State sector productivity

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The Government has asked the Productivity Commission to undertake an inquiry into how the New Zealand State sector can effectively measure and improve productivity in core public services.

The terms of reference for the inquiry are available below.  It asks the Commission to:

  • provide advice on how to measure efficiency of the health, education, justice and social support sectors, at both a sector and service level;
  • provide advice on the appropriate role of these measures in public sector performance frameworks; and
  • provide advice on any capability, culture or systems issues that will support agencies to measure, understand, and improve productivity.

You can read the Commission's media release, as well as the statement made by the Minister of Finance.

The Commission recently published two papers about state sector productivity, as well as a blog by our Principal Adviser, Patrick Nolan on measuring public sector productivity.

Next steps

The Commission will begin the inquiry with the publication of an "issues paper" that will outline its proposed approach to this inquiry, the context for the inquiry, and a preliminary list of key questions to be addressed. The issues paper will seek submissions from all interested parties and be accompanied by consultation to gather a wide range of views and experience.

The Commission’s final report to the Government is due in August 2018.

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Administrative matters

T: (04) 903 5167

Judy Kavanagh, Inquiry Director

T: (04) 903 5165