Annex 2: Structures - Archives New Zealand; National Library of New Zealand

Annex 2: Structures - Archives New Zealand; National Library of New Zealand Context Archives New Zealand 1 Archives New Zealand (Archives) was established as a stand-alone department in 2001. Previously Archives was located within the Department of Internal Affairs (DIA). 2 The changes were made as part of a realignment of a number of historical and cultural functions within government. They stemmed from a background of litigation in 1998 between Archives and Records Association of New Zealand and the Society of Genealogists and DIA concerning the incorporation of the National Archives into the Heritage Group (of DIA) and the transfer of appropriation between output classes. 3 Archives is relatively small employing 147 staff, and with a budget of $23m. 4 Archives contributes to public confidence in the integrity of government through enabling government to be held accountable for its actions and decisions. Archives does this by ensuring that full and accurate records of the affairs of government are appropriately created, maintained, kept secure and preserved by public offices during the business life of that information, and then preserved and made accessible by Archives in perpetuity for records of ongoing significance. In addition, secondary outcomes are to contribute to heritage/identity outcomes through the access to and use of these records. 5 The Chief Archivist is a statutory role. He or she has a number of powers to set standards and direct the actions of agency chief executives in respect of records management and to report to Parliament on the quality of record keeping and compliance with the Public Records Act. Of particular note is the duty of the Chief Archivist to act independently in relation to disposal of public records. This statutorily independent role is needed to assure the integrity of the historical record of government. National Library of New Zealand 6 The National Library of New Zealand (National Library) was established as a standalone department in 1988. Following its formation as an entity in 1965, the National Library had been administered by the former Department of Education. It retains strong links with the Ministry of Education. 7 National Library has 383 staff (356 FTEs) and a budget of $70m. 8 National Library s major objectives under the National Library of New Zealand Act 2003 are to enrich the cultural and economic life of New Zealand and its interchange with other nations, by collecting, preserving and protecting documents, particularly those relating to New Zealand and make them accessible for all the people of New Zealand, in a manner consistent with their status as documentary heritage and taonga. The Alexander Turnbull Library, an integral part of the National Library, has collections valued at almost $1 billion. 9 The National Library supplements and furthers the work of other libraries in New Zealand. National Library s activities are focussed on the education sector; the

galleries, libraries, archives and museums sector; and tertiary and research information sector. It has provided strong input to the government's digital strategy. 10 The National Librarian is a statutory role. The functions of the National Librarian include developing and maintaining national collections of documents, making the collections of the National Library accessible, and advising and assisting the Minister on matters relating to library and information issues. The Chief Librarian of the Alexander Turnbull Library (ATL), the Guardians of the ATL, and the Library Information Advisory Council (LIAC) also have statutory functions. Problem 11 Although Archives and National Library are well performing departments, they are not configured to optimise their: contribution to economic prosperity (e.g. to drive data and information re-use and optimising the use of data and information). Across all agencies, the government could easily lose costly and hard to collect information investment in 21st century technology and business models. Collaboration between agencies has been shown to be a necessary but insufficient condition in the achievement of urgency, step change, economies of scale, joined up ICT infrastructure and service development. Objectives 12 Government held information has the potential to be accessed and re-used by citizens to create economic and social benefits. To realise this potential, government must carefully plan how that information is organised, managed and accessed. Citizens should be able to trust that their documentary heritage and public record is collected, secured and preserved sustainably and with integrity. They should have access to information that is critical to an effective functioning society. And they should enjoy the economic and social benefits of information that is well managed and that leverages public investment. 13 For this to happen effectively, several steps are required: to ensure coordination across government using the appropriate methods, the leadership of strategy and policy for the use and re-use of government information should be combined with capacity and skills in the storage, preservation and retrieval of information new skill sets in information management and the supporting ICT technology need to be developed and maximised. 14 The overall objective of the options presented is to improve services received by citizens, while at the same time achieving improvements in policy coherence, resilience, and cost effectiveness and to build a solid platform for further consolidation over time. Options 15 Several options were considered before focussing on the two options presented below. These included: splitting functions of Archives and/or National Library across several departments 2

