State Sector Act 1988

The State Sector Act 1988 has been pivotal in reforming State sector management in New Zealand.

As set out in the long title to the Act, the main purposes are to: ensure that employees are imbued with the spirit of service to the community; promote efficiency in the State Services and other agencies; ensure responsible management; maintain appropriate standards of integrity and conduct among employees in the State Services and other agencies; ensure that every employer in the State Services is a good employer; promote equal employment opportunities (EEO); and provide for the negotiation of conditions of employment in the State Services and other agencies.

The Act creates the statutory positions of State Services Commissioner and Deputy State Services Commissioner.  It sets out the statutory functions and powers of the State Services Commissioner in relation to the Public Service, the wider State Services, and other agencies of government.  The statutory functions include:

• Reviewing the machinery of government across all areas of government

• Reviewing the performance of each Public Service department (listed in the First Schedule to the Act), and that of its chief executive

• Appointing chief executives of departments and reviewing their performance

• Promoting and developing senior leadership and management capability for the Public Service

• Negotiating conditions of employment for employees in the Public Service

• Promoting and developing personnel policies and standards of personnel administration for Public Service

• Promoting, developing, and monitoring equal employment opportunities, policies and programmes for the Public Service

• Providing advice on the training and career development of staff in the Public Service

• Providing advice and guidance to employees within the State Services (except Crown Research Institutes) on matters or at times, that affect the integrity and conduct of employees within the State Services

• Providing advice on management systems, structures, and organisations in the Public service and Crown entities

• Exercising such other functions with respect to the administration and management of the Public Service as the Prime Minister directs.

Each departmental chief executive, under the Act, is responsible to the appropriate Minister for: carrying out the functions and duties of the department (including those imposed by Act or by government policy); providing advice to Ministers; the good conduct of the department; and the efficient, effective and economical management of the activities of the department.

The Act gives most employer responsibilities to individual chief executives. The personnel responsibilities of chief executives, include 'good employer' and EEO responsibilities, and the duty to act independently of Ministers in 'matters relating to decisions on individual employees'.

Section 57 gives the Commissioner authority to issue codes of conduct by the Commissioner covering minimum standards of integrity and conduct in the Public Service, Crown entities, the Parliamentary Service, and Parliamentary Counsel Office.  The Commissioner has specific powers in relation to setting code standards and investigating alleged breaches of those standards, set out in Part 5 of the Act.

View the State Sector Act 1988 online at:
www.legislation.govt.nz/act/public/1988/0020/latest/contents.html