the public service, as more details about a possible mega-merger are revealed.
Sir Brian Roche says his focus is on what agencies are delivering effectively and efficiently.
Discussions have taken place around the potential merger of three Government agencies: the Ministry for the Environment, the Ministry of Transport and the Ministry of Housing and Urban Development.
Newstalk ZB can reveal what staff have been told about the idea, through communications released under the Official Information Act.
In July, when discussions about the potential triple-merger in the public sector were reported by BusinessDesk, all Ministry for the Environment staff were sent an email, titled “Media story this morning”.
On the date the article was published, Secretary for the Environment James Palmer admitted many “will have questions” about a media story “speculating about a merger of agencies”.
Palmer told staff the agency was contacted by a journalist the day before the story went live, and referred them to the Public Service Commission. The commissioner then provided a “brief comment” to the reporter about “ongoing discussions about efficiencies in the public service”, the Environment Secretary added in his all-staff update.
“Unfortunately, I am unable to provide any further information at this time. I appreciate this will be frustrating and unsettling for you. I want to reassure you that I will provide you with any updates, as and when I am able to, if circumstances change,” the email read.
Palmer then added that it was business as usual “in the meantime”.
Communications obtained under the Official Information Act (OIA) further confirm a phone call took place the day the article was published, between Palmer and acting chief executive of the Ministry of Housing and Urban Development, Brad Ward.
“During this phone call, which took place on 1 July, Brad and I spoke about how we would communicate with our staff about the media article,” Palmer confirmed in a response to the OIA request.
The Secretary for the Environment added that as at July 29, the ministry had not provided any advice to, met or communicated with the Public Service Minister on this matter.
Ward gave a similar update to Palmer to staff at the Ministry of Housing and Urban Development, admitting “I appreciate that you may find this news unsettling”.
The agency’s acting chief executive said that the Public Service Commission provided ongoing advice on changes regarding the machinery of Government and if they can deliver efficiencies and value to taxpayers.
“Ultimately, mergers and changes to machinery of government are questions for ministers and the Public Service Commission, and media speculation isn’t helpful,” Ward told staff.
He promised if there was anything to share in the future, he would, and thanked staff for their focus on delivering the important work of the day.
An all-staff “stand-up” was held on July 3, just days after the “speculation” was released.
Ward’s talking points from that meeting, also released under the OIA, are titled “reactive bullets about merger rumours” and confirm he again reiterated the news has been unsettling, while reiterating the Public Service Commission’s role.
Ward also confirmed he had not met or corresponded with the Public Service Minister on the matter.
The Ministry of Transport had similar communications as the other two agencies.
On July 1, Acting Secretary for Transport Ruth Fairhall acknowledged that many may have seen a story about a “suggestion” the commission was looking at a triple-merger.
“I appreciate that you may find this news unsettling and it will raise some questions for you,” Fairhall wrote, and added “media speculation isn’t helpful”.
She asked staff with any concerns to speak to their manager in the first instance.
In an all-staff meeting the day after, Fairhall took a moment to reiterate the message in the email, saying the commission provides ongoing advice on ways to potentially deliver “efficiencies and value” to taxpayers.
“At the ministry, we have a highly engaged organisation that has received high praise from the minister on policy advice we have provided.”
RMA Reform and Transport Minister Chris Bishop had previously confirmed to the Post that he had received advice on the potential merger.
In an OIA response from July 30, Public Service Minister Judith Collins confirmed there had been no communications with the chief executive of the three agencies, or the relevant ministers, on the triple merger.
When asked for an update on where merger talks were at, Public Service Commissioner Roche reiterated prior messaging: “I have said publicly that there are questions around the size and organisation of the public sector, and that there is scope to reduce fragmentation and strengthen individual agencies to focus on their core business.”
“My focus is on what agencies are delivering effectively and efficiently and all options are on the table.”
Speaking to Newstalk ZB’s Mike Hosking Breakfast on Monday, after being asked if the mergers were “real”, Prime Minister Christopher Luxon said he had briefed Roche to “make this thing more efficient and make it deliver”.
”I think there’s two things you can do. One is you can restructure to get rid of the back-office functions of lots of agencies. You’ll find endless Government departments, agencies replicate the people function, IT function [...] you could simplify a lot of that," the Prime Minister said.
He added Roche was looking at “a series of proposals” around restructuring, but “nothing’s come to Cabinet”.
Luxon said it was also important for the public sector to embrace technology, “to actually serve the customer”.
Azaria Howell is a multimedia reporter working from Parliament’s press gallery. She joined NZME in 2022 and became a Newstalk ZB political reporter in late 2024, with a keen interest in public service agency reform and government spending.