Red Alert

Posts Tagged ‘john whitehead’

The Treasury Board and the agenda for public services

Posted by Grant Robertson on September 2nd, 2010

Sometimes its hard to get across why some of the more seemingly mundane announcements made by government are important.  The idea that the Treasury has decided to create a Board to help run it might sound good. Get a bit of outside help in to make sure it is doing the right thing. Nothing wrong with that?

But when the Treasury Secretary John Whitehead slipped into a speech ten days ago that he was going to establish a “governance” Board with representatives of the “private sector” alarm bells rang for me.

Firstly, in the context of purchase advisors, politically appointed working groups on everything from tax to regulation, welfare to housing, a review of policy advice  led by Graham Scott, the role of Murray Horn leading the National Health Board, this Board, and Tony Ryall’s enthusiasm that it could be used by the rest of the public sector this is clearly part of  an agenda to fundamentally change our public sector.  That change amounts to a privatisation of advice.

Why does this matter?  It matters because our system of government is based on the idea that the public service will provide free and frank advice to Ministers. They are in effect the taxpayers representatives in making and implementing policy and ensuring the governments get the best advice possible. Privatising advice undermines that assumption of neutrality.  Those Ministers are then responsible to Parliament and the public. Handpicked policy and governance groups can lead to governments hearing what they want to hear and to reducing accountability.  And that will be bad for all of us in the long run.

If people think I am over dramatising this- take a look at the media release from Treasury yesterday.  The role of the Board is described as “setting the strategic direction” for Treasury.  John Whitehead has said he will only veto the group in ‘extremely rare’ circumstances.

Chris Eichbaum has a great article in the Dom Post today on this issue (not on-line as far as I can tell). As he says

We need responsive and responsible public servants. Injecting a new third element into our existing governance arrangements may well be a step too far. It is most certainly the kind of proposal that should be the subject of public scruitiny and debate- not just announced.

As Chris is alluding to, the process for establishing the Board is not good. There are no terms of reference, and we only have the vaguest idea of how they will work.  Again John Whitehead said after his speech ten days ago that  the Board will have “community and private sector” expertise.  No sign of the community sector in the Board members announced yesterday.  No sign of a voice for the vulnerable people who are most effected by Treasury’s policies.

I am certainly not against government agencies getting advice from the community and stakeholders.  In fact I strongly support a closer connection between agencies and the people who use services.  But not when it undermines the neutrality of public services and not when it is used to reinforce the agenda of one political party.


Stalking horses

Posted by Grant Robertson on July 21st, 2009

The speech by John Whitehead, the Secretary of the Treasury, is another example a strategy of the National Party to push controversial ideas out through a series of stalking horses. We saw it with Mark Weldon on SOEs, Whitehead has already done it, and here we go again. This time, however, it is all a bit odd.

John Whitehead is a good public servant. He was a loyal servant of the Labour Government, as he has been of all governments in the 27 years he has been at Treasury. He would simply not do a speech like the one he did yesterday without a clear direction from government. But why John Whitehead, why not Iain Rennie, the State Services Commissioner? Rennie refused to totally endorse Whitehead’s speech in his interview with Kathryn Ryan this morning. Given numerous opportunities to say he supported everything in the speech, he would not do it.

It looks as if SSC and Tony Ryall have largely been left out of what Bill English tells us is a programme for “significant and lasting change to the public service’. Treasury and English are in charge.  It certainly is not what John Key said in October last year:

I also want to reassure people – and this is my second point – that a new National Government is not going to radically reorganise the structure of the public sector… Few problems are solved by significant reorganisations- in fact many more tend to be created.

If we look back over the last few weeks, English has really been upping the ante in terms of state sector. He went out of his way to suggest that teachers and nurses should not expect a pay rise when their agreements expire next year. Now we have him hammering the message about cuts and potential privatisation in the public services. But why? Word has it that some Chief Executives are not going fast enough or deep enough for Mr English and he think a further shot needed to be fired across the bows. This will be interesting, because the current State Sector arrangements do put the power in the hands of the CE. Could some of them be on a collision course with the government?