Diversity requirements proposed to be cut in Judith Collins’ Public Service Act overhaul

Judith Collins downplayed the importance of the agreement with the Philippines. Photo / Mark Mitchell

Diversity requirements proposed to be cut in Judith Collins’ Public Service Act overhaul

Author: Azaria Howell,
Publish Date: Tue, 13 May 2025, 5:00am

A top minister is looking into scrapping key diversity requirements within the public sector as part of an overhaul into legislation guiding public servants and Government agencies.

Public Service Minister Judith Collins is exploring removing requirements to consider diversity and inclusion when hiring chief executives, instead, focusing more on “merit-based” appointments across the public sector.

Proposed reform includes no longer requiring public sector bosses to “promote” diversity and inclusion.

Such requirements were called out by Deputy Prime Minister Winston Peters, who labelled them “woke”.

A Member’s Bill lodged by New Zealand First aimed to “put an end to the woke left-wing social engineering and diversity targets in the public sector“, according to Peters.

Prime Minster Christopher Luxon agreed, saying when the new Government took the keys to the place, “it was pretty woke”.

He passed the baton to Collins, saying they wanted to make sure the public service was a “meritocracy”.

Now, Newstalk ob��ӿ� can reveal details of the proposed overhaul of the Public Service Act, according to ministerial Cabinet Papers written by Collins, who took over the public service portfolio from Nicola Willis.

Currently, agency chief executives are guided by requirements to promote diversity and inclusion.

But Collins wants the act amended to drive better performance from agencies, which she said starts with greater contestability in hiring and having merit-based appointments, rather than those based on diversity.

In the document, Collins expressed concerns there had been a declining emphasis on political neutrality, professionalism, and financial stewardship.

“The Commissioner is required to consider diversity and inclusion in making chief executive appointments, rather than focusing solely on merit.”

The Cabinet Paper suggested considering diversity and inclusion when appointing a chief executive “could create tension with the requirement for the [Public Service] Commissioner to select the best candidate for a specific role”.

The Public Service Act calls on bosses to recognise public servants should reflect the makeup of society, and foster an inclusive workplace, including through “employment policies” and practice.

Collins wants this removed from the legislation, although the Cabinet paper notes these matters may still be addressed by workforce policy statements under future Governments.

The paper also points to concerns being raised with Collins about the “signal” that could be sent if diversity and inclusion sections of the act are cut, according to industry consultation undertaken by the Government.

The document said that the Government and Public Service Commissioner would still work for fair and just inclusion of people based on merit.

“[But] it is important to recognise that chief executives will remain responsible for employment relationships which treat all people with respect and dignity, and for creating an environment in which people are looked at in the round and given opportunities based on merit.”

The reform delivers on a coalition promise between National and Act.

In April, Collins suggested the current law was “impeding the public service from doing its best work” and holding economic growth plans back.

Changes Responding to the latest developments, Public Service Association national secretary Fleur Fitzsimons said the Minister was wiping years of progress focused on a more diverse public service.

“Successive governments have sought to build a workforce that reflects the New Zealand population that it serves so it is better able to deliver effective policies and services.

We all benefit from having a public service that’s informed by the expertise and experience of people from the diverse communities it serves," the union leader added, saying many groups of people are disadvantaged in employment due to bias and discrimination.

Changes to re-hiring agency Chief Executives included in the proposed sweep of reforms is a plan to ensure public sector bosses cannot be rehired or reappointed without a contestable hiring process.

Collins said in recent years, it had been “common practice” for chief executives to be reappointed when they are meeting the requirements of the role. Current legislation allows this to take place without a contestable process.

“This means that we cannot be assured of getting the best candidates for each role,” Collins said in the documents.

She admitted it could increase the cost and time taken for chief executives to be appointed, but could lead to better candidates being appointed.

It was suggested roles being advertised more often would allow for the market to be tested.

Reforms will propose removing the exception allowing a chief executive to be reappointed without contest. New rules would still allow an incumbent to apply for the role, but they would need to be assessed against other candidates to make sure they were best suited for the role.

The Cabinet Paper also proposes reducing the number of Deputy Public Service Commissioners to one, from two, as currently required.

The new Public Service Act is planned to no longer require agency chief executives to have policies recognising the importance of achieving pay equity between male and female employees, and the importance of remuneration decisions being free from gender bias. It was pointed out these matters could be better dealt with in policy statements, rather than the legislation itself.

Confirmation comes after significant backlash to the Government’s pay equity changes, which passed under urgency.

Fitzsimons slammed the matter, saying “It’s hard to understand how you can argue your policy is about treating everyone on merit when the public service pay gap based on the latest 2024 figures is 6.1%.”

Also proposed in the reforms is a requirement for public sector agencies to report annually to the Commissioner on misconduct investigations, for a report to be published on the matter.

Judith Collins expects to report back to the Cabinet in July with a draft bill and timeline for the overhaul of the legislation.

Azaria Howell is a multimedia reporter working from Parliament’s press gallery. She joined ob��ӿ� in 2022 and became a Newstalk ob��ӿ� political reporter in late 2024, with a keen interest in public service agency reform and government spending.

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