Coordination
#2Key Findings
In the category of coordination, New Zealand falls into the sample’s top group (rank 2).
The Department of the Prime Minister and Cabinet plays a key role in coordinating government policies. This goes beyond legal and technical aspects to include broader programmatic elements, ensuring alignment with government priorities. The increasing centralization of decision-making has raised concerns, particularly in contexts of crisis management.
Interministerial working groups, committees of officials and cabinet committees serve as formal coordination mechanisms. Cross-agency initiatives coordinated by single ministries have grown in response to complex problems, while informal coordination such as bilateral meetings and collaboration between ministries also support government operations.
New Zealand is highly centralized, with most public services managed by the central government, making it relatively easy to enforce national standards. The central government also engages with bodies representing local councils and Māori tribes.
The Department of the Prime Minister and Cabinet plays a key role in coordinating government policies. This goes beyond legal and technical aspects to include broader programmatic elements, ensuring alignment with government priorities. The increasing centralization of decision-making has raised concerns, particularly in contexts of crisis management.
Interministerial working groups, committees of officials and cabinet committees serve as formal coordination mechanisms. Cross-agency initiatives coordinated by single ministries have grown in response to complex problems, while informal coordination such as bilateral meetings and collaboration between ministries also support government operations.
New Zealand is highly centralized, with most public services managed by the central government, making it relatively easy to enforce national standards. The central government also engages with bodies representing local councils and Māori tribes.
Graph View
Graph View
To what extent do established coordination mechanisms between the government’s office and line ministries effectively enhance policy coherence?
10
9
9
Functional coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are in place.
8
7
6
7
6
Largely functional coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are in place.
5
4
3
4
3
Coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are only somewhat functional.
2
1
1
Coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are not at all functional.
In New Zealand, the Department of the Prime Minister and Cabinet (DPMC) plays a crucial role in ensuring that the prime minister and cabinet have access to the information and support necessary for effective decision-making and governance. The DPMC acts as a central hub for coordinating government policies and initiatives, maintaining the machinery of government, and supporting the overall functioning of the executive branch.
In 2023, the DPMC consisted of nine units: the National Security Group, Government House, the Policy Advisory Group, Strategy Governance and Engagement, the Cabinet Office, the Cyclone Recovery Unit, Child Wellbeing and Poverty Reduction, the COVID-19 RCOI Coordination Unit, and the Implementation Unit. The Policy Advisory Group currently consists of 32 staff members covering a broad spectrum of policy expertise (Department of the Prime Minister and Cabinet 2023). They are in constant contact with the prime minister, and provide advice on all cabinet and cabinet committee papers. They also engage in coordinating interministerial cooperation.
The DPMC typically engages in major policy initiatives or those with cross-cutting implications across various sectors. This involvement goes beyond legal and technical aspects to include broader programmatic elements, ensuring alignment with government priorities. Regular meetings between the DPMC and line ministries occur to different extents, depending on the demands deriving from policy developments, government priorities and specific initiatives. However, there is some concern that recent crisis management efforts by the DPMC have led to an increasing centralization of decision-making, which in turn risks becoming disconnected from external advice (Harman 2023).
Citations:
Department of the Prime Minister and Cabinet. 2023. “Annual Report / Pūrongo-ā-tau.” https://www.dpmc.govt.nz/sites/default/files/2023-11/dpmc-annual-report-2023-v2.pdf
Harman, R. 2023. “What’s Wrong with the Public Service.” https://www.politik.co.nz/whats-wrong-with-the-public-service
In 2023, the DPMC consisted of nine units: the National Security Group, Government House, the Policy Advisory Group, Strategy Governance and Engagement, the Cabinet Office, the Cyclone Recovery Unit, Child Wellbeing and Poverty Reduction, the COVID-19 RCOI Coordination Unit, and the Implementation Unit. The Policy Advisory Group currently consists of 32 staff members covering a broad spectrum of policy expertise (Department of the Prime Minister and Cabinet 2023). They are in constant contact with the prime minister, and provide advice on all cabinet and cabinet committee papers. They also engage in coordinating interministerial cooperation.
The DPMC typically engages in major policy initiatives or those with cross-cutting implications across various sectors. This involvement goes beyond legal and technical aspects to include broader programmatic elements, ensuring alignment with government priorities. Regular meetings between the DPMC and line ministries occur to different extents, depending on the demands deriving from policy developments, government priorities and specific initiatives. However, there is some concern that recent crisis management efforts by the DPMC have led to an increasing centralization of decision-making, which in turn risks becoming disconnected from external advice (Harman 2023).
