NZ Economic Direction: Critical Decisions Loom On Govt’s Forward Strategy
October 1st, 2009
Critical decisions on the Govt’s forward strategy are expected to be shaped at a Cabinet meeting the PM has set down for this specific purpose later this month. Since coming to power the Govt has concentrated on fighting the recession and preserving jobs. Now the focus is shifting to the major problem of how it gets the economy growing again sustainably, within the constraints of imposing fiscal deficits, and also taking into account the parameters set by its election policy. Trans-Tasman understands Ministers are due to meet at Premier House, on October 12.
Besides advice from traditional sources and various Ministerial working groups, input may also come from the Brash productivity task force. Economic Development Minister Gerry Brownlee who was earlier scheduled to travel with Murray McCully and Tim Groser for the US-NZ partnership dialogue in Washington has pulled out of the trip to concentrate on work related to his portfolios, which cover several sectors vital to the Govt’s growth strategy. Between now and the end of the year Ministers will be fleshing out the programme, which in essence will constitute a roadmap to transform the economy. (In a separate paper The Trans-Tasman Editors set out some of the key features for transformation).
Meanwhile Treasury has been laying the groundwork for significant changes in the public sector, following the Govt’s call for the state sector to deliver better services within budgets under tight constraint. Treasury has already identified the evolution of a smarter, leaner state sector, by centralising administrative, human resources and computer services. As much as 30% of those costs might be saved. At present there are about 250 IT systems, 250 human resources systems, and 250 accounting systems within the state sector.
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Duncan Cotterill