Supplementary Order Paper No 262

No 262

House of Representatives

Supplementary Order Paper

Tuesday, 2 July 2013

State Sector and Public Finance Reform Bill


Proposed amendments for the consideration of the Committee of the whole House

Key:

  • this is inserted text

  • this is deleted text

Note: This Supplementary Order Paper shows amendments to the Bill that are being proposed by the Minister for the purposes of consideration in Committee of the whole House. This document does—

  • NOT have official status in terms of unamended text

  • NOT have the status of an as-reported version of the Bill.


Explanatory note

This Supplementary Order Paper amends the State Sector and Public Finance Reform Bill. The amendments fall into 2 main categories—

  • amendments relating to commencement. Most of the amendments made by this Supplementary Order Paper fall into this category. Part 2 of the Bill amends the Public Finance Act 1989 and subpart 2 of that Part was to come into force on 1 July 2013. However, the Bill will not be enacted before 1 July 2013. The amendments previously made by subpart 2 are moved into either subpart 1 (commencing on the day after Royal assent) or subpart 3 (commencing on 1 July 2014) of Part 2:

  • technical or policy amendments. Amendments in this category adjust the implementation of existing policy or give effect to minor policy changes.

This Supplementary Order Paper also makes a number of minor amendments to improve clarity and accessibility and to ensure that the Bill is accurate and internally consistent.

Amendments relating to commencement

Clause 2, which is the commencement provision, is amended to remove the reference to subpart 2 of Part 2. That subpart is deleted. The clauses in the subpart are moved to either subpart 1 or subpart 3 of Part 2

.

A number of clauses in subpart 1 of Part 2 are moved from, or incorporate amendments moved from, subpart 2 of Part 2. The effect of moving amendments from subpart 2 to subpart 1 of Part 2 is that they will commence on the day after Royal assent rather than on 1 July 2013. The amendments made by these clauses relate to—

  • moving companies from Schedule 4 into new Schedule 4A:

  • the distinction between administration and use of appropriations:

  • reporting requirements for departmental agencies:

  • financial management and reporting responsibilities of chief executives:

  • other miscellaneous matters.

The affected clauses are listed below (any technical or policy amendments to these clauses are described in the next section of this note):

  • clause 58A (incorporates amendments moved from clause 77):

  • clause 59 (incorporates amendments moved from clause 78):

  • new clause 59B (moved from clause 79):

  • new clause 59C (moved from clause 80):

  • new clause 60A (moved from clause 81):

  • new clause 61AB (moved from clause 82):

  • new clause 61CA (moved from clause 83):

  • new clause 65A (moved from clause 84):

  • new clause 65B (moved from clause 85):

  • new clause 66A (moved from clauses 86 to 88):

  • new clause 66B (moved from clause 89):

  • new clause 66C (moved from clause 90):

  • new clause 70AAA (moved from clause 91):

  • new clause 70AAB (moved from clause 92):

  • new clause 70AAC (moved from clause 93):

  • new clause 70AAD (moved from clause 98):

  • new clause 70AAE (moved from clause 99A):

  • new clause 70AAF (moved from clause 100):

  • new clause 70AAG (moved from clause 100A):

  • new clause 70AAH (moved from clause 101):

  • new clause 72A (moved from clause 104):

  • new clause 72B (moved from clause 105):

  • clause 75A (incorporates amendments moved from clause 106):

  • clause 75B (incorporates amendments moved from clause 107):

  • new clause 75BA (moved from clause 108):

  • new clauses 75BB to 75BD (moved from clause 110):

  • new clause 76A (moved from clause 111(1), (3), and (4)):

  • new clause 76B (moved from clause 112):

  • new clause 76C (moved from clause 113).

The following clauses in subpart 3 of Part 2 are moved from the deleted subpart 2 of Part 2. The effect of moving amendments from subpart 2 to subpart 3 of Part 2 is that they will commence on 1 July 2014 rather than 1 July 2013. The amendments made by these clauses (other than new clause 146AI, which makes a consequential amendment) relate to combining 4 existing permanent legislative authorities for certain finance expenses. The clauses listed below are moved without amendment:

  • new clause 146AC (moved from clause 94):

  • new clause 146AD (moved from clause 95):

  • new clause 146AE (moved from clause 96):

  • new clause 146AF (moved from clause 97):

  • new clause 146AG (moved from clause 99):

  • new clause 146AH (moved from clause 103):

  • new clause 146AI (moved from clause 111(2)).

Clause 75C inserts new Schedule 1 into the Public Finance Act 1989. The new schedule contains application, savings, and transitional provisions. Clause 2 of new Schedule 1 is deleted. This clause related to amendments made on 1 July 2013 and is unnecessary because no amendments are now being made on that date. Clause 4 of new Schedule 1 is amended to replace a reference to 1 July 2013 with a reference to the day on which the amendment Act comes into force.

Technical or policy amendments

Part 1
Amendments to State Sector Act 1988

This Part amends the State Sector Act 1988.

Clause 35 amends section 41, which relates to delegations by Public Service chief executives of their functions or powers. New section 41(2E) was inserted at select committee. It relates to delegations described in new section 41(2A), ie, delegations to persons outside the Public Service. It is therefore unnecessary for subsection (2E) to repeat the limitation that delegations must be outside the Public Service. For this reason, subsection (2E) is rewritten to remove the redundant limitation.

Part 2
Amendments to Public Finance Act 1989

This Part amends the Public Finance Act 1989.

Subpart 1Amendments coming into force on day after date of Royal assent

New clause 65B makes amendments previously made by clause 85. The clause replaces sections 33 to 36. New section 33 is amended to clarify that funded by way of appropriation means funded by way of appropriation administered by the department. New section 34 is amended to clarify that the responsibilities of a departmental chief executive to an appropriation Minister for what is achieved with expenditure under an appropriation is limited to what is achieved with departmental expenses and departmental capital expenditure under that appropriation.

New clause 66A makes amendments previously made by clauses 86 to 88. The clause replaces sections 43 and 44. The structure of new section 44 is adjusted to align it with the structure of new sections 149 and 149J of the Crown Entities Act 2004 (see clause 188). The definition (in new section 44(6)) of audit date in respect of a departmental agency is amended to mean the date on which the host department, rather than the departmental agency, receives an audit report. New section 43A(2) is amended to require a departmental agency to provide, with its annual report, any applicable audit report.

Clause 68 replaces sections 45I to 45K, which adjust annual reporting requirements for disestablished and newly established entities. New sections 45J and 45K are amended to cater for situations where more than 1 party has responsibility for preparing a final report. In that situation, each party must sign the statement of responsibility for the annual report in respect of the matters for which that party is responsible.

New clause 75BD is added. This clause gives effect to the application, savings, and transitional provisions in new Schedule 1 (inserted by clause 75C) (see also the amendment to new section 2A, inserted by clause 59A).

Clause 75C inserts new Schedule 1 into the Public Finance Act 1989. The new schedule contains application, savings, and transitional provisions. A new transitional provision is added (new clause 9) to clarify how provisions of the Crown Entities Act 2004 that relate to statements of intent apply to Tāmaki Redevelopment Company Limited's statement of intent for the 2013/14 financial year. (Tāmaki Redevelopment Company Limited is listed on new Schedule 4A, and is subject to certain provisions of the Crown Entities Act 2004 under new section 45OA(1)(n) of the Public Finance Act 1989 (inserted by new clause 70AAB).)

Clause 76B inserts new Schedule 4A into the Public Finance Act 1989. The new schedule lists companies previously listed in Schedule 4 in which the Crown is a majority or the sole shareholder. New Schedule 4A is amended to remove Learning State Limited. That company has been wound up and removed from the companies register.

Subpart 3Amendments coming into force on 1 July 2014

Clause 115 is amended. This clause replaces section 7 and inserts new sections 7A and 7B. New section 7A(1)(g) is amended to require a multi-category appropriation to contain at least 2 categories of expenditure.

Clause 120 replaces sections 14 and 15 with new sections 14 to 15E.

New section 14 sets out what is required in the Estimates. New section 14(1)(h) requires the Estimates to state, for each appropriation (other than an appropriation authorised by a permanent legislative authority), the period of the appropriation, but only if the period is more or less than 1 financial year. The words or less are unnecessary and are removed.

New section 15 sets out what must be included in the supporting information for a main Appropriation Bill and how comparative information is to be prepared if a Vote has been restructured. New section 15(3) is amended to expand the meaning of restructuring a Vote to include—

  • moving a category of a multi-category appropriation into or out of the Vote; and

  • moving a category of expenses or non-departmental capital expenditure into or out of a multi-category appropriation within the Vote.

The following clauses are amended so that various reporting, confirmation, and validation requirements relating to capital injections do not apply in respect of capital injections to intelligence and security departments:

  • clause 122, new section 17B:

  • clause 129, new section 25A:

  • clause 131, new section 26CA:

  • clause 132, new section 26D(1):

  • clause 134, new section 27(2)(c)(ii) and (iii):

  • clause 143, new section 45E(4).

Capital of intelligence and security departments is controlled through an appropriation for expenses and capital expenditure to be incurred by each intelligence and security department (see existing section 7(1)(f) of the Public Finance Act 1989 and new section 7A(1)(f), inserted by clause 115).

Clause 136 replaces sections 38 to 41. New section 38A is amended to clarify that it is the responsible Minister for a department, rather than the Minister of Finance, who may require a department to provide new information on strategic intentions at any time.

New section 39 is amended—

  • to clarify which Minister presents a department's information on strategic intentions to the House of Representatives if that information is being presented in a document that includes information that a Minister other than the department's responsible Minister is responsible for presenting:

  • to provide that, if a department's information on strategic intentions is presented to the House of Representatives separately from the department's annual report, that information must be presented no later than the date on which the annual report is presented.