Citations:
Department of the Prime Minister and Cabinet. 2023. “Annual Report / Pūrongo-ā-tau.” https://www.dpmc.govt.nz/sites/default/files/2023-11/dpmc-annual-report-2023-v2.pdf
Harman, R. 2023. “What’s Wrong with the Public Service.” https://www.politik.co.nz/whats-wrong-with-the-public-service
To what extent are there positive (formalized) forms of coordination across ministries that aim to enhance policy coherence?
10
9
9
Interministerial coordination mechanisms targeting policy coherence provide incentives for identifying synergies and opportunities.
8
7
6
7
6
Interministerial coordination mechanisms targeting policy coherence sometimes provide incentives for identifying synergies and opportunities.
5
4
3
4
3
Interministerial coordination mechanisms targeting policy coherence rarely provide incentives for identifying synergies and opportunities.
2
1
1
There are no interministerial coordination mechanisms targeting policy coherence that provide incentives for identifying synergies and opportunities.
There are several mechanisms and practices that contribute to fostering positive coordination across ministries to enhance policy coherence and effectiveness.
The primary formalized coordination mechanisms include interministerial working groups, which consist of representatives from various ministries and agencies and are established to address specific policy areas or projects; officials committees, which comprise senior officials from different ministries and are tasked with advising ministers on policy matters; and cabinet committees, which are formed to focus on specific policy areas, and include relevant ministers and senior officials. The Department of the Prime Minister and Cabinet (DPMC) also plays a central role in coordinating government policies, ensuring that policies align with the government’s priorities and providing advice with the goal of improving policy coherence.
Various digital technologies and information systems facilitate collaboration, information-sharing and efficiency across ministries. Examples include shared digital platforms, intranets and online collaboration tools. In 2020, the portfolio of minister for the digital economy and communication was created. The government chief digital officer (GCDO) leads the development and improvement of digital infrastructure across the government. The GCDO is supported by the Digital Government Leadership Group, a partnership of stakeholders from various agencies aiming to create a coherent, all-of-government digital system. This group assists the GCDO and the government chief data steward (GCDS) in developing and improving the digital and data systems across the government, ensures alignment with the government ICT strategy, and reviews and informs the strategy (New Zealand Government n.d.). However, it remains unclear how effective the use of digital technologies is, particularly regarding interministerial coordination.
Formal pre-consultation procedures are designed to encourage the identification of synergies and opportunities among policies rather than solely emphasizing incompatibilities (negative coordination) with other policies. In particular, pre-consultation procedures require ministries preparing a policy proposal to consult not only other affected ministries, but also the Department of the Prime Minister and Cabinet, the Treasury, and the Public Service Commission. Early engagement with relevant ministries and other stakeholders allows for discussions of potential synergies and areas of alignment, encouraging proactive identification of opportunities for policy integration.
Over time, New Zealand has witnessed an increasing number of cross-agency initiatives coordinated by a single line agency but involving numerous others to address “wicked” problems. One of these is the Joint Venture on Family and Sexual Violence, housed within the Ministry of Justice, but coordinated across 10 agencies (MOJ 2022).
Citations:
MOJ. 2022. “Ministry of Justice.” https://www.justice.govt.nz/about/news-and-media/news/joint-venture-adopts-new-name-te-puna-aonui/
New Zealand Government. n.d. “Digital Government: Leadership.” https://www.digital.govt.nz/digital-government/leadership/
The primary formalized coordination mechanisms include interministerial working groups, which consist of representatives from various ministries and agencies and are established to address specific policy areas or projects; officials committees, which comprise senior officials from different ministries and are tasked with advising ministers on policy matters; and cabinet committees, which are formed to focus on specific policy areas, and include relevant ministers and senior officials. The Department of the Prime Minister and Cabinet (DPMC) also plays a central role in coordinating government policies, ensuring that policies align with the government’s priorities and providing advice with the goal of improving policy coherence.
Various digital technologies and information systems facilitate collaboration, information-sharing and efficiency across ministries. Examples include shared digital platforms, intranets and online collaboration tools. In 2020, the portfolio of minister for the digital economy and communication was created. The government chief digital officer (GCDO) leads the development and improvement of digital infrastructure across the government. The GCDO is supported by the Digital Government Leadership Group, a partnership of stakeholders from various agencies aiming to create a coherent, all-of-government digital system. This group assists the GCDO and the government chief data steward (GCDS) in developing and improving the digital and data systems across the government, ensures alignment with the government ICT strategy, and reviews and informs the strategy (New Zealand Government n.d.). However, it remains unclear how effective the use of digital technologies is, particularly regarding interministerial coordination.
