Premier Rees’ restructure of the NSW public sector
On 11 June 2009, the Premier announced that the State Labor Government will embark on a massive restructure of the New South Wales public service with the merging of 160 government agencies into 13 super departments.
The NSW Government’s plan to form super new agencies was formalised with the Public Sector Employment and Management (Departmental Amalgamations) Order 2009 last week. According to the Premier, the aim of the reforms is to consolidate back office functions in the NSW Government bureaucracy in order to deliver efficiency and quality gains in service delivery.
The 13 New Super Departments and Director Generals will be:
1. Communities NSW (new department) headed by Carol Mills
2. Department of Education and Training (no change to name) headed by Michael Coutts-Trotter
3. Department of Environment, Climate Change and Water (previously Department of Environment and Climate Change) headed by Lisa Corbyn
4. Department of Human Services (new department) headed by Jenny Mason
5. Department of Health (no change to name) headed by Professor Debra Picone
6. Department of Industry and Investment (new department) headed by Dr Richard Sheldrake
7. Department of Justice and Attorney General (new department) headed by Laurie Glanfield
8. Police and Emergency Services NSW (new department) headed by Commissioner Andrew Scipione
9. Department of Premier and Cabinet (no change to name) headed by John Lee
10. Department of Services and Administration headed by Graeme Head
11. Department of Planning and Local Government (new department) headed by Sam Haddad
12. Department of Transport and Infrastructure (new department) headed by Les Wielinga
13. The Treasury (no change to name) headed by Michael Schur.
“The changes are the most significant reform to the NSW public sector since former Premier Neville Wran modernised State Government in Australia following the recommendations of 1979 Wilenski Report”, Premier Rees said.
The Premier’s reforms follow the model of former Victorian Premier Jeff Kennett who created 10 super departments in the 1990s. The reforms will free up resources for frontline services, cut red tape for business and reduce overlap and barriers between agencies.
Mr Rees said, “Taxpayer savings will also be achieved through extending the NSW Government’s employment freeze, which exempts frontline workers.” The freeze on public sector hiring will reduce the number of bureaucrats in New South Wales by about 14,000 each year.
Under the plan, NSW Transport and Infrastructure will take the lead on all policy and planning functions of the Ministry of Transport, RailCorp, Roads and Traffic Authority, State Transit Authority, Sydney Ferries, the Public Ticketing Corporation and Waterways.
Similarly, the Department of Human Services will incorporate the Department of Aboriginal Affairs, the Aboriginal Housing Office, the Department of Ageing, Disability and Home Care, the Department of Community Services, Housing NSW, the Department of Juvenile Justice, and NSW Businesslink.
The proposed reforms have four major implications. First, the issue of further job losses as a result of the restructure during the Global Financial Crisis have direct ramifications not just on the State’s economy but for families who have bills and mortgages to pay.
Second, the reforms will give the Premier unfettered power over the future direction of the Government. Similar to the Victorian model, the new Director-Generals responsible for the new departments will be employed directly by the Premier and supervised by him or her, rather than portfolio ministers.
Third, under the plan Director-Generals of the newly formed super departments will have to report to several Ministers. For example, the Department of Industry and Investment will be responsible to eleven Ministers: Minister for the Arts, Minister for Energy, Minister for Mineral Resources, Minister Assisting the Premier on the Arts, Minister for Primary Industries, Minister for Regional Development, Minister for Rural Affairs, Minister for Science and Medical Research, Minister for Small Business, Minister for State Development, and Minister for Tourism.
Finally, questions arise on the amalgamation of several departments. For instance, there is apprehension with the amalgamation of the Department of Local Government with the Department of Planning given the State Government’s continual reduction of planning powers of local governments. There are also concerns from the volunteers of the Rural Fire Service Associations being integrated with the NSW Police Force.
Rev the Hon. Dr Gordon Moyes, an Independent Member of Parliament, has no issues with the Government’s reforms if it achieves what it was intended to do – provide better services to the people of New South Wales. We will keep you posted on these reforms as soon as we have more information on costings, implementation plans, and how the changes affect you.