leaving the two agencies as they are, but requiring them to share services and facilities with each other or amongst a group of agencies transforming Archives and/or National Library into Crown entities or a merging them into a single Crown entity Archives becomes part of DIA while the National Library becomes a part of MCH or Ministry of Education (MOE) a new Ministry of Information, Research and Culture established. This option meets the vision for streamlining Archives and National Library. It would potentially merge Archives, Land Information New Zealand, Statistics New Zealand, Ministry of Research Science and Technology, Ministry of Culture and Heritage and the population-related ministries into a single information oriented department. The main disadvantages of this option are: (a) the cost of setting up a new department and a new Ministerial portfolio; and (b) the need to take a big bang approach to the information vision. Subject to later decisions, consideration can be always be given to DIA becoming the host for this option. Option 1: Archives New Zealand and the National Library amalgamate into a single department 16 Archives and National Library would amalgamate to become a new department under a single chief executive. The department would have approximately 510 FTEs. 17 Several structural models could be developed, as there is considerable overlap at the moment between front line, professional technical and corporate services. 18 Statutory roles (Chief Archivist and National Librarian) would be retained, with minor changes to legislation, by the chief executive of the new department. The Alexander Turnbull Library would continue to report to the National Librarian and maintain the current statutory arrangements. The Archives Council, Alexander Turnbull Library Guardians, and LIAC would be retained. Option 2: Archives New Zealand and the National Library are amalgamated into the Department Of Internal Affairs 19 Archives and National Library would be amalgamated into DIA. DIA would increase in size to over 1,900 FTEs. 20 Several structural models could be developed that feature DIA s hub and spoke arrangements, a new approach to information services, and the alignment of informational services with other DIA outcomes relating to communities, identity and the support of executive government. 21 The statutory roles (Chief Archivist and National Librarian) would be retained, with suitable changes to legislation, and would be held by either officers within DIA or by the chief executive of DIA. The former is more likely given DIA s current experience with statutory officers (for example, the Director of Civil Defence Emergency Management). The remainder of the statutory requirements would be as outlined for Option 1. 3

Service Department of Internal Affairs 22 DIA has the ability to provide smaller government agencies and functions with support and the ability to scale activities across whole of Government. 23 DIA s aim is to be a recognised leader in the public service known for innovation, essential to New Zealand, and trusted to deliver. To advance this DIA has to be recognised as a leader in providing high quality services to New Zealanders and their communities and as a leader within the public sector for supporting other agencies succeed. 24 In particular, DIA s commitment is to deliver better, smarter public services in ways that allow New Zealanders to be confident in the integrity of Government. 25 A recent performance improvement review noted that DIA is seen as a reliable service delivery agency that has absorbed additional functions. It notes that there is a limit to the extent to which DIA can absorb further functions within the existing structure and that any significant further functions and activities will require DIA to step back and review its overall business strategy and structure. This is a necessary requirement, but also an opportunity to potentially reshape a department to take responsibility for an increasing range of functions. 26 DIA s hub and spoke arrangement enables clustering of functions when appropriate supported by mature and efficient shared services: it supports all-of-government leadership clustered around key areas of expertise such as information management and procurement. 27 If Archives and National Library were merged into DIA, this arrangement would become a platform to exploit the links between information, citizenship, diverse communities and New Zealand s heritage, all while guaranteeing that the statutory duties of Archives and National Library continue to be met. Comparison of Options Benefits 28 The following table presents a comparative summary of the two options against the overarching reform objectives summarised in paragraph 7 of the main paper: improved quality and effectiveness of services; responsiveness to Ministers (integrated policy advice and action); functional and agency resilience; efficiency and cost. Option 1 Amalgamate Archives New Zealand and National Library into a single department Single user access experience Shared Reading/Research facilities; shared and increasingly online service Co-ordinated services from other providers (e.g. 3rd party services and content) Option 2 Amalgamate Archives New Zealand and National Library into DIA As for Option 1 plus: Potential to link to other DIA service areas in community, identity and executive government 4