Formal pre-consultation procedures are designed to encourage the identification of synergies and opportunities among policies rather than solely emphasizing incompatibilities (negative coordination) with other policies. In particular, pre-consultation procedures require ministries preparing a policy proposal to consult not only other affected ministries, but also the Department of the Prime Minister and Cabinet, the Treasury, and the Public Service Commission. Early engagement with relevant ministries and other stakeholders allows for discussions of potential synergies and areas of alignment, encouraging proactive identification of opportunities for policy integration.
Over time, New Zealand has witnessed an increasing number of cross-agency initiatives coordinated by a single line agency but involving numerous others to address “wicked” problems. One of these is the Joint Venture on Family and Sexual Violence, housed within the Ministry of Justice, but coordinated across 10 agencies (MOJ 2022).
Citations:
MOJ. 2022. “Ministry of Justice.” https://www.justice.govt.nz/about/news-and-media/news/joint-venture-adopts-new-name-te-puna-aonui/
New Zealand Government. n.d. “Digital Government: Leadership.” https://www.digital.govt.nz/digital-government/leadership/
How effectively do informal coordination mechanisms complement formal mechanisms of interministerial coordination?
10
9
9
Informal coordination mechanisms complement formal mechanisms of interministerial coordination.
8
7
6
7
6
In most cases, informal coordination mechanisms complement formal mechanisms of interministerial coordination.
5
4
3
4
3
In some cases, informal coordination mechanisms undermine formal mechanisms of interministerial coordination.
2
1
1
Informal coordination mechanisms undermine formal mechanisms of interministerial coordination.
Informal coordination mechanisms often complement formal interministerial coordination, contributing to the effectiveness of overall government operations. Informal coordination can take various forms, including ad hoc collaboration between ministries, bilateral meetings between high-ranking officials, and consultations between ministers from different coalition parties. The Cabinet Manual – the formal guidelines that govern procedures for government decision-making – explicitly promotes informal coordination by encouraging ministers and government agencies to seek informal advice from the Legislation Design and Advisory Committee during the early stages of the policy drafting process (Department of the Prime Minister and Cabinet 2023).
Citations:
Department of the Prime Minister and Cabinet. 2023. “Cabinet Manual.” https://www.dpmc.govt.nz/our-business-units/cabinet-office/supporting-work-cabinet/cabinet-manual
Citations:
Department of the Prime Minister and Cabinet. 2023. “Cabinet Manual.” https://www.dpmc.govt.nz/our-business-units/cabinet-office/supporting-work-cabinet/cabinet-manual
Graph View
To what extent does central government ensure that subnational self-governments meet national (minimum) standards in delivering public services?
10
9
9
The central government effectively ensures that subnational self-governments successfully meet national standards for public service delivery.
8
7
6
7
6
Most of the time, the central government ensures that subnational self-governments successfully meet national standards for public service delivery.
5
4
3
4
3
The central government rarely ensures that subnational self-governments successfully meet national minimum standards for public service delivery.
2
1
1
The central government does nothing to ensure that subnational self-governments successfully meet national standards for public service delivery.
New Zealand is one of the most centralized jurisdictions in the OECD. More than 90% of government workers are employed by central government organizations, and almost all citizen-facing public services – including policing, fire services, education and health – are central government activities. Almost all local regulation is undertaken by an agent of the central government, with little locally initiated regulation. This high degree of government centralization makes it relatively easy to enforce national standards in the delivery of public services.
The delivery of public services sometimes involves a degree of decentralization. In such cases, the central government monitors compliance with minimum standards using performance indicators and frameworks.
For example, in 2010, Whānau Ora was launched to enable a family-centered approach to supporting Māori well-being and development. A framework of indicators, outcome measures and funding allocation criteria was created, and the second stage of implementation in 2014 involved establishing three regional-level commissioning agencies to foster closer connections between communities in need and funding decisions. A Whānau Ora Partnership Group, comprising six iwi (Māori tribe delegates) and six government representatives, was also established to provide strategic oversight. It continues as the preferred model for delivering self-determined services to Māori families (Whanau Ora, 2023).
Another initiative involves the organization of the Ministry of Health, which sets national health policies and guidelines. Until mid-2022, district health boards (DHBs) had considerable autonomy in delivering healthcare services within their regions. Various indicators, such as waiting times for elective surgeries and patient satisfaction surveys, were used to assess the performance of DHBs.
Environmental services have also been partially devolved. While regulations and standards are set at the national level by agencies like the Ministry for the Environment, local councils implement these standards and regulations. Performance indicators in this area can include measures related to air and water quality or waste management.