Clause 138B replaces section 45A. The new section requires a department's annual report to include, among other things, details of the document in which end-of-year performance information for each appropriation administered by the department will be presented to the House of Representatives. New section 45A(1)(b) is amended and new section 45A(2) is deleted. These changes align the section with clause 120, new sections 15A(4) and 15B, which specify appropriations for which end-of-year performance information is not required.

Part 3
Amendments to Crown Entities Act 2004

This Part amends the Crown Entities Act 2004.

Subpart 1Amendments coming into force on day after date of Royal assent

The following clauses are inserted or amended to replace references to whole of government directions with references to directions under section 107. This amendment reflects the new language of section 107 (see clause 162):

  • new clause 162AAA:

  • new clause 162AAB:

  • new clause 162B:

  • new clause 162C:

  • new clause 163A:

  • new clause 164(4):

  • new clause 169A:

  • new clause 170B.

Similar changes are made, by clause 171A and Schedule 3C, to the Eduction Act 1989.

New clause 169B amends section 150, which requires a Crown entity's annual report to be presented to the House of Representatives and published. The section is amended—

  • to allow an annual report to be presented or published in a document that includes any other report or information; and

  • to clarify which Minister is required to present a Crown entity's annual report to the House of Representatives if that report is being presented in a document that includes information that a Minister other than the entity's responsible Minister is responsible for presenting.

Under the transitional provision in new clause 1A of new Schedule 1AAA of the Crown Entities Act 2004 (inserted by clause 170A), these amendments apply in respect of an annual report for the 2013/14 financial year and any subsequent financial year, but not to an annual report for the 2012/13 financial year.

New clause 170AAA is added. This clause gives effect to the application, savings, and transitional provisions in new Schedule 1AAA (inserted by clause 170A) (see also the amendment to new section 10A, inserted by clause 150).

Clause 170A inserts new Schedule 1AAA into the Crown Entities Act 2004. The new schedule contains application, savings, and transitional provisions. The transitional provision relating to annual reports (previously clause 3, now new clause 1A, of new Schedule 1AAA) is amended to clarify that annual reports relating to the 2012/13 financial year are prepared under the Crown Entities Act 2004 as in force before its amendment by this Bill.

Subpart 2Amendments coming into force on 1 July 2014

Clauses 175 and 177, which amend sections 49 and 92 respectively, are amended to reflect that a Crown entity will always have a statement of performance expectations.

Clause 184 amends section 146, which sets out the process by which a Crown entity provides its statement of intent to its responsible Minister. New section 146(2)(c) is redrafted to ensure that there is always a time frame within which a Crown entity must provide its final statement of intent to its responsible Minister if that Minister does not provide comments on the draft statement.

Clause 185 amends section 147, which enables a responsible Minister to direct a Crown entity to amend a provision in its statement of intent. The section is further amended to clarify when such an amendment is final.

Clause 186 amends section 148, which enables, and in certain circumstances requires, a Crown entity to amend its statement of intent. The section is further amended to clarify when such an amendment is final and when it is in force. New section 148(6) is amended to clarify that if a Crown entity chooses to provide a new statement of intent rather than amending its existing statement of intent, it must follow the process in section 146.

Clause 188 replaces section 149 with new sections 149 to 149K, which relate to statements of intent and statements of performance expectations.

New section 149, which requires a Crown entity's statement of intent to be presented to the House of Representatives and published, is amended—

  • to allow a statement of intent to be presented or published in a document that includes any other statement or information; and

  • to clarify which Minister is required to present a Crown entity's statement of intent to the House of Representatives if that statement is being presented in a document that includes information that a Minister other than the entity's responsible Minister is responsible for presenting.

New section 149AAA requires amendments to a Crown entity's statement of intent to be presented to the House of Representatives and published. The section is further amended to enable a Crown entity's responsible Minister to prevent an amendment from being presented or published in the 3-month period before the Budget if that amendment will come into force on or after the day on which that Budget is delivered. This amendment allows the same embargo to be applied to amendments to a statement of intent as can be applied to a statement of intent under new section 149.

New sections 149J and 149K, which relate to a Crown entity's statement of performance expectations, are amended similarly to new sections 149 and 149AAA.

New section 149BA(2) is amended to clarify that it is the responsible Minister who may waive the requirement for a newly established Crown entity to immediately provide a statement of performance expectations. New section 149BA(4) is amended to remove a reference to sections 49 and 92 of the Crown Entities Act 2004. The removal of this reference means that directions given to an entity under the section apply generally, rather than only for the purpose of sections 49 and 92, as if they were the entity's statement of performance expectations.

New section 149G sets out the process by which a Crown entity provides its statement of performance expectations to its responsible Minister. New section 149G(2)(c) is amended to ensure that there is always a time frame within which a Crown entity must provide its final statement of performance expectations to its responsible Minister if that Minister does not provide comments on the draft statement.

New section 149H enables a responsible Minister to direct a Crown entity to amend a provision in its statement of performance expectations. The section is further amended to clarify when such an amendment is final.

New section 149I enables, and in certain circumstances requires, a Crown entity to amend its statement of performance expectations. New section 149I(4) and (5) set out the process for amending the statement and clarify when such an amendment is final and when it is in force. New section 149I(2)(b)(ia) replaces a reference to whole of government directions with a reference to directions under section 107. This amendment reflects the new language of section 107 (see clause 162).

Clause 191 amends section 151, which sets out requirements relating to the form and content of annual reports. Section 151(2), as amended by the Bill as introduced, requires an annual report to include an assessment of actual operations as compared with the intended operations set out in the most recent statement of intent. The subsection is further amended to replace this requirement with a requirement to include an assessment of the entity's progress in relation to its strategic intentions.

Clause 196 replaces section 156, which requires Crown entities to forward certain documents to the Auditor-General for audit. New section 156A(1)(a)(i) is amended to reflect that a Crown entity will always have annual financial statements that require auditing but may not always have a statement of performance.

Clause 199 replaces section 170. New section 170 is amended to clarify that it is the responsible Minister for a Crown entity who may set standards, terms, and conditions in respect of certain classes of outputs that a Crown entity proposes to supply. The heading of the section is amended to better reflect the content of that section.


The Honourable Minister, in Committee, to propose the amendments shown in the following document.

Hon Dr Jonathan Coleman

State Sector and Public Finance Reform Bill

Government Bill

55—2

Contents

1 Title

2 Commencement

Part 1
Amendments to State Sector Act 1988

3 Principal Act

4 Long Title repealed

5 New section 1A inserted (Purpose)

6 Section 2 amended (Interpretation)

7 New section 2A inserted

8 Cross-heading above section 4 amended

9 New section 4A inserted (Role of Commissioner)

10 Section 5 amended (Duty of Commissioner to act independently)

11 Section 6 replaced (Functions of Commissioner)

12 Section 8 amended (Power of Commissioner to conduct inspections and investigations)

13 Section 9 amended (Power to obtain information)

14 Section 14 amended (Acting Commissioner or acting Deputy Commissioner)

15 Section 17 amended (Vacation of office)

16 Section 23 amended (Delegation of functions or powers)

17 Section 27 replaced (Public Service defined)

18 Section 28 amended (Delegation of functions or powers of appropriate Minister)

19 Section 30A amended (Amendment of Schedule 1 to reflect reorganisations within Public Service)

20 Sections 30C to 30G repealed

21 Section 30H amended (Consequential changes to references to departments following reorganisations)

22 Section 30I amended (Consequential changes to references to chief executives following reorganisations)

23 Section 30J amended (Application of consequential changes to references)

23A Section 30K amended (Other saving and transitional matters arising from reorganisations within Public Service)

23B Section 30L amended (Effect of reorganisations within Public Service)

24 Section 31 amended (Chief executives)

25 Section 32 replaced (Principal responsibilities)

26 Section 33 replaced (Duty to act independently)

27 Section 34 amended (Functions, responsibilities, duties, and powers)

28 Section 35 amended (Appointment of chief executives)

29 Section 36 amended (Reappointment of chief executives)

30 Section 37 amended (Appointment and reappointment of Government Statistician)

31 New section 37A inserted (Transfer of chief executives)

32 Section 38 amended (Conditions of employment of chief executives)

33 Section 39 amended (Removal from office)

34 Section 40 amended (Acting chief executive)

35 Section 41 amended (Delegation of functions or powers)

36 Section 43 amended (Review of performance of chief executive)

37 Section 44 amended (Special provisions in relation to certain chief executives)

38 Sections 46 to 48 replaced

39 Section 49 amended (Secondments)

40 Section 50 replaced (Other organisations in State services)

41 Part 5 heading replaced

42 New subpart 1 of Part 5 and subpart 2 of Part 5 heading inserted

43 Section 56 amended (General principles)

44 Section 57 amended (Commissioner may set minimum standards of integrity and conduct)

45 Section 57A amended (Agencies must comply with minimum standards except in particular circumstances)

46 Section 57C amended (Commissioner's powers when setting and enforcing minimum standards)

47 Section 58 amended (Equal employment opportunities)

48 Section 59 replaced (Employees of departments)

49 Sections 61A and 61B replaced

49A Section 61C amended (Union coverage where department ceases to be part of Public Service)

50 New section 61D inserted (Application of collective agreements to employees following reorganisations)

51 New section 66 inserted (Certain sections do not apply in relation to ministerial staff)

51A Section 77 replaced (Protection from liability)

