Review of Police Administration and Management Structures - 1998

Review of Police Administration and Management Structures

Report of Independent Reviewer. 6 August 1998

Executive summary

1. The New Zealand Police is a very significant contributor to the Government's objective of improving public safety. As such, the Government is vitally concerned that the New Zealand Police has management and administrative structures that support, rather than inhibit, the delivery of quality policing services.

2. The resources involved in the New Zealand Police are substantial. Operating expenditure for 1998/99 is $740 million, with a total staffing of 8,934. Fixed assets, principally property, are valued at $481 million.

3. The review of the management and administrative structure of the New Zealand Police has identified potential savings of between $45 and $50 million in direct personnel costs. These savings, which do not affect frontline Police, primarily arise from:

   1. a proposed new and flatter organisational structure, characterised by:

      • a Commissioner's Office, which is focussed on the Government's strategic objectives, and which is concerned with securing performance in the delivery of policing services in support of these objectives;

      • ten to twelve Districts, each headed by a District Manager, whose focus is the delivery of quality policing services. The District Managers are empowered to make decisions on the delivery of policing services in their Districts, within an allocated budget. The accountability of the District Manager is reinforced by a direct reporting relationship to the Commissioner. The Commissioner, together with the District Managers and other senior staff, constitute the Operating Committee of the New Zealand Police;

      • the establishment of Service Centres which deliver, on a centralised basis certain support services required by the Districts; and

   2. the proposed outsourcing of non-core support services.

4. The proposed new organisational structure requires significantly fewer management and administrative staff than the current one. Between 380 and 450 positions are considered to be no longer required. The staffing reductions arise from a smaller, strategically focussed Commissioner's Office, the elimination of regions, and a leaner and consolidated District management and support structure.

5. The proposed outsourcing of non-core support services will have further staffing implications, which will occur progressively over two years. Between 200 and 300 staff are potentially affected by outsourcing.

6. The review has also considered the governance of the New Zealand Police, and in particular, ways of enhancing the accountability of the Commissioner of Police without compromising the Commissioner's constitutional independence on law enforcement. The Commissioner's accountability is diluted somewhat by uncertainties over the boundary between Government policy, which the Commissioner must follow, and Police operations. The favoured approach is to strengthen and extend the accountability framework contained in the Police Act and the State Sector Act, notably by:

   1. making the workings of the boundary between Government policy and Police operations more transparent by amending the Police Act to prescribe a process for dealing with an impasse between the Minister and the Commissioner (see paragraph 53(i)).

   2. amending of the Police Act to clearly set out its purpose, to define the role of the Police, and to more clearly specify the responsibilities of the Commissioner;

   3. bringing the Police Act into line with those provisions in the State Sector Act which enhance accountability including:

      • clarification of the appointment process for the Commissioner and Deputy Commissioners including issues of tenure and removal;

      • empowering the State Services Commissioner to review and report on the performance of the Commissioner of Police;

      • requiring the Commissioner of Police to report each year to the Minister on the financial performance of the Police; and

      • requiring the Commissioner to furnish a report on the operational components of New Zealand Police activities, and on issues which are subject to Ministerial direction.

7. A Ministerially appointed Advisory Board is also suggested for the purpose of scrutinising the New Zealand Police's corporate intentions, including proposed capital investments and divestments, and monitoring the adequacy of the business practices adopted by the New Zealand Police. The Advisory Board's views would be fed into the State Services Commissioner's review of the Police Commissioner's performance.

8. In summary, the changes proposed are designed to make the New Zealand Police more efficient, and more accountable for the delivery of quality Policing services in support of the Government's public safety objectives. Decisions on the uses to be made of the resources released from the proposed changes are, of course, for the Government to make.

9. The conclusions reached in the review have followed an extensive process of consultation. A draft report was released on 9 June, and attracted some 570 submissions from staff and persons outside of the Police. The draft report was significantly changed in a number of respects as a result of the many well considered submissions received.

Acknowledgments

The review team acknowledges:

1. the unequivocal cooperation of the Commissioner and senior staff in the review;

2. the high quality of the staff made available by the Commissioner to assist in the review, and indeed the quality of the staff generally;

3. that, while the report, of its nature, is critical in some respects, many of the issues identified were already the subject of analysis by the New Zealand Police, particularly in regard to organisational structure. The quality of the internal work greatly assisted the review; and

4. the time and effort devoted by many staff and outside persons in making submissions on the draft report.

The Review Team

The team consisted of:

1. Doug Martin, partner, Martin, Jenkins & Associates, reviewer
2. Sir Geoffrey Palmer, partner, Chen & Palmer (constitutional issues)
3. Mr Jack Jenkins, company director (business related issues)
4. Mr David Preston, formerly property consultant, Ernst & Young (property management)

Table of contents

A Introduction
    (i) Terms of Reference
    (ii) How the Review was Conducted
    (iii) Process of Consultation
B Issue Definition
    (i) Governance
    (ii) Organisational Structure
    (iii) Service Delivery
    (iv) Purchasing
    (v) Property Management
C Background
    (i) Structure and Resources
    (ii) Government Strategic Result Areas for Police
    (iii) The Police Strategic Plan
    (iv) District Plans and Purchase Agreement
    (v) Relationship with Other Public Sector Agencies
D Legislative Framework
    (i) Role of the Commissioner
    (ii) Police Accountability
    (iii) Operational Authority of the Police
E Submissions : Main Themes
    (i) Introduction
    (ii) New Zealand Police Staff Submissions
    (iii) External Submissions
F Governance
G The Organisational Structure of the Police
    (i) The Frame Work
    (ii) How the Structure of New Zealand Police was Reviewed
    (iii) The Preferred Option
    (iv) Analysis
    (v) Staffing of Preferred Option
    (vi) Staffing Reductions Generated by the Preferred Option
    (vii) Financial Savings from Staff Reductions in Preferred Option
H Training
I Outsourcing
    (i) Why Outsource
    (ii) New Zealand Police services that should be considered for outsourcing
J Purchasing of Supplies
K Property Management
L INCIS
M Other Initiatives - Policing 2000
N Summary of Savings
APPENDICES [not included in PDF below]
1 : Constitutional Issues Involving the Police
2 : Review of Property
3 : "Operating Assumptions for Structures and Service Delivery" and "Key Principles" - in relation to organisational structure