The central government has mechanisms to address noncompliance with minimum standards, such as technical assistance or withholding funding. However, despite these mechanisms, the quality of public services can vary significantly between subnational units.
The Labour government under Ardern and Hipkins sought to centralize some public services. One notable example is the overhaul of the health system – which was seen as too complex and fragmented – and the merging of the 20 DHBs into Health New Zealand in July 2022. Under the new model, Health New Zealand will manage all health services, including hospital and specialist services and primary and community care (Martin 2022). Another example is the proposed Three Waters reform, which aimed to consolidate the ownership and management of drinking water, wastewater and stormwater services. The goal was to enhance the quality, reliability and safety of these services across New Zealand. However, the proposal sparked heated debates among stakeholders and was significantly revamped before the 2023 election. The provision of higher education offerings in the vocational sector was also in the process of being centralized under Labour.
There are ongoing discussions about improving public service delivery in Māori communities, which generally lag on socioeconomic measures such as education, health and housing. For instance, the Labour government established the Māori Health Authority (Te Aka Whai Ora) to address disparities in health outcomes for the Māori population. It also sought a co-governance model between the Crown, Māori and local councils for the delivery of the Three Waters model. However, the new coalition government led by National has indicated that it will abolish both these initiatives (Hill 2023; RNZ 2023).
Citations:
Hill, R. 2023. “Election could bring massive change for Māori health services.” RNZ, October 12. https://www.rnz.co.nz/news/te-manu-korihi/499995/election-could-bring-massive-change-for-maori-health-services
Martin, H. 2022. “Cheat Sheet: How New Zealand’s Health System Is Changing.” Stuff, June 18. https://www.stuff.co.nz/national/health/300614631/cheat-sheet-how-new-zealands-health-system-is-changing
RNZ. 2023. “National pledges to scrap Three Waters and ‘deliver local water well’.” 15 February. https://www.rnz.co.nz/news/political/484842/national-pledges-to-scrap-three-waters-and-deliver-local-water-well
Whanau Ora. 2023. “History of Whanau Ora.” https://www.horoutawhanauora.com/history-of-whanau-ora/
The delivery of public services sometimes involves a degree of decentralization. In such cases, the central government monitors compliance with minimum standards using performance indicators and frameworks.
For example, in 2010, Whānau Ora was launched to enable a family-centered approach to supporting Māori well-being and development. A framework of indicators, outcome measures and funding allocation criteria was created, and the second stage of implementation in 2014 involved establishing three regional-level commissioning agencies to foster closer connections between communities in need and funding decisions. A Whānau Ora Partnership Group, comprising six iwi (Māori tribe delegates) and six government representatives, was also established to provide strategic oversight. It continues as the preferred model for delivering self-determined services to Māori families (Whanau Ora, 2023).
Another initiative involves the organization of the Ministry of Health, which sets national health policies and guidelines. Until mid-2022, district health boards (DHBs) had considerable autonomy in delivering healthcare services within their regions. Various indicators, such as waiting times for elective surgeries and patient satisfaction surveys, were used to assess the performance of DHBs.
Environmental services have also been partially devolved. While regulations and standards are set at the national level by agencies like the Ministry for the Environment, local councils implement these standards and regulations. Performance indicators in this area can include measures related to air and water quality or waste management.
The central government has mechanisms to address noncompliance with minimum standards, such as technical assistance or withholding funding. However, despite these mechanisms, the quality of public services can vary significantly between subnational units.
The Labour government under Ardern and Hipkins sought to centralize some public services. One notable example is the overhaul of the health system – which was seen as too complex and fragmented – and the merging of the 20 DHBs into Health New Zealand in July 2022. Under the new model, Health New Zealand will manage all health services, including hospital and specialist services and primary and community care (Martin 2022). Another example is the proposed Three Waters reform, which aimed to consolidate the ownership and management of drinking water, wastewater and stormwater services. The goal was to enhance the quality, reliability and safety of these services across New Zealand. However, the proposal sparked heated debates among stakeholders and was significantly revamped before the 2023 election. The provision of higher education offerings in the vocational sector was also in the process of being centralized under Labour.
There are ongoing discussions about improving public service delivery in Māori communities, which generally lag on socioeconomic measures such as education, health and housing. For instance, the Labour government established the Māori Health Authority (Te Aka Whai Ora) to address disparities in health outcomes for the Māori population. It also sought a co-governance model between the Crown, Māori and local councils for the delivery of the Three Waters model. However, the new coalition government led by National has indicated that it will abolish both these initiatives (Hill 2023; RNZ 2023).