52 Section 77C amended (Performance of teachers)

53 Section 85 amended (Offence to attempt to influence Commissioner or chief executive)

54 Section 86 replaced (Protection from liability)

55 Section 91 repealed (Transitional provisions for permanent heads)

56 New Schedule 1A inserted

56A Amendment to Tax Administration Act 1994

57 Consequential amendments to Crown Proceedings Act 1950

57A Consequential amendments to Clerk of the House of Representatives Act 1988

57B Consequential amendments to Parliamentary Service Act 2000

57C Amendment relating to Legislation Act 2012

Part 2
Amendments to Public Finance Act 1989

58 Principal Act

Subpart 1Amendments coming into force on day after date of Royal assent

58A Section 1A amended (Purpose)

59 Section 2 amended (Interpretation)

59A New section 2A inserted (Application, savings, and transitional provisions relating to amendments to Act)

59A New section 2A inserted (Provisions affecting application of amendments to this Act)

59B Section 3A replaced (Power to amend Schedule 4)

59C Section 4 amended (Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority)

60 New section 4A inserted (Authority to incur expenses or capital expenditure under Imprest Supply Act)

60A New section 7C inserted (Responsibility for, and administration and use of, appropriations)

61 Section 11 amended (Expenses or payments authorised other than by Appropriation Act)

61A Section 19 amended (Power of Secretary to obtain information)

61AB Section 20 repealed (Departments may incur output expenses for, or on behalf of, other departments)

61B Section 25 amended (Expenses or capital expenditure may be incurred in emergencies)

61C Section 26Z amended (Power of Secretary to obtain information)

61CA Section 27 amended (Annual financial statements of Government)

61D Section 29A amended (Power of Secretary to obtain information)

62 Section 29B amended (Auditor-General to be auditor of Government reporting entity)

63 Section 31 amended (Annual financial statements must be presented to House of Representatives)

64 Section 31A amended (Monthly financial statements of Government)

65 Section 31B repealed (Publication, inspection, and purchase of financial statements of Government reporting entity)

65A Part 4 heading amended

65B Sections 33 to 36 and cross-heading above section 34 replaced

66 Section 37 amended (Power of departmental chief executives to obtain information)

66A Section 44 amended (Obligation to present and publish departmental annual reports)

66A Sections 43 and 44 replaced

66B Section 45 amended (Contents of departmental annual report)

66C New section 45AA inserted (Contents of departmental agency annual report)

67 Section 45H amended (Application of subpart)

68 Sections 45I to 45K replaced

70AAA Sections 45M and 45N and subpart 2 heading in Part 5 replaced

70AAB New Part 5AAA inserted

70AAC Section 49 amended (The Crown not liable for debts of Crown entities, etc)

70AAD Section 65I amended (Investment of public money)

70AAE Section 65K replaced (The Crown must not lend money except under statute)

70AAF Section 65N repealed (Authority to lend money includes authority to defer payments)

70AAG Section 65Z amended (Auditor-General may direct Ministers to report to House of Representatives in cases involving unlawful expenses, etc)

70AAH Section 65ZA amended (Auditor-General may stop payments out of Bank Accounts)

70A Section 65ZD amended (Minister may give guarantee or indemnity if in public interest)

70B Section 65ZE amended (Departments may give guarantee or indemnity specified in regulations if in public interest)

71 Section 67 amended (Establishment of bank accounts for trust money)

72 Section 71AA amended (Delegation of Secretary's powers)

72A Section 73 amended (Payment of fines to local authorities and other organisations that conduct prosecutions)

72B Section 74 amended (Unclaimed money)

73 Section 75 amended (Minister may exercise powers relating to bona vacantia)

74 Section 76 amended (Offences)

75 Section 80 amended (Treasury instructions)

75A Section 80A amended (Minister of Finance instructions)

75B Section 81 amended (Regulations, Orders in Council, and notices)

75BA Section 82 amended (Consultation and approval requirements for regulations or instructions relating to reporting standards)

75BB Section 83 repealed (Abolition of certain accounts)

75BC Sections 85 to 87 repealed

75BD Section 88 replaced (Transitional provisions)

75C Schedule 1 replaced

76 Schedule 2 repealed

76A Schedule 4 amended

76B New Schedule 4A inserted

76C Consequential amendments arising from amendments to Public Finance Act 1989 that come into force on day after Royal assent

Subpart 2Amendments coming into force on 1 July 2013

77 Section 1A amended (Purpose)

78 Section 2 amended (Interpretation)

79 Section 3A replaced (Power to amend Schedule 4)

80 Section 4 amended (Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority)

81 New section 7C inserted (Responsibility for, and administration and use of, appropriations)

82 Section 20 repealed (Departments may incur output expenses for, or on behalf of, other departments)

83 Section 27 amended (Annual financial statements of Government)

84 Part 4 heading amended

85 Sections 33 to 36 replaced

86 Section 43 replaced (Departments must prepare annual reports)

87 New section 43A inserted (Departmental agencies must prepare annual reports)

88 Section 44 replaced (Obligation to present and publish departmental annual reports)

89 Section 45 amended (Contents of departmental annual report)

90 New section 45AA inserted (Contents of departmental agency annual report)

91 Sections 45M and 45N and subpart heading replaced

92 New Part 5AA inserted

93 Section 49 amended (The Crown not liable for debts of Crown entities, etc)

94 Section 61 repealed (Expenses in respect of money borrowed by the Crown)

95 Section 65D amended (Payments under public securities)

96 Section 65E repealed (Expenses in respect of securities)

97 Section 65H amended (Payments relating to derivative transactions of the Crown)

98 Section 65I amended (Investment of public money)

99 Section 65J repealed (Payment of expenses relating to investment)

99A Section 65K replaced (The Crown must not lend money except under statute)

100 Section 65N repealed (Authority to lend money includes authority to defer payments)

100A Section 65Z amended (Auditor-General may direct Ministers to report to House of Representatives in cases involving unlawful expenses, etc)

101 Section 65ZA amended (Auditor-General may stop payments out of Bank Accounts)

103 New subpart 7 of Part 6 inserted

104 Section 73 amended (Payment of fines to local authorities and other organisations that conduct prosecutions)

105 Section 74 amended (Unclaimed money)

106 Section 80A amended (Minister of Finance instructions)

107 Section 81 amended (Regulations, Orders in Council, and notices)

108 Section 82 amended (Consultation and approval requirements for regulations or instructions relating to reporting standards)

110 Sections 83 and 85 to 88 repealed

111 Schedule 4 amended

112 New Schedule 4A inserted

113 Consequential amendments arising from amendments to Public Finance Act 1989 that come into force on 1 July 2013

Subpart 3Amendments coming into force on 1 July 2014

114 Section 2 amended (Interpretation)

115 Section 7 replaced (Separate appropriation required for types of expenses and capital expenditure)

116 Section 9 amended (Appropriation limited by scope)

117 Section 12 amended (Timing of first Appropriation Bill for financial year)

118 New sections 12A and 12B and cross-heading inserted

119 Section 13 amended (Estimates and other supporting information must be presented with first Appropriation Bill)

120 Sections 14 and 15 replaced

121 Section 16 amended (Supplementary Estimates must be presented with Supplementary Appropriation Bill)

122 Section 17 replaced (Content of Supplementary Estimates)

123 Section 18 amended (Minister must consult on proposal to change format or content of information presented with Appropriation Bills)

124 Section 19 amended (Power of Secretary to obtain information)

125 New sections 19A to 19C and cross-heading inserted

126 Section 22 amended (Operating surplus of department)

127 Section 23 repealed (Net assets of departments must be confirmed)

128 Section 24 amended (Movements within departmental statement of financial position)

129 New section 25A inserted (Capital injections may be made in emergencies)

130 Section 26 amended (Minister may determine terms and conditions of capital injections)

131 New section 26CA inserted (Capital injections made without authority or approval require validation by Parliament)

132 Section 26D amended (Reporting requirements in relation to expenses or capital expenditure incurred in excess of, or without, appropriation)

133 Section 26E replaced (Application of this Part to Offices of Parliament)

134 Section 27 amended (Annual financial statements of Government)

135 Section 32A repealed (Additional reports in relation to non-departmental appropriations)

136 Sections 38 to 41 and cross-heading above section 38 replaced

137 Section 42 repealed (Information on future operating intentions must include statement of responsibility)

138 Section 45 replaced (Contents of annual report of department)

138A Section 45AA amended (Contents of departmental agency annual report)

138B Section 45A replaced (Statement of service performance)

139 Section 45B amended (Annual financial statements)

140 New section 45BA inserted (Forecast financial statements)

141 Section 45C replaced (Statement of responsibility)

142 Section 45D amended (Audit report)

143 Section 45E amended (Application of this Part to intelligence and security departments)

144 Section 45F replaced (Application of this Part to Offices of Parliament)

145 Section 45G repealed (This Part modified for purpose of applying Part to Offices of Parliament)

145A Section 45I amended (First annual report for newly established entities)

146 Section 45L amended (Minister may allow certain information to be included in another entity's annual report if operations transferred)

146A Section 45M amended (Application of Crown Entities Act 2004 to Schedule 4 organisations)

146AA Section 45N amended (Exemptions from certain sections of Crown Entities Act 2004 for Schedule 4 organisations)

146AB Section 45OA amended (Application of Crown Entities Act 2004 to non-listed companies in which the Crown is majority or sole shareholder)

146AC Section 61 repealed (Expenses in respect of money borrowed by the Crown)

146AD Section 65D amended (Payments under public securities)

146AE Section 65E repealed (Expenses in respect of securities)

146AF Section 65H amended (Payments relating to derivative transactions of the Crown)

146AG Section 65J repealed (Payment of expenses relating to investment)

146AH New subpart 7 of Part 6 inserted

146AI Schedule 4 amended

146B Consequential amendments arising from amendments to Public Finance Act 1989 that come into force on 1 July 2014

Part 3
Amendments to Crown Entities Act 2004

148 Principal Act

Subpart 1Amendments coming into force on day after date of Royal assent

148A Section 7 amended (Meaning of Crown entity and categories of Crown entities)

