Cabinet has issued a directive the Secretary of the Ministry of Foreign Affairs and Trade should submit a paper to the Cabinet External Relations and Defence Committee in the second half of 2009 on “new arrangements” for the operation of “NZ Inc” onshore and offshore. The Govt is seeking greater co-ordination of the work of Govt agencies, not just MFAT and NZAID, but NZ Trade & Enterprise, Immigration, Education and Tourism NZ, to more effectively project NZ’s vital external, economic and business programmes. The first step will be to identify whether NZ has the right mix of posts overseas, and whether more effective outcomes can be secured through a more efficient framework in Wellington and overseas.

There has been a proliferation of advisers abroad in such agencies as NZTE, Education, Immigration and even Science and Research. A tighter organisation might be achieved if they are required to report through the chief of mission, rather than operating independently. Clearly to achieve this transformation, the Govt needs an experienced “change manager” with proven leadership skills. This is the rationale behind the appointment (first signalled in Trans-Tasman 2 weeks ago and confirmed this week by the SSC) of John Allen as successor to Simon Murdoch as Secretary of MFAT. Allen has been CEO of NZ Post since 2003, joining the SOE (which is NZ’s 24th largest business by revenue) in 1994 as General Manager, business planning, on secondment from Rudd, Watts and Stone.

He has been actively involved in many of the strategic initiatives of NZ Post, including the establishment of Kiwi Bank. State Services Commissioner Iain Rennie says Allen developed a long term strategy relating to diversification and growth for NZ Post, and under his leadership the SOE has delivered sustained growth in profit despite increased competitive pressures in all markets. Allen is also co-chair of the Aust-NZ Leadership Forum. NZ Post Chairman Jim Bolger played a key role in persuading Allen to allow his name to go forward for the MFAT post (which offers a salary said to be around half of what NZ Post was paying him). Bolger says “he is an outstanding leader and he will make a remarkable contribution in his new role.” Coming from a former PM, such a commendation could have been a clinching factor.

 Copyright © Trans Tasman Media Ltd