Radio New Zealand - Te Reo Irirangi o Aotearoa

More state sector mergers announced

Updated at 3:47 pm on 13 August 2011

The Government has confirmed it will go ahead with the merger of a number of small health sector agencies, but has backed away from a planned merger in education.

State Services Minister Tony Ryall has announced a raft of previously-signalled mergers which he says will save about $92 million over four years, with the loss of fewer than 40 jobs.

They include creating a health promotion agency to take over from the Alcohol Advisory Council and the Health Sponsorship Council, and disestablishing the Crown Health Financing Agency and transferring its functions to other departments.

The Mental Health Commission will be rolled into the Office of the Health and Disability Commissioner, while the Charities Commission will also disappear, with the Department of Internal Affairs picking up its work.

The Government has dropped a proposal to combine the Education Review Office with the New Zealand Qualifications Authority.

The Public Service Association is welcoming the government's decision not to merge two education authorities.

The PSA national secretary, Brenda Pilott, says the bodies are working well as they are and the decision is a welcome relief.

She says a merger would have caused costly organisational change and disruption.

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