148B New section 7A inserted (Meaning of multi-parent subsidiary)

148C Section 8 replaced (Meaning of parent Crown entity and Crown entity subsidiary)

149 Section 10 amended (Interpretation)

150 New sections 10A and 10B inserted

151 Section 27 amended (Responsible Minister's role)

152 New section 27A and cross-heading inserted

153 Section 50 replaced (Functions must be performed efficiently, effectively, and consistently with spirit of service to public)

154 Section 62 amended (When interests must be disclosed)

155 Section 64 amended (Who disclosure of interests must be made to)

156 Section 68 amended (Permission to act despite being interested in matter)

157 Section 78 amended (Board procedure)

158 Section 88 amended (Shareholding Ministers' role)

159 New section 88A and cross-heading inserted

159A Section 97 amended (Subsidiaries: rules applying to all Crown entities)

160 Section 98 amended (Subsidiaries: rules applying only to statutory entities)

161 Cross-heading above section 103 amended

162 Section 107 amended (Whole of government directions)

162AAA Section 108 amended (Process for giving whole of government directions)

162AAB Section 109 amended (House of Representatives may resolve to disapply whole of government direction)

162A Section 110 amended (Obligation to give effect to direction)

162B Section 111 amended (Publication of whole of government direction)

162C Section 113 amended (Safeguarding independence of Crown entities)

163 Cross-heading above section 114 repealed

163A Section 114 amended (Crown entities must comply with directions given under statutory power of direction)

164 Section 115 amended (Procedure for all Ministerial directions)

165 New section 115A inserted (Review and expiry of all directions)

166 Section 122 replaced (Indemnities in relation to excluded act or omission)

167 Section 127 amended (Method of contracting)

168 Section 133 amended (Power to request information)

169 Section 135 amended (Members, office holders, and employees are officials)

169A Section 148 amended (Amendments to statement of intent by Crown entity)

169B Section 150 amended (Obligation to prepare, present, and publish annual report)

170 Section 151 amended (Form and content of annual report)

170AAA New section 199A inserted (Application, savings, and transitional provisions relating to amendments to Act)

170A New Schedule 1AAA inserted

170B Schedule 3 amended

171 Schedule 5 amended

171A Consequential amendments arising from amendments to Crown Entities Act 2004 made by this subpart

Subpart 2Amendments coming into force on 1 July 2014

174 Section 27 amended (Responsible Minister's role)

175 Section 49 amended (Entity must act consistently with objectives, functions, statement of intent, and output agreement)

176 Section 88 amended (Shareholding Ministers' role)

177 Section 92 amended (Duty to act consistently with objectives, functions, statement of intent, and output agreement)

177A Section 136 amended (Interpretation for this Part)

178 Section 138 amended (Purpose of statement of intent)

179 Section 139 replaced (Obligation to prepare statement of intent)

180 Section 140 amended (Statement of intent for newly established Crown entities)

181 Section 141 replaced (Content of statement of intent)

182 Sections 142 and 143 repealed

182A Section 144 amended (Application and term of statement of intent)

183 Section 145 amended (Ministerial involvement in statements of intent)

184 Section 146 amended (Process for providing statement of intent to responsible Minister)

185 Section 147 amended (Amendments to statement of intent by responsible Minister)

186 Section 148 amended (Amendments to statement of intent by Crown entity)

188 Section 149 replaced (Obligation to present and publish statement of intent)

189 Section 150 amended (Obligation to prepare, present, and publish annual report)

190 New section 150A inserted (Special annual reporting requirements)

191 Section 151 amended (Form and content of annual report)

191A Section 152 amended (Disclosure of payments in respect of members, committee members, and employees)

192 Section 153 replaced (Form and content of statement of service performance)

193 Section 154 amended (Annual financial statements)

195 Section 155 amended (Statement of responsibility)

196 Section 156 replaced (Audit report)

196A New sections 156A and 156B and cross-heading inserted

197 Section 157 replaced (Reporting by multi-parent subsidiaries)

198 Section 163 amended (Restrictions on giving of guarantees and indemnities)

199 Section 170 replaced (Power to require output agreement)

201 Schedule 1 amended

202 Consequential amendments arising from amendments to Crown Entities Act 2004 made by this subpart

Schedule 1
New Schedule 1A inserted into principal Act

Schedule 1A
Schedule 1 of principal Act replaced

Schedule 2
New Schedule 4A inserted into principal Act

Schedule 3
Consequential amendments arising from amendments to principal Act that come into force on day after Royal assent

Schedule 3A
Consequential amendments arising from amendments to principal Act that come into force on 1 July 2014

Schedule 3B
New Schedule 1AAA inserted into principal Act

Schedule 3C
Consequential amendments arising from amendments to principal Act that come into force on day after Royal assent

Schedule 4
Consequential amendments arising from amendments to principal Act that come into force on 1 July 2014


The Parliament of New Zealand enacts as follows:

1 Title
  • This Act is the State Sector and Public Finance Reform Act 2012.

2 Commencement
  • (1AAA) Section 56 and Schedule 1 come into force on the earlier of the following:

    • (a) a date appointed by the Governor-General by Order in Council; or and

    • (b) 2 years after the date on which this Act receives the Royal assent.

    (1) In Part 2, which amends the Public Finance Act 1989,—

    • (a) subpart 2 comes into force on 1 July 2013:

    • (b) subpart 3 comes into force on 1 July 2014.

    (1) Subpart 3 of Part 2 comes into force on 1 July 2014.

    (2) Subpart 2 of Part 3, which amends certain provisions of the Crown Entities Act 2004, comes into force on 1 July 2014.

    (3) The rest of this Act comes into force on the day after the date on which it receives the Royal assent.

Part 1
Amendments to State Sector Act 1988

3 Principal Act
  • This Part amends the State Sector Act 1988 (the principal Act).

4 Long Title repealed
  • Repeal the Long Title.

5 New section 1A inserted (Purpose)
  • After section 1, insert:

    1A Purpose
    • The purpose of this Act is to promote and uphold a State sector system that—

      • (a) is imbued with the spirit of service to the community; and

      • (b) operates in the collective interests of government; and

      • (c) maintains appropriate standards of integrity and conduct; and

      • (d) maintains political neutrality; and

      • (e) is supported by effective workforce and personnel arrangements; and

      • (f) meets good-employer obligations; and

      • (g) is driven by a culture of excellence and efficiency; and

      • (h) fosters a culture of stewardship.

6 Section 2 amended (Interpretation)
  • (1) In section 2, definition of appropriate Minister, after department, insert or departmental agency in each place.

    (2) In section 2, definition of chief executive, after paragraph (a), insert:

    • (aa) in relation to a departmental agency, means the person holding office under section 31 as the chief executive of the departmental agency:.

    (3) In section 2, replace the definition of Crown entity with:

    Crown entity has the meaning given to it by section 7 of the Crown Entities Act 2004.

    (4) In section 2, replace the definition of department with:

    department has the meaning given to it by section 27A.

    (5) In section 2, definition of employee, paragraph (b),—

    • (a) replace with any chief executive; and

    • (b) repeal subparagraph (i).

    (6) In section 2, definition of State services, after paragraph (ab), insert:

    • (aba) organisations named or described in Schedule 4, and companies named in Schedule 4A, of the Public Finance Act 1989; and.

    (7) In section 2, insert in their appropriate alphabetical order:

    departmental agency has the meaning given to it by section 27A

    host department has the meaning given to it by section 27A

    key position has the meaning given to it in section 50(2)

    ministerial staff means employees (including acting, temporary, or casual employees) who are employed on events-based employment agreements—

    • (a) by the department that is responsible for the employment of ministerial staff across all Ministers' offices; and

    • (b) to work directly for a Minister in a Minister's office rather than in a department

    Example

    The Hon Honour Able's ministerial staff includes 1 Senior Private Secretary, 1 Ministerial Secretary, 1 Ministerial Adviser, 1 Press Secretary, and 1 Private Secretary.

    An event that could terminate the staff's events-based agreement is Minister Able no longer holding her Ministerial portfolio.

    outcome

    • (a) means a state or condition of society, the economy, or the environment; and

    • (b) includes a change in that state or condition

    stewardship means active planning and management of medium- and long-term interests, along with associated advice.

7 New section 2A inserted
  • After section 2, insert:

    2A Status of examples
    • (1) An example used in this Act is only illustrative of the provisions to which it relates. It does not limit those provisions.

      (2) If an example and a provision to which it relates are inconsistent, the provision prevails.

8 Cross-heading above section 4 amended
  • In the cross-heading above section 4, replace Duties, functions with Role, functions, duties.

9 New section 4A inserted (Role of Commissioner)
  • After section 4, insert:

    4A Role of Commissioner
    • The Commissioner's role is to provide leadership and oversight of the State services so as to ensure the purpose of this Act is carried out, including by—

      • (a) promoting the spirit of service to the community; and

      • (b) promoting the spirit of collaboration among agencies; and

      • (c) identifying and developing high-calibre leaders; and

      • (d) working with State services leaders to ensure that the State services maintain high standards of integrity and conduct and are led well and are trusted; and

      • (e) overseeing workforce and personnel matters in the State services; and

      • (f) advising on the design and capability of the State services; and

      • (g) evaluating the performance of Public Service leaders, including the extent to which they carry out the purpose of this Act; and

      • (h) supporting the efficient, effective, and economical achievement of good outcomes by the State services; and

      • (i) promoting a culture of stewardship in the State services.

10 Section 5 amended (Duty of Commissioner to act independently)
  • In section 5, replace employees with Public Service chief executives.

