Support ethical government – private sector career transitions (NZ0034)

Brief Description of the Commitment

Produce a discussion document exploring the movement of individuals (elected and non-elected) between government and private sector roles, including lobbying, and identify potential options to support ethical transitions.

Problem Definition

Individuals (elected and non-elected) transitioning between roles in government and the private sector (informally known as the ‘revolving door’) generates a useful exchange of skills and perspectives. When well managed these transitions can enrich both sectors. New Zealand has comparatively few restrictions or regulations on individuals transitioning between government and private sector employment (in either direction), and the expectations on those making this move are not always clear. This creates two issues:

Disincentive on career transitions

A lack of safeguards may discourage individuals from moving between the public and private sectors if they cannot do so without taking on professional risk. Government benefits from learning from the private sector and from having individuals with government experience working in industry. To enable this exchange, it is important that people feel confident taking on public office or public sector roles, knowing they can safely transition to a career with the private sector.

Public trust risk

Poorly managed government-private sector transitions that are not ethically managed can undermine public trust in government. Risks can arise through real or perceived conflicts of
interest when individuals move into roles with insider knowledge or where they may use their connections to benefit their clients, or themselves, at the expense of the broader public interest.

There is limited understanding of how widespread these issues are, or what policy options might offer a proportionate and effective response to the potential risks. This commitment aims to address this lack of evidence and gather public input on potential options to mitigate risks and promote ethical career transitions between government and the private sector.

2. What are the causes of the problem?
Elaborate on your understanding of the causes of the problem. As much as possible, identify the root causes. Utilize problem analytical tools (e.g., problem tree, five whys, fishbone diagram, or other related methods) when necessary and provide evidence whenever possible.

A lack of clear expectations around career transitions causes the issues cited above. Low public confidence that these transitions are ethically managed has led to concern that New Zealand has insufficient safeguards to prevent the risks of the ‘revolving door’ phenomenon: potential misuse of privileged information and access to decision-makers that lacks transparency.

Independent research has highlighted the following factors which contribute to public trust risks with government – private sector career transitions:

• Potential growth in the local lobbying industry, though the lack of regulation around lobbying in New Zealand makes this difficult to quantify.10

• The concentration of executive decision-making power in New Zealand’s system.11

• Complacency around emerging issues (such as income inequality) and an informal approach to political integrity and access.

Commitment Description
1. What has been done so far to solve the problem?

There are some controls in place to address the two primary risks of government – private sector career transitions (potential privileged information and access to decision-makers that lacks transparency):

Misuse (or potential misuse) of privileged information

• The Public Service Code of Conduct requires information to be used only for proper purposes

o However, the Code applies only to current public servants, not former MPs, Ministers, or ex-public servants.

• The Cabinet Manual restricts former Ministers from disclosing official information not already in the public domain.

10 Thomas Anderson and Simon Chapple, Grease or Sand in the Wheels of Democracy? The market for lobbying in New Zealand, Policy Quarterly, 14 (2), 2018, p 13.

11 Max Rashbrooke, A Balance of Voices: Options for the Regulation of Lobbying in New Zealand, Health Coalition Aotearoa, 2024, p 23.

12 Philippa Yasbek, Shining a Light: Improving Transparency in New Zealand’s Political and Governance Systems, Helen Clark Foundation, 2024, p 22.

• Legal provisions (e.g., Crimes Act s78A, Summary Offences Act s20A) prevent unauthorised disclosure of official information but apply only in cases involving national security, public order, or economic stability.

Access to decision-makers
• A 2023 Ministry of Justice consultation identified the ‘revolving door’ between political and lobbying roles as a source of public distrust.

• The Cabinet Manual states that Ministers’ decisions should not be influenced by prospects of future employment.

• Current public servants may need to declare conflicts of interest from personal relationships with former colleagues now working in the private sector.

However, these controls have not resulted in any noticeable changes to public trust on this issue, or to the numbers of individuals moving between public and private sector role (noting that data on this movement is limited).

2. What solution are you proposing?
What will you do to solve the problem? How does this differ from previous efforts? In what way will the solution solve the problem? How will the solution solve the problem? Will it solve the problem in its entirety or partially? What portion of the problem will it solve, if not the whole problem?

The Ministry of Justice and the Public Service Commission will jointly develop and publish a discussion document that explores the risks of, and disincentives to, government - private sector transitions, including risks to public trust. It will seek public input on these issues and propose potential policy options to clarify expectations and tools to support these transitions while maintaining public trust.

Aspects of this build on the Ministry of Justice’s previous political lobbying work, but the proposed work expands the scope beyond just elected officials to include senior public servants, and looks to progress work on a specific aspect of lobbying regulation.

3. What results do we want to achieve by implementing this commitment?
What outputs would we like to produce? What changes in knowledge, skills, and capacities do we want to achieve? What changes in behavior, systems, and practices do we want to create?

We want to achieve:
• Improved public understanding of factors influencing government decision making in New Zealand.

• Clearer understanding of options to reduce risks of unethical transitions.

• Greater public confidence that risks arising from transitions between the public and private sector can be managed.

Commitment Analysis
Questions
1. How will the commitment promote transparency?

The discussion document will support citizen participation by engaging relevant groups and experts in exploring the issue, and proposing options to mitigate risks and improve transparency by clarifying current arrangements for government – private sector career transitions, identifying the scale of risk, and exploring options to support ethical transitions.

How will it help improve citizens’ access to information and data? How will it make the government more transparent to citizens?

2. How will the commitment help foster accountability?

The commitment will foster accountability by increasing visibility into the ‘revolving door’ phenomenon and any resulting influence on government decision-making. By publishing a discussion document that outlines current arrangements and explores options for reform, it enables greater responsiveness to public concerns.

3. How will the commitment improve citizen participation in defining, implementing, and monitoring solutions?

The discussion document will support citizen participation by engaging relevant groups and
experts in exploring the issue, and proposing options to mitigate risks and improve transparency.

Milestones | Expected Outputs | Expected Completion Date

Refine and scope the project: identify a project lead and key contact point for the work within PSC/MoJ identify key agency and civil society stakeholders to engage with (PSC). | Project plan and documents associated | May 2026

Establish a reference group (by invitation) to support development of the discussion document with reference to public service leaders’ transitions. | Reference group and terms of reference agreed. | May 2026

Background research, including drawing on international approaches | June 2026

Draft discussion document | Draft discussion document for engagement published | June 2026 | As above.

Public consultation | Summary of engagement noting key themes published | August 2026 As above.

Dissolve reference group | September 2026