RESTRUCTURING GOVERNMENT NEW ZEALAND STYLE

Abstract

The fourth Labour government (1984–90) has carried out a radical restructuring of executive government comparable to corresonding reforms in Britain. The changes described have been carried out in government Bepartments, state‐owned enterprises, the civil service, minister/civil servant relationships, regional and local overnment, and in the organization of the health and education services. The reforms folfow a consistent blueprint based on ideas of economists andublic choice theorists, especially those relating to agency theory and transaction costs. The themes of the New Zealand blueprint are ‘decoupling’ policy from service delivery, a PrinapaVagent model of managerial decentralization, new financial accounting systems, contracting for service provision and monitoring managerial performance. In implementation, where there are elected authorities but government is the main funding agent, there is uncertainty about the degree of discretion and appropriate accountabilities. Implementation has also illustrated the problems of defining desired outputs and outcomes and in malung them useable by professional workers and elected representatives.