The Government has today confirmed its plans to establish the new Ministry of Business, Innovation and Employment on 1 July this year.
The Ministry will bring together the existing functions of the Ministry of Economic Development, Ministry of Science and Innovation, Department of Labour and Department of Building and Housing.
Economic Development Minister Steven Joyce says the new Ministry will assist the Government drive forward its business growth agenda and make it easier for businesses to engage with the Government.
“The Government is committed to building a more competitive and productive economy, that will grow more and bigger businesses so that we are better able to afford the sort of society we aspire to,” Mr Joyce says.
“Our business growth agenda will make it easier for businesses and companies to access innovative ideas, markets, capital, skilled workers, resources and the supporting public infrastructure.”
Confirmation of the new ministry follows an initial “in principle” decision by Cabinet on 12 March, and a due diligence process led by the State Services Commission.
State Services Minister Jonathan Coleman, says the due diligence process confirmed the merits of the new ministry. “The new ministry will provide clear, co-ordinated and focussed policy leadership, and efficient and effective services for business.
“While obtaining savings is not what is driving this change, there will be efficiency benefits.
“In the medium term, we expect the new ministry to deliver savings through the consolidation of corporate services of about $5 million to $6 million a year, and of policy capability of about $2 million to $5 million a year.
“It is envisaged that the current separate agencies will form the initial functional units of the new ministry, which will then be further consolidated over time. For most staff the transition will be seamless – they will be doing the same job with the same pay and conditions on 1 July”.
Mr Joyce expects businesses to see the Government moving faster and in a more coordinated way to tackle the issues that matter to business.
“Strengthening the leadership and integration of Government policy and activity will help create the conditions for businesses to grow and create jobs. Structure is only one part of the story, but the current fragmented structures make it harder to achieve the results we need,” Mr Joyce says.