Contracts With Non Government Organisations – Compliance With Public Service Standards
Date of publication: November 2003
On 8 October 2003 issues were raised in Parliament about the propriety of Ministry of Health contracts with some antismoking groups that included clauses requiring the lobbying of MPs.
This report follows a review of the contracts concerned, and others entered into by the Ministry to determine if they have breached public service standards of political neutrality.
A) EXECUTIVE SUMMARY
1) To help achieve the Government’s outcomes the Ministry of Health has contracted with a number of Non Government Organisations (NGOs) for them to supply a wide variety of services. These services include the raising of community awareness through the provision of information and through media campaigns. They also include a role in the advocacy of public health policy and policy that is the subject of proposed legislation.
2) NGOs, in addition to their service delivery, advocacy and public information functions, frequently undertake lobbying activities in their areas of interest, particularly at the time of new legislation. This includes seeking to influence the views of Members of Parliament.
3) The Ministry of Health is subject to public service rules and Code of Conduct. One of its prime obligations is to be scrupulous in maintaining its political neutrality. This means it must not seek to influence the opinions of Members of Parliament or to arrange for NGOs to undertake this function on its behalf.
4) It is clear that the policy analysis and health promotion (and disease prevention) role of the Ministry, at least in respect of the identified clauses in six contracts, has become entangled with the advocacy and lobbying role of NGOs. This is unacceptable under public service standards and could compromise the political neutrality of the Ministry.
5) It has not arisen from a deliberate involvement in politics but from a concentration on achieving health objectives – in the contracts identified - at the expense of due process. As a consequence, NGO actions have been seen as planned political intervention by the Ministry, which is not the case.
6) The enthusiasm and energy of public health staff have coloured the approach to NGOs contracting. This desire to engage and help resolve key public health issues is commendable although it does not make political lobbying any less unacceptable.
7) The NGO contracts that initially caused concern were inherited on January 1 2001 from the Health Funding Authority along with a number of other NGO contracts that Risk and Assurance has reviewed. Although the contracts had been subsequently rewritten and rolled over by the Ministry, the basic appropriateness of these lobbying clauses was not questioned.
8) During the recent public discussion on these contracting issues concerns were expressed that the contracts also included a clause which limited public criticism, and that this was intended to prevent the expression of opinions contrary to those held by the Ministry. The clause at issue is similar to those in many standard business contracts and is intended to assist in dispute resolution. It is not intended to stifle debate nor would it have had that effect. The Ministry has a history of encouraging robust debate on all health issues. These clauses should be revised to clarify their intention and remove any ambiguity.
9) The key concepts of information gathering, health promotion and advocating for a particular policy or lobbying for a desired outcome are intertwined throughout this review and the documents supporting it. The Ministry functions under the Public Service Code of Conduct and also has reference in a public health context to documents such as the Ottawa Charter. These are not inconsistent if the Ministry is appropriately clear in regard to the outputs for which it contracts. These and other relevant issues are discussed more fully in paragraph 14 – 23.
10) The term “advocacy” in a health context has a broad range of meanings, which can range from advancing health issues to lobbying. In the contracts reviewed the substitution of the word “advocacy” with a precise description of the services purchased would not have changed the contracts intention and would have prevented ambiguity.
Summary of actions recommended and taken
11) Lobbying clauses in contracts with Action Smoking and Health, Aparangi Tautoko Auahi Kore, Smokefree Coalition, Alcohol Healthwatch, Manukau City Council and the Obesity Action Coalition have been suspended pending renegotiation. The contracts were suspended by mutual agreement.
12) No other contracts with NGOs have been identified that require political lobbying.
13) The Ministry should draw up guidelines for future contracting with NGOs that:
- explicitly exclude lobbying activities
- cease the use of the word ‘advocacy’ in contracts and substitute a precise statement of the services being purchased
- ensure that services purchased are specific to information provision activities
- ensure that the Ministry staff receive instruction and training on the avoidance of lobbying requirements and on substituting advocacy with more precise expectations.
14) The Ministry should consult with NGOs on the new contracting guidelines to ensure that consensus regarding their future freedom to function is achieved.
15) The Ministry should ensure that the Ministry’s planning processes include explicit checks that funding intentions are aligned with public service guidelines.
16) The Ministry should carry out a regular audit of funding and contracting to ensure public service guidelines are being followed. In addition some process issues have been identified during the review that need to be followed up as part of the Ministry’s ongoing quality improvement programme.
Steve Brazier
Chief Internal Auditor | Don Hunn
Lead Reviewer |
Document availability
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Report: Contracts With Non Government Organisations – Compliance With Public Service Standards; Summary, Guidelines, Finidings, Recommendations
 (PDF, 94 kB)
Volume 2: The Contracts
 (PDF, 1758 kB)
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Related Links
Lobbying contract clauses removed - media release |