11 Section 6 replaced (Functions of Commissioner)
  • Replace section 6 with:

    6 Functions of Commissioner
    • For the purpose of carrying out the Commissioner's role, the principal functions of the Commissioner are to—

      • (a) review the State sector system in order to advise on possible improvements to agency, sector, and system-wide performance; and

      • (b) review governance and structures across all areas of government, in order to advise on—

        • (i) the allocation and transfer of functions and powers; and

        • (ii) the cohesive delivery of services; and

        • (iii) the establishment, amalgamation, and disestablishment of agencies; and

      • (c) review the performance of each department and each departmental agency; and

      • (d) appoint leaders of the Public Service, which includes—

        • (i) acting as the employer of chief executives of departments and chief executives of departmental agencies; and

        • (ii) reviewing the performance of chief executives of departments and chief executives of departmental agencies; and

      • (e) promote leadership capability in departments and other agencies; and

      • (f) promote strategies and practices concerning government workforce capacity and capability; and

      • (g) promote good-employer obligations in the Public Service; and

      • (h) promote and reinforce standards of integrity and conduct in the State services; and

      • (i) promote transparent accountability in the State services; and

      • (j) exercise such other functions with respect to the administration and management of the Public Service as the Prime Minister from time to time directs (not being functions conferred by this Act or any other Act on a chief executive other than the Commissioner).

12 Section 8 amended (Power of Commissioner to conduct inspections and investigations)
  • Replace section 8(1) with:

    • (1) This section applies when the Commissioner is carrying out his or her functions in respect of the Public Service.

13 Section 9 amended (Power to obtain information)
  • (1) In section 9(1),—

    • (a) delete a department, or; and

    • (b) delete under section 6(a), (ha), or (i); and

    • (c) delete department's or.

    (2) In section 9(2), delete department or.

14 Section 14 amended (Acting Commissioner or acting Deputy Commissioner)
  • Replace section 14(1) and (2) with:

    • (1) The Governor-General in Council, on the recommendation of the Prime Minister, may appoint an acting Commissioner or acting Deputy Commissioner to act for the Commissioner or Deputy Commissioner (as applicable) in the event of—

      • (a) the incapacity of the Commissioner or Deputy Commissioner by reason of illness or absence; or

      • (b) any reasonable cause that requires the Commissioner or Deputy Commissioner to stand down (whether temporarily or in respect of a particular matter).

    • (2) Subsection (1) also applies where the Deputy Commissioner is performing or exercising the functions, duties, and powers of the Commissioner under section 12(3).

15 Section 17 amended (Vacation of office)
  • In section 17(2),—

    • (a) delete any department or organisation of; and

    • (b) delete of a department.

16 Section 23 amended (Delegation of functions or powers)
  • In section 23(3)(c), replace ; or with ..

17 Section 27 replaced (Public Service defined)
  • Replace section 27 with:

    27 Public Service defined
    • The Public Service comprises departments (and any departmental agencies that are part of those departments).

    27A Meaning of department, host department, and departmental agency
    • (1) In this Act,—

      department means a department specified in Schedule 1

      departmental agency means a departmental agency specified in the first column of Schedule 1A, which is part of its host department

      host department means the department identified as the host department of a departmental agency in the second column of Schedule 1A.

      (2) Unless the context otherwise requires, every reference in this or any other enactment to a department includes any departmental agency that is part of the department.

    27B Relationship between departments and departmental agencies
    • Except as provided in this or any other enactment,—

      • (a) the functions, duties, and powers of a departmental agency may be determined by the appropriate Minister of the departmental agency in conjunction with the appropriate Minister of the host department; and

      • (b) the working arrangements between a departmental agency and its host department must be agreed by their respective chief executives and approved by their appropriate Ministers.

18 Section 28 amended (Delegation of functions or powers of appropriate Minister)
  • In section 28(1), after department, insert or departmental agency in each place.

19 Section 30A amended (Amendment of Schedule 1 to reflect reorganisations within Public Service)
  • (1) In the heading to section 30A, after Schedule 1, insert and Schedule 1A.

    (2) In section 30A(1), replace abolished with disestablished.

    (3) After section 30A(1), insert:

    • (1A) The Governor-General may, by Order in Council, amend Schedule 1A if a departmental agency is disestablished, if its name, its host department's name, or its host department is changed, or if a new departmental agency is established.

    (4) In section 30A(2),—

    • (a) after department, insert or departmental agency; and

    • (b) replace abolished with disestablished.

20 Sections 30C to 30G repealed
  • Repeal sections 30C to 30G.

21 Section 30H amended (Consequential changes to references to departments following reorganisations)
  • (1AA) In the heading to section 30H, after departments insert or employees of departments.

    (1) In the heading to section 30H, after departments, insert or departmental agencies.

    (2) In section 30H(1),—

    • (a) after particular department, insert or departmental agency; and

    • (b) after the department's, insert or departmental agency's; and

    • (c) after the department, insert or departmental agency.

    (3) In section 30H(2),—

    • (a) after particular department, insert or departmental agency; and

    • (b) after the department, insert or departmental agency; and

    • (c) replace abolished with disestablished; and

    • (d) after new responsible department, insert or new responsible departmental agency.

    (4) In section 30H(3),—

    • (a) after particular department, insert or departmental agency; and

    • (b) replace between departments with elsewhere in the Public Service; and

    • (c) after new responsible department, insert or new responsible departmental agency.

    (4A) After section 30H(3), insert:

    • (3A) If an enactment or other thing refers to employees of a particular department and that reference is no longer appropriate because the department's name has changed, the reference must be read as a reference to the employees of the department under its new name.

    • (3B) If an enactment or other thing refers to employees of a particular department and that reference is no longer appropriate because the department has been disestablished, the reference must be read as a reference to the employees of the new responsible department.

    • (3C) If an enactment or other thing refers to employees of a particular department and that reference is no longer appropriate because functions have been transferred elsewhere in the Public Service, the reference must be read as a reference to the employees who perform the relevant functions.

    (5) In section 30H(4),—

    • (a) after department, insert or new responsible departmental agency; and

    • (b) after department, insert or departmental agency.

22 Section 30I amended (Consequential changes to references to chief executives following reorganisations)
  • (1) In section 30I(1),—

    • (a) after particular department, insert or departmental agency; and

    • (b) after the department, insert or departmental agency; and

    • (c) after the department's, insert or departmental agency's.

    (2) In section 30I(2),—

    • (a) after particular department, insert or departmental agency; and

    • (b) after the department, insert or departmental agency; and

    • (c) replace abolished with disestablished.

    (3) In section 30I(3),—

    • (a) after particular department, insert or departmental agency; and

    • (b) replace between departments with elsewhere in the Public Service.

    (4) In section 30I(4), after whose department, insert or departmental agency.

23 Section 30J amended (Application of consequential changes to references)
  • (1) In section 30J(1)(a), (2), (3), and (4), replace abolition with disestablishment.

    (2) In section 30J(3), replace abolished with disestablished.

23A Section 30K amended (Other saving and transitional matters arising from reorganisations within Public Service)
  • In section 30K, replace abolition with disestablishment.

23B Section 30L amended (Effect of reorganisations within Public Service)
  • In section 30L(1), replace abolition with disestablishment.

24 Section 31 amended (Chief executives)
  • Replace section 31(1) with:

    • (1) Each department and each departmental agency must have, as its administrative head, a chief executive.

25 Section 32 replaced (Principal responsibilities)
  • Replace section 32 with:

    32 Principal responsibilities
    • (1) The chief executive of a department or departmental agency is responsible to the appropriate Minister for—

      • (a) the department's or departmental agency's carrying out the purpose of this Act; and

      • (b) the department's or departmental agency's responsiveness on matters relating to the collective interests of government; and

      • (c) the stewardship of the department or departmental agency, including of its medium and long-term sustainability, organisational health, capability, and capacity to offer free and frank advice to successive governments; and

      • (d) the stewardship of—

        • (i) assets and liabilities on behalf of the Crown that are used by or relate to (as applicable) the department or departmental agency; and

        • (ii) the legislation administered by the department or departmental agency; and

      • (e) the performance of the functions and duties and the exercise of the powers of the chief executive or of the department or departmental agency (whether imposed by any enactment or by the policies of the Government); and

      • (f) the tendering of free and frank advice to Ministers; and

      • (g) the integrity and conduct of the employees for whom the chief executive is responsible; and

      • (h) the efficient and economical delivery of the goods or services provided by the department or departmental agency and how effectively those goods or services contribute to the intended outcomes.

      (2) Except as provided in any other enactment,—

      • (a) the chief executive of a department is not responsible for the performance of functions or duties or the exercise of powers by that part of the department that comprises any departmental agency hosted by the department; and

      • (b) the chief executive of a departmental agency is responsible only for the performance of functions or duties or the exercise of powers by that part of the department that comprises the departmental agency.

26 Section 33 replaced (Duty to act independently)
  • Replace section 33 with:

    33 Duty to act independently
    • (1) Despite section 32, in matters relating to decisions on individual employees (whether matters relating to the appointment, promotion, demotion, transfer, discipline, or the cessation of the employment of any employee, or other matters),—

      • (a) the chief executive of a department is responsible for acting independently (and is not responsible to the appropriate Minister); and

      • (b) the chief executive of a departmental agency is responsible for acting independently (and is not responsible to the appropriate Minister or to the chief executive of the host department).

      (2) The independence provided in subsection (1) is subject to—

      • (a) the requirement in section 50(4) that a chief executive may only appoint an employee to a key position with the Commissioner's agreement; and

      • (b) the requirement in section 59(5) that a chief executive have regard to the wishes of the relevant Minister in relation to decisions on ministerial staff.

27 Section 34 amended (Functions, responsibilities, duties, and powers)
  • (1) In section 34(1) and (2), after of a department, insert or departmental agency.

    (2) In section 34(2), after or that department, insert or departmental agency.