Efficiency and cost. Resilience Policy Responsiveness Option 1 Amalgamate Archives New Zealand and National Library into a single department Information advice leadership across the public sector. A focus for collaboration with information oriented departments such as DIA, LINZ, and SNZ. Shared stakeholder management (e.g. Iwi, communities, Minister s office). Heritage responsibility of the two agencies is united. Canadian model provides policy examples Joint repositories and specialist facilities (e.g. preservation workshops, digitisation labs, film/av handling etc, shared specialist equipment/systems such as NDHA) Better formed expert information management leadership including Digital Continuity Action Plan, Digital Content Strategy, government information re-use Improved capacity and quality of policy & strategic thinking, including KPI & analysis Career opportunities, succession planning, training and development of specialist staff. Ensures investment decisions across common functions are fully informed of relevant opportunities, benefits and risks Shared front-end facilities: buildings rationalised regional presence, shared facilities, use of 3rd party accommodation Common facilities management Efficiencies at senior level with one CEO and management team. Rationalised back office functions (outsourced, centrally provided (e.g. by GTS), or in-house) for HR, Finance, IT infrastructure & support, building & facilities management, purchasing, strategic planning, policy, internal information services, project/programme management, official request/ministerial tracking etc Single future customer Call Centre Option 2 Amalgamate Archives New Zealand and National Library into DIA As for Option 1 plus: A single leadership point puts DIA at the centre of information policy and avoids the costs and uncertainties of collaborations. More effective across Government via the greater influence of a larger department Platform for the development of systems for a wide range of information (past, present and future), aligned to national identity, economic and social development. Platform for the later incorporation of other information, heritage and culture agencies As for Option 1 plus: DIA has the processes, technology, leadership and management capability, at scale, to support the functioning of diverse information based organisations. Whole-of-govt preferred supplier arrangements for off-site storage, EDRMS shared services/systems etc Strong ICT support (through GTS) enhances and future proofs technology-based delivery. Potential for wider leadership role in information management including the potential for the development and strengthening of centres of excellence in areas such as information management, web service delivery and shared services. As for Option 1 plus: Further efficiencies at senior level with one CEO and management team. DIA well positioned to extract further efficiencies from the integration of common functions, while ensuring that they continue to maintain their own identities and develop their own unique technology and process capability. DIA itself well positioned to take advantage of other shared service initiatives without reducing its scale and resilience in specialist, policy and service oriented areas. Reduced cost at a system-wide level from reduction in number of organisations. 5

Risks 29 The following table identifies risks/challenges associated with the options, and summarises the mitigation factors or actions under each action. Risk/Challenge Option 1 Mitigations Option 2 Mitigations Legislative ability to ensure the responsibilities of the Chief Archivist can be appropriately conducted. Reduced accountability and integrity of government caused by failure to keep appropriate records or protect sensitive information Archivists less able to provide independent advice to Minister National Librarian less able to provide independent advice to Minister on legislative responsibilities e.g. legal deposit Special provision is required for the Alexander Turnbull Library Practical structural impact on statutory responsibilities of the Chief Archivist I.e. placing the position within an organisation so as to impact on the mana /influence/authority required to persuade CEs, lead information management thinking etc Responsiveness and innovation expected by user communities Stakeholder concerns around guaranteed continued access, protection, trust and integrity, confidence in independent advice & decisions. Nb., Stakeholders include: individual readers/researchers; professional records community, and professional associations and groups (e.g. RMAA, ARANZ, NZSOG, LIANZA); Maori; Other agencies) Ensure appropriate provisions in the Public Records Act and National Library of New Zealand Act regarding statutory roles. Public assurance and statutory protection unchanged including that of the Alexander Turnbull Library (ATL) and ATL Guardians. Consultation with stakeholders during the development of the implementation plan, and legislative change programme. As for Option 1 plus: In particular - maintaining provisions for independent audit of the agency s own records (s34) continue to apply to Archives records and be applied to all the records of DIA. Separate votes Ensure appropriate provisions in National Library Act Not a significant concern DIA already has a variety of accountability relationships, statutory officers and delegated decision making. DIA also works with multiple Ministers. Merger is focussed on service. Services aligned to users Build on experiences of Archives Canada as the international trendsetter. Structure and services based on a partnership that delivers the critical functions of both predecessors. Policies that balance integrity and security vs. National Library s open access. No change to committees such as the Archives Council, LIAC and ATL Guardians. Emphasis on programmes of interest to all stakeholders- e.g. National Digital Heritage Archive Senior level placement of statutory roles. Maintaining a separate Vote appropriation/output class DIA already has diverse functions and well developed internal shared services. DIA hub and spoke culture fosters user focus, innovation and creativity. As for Option 1. Note that DIA has diverse stakeholders relating to the many functions and activities it undertakes. Stakeholder surveys indicate strength in this area. 6

