Front Matter

Front Matter

Graham Scott
Published Date:
October 1996
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    © 1996 International Monetary Fund

    Cataloging-in-Publication Data

    Scott, Graham C. (Graham Cecil), 1942-

    Government reform in New Zealand/Graham C. Scott

    —Washington, DC: International Monetary Fund, [1996]

    p. cm. — (Occasional Paper, ISSN 0251-6365; 140)

    ISBN 9781557755407

    1. Administrative agencies—New Zealand. 2. Organizational change—New Zealand. 3. Government productivity—New Zealand. 4. New Zealand—Politics and government—1972- I. Series: Occasional paper (International Monetary Fund); no.140.

    JQ5829.O73 S36 1996

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    The following symbols have been used throughout this paper:

    • … to indicate that data are not available;
    • — to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
    • – between years or months (e.g., 1991–92 or January–June) to indicate the years or months covered, including the beginning and ending years or months;
    • / between years (e.g., 1991/92) to indicate a crop or fiscal (financial) year.

    “Billion” means a thousand million.

    Minor discrepancies between constituent figures and totals are due to rounding.


    The reforms to the systems of government management in New Zealand that are discussed in this report arose from an immense effort by some of New Zealand’s leading politicians in recent times and from the commitments of senior civil servants who instituted a regime that ultimately affected the working environments of tens of thousands of civil servants throughout the country. Without their determined efforts to design and implement these changes, I would have no report to write. The leadership at the political level for these reforms came from Roger Douglas, David Caygill, Richard Prebble, Stan Rodger, and Geoffrey Palmer on the Labor side of the Parliament and from Ruth Richardson and Bill Birch on the National side.

    In the central agencies, the key figures in the State Services Commission were Roderick Deane, Margaret Bazley, Don Hunn, and Doug Martin. The Auditor-General, Brian Tyler, while at arm’s length, was a key supporter of the changes. In the Treasury, which I had the pleasure to head through most of the changes described here, the entire department put in an extraordinary effort over many years to make this happen. I currently manage my own consulting firm in New Zealand and I am also a Principal of Law and Economics Consulting Group Inc. of Emeryville, California.

    Space allows me to acknowledge the contribution only of those senior managers who carried most of the responsibility for this effort. They are Howard Fancy, John Chetwin, Ian Ball, Andrew Weeks, Mark Byers, Peter Bushnell, David Smyth, Irene Taylor, Graeme Wheeler, Pat Duignan, and the current Secretary to the Treasury, Murray Horn. Individuals who undertook the technical design of the Public Finance Act in particular were Tony Dale and Peter Lorimer.

    I am indebted to the following people for assisting me in the preparation of this report: Michael Palairet of the New Zealand Defence Force; June Pallot of the Department of the Auditor-General; William Maguire of Auckland University; Andrew Weeks of Financial Management Resources; Paul Blessington of KPMG Consulting Group in Canberra; Alex Matheson of the State Services Commission; and Doug Martin of Martin, Jenkins de Lore. At the Treasury, Roger Beckett, Elizabeth Ashton, Howard Fancy, Mark Byers, Richard Morris, and Ken Warren provided me with information.

    For comments on the first draft, I am indebted to Alan Tait, Masakazu Sakaguchi, Barry Potter, and Chris Yandle of the International Monetary Fund (IMF), when I served as a Consultant at the Fiscal Affairs Department from April to June 1994; and to Malcolm Holmes of the World Bank. Ian Ball, of Victoria University of Wellington, provided particularly valuable comments on the second draft. For the preparation of the document itself, I am indebted to Mary Thomson of the IMF and to Carole Hoult in Wellington; and to Jacqueline Walters of the Fiscal Affairs Department (IMF) for correcting successive drafts of the document. Simon Willson and Martha Bonilla of the External Relations Department of the IMF edited the manuscript for publication. Ms. Bonilla also coordinated production of the publication.

    The view expressed here are my sole responsibility and do not necessarily reflect the opinions of the New Zealand Government, the Executive Directors of the IMF, or the IMF staff.

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