28 Section 35 amended (Appointment of chief executives)
  • (1) In section 35(1), replace 44, and 91, with and 44.

    (2) In section 35(2), after of a department, insert or departmental agency.

    (3) In section 35(4)(a), after the Commissioner, insert or Deputy Commissioner.

    (4) In section 35(4)(b), after the Deputy Commissioner, insert or an employee of the Commissioner.

    (5 ) After section 35(4), insert:

    • (4AA) In relation to a vacancy or an impending vacancy in the position of chief executive of a departmental agency, the panel established under subsection (4) must also include the chief executive of the host department.

    (6) In section 35(4A), delete as constituted under subsection (4).

    (7) In section 35(4B), (5), (9), (10), and (11)(a), replace the Commissioner with the chairperson.

    (8) In section 35(5) and (6), replace The Commissioner with The chairperson.

    (9) In section 35(7), (8), (9), (10), and (11), replace the Commissioner's with the chairperson's.

    (10) Repeal section 35(12).

29 Section 36 amended (Reappointment of chief executives)
  • Replace section 36(1) with:

    • (1) The Commissioner may recommend to the Minister that the existing chief executive of a department or departmental agency be reappointed for a further term.

    • (1A) Section 35(7) to (10) apply (with any necessary modifications) to the recommendation under subsection (1) as if it were a recommendation under section 35(6).

30 Section 37 amended (Appointment and reappointment of Government Statistician)
  • (1) In section 37(1), replace Subject to section 91, the with The.

    (2) In section 37(2),—

    • (a) delete complying with; and

    • (aa) delete and (12); and

    • (b) after section 35, insert have been complied with, and must announce publicly that the appointment has been made.

31 New section 37A inserted (Transfer of chief executives)
  • After section 37, insert:

    37A Transfer of chief executives
    • (1) The Commissioner may recommend to the Minister that a chief executive of a department or departmental agency be transferred into a vacancy or an impending vacancy in the position of chief executive in—

      • (a) that department or departmental agency (as applicable); or

      • (b) another department or departmental agency.

      (2) Section 35(7) to (10) apply (with any necessary modifications) to a recommendation under subsection (1) as if it were a recommendation under section 35(6).

      (2A) Section 35(6) to (11) do not apply to a recommendation under subsection (1) if it relates to a transfer of a chief executive of a department or departmental agency into a vacancy or an impending vacancy in the position of Government Statistician.

      (3) Before making a recommendation under subsection (1), the Commissioner must—

      • (a) believe on reasonable grounds that the transfer would be in the public interest; and

      • (b) obtain the chief executive's agreement to the transfer; and

      • (c) consult the appropriate Ministers.

      (4) The Commissioner may make a recommendation under subsection (1) without notifying the vacancy or impending vacancy or examining other applicants or establishing a panel under section 35(4).

32 Section 38 amended (Conditions of employment of chief executives)
  • (1) Before section 38(1), insert:

    • (1AA) The Commissioner has, except as expressly provided to the contrary in this Act, the rights, powers, and duties of an employer in relation to chief executives.

    (2) In section 38(3),—

    • (a) replace shall obtain the agreement of with must consult; and

    • (b) replace to the conditions with about the conditions.

33 Section 39 amended (Removal from office)
  • (1) In section 39, after of a department, insert or departmental agency.

    (2) In section 39, insert as subsection (2):

    • (2) The Commissioner must consult the chief executive of the host department before removing a chief executive of a departmental agency under subsection (1).

34 Section 40 amended (Acting chief executive)
  • (1) In section 40(1), replace functions, powers, and duties with functions, duties, and powers.

    (2) In section 40(1)(c), after another department, insert or departmental agency.

    (3) In section 40(1)(e), replace an employee with any person.

    (4) In section 40(1),—

    • (a) replace directed with appointed; and

    • (b) replace direction with appointment; and

    • (c) replace given with made.

    (5) After section 40(1), insert:

    • (1A) Where a new department or departmental agency is to be established on a certain date, the Commissioner may appoint as an acting chief executive any person the Commissioner considers suitable to exercise and perform all or any of the functions, duties, and powers of the chief executive of that new department or departmental agency.

    • (1B) The position of an acting chief executive appointed under subsection (1A) ceases to exist on the date a chief executive of the new department or departmental agency takes office after being appointed under section 35.

    (6) In section 40(2), replace direction with appointment in each place.

    (7) In section 40(3),—

    • (a) replace directed with appointed; and

    • (b) after subsection (1), insert or (1A); and

    • (c) replace functions, powers, and duties with functions, duties, and powers.

35 Section 41 amended (Delegation of functions or powers)
  • (1) Replace section 41(1) with:

    • (1) A Public Service chief executive may, either generally or particularly, delegate in writing to a person described in subsection (1A) or (2A) any of the functions or powers of the chief executive under this Act or any other Act (including functions or powers delegated to the chief executive under this Act or any other Act), except that—

      • (a) the delegation of functions or powers delegated to the chief executive by a Minister requires the prior written approval of that Minister; and

      • (b) the delegation of functions or powers delegated to the chief executive by the Commissioner requires the prior written approval of the Commissioner.

    (2) After section 41(1), insert:

    • (1A) The following persons may be a delegate under subsection (1) or a subdelegate under subsection (2):

      • (a) another Public Service chief executive:

      • (b) a Public Service employee:

      • (c) an individual working in the Public Service as a contractor or as a secondee from elsewhere in the State services in relation to a function or power of the Public Service:

      • (d) the holder for the time being of any specified office in the Public Service.

    (3) Replace section 41(2) with:

    • (2) A person to whom a function or power has been delegated under subsection (1) by a chief executive may, with the prior written approval of that chief executive, subdelegate the function or power to any other person described in subsection (1A).

    (4) After section 41(2), insert:

    • (2A) A Public Service chief executive may delegate under subsection (1) a clearly identified function or power to a person outside the Public Service (whether or not the person is within the State services), but only after—

      • (a) obtaining the appropriate Minister's prior written approval; and

      • (b) satisfying himself or herself that any potential conflicts of interest will be avoided or managed.

    • (2AA) However, a delegate described in subsection (2A) may not subdelegate the delegated power or function under subsection (2).

    • (2B) A delegation described in subsection (2A) must be noted, with a description of how effectively the delegated function or power was performed or exercised,—

      • (a) in the case of a delegation made by the chief executive of a department, in the annual report of that department; or

      • (b) in the case of a delegation made by the chief executive of a departmental agency, in the annual report of that departmental agency.

    • (2C) A delegate described in subsection (2A) must comply with the following obligations in relation to the performance of a delegated function or the exercise of a delegated power (in the same way as a delegate described in subsection (1A) must comply with them):

      • (a) all relevant statutory obligations; and

      • (b) all relevant obligations in a code of conduct set by the Commissioner under section 57(2).

    • (2D) Any information held by a delegate described in subsection (2A) in relation to the performance of a delegated function or the exercise of a delegated power is, for the purposes of the Official Information Act 1982 (see section 2(5) of that Act), deemed to be held by,—

      • (a) in the case of a delegation made by the chief executive of a department, that department; or

      • (b) in the case of a delegation made by the chief executive of a departmental agency, the host department of that departmental agency.

    • (2E) If the delegate described in subsection (2A) is outside the Public Service, the Ombudsmen Act 1975 and the Official Information Act 1982 apply to the delegate—

      • (a) in relation to the performance of a delegated function or the exercise of a delegated power; and

      • (b) as if the delegate were an organisation named in Schedule 1 of the Ombudsmen Act 1975.

    • (2E) In relation to the performance of a delegated function or the exercise of a delegated power, the Ombudsmen Act 1975 and the Official Information Act 1982 apply to a delegate described in subsection (2A) as if the delegate were an organisation named in Schedule 1 of the Ombudsmen Act 1975.

    (5) In section 41(3), after in the same manner, insert , subject to the same restrictions,.

    (6) After section 41(4), insert:

    • (4A) Where a chief executive or a delegate of the chief executive uses a written document to inform any other person of an action taken by a delegate of the chief executive, the document must—

      • (a) state that the action was taken by a delegate of the chief executive; and

      • (b) give the delegate's name and office; and

      • (c) inform the other person that a copy of the instrument of delegation may be inspected at the chief executive's office.

36 Section 43 amended (Review of performance of chief executive)
  • After section 43(1), insert:

    • (1A) When reviewing the performance of a chief executive of a departmental agency, the Commissioner must consult the chief executive of the host department.

37 Section 44 amended (Special provisions in relation to certain chief executives)
  • (1) In section 44(1),—

    • (a) replace 43, and 91 with and 43; and

    • (b) replace apply with applies.

    (2) Repeal section 44(1)(a), (b), and (c).

    (3) After section 44(1), insert:

    • (1A) Nothing in sections 35, 36, 38, and 39 applies in respect of the Solicitor-General, and a review of the Solicitor-General's performance under section 43—

      • (a) must only pertain to the Solicitor-General's responsibilities as the chief executive of a department; and

      • (b) must not pertain to the performance of the independent and constitutional functions of the Solicitor-General or the performance of persons assisting the Solicitor-General in the performance of those functions.

    (4) Repeal section 44(2)(d).

38 Sections 46 to 48 replaced
  • Replace sections 46 to 48 with:

    46 Object
    • The object of this Part is to specify the Commissioner's responsibilities for developing senior leadership and management capability in the Public Service.

    47 Responsibilities of Commissioner
    • (1) The Commissioner is responsible for developing and implementing a strategy for the development of senior leadership and management capability in the Public Service, which could include, for example, the flexible deployment of individuals to developmental roles in the Public Service (with the agreement of the individuals and the relevant chief executives).

      (2) The Commissioner may promote the strategy to other agencies in the State services, and may invite employees in the State services to participate in initiatives under the strategy (with the agreement of the relevant chief executives).

