Basically in my head it's just asking electorate MP's to do their jobs. Couple of things that would need to happen for it to work.
1. Operating budgets for Ministries would need to be more fluid.
2. A process (similar to a business capex) set up were a NZer or group of NZers can go to a Govt Dept and provide an alternative method of funding for economic or other reasons.
eg. A tradesman hurts his back on the job and ACC accepts the claim and pays him 50k over 18 months while on a public waiting list for surgery before he can return to work.
Instead shouldn't he be able to contact a Ministerial Ombudsman who can free up the 20k required to provide the surgery privately thus getting the person back to work earlier and saving the country 50k in the process?

That is just a health example I am sure there would be thousands of different dept examples.

So you are saying that government does not do its job and suggesting creating a new government structure with finance allowance to correct it?

It could be taken a bit further.

Why MP? Why everyone can not get a direct powers of distributing public funds to whatever needs the person think of?

There could be a tier level of giving up this rights for those who do not want to bother (e.g. I give a right to distribute to local representative whom I trust, he will give a right to distribute to a regional MP and etc)

I don't understand the proposal. What would these "Ministerial Ombudsman" do? In my understanding an ombudsman is somebody who hears complaints and suggests resolutions for them, but you seem to be proposing something different?

@anatolykern, My proposal is aimed at reducing an inherent inefficiency within our current government system. We have Ministries that all have budgets to (try to) adhere to and targets to (try to) meet. They also have responsibilities. I
n the example above:
The Ministry of Health is responsible for providing the medical care through the public system ~20k, but cannot provide it quickly due to waiting times.
ACC is responsible for providing income until the medical care can be administered ~50k.
That is 70k of expense generated simply by these guys doing the jobs they are supposed to.
Either or both of these groups can save the taxpayer money by spending the 20k through the private system.
What I am proposing is a introducing a mechanic were a third party (I think electorate MP's are the obvious choice but it could be done as you say without any ministerial input.) can intervene and overrule the mandates of the parties involved when there is a better solution available.

@hugheldredgrigg, Ombudsman may not be the best word, but it was the closest one that I could find. An ombudsman in the sense I am proposing has the power to overrule existing ministerial mandates when the mandate is not acting in the best interests of a person/entity/organisation, for this proposal I am looking at it in terms of instances were ministries are collectively doing what they are supposed to do, but in doing that are not providing the best support for the person and the taxpayer.