6. KANWALJIT SINGH BAKSHI (National) to the Minister for Economic Development: What action is the Government taking to improve co-ordination of the business growth agenda?

Hon STEVEN JOYCE (Minister for Economic Development) : Last week the Government confirmed its intention to establish the new Ministry of Business, Innovation and Employment on 1 July this year. The ministry will bring together the existing functions of the Ministry of Economic Development, the Ministry of Science and Innovation, the Department of Labour, and the Department of Building and Housing. The purpose of the new ministry is to assist the Government to drive forward its business growth agenda, and make it easier for businesses to engage with the Government.

Kanwaljit Singh Bakshi: What benefits can businesses expect to see from a new ministry?

Hon STEVEN JOYCE: Businesses can expect to see the Government moving faster to tackle the issues that matter to them. This will help grow competitive businesses so that we are better able to afford the sort of society we aspire to. Structure, of course, is only one part of the solution, but the current fragmented structure makes it harder to achieve the results New Zealand needs. In the medium term we expect the new ministry to deliver savings through the consolidation of corporate services of about $5 million to $6 million a year, and of policy capability of about $2 million to $5 million a year. Although obtaining savings is not what is driving this change, there will be efficiency benefits.