How New Zealand is venturing down the road of political upheaval

With the sudden departure of New Zealand’s Reserve Bank Governor, one has to ask whether there is a pattern here — of a succession of public sector leaders leaving their posts in uncertain circumstances and a series of decisions being made without much regard for due process.

It brings to mind the current spectacle of federal government politics playing out in the United States. Four years ago, we observed a concerted attempt by a raucous and determined crowd to storm the Capitol.

Now a smaller, more disciplined and just as determined band is entering federal offices in Washington almost unhindered, to close agencies and programmes and to evict and terminate the employment of thousands of staff.

This could never happen here. Or could it? Or has it and is it happening here? After all, we had an occupation of parliament, we had a rapid unravelling of a previous government’s legislative programme, and we have experienced the removal of CEOs and downgrading of key public agencies such as Kāinga Ora on slender pretexts, and the rapid and marked downsizing of the core public service establishment.

Similarly, while the incoming Trump administration is targeting any federal diversity agenda, in New Zealand the incoming government has sought to curb the advancement of Māori interests, even to the extent of questioning elements of our basic constitutional framework.

In other words, there are parallels, but also differences. This has mostly been conducted in a typical New Zealand low-key fashion, with more regard for legal niceties and less of the histrionics we see in Washington — yet it still bears comparison and probably reflects similar political dynamics.

Nevertheless, the departure in quick succession of three health sector leaders and the targeting of Pharmac’s CEO suggest the agenda may be getting out of hand. In my experience of close contact with the DHB system the management and leadership teams at the top echelon were nothing short of outstanding.

The Auckland District Health Board, as it then was, is the largest single organisation in Auckland — and the top management had to be up to the task. And they were.

Value for money
As for Pharmac, it is a standout agency for achieving value for money in the public sector. So why target it? The organisation has made cumulative savings of at least a billion dollars, equivalent to 5 percent of the annual health budget. Those monies have been reinvested elsewhere in the health sector. Furthermore, by distancing politicians from sometimes controversial funding decisions on a limited budget it shields them from public blowback.

Unfortunately, Pharmac is the victim of its own success: the reinvestment of funds in the wider health sector has gone unheralded, and the shielding of politicians is rarely acknowledged.