    48 Responsibilities of chief executives
    • Each chief executive of a department or departmental agency is responsible for—

      • (a) developing senior leadership and management capability in the department or departmental agency; and

      • (b) assisting the Commissioner to fulfil the Commissioner's responsibilities under section 47.

39 Section 49 amended (Secondments)
  • Replace section 49(1) with:

    • (1) The Commissioner may arrange for a State services employee to be seconded elsewhere in the State services (with the agreement of the employee and the relevant chief executives) for the purpose of developing senior leadership and management capability in the State services.

40 Section 50 replaced (Other organisations in State services)
  • Replace section 50 with:

    50 Key positions in Public Service
    • (1) After consulting the chief executive of a department or departmental agency, the Commissioner may designate a position in the department or departmental agency that meets the criteria in subsection (2) as a key position.

      (2) For the purposes of this section and section 33(2)(a), key position means a position in a department or departmental agency that, in the opinion of the Commissioner, is key—

      • (a) because of its potential to develop senior leaders; or

      • (b) because it is critical to the Public Service.

      (3) The Commissioner must publish a list of key positions on an Internet site maintained by or on behalf of the Commissioner.

      (4) A chief executive may only appoint an employee to a key position with the Commissioner's agreement.

41 Part 5 heading replaced
  • Replace the Part 5 heading with:

    Part 5
    Government workforce policy and personnel provisions.

42 New subpart 1 of Part 5 and subpart 2 of Part 5 heading inserted
  • After the Part 5 heading, insert:

    Subpart 1Government workforce policy

    55A Commissioner's functions in relation to this subpart
    • The Commissioner has the following functions in relation to this subpart:

      • (a) to provide advice and guidance to the State services (except Crown Research Institutes and their subsidiaries) on workforce matters; and

      • (b) to consider whether to draft and submit draft government workforce policy for ministerial approval as a Government Workforce Policy Statement; and

      • (c) to advise affected agencies on the operation of any Government Workforce Policy Statement; and

      • (d) to facilitate the operation of any Government Workforce Policy Statement in conjunction with affected agencies.

    55B Government workforce policy
    • (1) The Commissioner may draft government workforce policy and, after consulting the affected agencies and any other parties that the Commissioner considers appropriate, submit it to the Minister for his or her consideration.

      (2) Government workforce policy must relate to workforce (including employment and workplace) matters for the purpose of fostering a consistent, efficient, and effective approach to such matters across the State sector.

      (2A) Workforce matters may, without limitation, address (in relation to the affected agency or agencies)—

      • (a) the Government's expectations about the negotiation of collective agreements and individual employment agreements in the State Services (being expectations that do not determine pay or conditions); and

      • (b) the development of workforce strategy.

      (3) Government workforce policy must specify the agency or agencies to which it applies, which may be any or all of the following:

      • (a) a department or departments:

      • (b) a Crown agent or Crown agents:

      • (c) an autonomous Crown entity or autonomous Crown entities.

      (4) The Minister may approve government workforce policy as a Government Workforce Policy Statement.

      (5) A Government Workforce Policy Statement is not a regulation for the purposes of the Regulations (Disallowance) Act 1989 or the Acts and Regulations Publication Act 1989.

    55C Government Workforce Policy Statement: process
    • (1) As soon as practicable after the Minister's approval under section 55B(4), the Commissioner must—

      • (a) send the Government Workforce Policy Statement to the affected agencies; and

      • (b) publish the Government Workforce Policy Statement on an Internet site maintained by, or on behalf of, the Commissioner.

      (2) A Government Workforce Policy Statement may be amended, revoked, or replaced in the same way as it may be made.

    55D Government Workforce Policy Statement: implementation
    • (1) A department must give effect to a Government Workforce Policy Statement.

      (2) A Crown agent must give effect to a Government Workforce Policy Statement.

      (3) An autonomous Crown entity must have regard to a Government Workforce Policy Statement.

      (4) Despite subsections (1) to (3), a Government Workforce Policy Statement may not—

      • (a) create, alter, or remove employment or other legal rights or obligations; or

      • (b) determine or alter the content of the law applying to employees or chief executives or the Commissioner..

    Subpart 2Personnel provisions.

43 Section 56 amended (General principles)
  • In section 56(2)(c), after appointment, insert (except in the case of ministerial staff).

44 Section 57 amended (Commissioner may set minimum standards of integrity and conduct)
  • (1) In section 57(1)(b), after Crown entities, insert (except for tertiary education institutions and Crown Research Institutes and any of their subsidiaries).

    (2) After section 57(1)(b), insert:

    • (ba) companies named in Schedule 4A of the Public Finance Act 1989:.

    (3) Replace section 57(3) with:

    • (3) The Commissioner may apply a code to any agency or agencies referred to in subsection (1), or to any particular persons or groups of persons undertaking particular functions in such an agency or agencies, with any variations that the Commissioner thinks appropriate in light of the legal, commercial, or operational context of the agency or agencies or of the persons or groups of persons.

    • (4) The Commissioner's functions include providing advice and guidance to the State services (except Crown Research Institutes and their subsidiaries) on matters, or at times, that affect the integrity and conduct of those within the State services (including, for example, on the interpretation of relevant standards and on the application of a code of conduct in specific cases).

    (4) After section 57(4), insert:

    Compare: 1988 No 20 ss 6(ha), 57C(2).

45 Section 57A amended (Agencies must comply with minimum standards except in particular circumstances)
  • In section 57A(1), after employees, insert and individuals working as contractors or secondees in relation to a function, duty, or power of the agency.

46 Section 57C amended (Commissioner's powers when setting and enforcing minimum standards)
  • Repeal section 57C(2).

47 Section 58 amended (Equal employment opportunities)
  • (1) After the heading to section 58, insert:

    • (1) The Commissioner's functions include promoting, developing, and monitoring equal employment opportunities programmes and policies for the Public Service.

    (2) In section 58(3), after For the purposes of, insert this section and.

    (3) After section 58(3), insert:

    Compare: 1988 No 20 s 6(g).

48 Section 59 replaced (Employees of departments)
  • Replace section 59 with:

    59 Employees of departments
    • (1) In relation to the functions, duties, and powers of a department, the chief executive of the department—

      • (a) may appoint such employees of the department (including acting, temporary, or casual employees) as the chief executive thinks necessary; and

      • (b) may, subject to any conditions of employment included in the employment agreement applying to an employee, at any time remove that employee from his or her office or employment; and

      • (c) has, except as expressly provided to the contrary in this Act, the rights, powers, and duties of an employer in respect of the employees of the department.

      (2) In relation to employees of a host department who perform the functions or duties or exercise the powers of a departmental agency, the chief executive of the host department is deemed by this subsection—

      • (a) to have delegated to the chief executive of the departmental agency the following rights, duties, and powers:

        • (i) those described in subsection (1)(a), (b), and (c) and 69(a) and (c); and

        • (ii) those described in sections 60 to 64; and

        • (iii) those described in sections 82 and 83; and

      • (b) not to have those rights, duties, and powers in relation to those employees.

      (3) The chief executive of a departmental agency may exercise the rights, duties, and powers deemed to have been delegated to him or her under subsection (2) in the same manner, subject to the same restrictions, and with the same effect as if they had been conferred on him or her directly by this Act and not by delegation.

      (4) Appointments under subsection (1)(a) or (2)(a)(i) (except of ministerial staff) are provisional pending the outcome of any review under section 65.

      (5) The chief executive of the department that is responsible for the employment of ministerial staff across all Ministers' offices must have regard to the wishes of the relevant Minister in relation to ministerial staff.

49 Sections 61A and 61B replaced
  • Replace sections 61A and 61B with:

    61A Restriction of redundancy payments in certain situations
    • (1) A Public Service employee who has received a notice of redundancy is not entitled to a redundancy payment if, before the employee's employment has ended, the employee either—

      • (a) is offered and accepts another position in the State services (either in the employee's current department or elsewhere in the State services) that—

        • (i) begins before, on, or immediately after the date on which the employee's current employment ends; and

        • (ii) is on terms and conditions of employment (including redundancy and superannuation conditions) that are no less favourable; and

        • (iii) is on terms that treat service within the State services as if it were continuous service; or

      • (b) is offered an alternative position in the State services (either in the employee's current department or elsewhere in the State services) that—

        • (iaaa) begins before, on, or immediately after the date on which the employee's current employment ends; and

        • (i) is a position with comparable duties and responsibilities to those of the employee's current position; and

        • (ii) is in substantially the same general locality or a locality within reasonable commuting distance; and

        • (iii) is on terms and conditions of employment (including redundancy and superannuation conditions) that are no less favourable; and

        • (iv) is on terms that treat service within the State services as if it were continuous service.

      (2) Sections 60, 61, and 65 do not apply in relation to the offer of an alternative position.

      (3) This section overrides Part 6A of the Employment Relations Act 2000.

      Compare: 1988 No 20 ss 30E, 30F, 61A, 61B(1)

    61AB Transitional provision relating to restriction of redundancy payments
    • (1) The new redundancy-related sections do not apply until the expiry of 3 years after the commencement of this section.

      (2) The old redundancy-related sections continue to apply until immediately before the expiry of 3 years after the commencement of this section.

      (3) For the purposes of this section,—

      new redundancy-related sections means sections 61A and 61B after their amendment by the State Sector and Public Finance Reform Act 2012

      old redundancy-related sections means sections 30C, 30D, 30E, 30F, 61A, and 61B as they were in force immediately before their repeal by the State Sector and Public Finance Reform Act 2012.

