State Sector Act reform

The government announced major reforms to the State Sector Act in 2019. With the passing of the Public Service Bill on 23 July 2020, the State Sector Act 1988 has now been repealed and replaced with a new Public Service Act 2020 (which came into force on 7 August 2020).

Key features of the new Act are that it:

• provides a more flexible set of options for how the public service can organise itself to better respond to specific priorities;
• allows public servants to move between agencies more easily;
• clearly establishes the purpose, principles and values of an apolitical public service, as well as its role in government formation;
• supports the Crown in its commitment to and its relationship with Maori;
• strengthens leadership across the public service and, in particular, provides for system and future focused leadership; and
• shifts the focus from state services to public services, changing the name of the State Services Commission to the Public Service Commission.

The Act also articulates the purpose, principles, values and spirit of service that characterise the public service, and the role of the public service in supporting the Crown in its relationships with Māori under the Treaty of Waitangi.

The Act sets out that the role of the public service also includes supporting the Crown in its relationships with Māori under the Treaty of Waitangi.

Chief executives of departments have a number of statutory leadership responsibilities, some of which have been reframed from the previous law. They include:

• developing and maintaining the capability of the public service to engage with Māori and to understand Māori perspectives;
• supporting their Minister to act as a good steward of the public interest, including by:
  • maintaining public institutions, assets, and liabilities;
  • maintaining the currency of any legislation administered by their agency;
  • providing advice on the long-term implications of policies.

New organisational forms recognised in the Act include interdepartmental executive boards, and interdepartmental ventures. They are separate types of public service agency and may appoint their own employees.

• An interdepartmental executive board is made up of chief executives and independent advisors, selected by the Commissioner. The purpose of an interdepartmental executive board is to align and co-ordinate strategic policy, planning, and budgeting departments with responsibilities in a subject matter area, and to support priority work and cross-department initiatives in that area. It has a servicing department.
• An interdepartmental venture is an agency governed by a board which is made up of the chief executives of the relevant departments. The purpose of an interdepartmental venture is to deliver services or carry out regulatory functions that relate to the responsibilities of two or more departments, and to assist to develop and implement related operational policy.

Chief executives or boards may (with the Commissioner’s agreement) enter into a joint operational agreement for their agencies to work together to achieve stated goals.

For more information, see Public Service Reforms on the Public Service Commission’s website.