11. GRANT ROBERTSON (Labour—Wellington Central) Link to this
to the Minister of State Services
Is he satisfied with the application of the Government’s Expectations for Pay and Employment Conditions in the State Sector released in February this year?
Hon TONY RYALL (Minister of State Services) Link to this
Generally yes, because the expectations provide a comprehensive and sensible framework for State chief executives to negotiate and set terms and conditions of employment. The expectations remind chief executives and unions of the difficult financial environment currently, of the need to ensure that productivity is improved, and of the need to ensure that changes to employment conditions are affordable as well as being fair to both employees and taxpayers. Having said that, I say that there is always room for improvement.
Why, given that answer, did he and Mrs Tolley summon three polytechnic chief executives and council chairs to Wellington to give them a dressing down about their pay negotiations—totally outside the process in the State Sector Act—when the State Services Commission had already been consulted?
The member’s question would not stand up to scrutiny. The fact is that Ministers invited the polytechs to explain how they were applying the Government’s expectations in their organisations, including their plans for productivity and service delivery improvement.
Can the Minister confirm that he told the polytechnic representatives that he was looking for a zero percent pay increase and that he was, in fact, calling for a pay freeze in the State sector?
I cannot confirm any such thing; it would be inappropriate for a Minister to issue a directive. But I can tell the member that, like every group of people whom I meet, it is very important for those representatives to be reminded of the quite difficult financial position that New Zealand finds itself in after 9 years of neglect by the previous Government.
Jacqui DeanHas the Government announced any other policies aimed at improving productivity and getting better value for money from the Public Service for taxpayers, alongside the pay and employment expectations?
Yes. In March this year I announced that the Government had a policy to cap the number of employees in core Government administration, and that the Government wanted to see people and funding move into areas that deliver the best service for money and improved services for New Zealanders. Under the previous Government the balance between back-office and front-office staff ballooned way out of proportion. The Public Service grew by an average of 5.5 percent per year, and we saw little or no productivity improvements. I can advise the House that under this Government, the Public Service has stayed within the cap on core Government administration. We have halted the growth in core Government administration.
How can the Minister claim that calling the polytechnic chief executive and council chair of Otago Polytechnic to Wellington is appropriate when they are still in employment negotiations and he is breaching his responsibility as Minister of State Services by doing so?
I am interested in that member’s question, because when he issued his press release he said the other polytechs were being pressured on their pay negotiations, when, in fact, they had already been concluded.
I raise a point of order, Mr Speaker. I asked a very direct question and the Minister simply did not address it.
Mr SPEAKERThe member was seeking an opinion, if I recollect it correctly, by asking how the Minister justified an action. I think it would be appropriate if the Minister were to actually address that action rather than mention other polytechnics. The question related to Otago Polytechnic, and in his response the Minister mentioned a range of other polytechnics. I would ask the Minister to answer the question.
The Government is perfectly entitled to ask State sector agencies how they are giving effect to Government policy. That is appropriate and nothing new. The previous Labour Government also had a group of Ministers overseeing pay and conditions in the State sector. In fact, its expectations were far more prescriptive than this Government’s are. Whereas this new Government’s expectations are two pages in length, the previous Government’s expectations were a very detailed 28 pages in length.
I seek leave to table section 74C(2) of the State Sector Act, which outlines that negotiations in polytechnics for pay agreements are the responsibility of chief executives.
I seek leave to table the new Government’s expectations for pay and employment conditions in the State sector—all two pages of them.
I seek leave to table the previous Government’s bargaining parameters dated September 2008 and the detail in the 28 pages of them.