New inquiry - Measuring and improving state sector productivity

Date: 
01/06/2017

Productivity Commission inquiry into state sector productivity.   Minister Joyce announced the inquiry earlier today.

The Government has asked the Productivity Commission to investigate how to measure and improve productivity in core public services.

“The Commission has already completed some research into public sector productivity and is delighted to be given the mandate to delve deeper through an inquiry.” says Inquiry Director, Judy Kavanagh.

“The Government spends two thirds of its total budget on health, education, justice and social development. That’s over $60 billion each year. New Zealander’s expectations of public services are growing amidst increasing pressures on the Government’s budget. Productivity improvements will help meet these expectations.”

Ms Kavanagh says the inquiry process will enable a deeper understanding of what capability, culture and systems are necessary to support agencies to better measure, understand and improve productivity.

 “We know that performance measurement frameworks exist across all core agencies. The Commission is interested in what is currently in place, what works well, and what measures can be used to improve productivity and efficiency.”

Ms Kavanagh says the success of the inquiry will rely on the input, knowledge and advice of the sectors concerned.

“Meaningful engagement is a key part of all our inquiries and the Commission looks forward to working alongside core agencies, associated organisations and other interested parties throughout this process to better understand state sector productivity.”

“Our aim is to give the Government practical, evidence-based advice that not only helps agencies but also improves core services for all New Zealanders” says Ms Kavanagh.

The terms of reference are available below and anyone interested in the topic can subscribe to receive regular updates.

The Commission will begin the inquiry with the publication of an issues paper that will outline its proposed approach, the context for the inquiry and a list of key questions to be addressed. The issues paper to be available in July 2017. The Commission will seek submissions from all interested parties and consult broadly to help inform and ground its analysis. Its final report to the Government is due on 30 August 2018.

Media enquiries: Sally Aitken 0275437365.