The Case for Option 1 (Amalgamate into single department) 30 Option 1 provides opportunities to deliver joint services, to make savings from combining back-office support services, and some delivery services including conservation of materials, storage, reading rooms; gallery and exhibition space. There is also scope for combined ICT solutions to digital challenges. To some extent the two departments have already started down this path with collaboration between the agencies on several projects (policy, outreaches, and shared outcomes with Te Papa). 31 The model already has a well-regarded precedent in Library and Archives Canada which operates as one organisation with a shared public interface, web presence and technical infrastructure. 32 Option 1 also has the advantage of an easier and more staged change process. At a later stage when the benefits of the amalgamation are accepted by stakeholders and joint systems developed, the merged department could be merged again into a larger department such as DIA or into a larger information ministry as outlined in paragraph 15 above. The Case for Option 2 (Amalgamate into DIA) 33 Option 2 offers all of the benefits of Option 1. In addition, it creates a strong platform and focussed leadership on which to base the vision of information services to citizens. Through its responsibilities in Identity Services in particular, DIA is experienced in being the trusted custodian of New Zealanders records and information. Through its role with Government Technology Services it has the capability to bring enhanced technology to collecting, storing and preserving records and information, and enabling their reuse and repurpose to bring forward new thoughts, ideas and economic opportunities. In addition, DIA has developed strong experience in the development of standards and processes, and in providing policy advice in support of a wide range of functions. 34 Option 2 has the advantage of potentially wider and deeper cost savings for example the back office overhead can be spread across a wide number of functions. Moreover reducing fragmentation of agencies has system wide benefits. Looking further ahead Option 2 creates a platform for the later incorporation of other small agencies in the information and heritage sectors. 35 Option 2 has more risk than Option 1. While the current statutory independence of the Chief Archivist and National Librarian and prominence of ATL can be ensured with appropriate changes to legislation, stakeholders will perceive that their concerns and interests could be diminished in a large multifaceted organisation such as DIA. This has been a fraught issue in the past. 36 DIA has an established culture through its long history of merger, integration and even divestment of functions. DIA already has a wide range of responsibilities, broadly defined as to serve and connect citizens, communities and government. Over recent years DIA has developed a one organisation focus, a capability specifically developed so that whatever functions are added, the organisation can contribute to that function being more effective and efficient. Most recently, in July 2009, DIA successfully absorbed the Government Technology Services functions and staff from the SSC. 7

