Background

Cabinet agreed on 20 December 1999 to conduct a Ministerial Inquiry into the Department of Work and Income (WINZ). It also agreed that the Prime Minister, the Minister of State Services and the Minister of Social Services should finalise the Terms of Reference and that the Minister of State Services should sponsor the inquiry.

Purpose of the Inquiry

Almost since its inception WINZ has been at the centre of public controversy. Before making further decisions as to future policies and directions, the Government wishes to ensure it has an informed basis on which to do so. Accordingly, the inquiry is intended to provide answers to the following questions bearing on the Government's purchase and ownership responsibilities:

1. What were the policy objectives which led to the establishment of the department?

2. Are those objectives being fulfilled and are they consistent with the Government's mandate for change in the area of social policy?

3. What organisational design and management features, including information technology systems and property management, were prescribed by the previous Government and what was the result of decisions by the department itself?

4. What are the department's current outputs? Do they need to be designed to enable the present Government to achieve its objectives?

5. What are the current strengths and weaknesses of the department and what could be done to remedy the latter?

6. What strategic and business plans are in place? What are the frameworks and principles on which those plans and operations are based in the major areas of financial, human resources, information, and asset and risk management?

7. What are the principal features of the style and culture developed by the department? Do these need to be re-examined in the light of the current Government's preferred approach to public sector management?

8. How is the department viewed by its clients and stakeholders? What bearing do these views have on the department's ability to fulfil its purpose?

9. What other matters concerning the department, particularly in respect of its medium or long term viability, such as information technology systems and property management, need to be considered by the Government?

Reviewer

The reviewer will be Mr Don Hunn, former State Services Commissioner, who will report to the Minister of State Services.

Management of the Inquiry

The reviewer will be provided with office accommodation and administrative support from within the Public Service. A budget and a review programme will be approved in advance by the Minister of State Services. Should any additional services be required from outside the Public Service these will also require the approval of the Minister of State Services. Likewise, any significant changes which would add to the cost or extend the timetable will require the Minister's approval. Costs will be charged to Vote: Work and Income. The reviewer will report to the Minister on progress from time to time, and will submit a written report at the completion of the inquiry or at the end of each stage, should it be found desirable to seek further views or decisions from Ministers at particular points in the inquiry.

Consultation

It is expected that the reviewer will draw on the views not only of Ministers and the management and staff of WINZ, but also of a range of clients and stakeholders around the country, both within Government and the social sector. A professional agency is to be commissioned to undertake a survey of client and stakeholder views.

Timetable

The inquiry will commence in mid-February 2000. The process will include information gathering and opinion survey. The reviewer will submit a written report to the Minister in late April 2000.