Wednesday 5 November 2003

Rt Hon Helen Clark
Prime Minister

Address to

PSA's 90th Anniversary Dinner

Victoria University
Wellington
6.30 pm
Wednesday 5 November 2003

PSA past presidents and officers, executive board members, national secretaries, sector delegates, and distinguished guests.

Thank you for the invitation to address your dinner this evening.

This occasion is important for two reasons.

The first is that it celebrates the PSA's ninetieth birthday. Ninety years ago in 1913, a conservative government under William Massey was in power. It sent its forces in to control the miners' strike at Waihi that year, resulting in the loss of one life. Those were very difficult days for union organisation.

It is a major achievement for any organisation to survive for ninety years. That is particularly so in the union movement where waves of conservative governments have endeavoured to make collective organisation and action as difficult as possible. Nonetheless the PSA has endured as a strong and credible organisation, and I congratulate you on this significant anniversary.

The second reason this occasion is important is because we will tonight sign the renewed Partnership for Quality Agreement between the PSA and the Government. This also gives me the opportunity to place on record my personal appreciation of the PSA's contribution to employment relations, and to improving New Zealand's public services.

In the late 1990s, the PSA began looking at ways to break out of the negative relationships which were so common in the workplace at that time. The PSA sought to engage with state sector employers and with the government on a broad range of issues, and it raised hopes of working within a "partnership for quality".

This was a ground breaking decision. It took vision to be able to see a future which was not marred by the unfortunate experiences of the past, but was inspired by the possibility of future constructive relationships.

So, I do record my personal thanks to past and present PSA officers, members, and sector delegates who led the way.

We all have a stake in quality public services. Working together, we have every chance of reaching and maintaining high standards across the board.

Partnership means defining a relationship in terms of the many interests that the partners share. It also means that, when interests do not coincide, then each partner respects the other's right to have an independent view. That is much better than allowing the differences to dominate a whole relationship. It means working things out in an atmosphere of mutual respect and with a shared commitment to good faith.

The Partnership for Quality relationship, between the government and the PSA, is a model for what is possible in employment relationships.

It has been in place since May 2000. I believe it has generated benefits for both the government and the PSA membership. It has seen the government and the PSA work actively together on a variety of projects.

The Minister of State Services, Trevor Mallard has outlined those projects in detail in his speech to you earlier today. The highlights have included:

- The Review of the Centre process

- The Human Resource Framework Project

- The Pay and Employment Equity Taskforce.

Another of the highlights we are announcing for the first time today.

The government is to establish a new State sector retirement savings scheme. Cabinet approved the new scheme on 20 October, and it will become operational in July 2004.

This scheme is important to the government. Many state servants, like most employees in the private sector, have no employment-related superannuation. The chances are that their retirement income will be very modest indeed.

The government has decided to lead the way as a major employer in offering a superannuation scheme to its employees. The PSA sees the benefits for its members. Thus the new scheme is a good outcome for both of us.

And it is one of the fruits of the Partnership for Quality Agreement. The Government, the PSA, and other CTU unions have been working together to develop the scheme over the past year or so.

Employees joining the scheme will be able to choose their own level of contribution. The government will match employee contributions, up to a maximum of 1.5 per cent of salary in the first year, and up to three per cent of salary in the second year, less withholding tax. The Government plans to raise the level of employer contribution in the future, with the aim of eventually achieving a six per cent matching contribution from state sector employers.

I know that this scheme will help give future generations of retired New Zealanders much greater security, and I strongly support it. The scheme we have designed together is also a model which we would be delighted to see other employers develop.

Recently, the Minister of State Services and the PSA Secretariat have worked together to review the Partnership for Quality Agreement. They have developed a renewed agreement which builds on the initial agreement signed in May 2000. This renewed agreement aims to broaden and deepen the Partnership for Quality, and it sets out how the PSA and the government will engage as partners in the future.

The renewed agreement reflects the continuing commitment of the PSA and the government to work together to develop a modern, innovative Public Service which is highly successful for both citizens and public servants. The agreement also contains a work programme looking forward.

The work programme will include:

- An initiative to develop resources to support the promotion and advancement of partnership practices

- Engagement around public service triennial plans and long term budget planning

- Engagement on the implementation of the Human Resources Framework and on the Pay and Employment Equity Task Force five year plan of action due in early 2004.

These projects will lead, in future, to benefits for both the public service and the PSA.

This week your conference is looking at the future of work. This is yet another example of the PSA taking a strategic and innovative approach. I look forward to seeing the reports from the conference.

Thank you for the opportunity to address tonight's function.

ENDS

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