Implementation 37 Both options are worth pursuing, but Option 2 has more scalability - further functions can be added relatively easily now and in the future, whole of government impact, and potentially more savings from consolidation of activities, and is therefore SSC s preference. 38 To ensure that Option 2 delivers the benefits outlined for Option 1, these will be amongst the success criteria used in the implementation planning of Option 2. 39 A well considered and well-led implementation plan is the key to the success of Option 2. Any decision to amalgamate functions with DIA needs to allow the accountable chief executive implementation flexibility. Implementation Risks /Challenges of Option 2 Mitigation Difficulty in realising the proposed financial savings Learnings from the GTS merger with DIA Stakeholder perceptions that their interests are somehow diminished in a large multifaceted agency like DIA Stakeholders mount public campaign against move to DIA Comments about the original purpose of setting up Archives (2001) and National Library (1988) as standalone agencies. References to the high court proceedings in 1998. Stakeholders are likely to have similar concerns about option 1 Potential disruption to current major work projects (e.g. National Library building and cultural reengineering project, Archives PRA audit function establishment, Digital Continuity Strategy) Distraction (of people and some financial resources during process) reduces progress on other initiatives promised to Ministers (e.g. collaboration with Te Papa, LINZ transfers, support of crossgovernment EDRMS projects). Resolving significantly different and embedded management philosophies and work cultures DIAs capacity to absorb two significant functions and a large number of staff in a short period of time, and as clip-ons to its current structure DIA currently planning its future accommodation needs Option 1 benefits used as success criteria for Option 2. As part of a transition process for Archives to join DIA, the Commissioner can direct the Chief Executive of the Department of Internal Affairs to act in the position of Chief Archivist and Chief Executive of Archives New Zealand under s40 of the State Sector Act, in addition to his substantive position. Active intervention and communication with stakeholder groups by Acting Chief Archivist and National Librarian. o o o Messaging: Reassurance of public and staff that archival expertise is currently in both organisations and will be strengthened by the merger. National Library was established in 1965 and moved to a separate department in 1988. Digital and information technologies have substantially changed since then. Existing joint projects with MoE will not be compromised. Statutory protections for the Chief Archivist Additions of Archives NZ and National Library to DIA can be sequenced. Comprehensive change management, including staff consultation. DIA is an experienced merger change manager. Transfer of staff whole. Disestablishment of positions, change of duties new roles occur in the new department DIA currently accommodates successfully multiple approaches within its diverse functions. DIA to have the flexibility to design a comprehensive implementation plan 8

40 With regard to legal, financial and other planning, the following principles would be adopted. Legal planning 41 Both Option 1 and Option 2 require the following: minor legislative change to the State Sector Act 1988, Public Records Act 2005 and the National Library of New Zealand Act 2003 to recognise that Archives New Zealand and the National Library of New Zealand will no longer be departments of the Public Service and to address transitional matters such as technical redundancy continued functions and powers related to the Chief Archivist, including the provision for the Chief Archivist to act independently (not subject to directions from the Minister, in relation to the disposal of public records); the provision for the Archives Council; independent audit; and disposal of records continued functions and powers related to the National Librarian; Alexander Turnbull Chief Librarian; purposes of Alexander Turnbull Library; Guardians of Alexander Turnbull Library; and the Library and Information Advisory Commission. 42 Option 2 requires, in addition, minor legislative change to provide for the Chief Archivist and National Librarian not to be chief executives of a department. Financial planning 43 The following principles would apply to the financial planning: Planning achieve a reduction in total, aggregated baselines for affected agencies permanently flowing through into out-years (i.e. beyond 2013/14), reflecting the ongoing savings any initial costs arising from the merger (e.g. redundancies, re-branding, new computer system requirements) would need to be totally offset by savings within the current baseline period (2009/10 to 2013/14) to ensure there was no adverse impact on Budget allowances (operating or capital). Preferably merger costs would be more than offset, leading to net savings over the period 2009/10 to 2013/14 that Ministers could apply to other priorities any regulatory (economic) impacts are relatively minor. 44 Related planning principles includes the following: if option one (amalgamation into single department): the chief executives of the respective departments plan and report in accordance with the arrangements in paragraphs 63-64 of the main paper to which this annex is attached; the desirability of an independent chair of the governance group, or other mechanism, would be considered to balance the respective interests 9

if option two (amalgamate into DIA): the chief executive of DIA would become acting chief executive of Archives and the Acting Chief Archivist. These duties can be delegated as required to appropriate Archives managers legislation progresses as quickly as possible by the end of March 2010, the Minister Responsible for the National Library, the Minister Responsible for Archives New Zealand and the Minister of Internal Affairs (all Portfolios currently held by Hon Nathan Guy) receive implementation plans (including DIA implications, quantification of costs and savings, communications with stakeholders, and consultation with staff). Consultation 45 The chief executives of Archives (acting), National Library and the Department of Internal Affairs were consulted in the preparation of this paper. Archives New Zealand 46 Archives New Zealand s views are expressed in the following points. Archives New Zealand supports the accountability of government by ensuring creation and good management of reliable records by government agencies, and providing permanent preservation for high value government records. To support this, the Chief Archivist has statutory powers to direct other chief executives, decide which records they can or cannot destroy, audit their information management performance and report publicly on this. These powers are more extensive and continually exercised than those of other statutory officers within (for instance) DIA and place the role of the Chief Archivist more akin to the Office of the Auditor General or the Ombudsmen. Trust and confidence that the role can be exercised with authority, with sufficient independence and without perceived interference are enhanced by the current arrangements. For this reason retaining Archives New Zealand as a stand alone, even if small, agency remains the optimal arrangement for this aspect of its work. Archives however also provides a range of services which are less directly connected to exercise of statutory authority, particularly around storage and delivery of access. These are very similar to activities carried out by the National Library, particularly the Alexander Turnbull Library. There is a level of fragmentation in the current arrangements that is not conducive to optimum investment decisions, e.g. for IT infrastructure, storage and preservation solutions. There is real potential to provide better services more efficiently by sharing capability. Option 1 could, if implemented carefully, provide benefits for both government and end users. Option 2 has potential to provide additional value through forming a government information services agency/sub-agency (e.g. Archives, Library and other information agencies over time), and leveraging on existing support base (e.g. GTS) for developing shared systems. 10

