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Super ministry confirmed

Steven JoyceFour key government agency chief executive roles will be disestablished with a new acting chief executive appointed to lead the Ministry of Business, Innovation and Employment when it is up and running by July 1, the government confirmed today.

Economic development minister Steven Joyce said he expected to see results on policy straight away, though the transition to a fully-fledged MBIE could take up to two years.

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.

Confirmation of the new ministry follows an initial “in principle” decision by Cabinet on March 12, and a due diligence process led by the State Services Commission.

State services minister Jonathan Coleman said: “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."

Come July the structure will consist of a ‘federation’ of the four existing agencies, with a new head and a new set of acting second-tier positions above the existing tier 2 positions, to be appointed by the acting chief executive.

A detailed organisational design and implementation plan will be developed by September 30.

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