Citations:
Hill, R. 2023. “Election could bring massive change for Māori health services.” RNZ, October 12. https://www.rnz.co.nz/news/te-manu-korihi/499995/election-could-bring-massive-change-for-maori-health-services
Martin, H. 2022. “Cheat Sheet: How New Zealand’s Health System Is Changing.” Stuff, June 18. https://www.stuff.co.nz/national/health/300614631/cheat-sheet-how-new-zealands-health-system-is-changing
RNZ. 2023. “National pledges to scrap Three Waters and ‘deliver local water well’.” 15 February. https://www.rnz.co.nz/news/political/484842/national-pledges-to-scrap-three-waters-and-deliver-local-water-well
Whanau Ora. 2023. “History of Whanau Ora.” https://www.horoutawhanauora.com/history-of-whanau-ora/
To what extent do national policymakers effectively collaborate with regional and local governments to improve the delivery of public services?
10
9
9
National policymakers work effectively with regional and local governments to improve the delivery of public services.
8
7
6
7
6
In general, national policymakers work effectively with regional and local governments to improve the delivery of public services.
5
4
3
4
3
National policymakers rarely work effectively with regional and local governments to improve the delivery of public services.
2
1
1
There is no effective multilevel cooperation between the central and subnational governments.
Because the government is highly centralized, effective collaboration between national policymakers and regional or local governments is less critical in New Zealand than in other democratic countries. In particular, New Zealand operates under a governance system that combines centralized policy direction and decentralized service delivery.
Nevertheless, formal coordination and consultation mechanisms are in place to facilitate engagement between subnational self-governments – such as local councils or regional authorities – and the central government regarding policy initiatives that directly affect them. Most importantly, Local Government New Zealand (LGNZ), the peak body representing local government interests, engages with the central government on behalf of local councils, advocating for their interests and participating in policy discussions. Moreover, during the development of legislation or policy reforms that affect local government, formal consultation processes allow subnational governments to submit feedback, concerns and suggestions.
There is also the National Iwi Chairs Forum, founded in 2005, which comprises the chairs of 71 iwi groups (Māori tribes). The Forum facilitates the sharing of information among iwi leaders through meetings held four times a year throughout the country. Additionally, the National Party government under Prime Minister John Key regularly met with the Iwi Chairs Forum from 2008 – 2017, and the Labour government continued this process.
Moreover, in 1999, Helen Clark’s government created the position of “minister assisting the prime minister on Auckland issues,” which was upgraded to a standalone position in 2002. Auckland is New Zealand’s largest city, with a population of around 1.5 million people. It contributes 38% of the nation’s GDP and is home to many of the service industries that support the country’s exporters and importers. The ministerial role lapsed under both the Key and Ardern governments between 2008 – 2022, but it was renewed under the Hipkins Labour government in 2023. The new National government reappointed a minister for Auckland in November 2023. This position is considered necessary to manage the various policy challenges facing the Auckland region post-COVID-19 (Auckland had longer and more lockdowns than the rest of the country), given its critical infrastructure issues and recent flooding.
Nevertheless, formal coordination and consultation mechanisms are in place to facilitate engagement between subnational self-governments – such as local councils or regional authorities – and the central government regarding policy initiatives that directly affect them. Most importantly, Local Government New Zealand (LGNZ), the peak body representing local government interests, engages with the central government on behalf of local councils, advocating for their interests and participating in policy discussions. Moreover, during the development of legislation or policy reforms that affect local government, formal consultation processes allow subnational governments to submit feedback, concerns and suggestions.
There is also the National Iwi Chairs Forum, founded in 2005, which comprises the chairs of 71 iwi groups (Māori tribes). The Forum facilitates the sharing of information among iwi leaders through meetings held four times a year throughout the country. Additionally, the National Party government under Prime Minister John Key regularly met with the Iwi Chairs Forum from 2008 – 2017, and the Labour government continued this process.
Moreover, in 1999, Helen Clark’s government created the position of “minister assisting the prime minister on Auckland issues,” which was upgraded to a standalone position in 2002. Auckland is New Zealand’s largest city, with a population of around 1.5 million people. It contributes 38% of the nation’s GDP and is home to many of the service industries that support the country’s exporters and importers. The ministerial role lapsed under both the Key and Ardern governments between 2008 – 2022, but it was renewed under the Hipkins Labour government in 2023. The new National government reappointed a minister for Auckland in November 2023. This position is considered necessary to manage the various policy challenges facing the Auckland region post-COVID-19 (Auckland had longer and more lockdowns than the rest of the country), given its critical infrastructure issues and recent flooding.