However, Option 2 will not deliver the full range of benefits identified unless Archives and National Library are merged within DIA rather than retained as separate units within DIA. National Library 47 National Library is in favour of Option 1 for the reasons stated and recommends that this happens regardless of whatever other options are approved. However it has serious concerns and reservations about Option 2. It considers the risks are too great from both government and stakeholder perspectives, and claims made for greater efficiency are speculative rather than proven. 48 In specific terms, the National Library s concerns revolve around: significant risks around stakeholder reaction for both Archives and National Library unconvincing arguments re efficiencies, scale, policy etc the majority of the savings would come from the amalgamation of Archives and the National Library poor alignment with DIA s core purpose and business (very fragmented) compromises reputation, identity and coherence of the three national cultural institutions in New Zealand government not achieving the step change it is looking for perceived to be a bureaucratic structural answer and a lost opportunity for real step change risk to the broader cultural, heritage and research functions of the National Library if located within DIA with a focus on information management, particularly government information concerns that relationships with education, research and Galleries, Libraries, Archives and Museums sector will be dissipated and that an international reputation as agile, innovative, small and smart will be compromised in an unaligned merger with DIA. 49 National Library recommends that serious consideration is given to the option of a Ministry of Information, Research and Culture that would bring nine existing ministries into one as described in paragraph 15. Department of Internal Affairs 50 DIA in general supports the conclusions though it believes the logic or the strength of the case can be made more forcefully. There is merit in the outcome that Government strengthens its management, access and preservation of its records. Creating a focused, scale-able information management function within DIA, driven by an empowered chief executive is the best option for its achievement: underpinned and supported by GTS and shared services provided by the host department. This would enabling economies of scale and, more significantly, concentration and leveraging of expertise. 51 In terms of execution and implementation, it is difficult at this stage to make black and white statements about process, timing, sequencing etc. This has to be planned very 11

carefully, in consultation with stakeholders. The option of 'clip-on and then integrate' may not be the best solution. Costs and risks will also require much more analysis including clear success criteria - e.g. what will success look like? A benefits realisation exposition and timeline will be imperative in managing expectations. Other agencies 52 The Treasury was consulted on the preparation of this paper. The Department of the Prime Minister and Cabinet was informed. No external stakeholders have been consulted at this stage. Conclusion 53 Two options are presented that streamline Archives and National Library. Both have at their heart a vision of the way the government manages its information, and the economic and social benefits that could result. Option 1 is the merger of Archives and National Library into a single department. It has the potential to realise the lion s share of the vision, and to be a stepping stone to a further merger with DIA or other departments. This option is preferred by the chief executive of the National Library. Option 2 is the merger of Archives and National Library into DIA. It has all of the potential of Option 1, but with more scalability and whole of government impact, and potentially more savings from consolidation of activities. This option is preferred by the SSC. 54 Option 2 has more risk stakeholders and staff may not consider DIA to be an appropriate agency for such important statutory functions and may think that DIA is too fragmented to give their sectors enough prominence. An integral point of emphasis for this option is to give the accountable chief executive the flexibility and time to prepare a detailed implementation plan, working directly to the accountable Minister. 12