Public Service Reform Bill Clears First Hurdle, Aims to Improve Accountability

“Taxpayers expect a public service that is capable, impartial, and focused on getting results. These changes will do that,” Collins said.


Devdiscourse News Desk | Wellington | Updated: 31-07-2025 14:42 IST | Created: 31-07-2025 14:42 IST
Public Service Reform Bill Clears First Hurdle, Aims to Improve Accountability
One of the most notable provisions of the bill is the removal of automatic reappointment rights for public service chief executives, a change Collins said was long overdue. Image Credit: Wikipedia
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  • New Zealand

Legislation aimed at overhauling New Zealand’s public service has passed its first reading in Parliament, marking the first major step in a sweeping reform package intended to sharpen the sector’s focus on efficiency, performance, and value for money. Public Service Minister Judith Collins said the Public Service Amendment Bill is designed to “lift the performance” of the public service and reaffirm its role as a professional and politically neutral body that delivers results for the government of the day and taxpayers alike.

“Taxpayers expect a public service that is capable, impartial, and focused on getting results. These changes will do that,” Collins said.

Back to Basics: Key Goals of the Reform

The legislation proposes a number of structural and cultural changes to how public service operates, particularly at the leadership level. Minister Collins emphasized that while the public service must remain independent and non-partisan, it must also be better aligned with the priorities of the elected government and more accountable for its performance.

Key elements of the bill include:

  • Reinforcing merit-based appointments to attract a wider pool of talented applicants and ensure that the most qualified candidates are selected for senior leadership positions.

  • Clarifying the roles and responsibilities of chief executives, particularly around performance management and delivery.

  • Eliminating automatic reappointments of chief executives at the end of their fixed terms, thereby mandating open and competitive selection processes for leadership renewal.

  • Refocusing the public service on supporting the government of the day, while upholding the long-standing core principles of political neutrality and the provision of free and frank advice.

  • Removing specific provisions related to pay equity, diversity, and inclusion from the Public Service Act, as these are already substantively covered by other legal frameworks and policies.

Collins described the bill as an essential measure to ensure the public service is modern, responsive, and accountable in the delivery of public policy, while remaining loyal to constitutional principles.

“The reforms will ensure the public service is professional, politically neutral and equipped to serve the government of the day – all of which adds up to better outcomes for taxpayers,” she said.

Accountability Over Entitlement

One of the most notable provisions of the bill is the removal of automatic reappointment rights for public service chief executives, a change Collins said was long overdue. The reform introduces mandatory competition for executive roles once a term ends, ensuring a transparent, performance-based process rather than entrenching leadership through routine renewals.

“This ensures our top public service jobs are filled by the best possible candidates, based on performance and future fit—not entitlement,” said Collins.

Under the current system, chief executives can often be reappointed without a full review or open recruitment, which critics argue can lead to stagnation or a lack of accountability at the top.

Controversy Over Removal of DEI Provisions

The proposed removal of explicit references to pay equity, diversity, and inclusion (DEI) from the Public Service Act has already stirred debate. Minister Collins argued that these provisions are redundant, as they are addressed in other legislation such as the Equal Pay Act 1972 and in internal departmental policies.

However, some advocacy groups and political opponents have expressed concern that removing these elements may send a negative signal about the government’s commitment to fairness and representation within the public sector workforce.

A Politically Neutral Yet Responsive Service

The bill also seeks to clarify the dual role of the public service—to provide loyal and effective support to the government of the day, while remaining independent, politically neutral, and capable of providing honest advice.

In recent years, tension has grown over whether the public service has struck the right balance between these roles. The reform aims to recenter the mandate of the bureaucracy, ensuring that elected officials set direction and policy while the public service executes those decisions efficiently and impartially.

Next Steps and Wider Reform Context

With the bill now through its first reading, it will be considered by a select committee, where public submissions will be invited. The government has signaled its intention to move the legislation forward quickly, as part of its wider regulatory and performance improvement agenda.

The reform aligns with the government’s stated goal of “getting back to basics”—delivering core services well, spending public funds wisely, and focusing on outcomes over process.

Minister Collins concluded:

“This is about ensuring that every dollar spent by government delivers the greatest possible value to New Zealanders. These reforms are a critical part of that mission.”

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