McClay Todd: State Sector and Public Finance Reform Bill — First Reading 
Text is incorporated into the Bound Volume 
McClay Todd: State Sector and Public Finance Reform Bill — First Reading 
[Sitting date: 28 November 2012. Volume:686;Page:6924. Text is incorporated into the Bound Volume.] 
TODD McCLAY (National—Rotorua) 
: 
 A more effective more efficient streamlined more focused and more professional Public Service is something that the National Party campaigned on in 2008 when we were elected to Government and it is something that we campaigned on again in 2011 when we were re-elected to Government. I want to say to the Minister of State Services Jonathan Coleman that I think this is a very important piece of legislation that continues the job we started in 2008 when we were elected by New Zealanders to bring reform to the public sector and to focus on public finances. So I fully support this legislation the State Sector and Public Finance Reform Bill and I want to quote something from the statement put out by Minister Jonathan Coleman when this bill was introduced to Parliament a short time ago. He said: “This is an omnibus bill which amends the State Sector Public Finance and Crown Entities Acts to provide the legislative grunt to deliver better public services”. 
I say to members opposite from the Labour Party that I accept that we will always have differences in some of these areas. But I would suggest to them that by supporting this legislation going to a select committee they are saying to New Zealanders that they are willing to consider changes. Indeed by not supporting it going to a select committee they are saying that they reject all of that legislation. It is interesting— 
Chris Hipkins 
: No. 
TODD McCLAY 
: Well it is because you say “We support a few things but we are not going to vote for it.” and when we finally look back and history decides what your position was on this we will find that you were against it. The last speaker in this debate Chris Hipkins has said that we should talk about it more and we should debate it more. But saying that a party in this House just opposes it outright suggests to the New Zealand public that Labour members do not want change to the public sector and do not think that our public finances need reforming—or if they do only on their terms. They are not willing to join us and to talk about it. 
There will be other parties in this debate that I am sure will say—as we heard from the Green Party on the last piece of legislation which makes important changes to reduce costs on New Zealand small and medium sized enterprises—that they will support it to the select committee stage but will not commit any further than that because they think the select committee needs to do some work. I implore the Opposition Labour Party to actually vote for this bill—to come to the select committee have a fair hearing hear from New Zealanders bring their thoughts to that committee and let us see where we can reach agreement. At that stage if they are still unhappy and they cannot support enough of it well then they will be able to come out and say: “At least we gave it a fair shot.” But as I said earlier by not supporting this bill going to a select committee they are actually saying to New Zealanders that they think that change is not needed. 
 I just want to make one point touch on one issue in the bill that I think is important before we move on. Under the last 5 years of the Labour Government the public sector grew by 30 percent. I accept we were in quite different times then. The country’s finances looked very different and there were surpluses but a 30 percent increase in the public sector without the same increase in productivity in the public sector is not something that should be done even in the best of economic times let alone the economic times that we as a country are forced—and much of the world is forced—to go through. 
I also want to note that since we came to Government the Labour Opposition has opposed every effort on behalf of the National Government to improve quality and efficiency in the Public Service. That does not suggest to me that Labour members do want change. It suggests to me that there is an old doctrine somewhere that says that this is not the type of change they want and it is not a priority for them. I hope this does not mean that some time in the future when we have a change of Government—the Labour Party and the Green Party together—again we are going to see a ramping up of the size and the cost of government. 
For two elections in a row New Zealanders have voted for change. They have voted for things to be streamlined. They have asked for a more effective a more efficient and a more focused and professional Public Service. Not so long ago—in fact it might have been just last week or the beginning of this week—a survey came out that shows New Zealanders’ thoughts on the way that the public sector is working. They are showing some of the greatest confidence at any time in almost every area. I think that is a vote of confidence in what the Government is doing: getting on with the things that are important and that New Zealanders have voted on. 
I want to make one point here before I finish because I am keen for this bill to get to the Finance and Expenditure Committee. Very much in two parts are we going to change the Public Finance Act to improve financial flexibility to support innovation and different ways of working with Government. The Opposition should be supporting that—improving financial flexibility to support innovation. Then as to the changes to the Crown Entities Act this bill will support sector-wide leadership by strengthening and aligning Crown entities. There is a great deal to be done around leadership. We need much more innovation. 
I look forward to this debate in the Finance and Expenditure Committee. Again I implore members opposite to support it. Come and have the discussion and then decide to cast it out afterwards if we cannot reach agreement but do not just say today that it is all over it is not worth it. Thank you.