The Ministry of Cities, Environment, Regions and Transport (MCERT) will combine the ministries of environment, transport, housing and urban development (HUD) and the local government functions of the Department of Internal Affairs (DIA).
Housing, Transport, RMA Reform and Infrastructure Minister Chris Bishop said today that much of the government's reform work spanned multiple agencies.
"For example, solving our housing crisis is impossible without fundamental planning reform, which is currently the responsibility of the Ministry for the Environment [which looks after city, district and regional plans].
"It is also impossible without reforms to infrastructure funding and financing [currently split across HUD, DIA and Transport]."
The current system was too fragmented and uncoordinated, he believed.
"New Zealand is very well served by outstanding public servants in all of these agencies doing their best to serve ministers and the public in difficult circumstances. My experience is that they are often as frustrated as ministers are by the duplication, overlapping responsibilities and lack of coordination."
Bishop told RNZ's Midday Report programme that the public service was currently not geared up to tackle challenges such as housing affordability, infrastructure deficit and adaptation to climate change.
"All of these agencies essentially operate in silos whereas, in reality, all of their interactions have something to do with each other.
For example to sort out housing issues, you needed to work across multiple agencies - not just with the Ministry of Housing, he said.
The Ministry for the Environment looked after city and district plans and the planning system, housing was also connected to transport which was an entirely separate ministry, he said.
Climate change touched "everything from housing to transport, how we build more resilient infrastructure for example" and although it was currently dealt with by the Ministry for the Environment it impacted a range of portfolio areas, he said.
Asked how such a large ministry would ensure that issues did not get ignored, Bishop said it would be an operational issue which would be over to the agency's new chief executive who would be hired in the new year.
"But what we want is much more integrated advice."
Bishop said job losses were not driving the change but "clearly we will be looking for back office efficiencies" as the agencies are merged.
Public Services Minister Judith Collins said the new ministry would deliver the best results for taxpayers.
"We are investing to ensure its success and, while it is not intended as a cost-cutting exercise, we do expect to see efficiencies in the medium to long term."
A chief executive would be appointed in the first half of 2026, with the MCERT fully operational by July next year.
Public service staff uneasy
In a statement this afternoon, the PSA union said the super ministry and the government's intention to set up a Digital Delivery Agency would affect "hundreds" of public servants.
Public Service Association Te Pūkenga Here Tikanga Mahi national secretary Duane Leo said with so little detail in the announcement, staff at the affected government agencies would now have a lot of questions about their future.
"That uncertainty is leading to unease among staff. We are already hearing from our members that they are fearful about their job security and frustrated that this is being done right before Christmas."
Public Service Commissioner Sir Brian Roche has acknowledged staff concerns and a commitment to work closely with the union in an email to the PSA Secretariat today.
"We welcome this commitment from Sir Brian Roche and will be engaging with the commission and employers to uphold our members rights," Leo said.
It was important that the government did not use the creation of the new agencies merely as another cost-cutting exercise, which has driven past restructures over the previous two years, he said.
"The government must ensure these vital public services are properly resourced so the new agencies and the public servants who work for them can deliver for all New Zealanders."
- RNZ and Allied Media