    61B Application of employee provisions to transfers of functions between Crown entities and departments
    • (1) The following provisions apply both to a transfer of functions from a Crown entity to a department and to a transfer of functions from a department to a Crown entity:

      • (a) sections 61A and 61C:

      • (b) sections 30H, 30I, and 61D in so far as—

        • (i) those sections relate to a collective employment agreement that binds the chief executive of the Crown entity or department before the transfer of the functions; and

        • (ii) that collective employment agreement applies to an employee whose position in the Crown entity or department ceases to exist as a result of the transfer of functions.

      (2) The sections referred to in subsection (1) apply in respect of the Crown entity or department that functions are transferred from—

      • (a) as if any reference to Department A in those sections were a reference to that Crown entity or department; and

      • (b) with all other necessary modifications.

      Compare: 1988 No 20 s 30D.

49A Section 61C amended (Union coverage where department ceases to be part of Public Service)
  • In section 61C, replace abolition with disestablishment.

50 New section 61D inserted (Application of collective agreements to employees following reorganisations)
  • After section 61C, insert:

    61D Application of collective agreements to employees following reorganisations
    • (1) This section limits which employees may be bound by a collective agreement that—

      • (a) binds the chief executive of Department A before a transfer of functions from Department A to Department B and that, as a consequence of sections 30H and 30I, binds the chief executive of Department B after that transfer of functions (collective agreement A); or

      • (b) binds the chief executive of Department B before that transfer of functions (collective agreement B).

      (2) After that transfer of functions,—

      • (a) the only employees of Department B who are entitled to be bound by or enforce collective agreement A are those employees who are appointed to a position in Department B that has been established (whether or not previously existing in Department A) to enable Department B to perform the transferred functions; and

      • (b) the only employees of Department B who are entitled to be bound by or enforce collective agreement B are those employees who hold, or are appointed to, a position other than a position referred to in paragraph (a).

      (3) Subsection (2) does not bind an employee to a collective agreement, or entitle an employee to be bound by or enforce a collective agreement, if the employee would not otherwise be bound by, or be entitled to be bound by or enforce, that agreement.

      (4) This section limits which employees may be bound by collective agreements (including collective employment contracts), and the coverage of those agreements, under Part 6 of this Act and sections 56(1), 57, 62(3), 63(3), and 243 of the Employment Relations Act 2000.

      (5) This section does not apply to a collective agreement to the extent that the parties agree otherwise.

      Compare: 1988 No 20 s 30G.

51 New section 66 inserted (Certain sections do not apply in relation to ministerial staff)
  • After section 65, insert:

    66 Certain sections do not apply in relation to ministerial staff
    • Sections 60, 61, 64, and 65 do not apply in relation to ministerial staff.

51A Section 77 replaced (Protection from liability)
  • Replace section 77 with:

    77 Immunity for education service chief executives and employees
    • Education service chief executives and employees are immune from liability in civil proceedings for good-faith actions or omissions in pursuance or intended pursuance of their duties, functions, or powers.

52 Section 77C amended (Performance of teachers)
  • In section 77C(1), delete , with the agreement of the State Services Commissioner,.

53 Section 85 amended (Offence to attempt to influence Commissioner or chief executive)
  • In section 85(1), replace influence the Commissioner or any Commissioner or any chief executive with influence the Commissioner or any chief executive.

54 Section 86 replaced (Protection from liability)
  • Replace section 86 with:

    86 Immunity for Public Service chief executives and employees
    • (1) Public Service chief executives and employees are immune from liability in civil proceedings for good-faith actions or omissions in pursuance or intended pursuance of their duties, functions, or powers.

      (2) See also section 6 of the Crown Proceedings Act 1950.

55 Section 91 repealed (Transitional provisions for permanent heads)
  • Repeal section 91.

56 New Schedule 1A inserted
  • After Schedule 1, insert the Schedule 1A set out in Schedule 1 of this Act.

56A Amendment to Tax Administration Act 1994
  • (1) This section amends the Tax Administration Act 1994.

    (2) Replace section 7 with:

    7 Delegation of powers by Commissioner
    • (1) The Commissioner may delegate in accordance with sections 41 and 42 of the State Sector Act 1988 any of the Commissioner's functions or powers under this Act or any other Act (including functions or powers delegated to the Commissioner under this Act or any other Act), except that—

      • (a) the delegation of functions or powers delegated to the Commissioner by a Minister requires the prior written approval of that Minister; and

      • (b) the delegation of functions or powers delegated to the Commissioner by the State Services Commissioner requires the prior written approval of the State Services Commissioner.

      (2) However, the Commissioner may not delegate to a person outside the Public Service (as described in section 41(2A) of the State Sector Act 1988) any of the following functions or powers:

      • (a) the Commissioner’s functions or powers in relation to obtaining information from and about taxpayers (sections 16 to 21 of this Act); and

      • (b) the Commissioner’s functions or powers in relation to imposing civil and criminal penalties on taxpayers in various circumstances (Part 9 of this Act, subpart 3 of Part 4 of the Student Loan Scheme Act 2011, and Part 12 of the Child Support Act 1991); and

      • (c) the Commissioner’s functions or powers in relation to deducting amounts from payments due (section 157 of this Act, section 193 of the Student Loan Scheme Act 2011 but in respect only of the powers in section 157 of this Act, and section 154 of the Child Support Act 1991); and

      • (d) the Commissioner’s functions or powers in relation to tax recovery agreements negotiated between the government of a territory outside New Zealand and the Government of New Zealand (Part 10A of this Act).

      (3) Sections 41 and 42 of the State Sector Act 1988 apply to delegations under this section as if those delegations were made under section 41(1) of that Act.

57 Consequential amendments to Crown Proceedings Act 1950
  • (1) This section amends the Crown Proceedings Act 1950.

    (2) In section 6(1), after and any other Act,, insert and except as provided in subsection (4A),.

    (3) In section 6(4), replace Any enactment with Except as provided in subsection (4A), any enactment.

    (4) After section 6(4), insert:

    • (4A) Despite certain Crown servants being immune from liability under section 86 of the State Sector Act 1988,—

      • (a) a court may find the Crown itself liable in tort in respect of the actions or omissions of those servants; and

      • (b) for the purpose of determining whether the Crown is so liable, the court must disregard the immunity in section 86.

57A Consequential amendments to Clerk of the House of Representatives Act 1988
  • (1) This section amends the Clerk of the House of Representatives Act 1988.

    (2) In the heading to section 17, replace State Services Commission with State Services Commissioner.

    (3) In section 17(1), replace State Services Commission with State Services Commissioner in each place.

    (4) After section 17(1), insert:

    • (1A) The State Services Commissioner must exercise functions requested by the Speaker in accordance with subsection (1) consistently with the role of the Office of the Clerk of the House of Representatives and its separation from the executive government.

57B Consequential amendments to Parliamentary Service Act 2000
  • (1) This section amends the Parliamentary Service Act 2000.

    (2) In Schedule 1, after clause 15(1), insert:

    • (1A) The State Services Commissioner must exercise functions requested by the Speaker in accordance with subsection (1) consistently with the role of the Parliamentary Service and its separation from the executive government.

57C Amendment relating to Legislation Act 2012
  • (1) This section takes effect on the repeal of the Acts and Regulations Publication Act 1989 and the Regulations (Disallowance) Act 1989.

    (2) Repeal section 55B(5) and substitute:

    • (5) A Government Workforce Policy Statement is neither a legislative instrument nor a disallowable instrument for the purposes of the Legislation Act 2012 and does not have to be presented to the House of Representatives under section 41 of that Act.

Part 2
Amendments to Public Finance Act 1989

58 Principal Act
  • This Part amends the Public Finance Act 1989 (the principal Act).

Subpart 1Amendments coming into force on day after date of Royal assent

58A Section 1A amended (Purpose)
  • (1) In section 1A(2)(d), after departments,, insert departmental agencies,.

    (2) In section 1A(2)(d), replace and organisations named or described in Schedule 4 with Schedule 4 organisations, and Schedule 4A companies.

    (3) In section 1A(2)(e), replace organisations named or described in Schedule 4 with Schedule 4 organisations and Schedule 4A companies.

59 Section 2 amended (Interpretation)
  • (1AAA) In section 2(1), insert in their appropriate alphabetical order:

    appropriation administrator,—

    • (a) in relation to an appropriation made to the Crown, means the department that administers the appropriation on behalf of the appropriation Minister; and

    • (b) in relation to an appropriation made to an Office of Parliament, means that Office of Parliament

    appropriation Minister,—

    • (a) in relation to an appropriation made to an Office of Parliament, means the Speaker; and

    • (b) in relation to an appropriation administered by the Office of the Clerk of the House of Representatives or the Parliamentary Service, means the Speaker; and

    • (c) in relation to any other appropriation, means the Minister responsible for that appropriation

    category,—

    • (a) in relation to expenses, means a grouping of similar or related expenses; and

    • (b) in relation to capital expenditure, means a grouping of similar or related items of capital expenditure.

    (1) In section 2(1), definition of chief executive, after paragraph (a), insert:

    • (abaa) in the case of a departmental agency, the person holding office under section 31 of the State Sector Act 1988 as the chief executive of the departmental agency:.

    (1A) In section 2(1), definition of Crown or the Sovereign, paragraph (c)(iii), after State-Owned Enterprises Act 1986, insert ; or.

    (1B) In section 2(1), definition of Crown or the Sovereign, after paragraph (c)(iii), insert:

    • (iv) a Schedule 4 organisation; or

    • (v) a Schedule 4A company; or

    • (vi) a mixed ownership model company.

    (2) In section 2(1), definition of department, replace paragraph (a) with:

    • (a) means—

      • (i) a department (as defined in section 27A(1) and (2) of the State Sector Act 1988); or

      • (ii) the New Zealand Defence Force; or

      • (iii) the New Zealand Police; or

      • (iv) the New Zealand Security Intelligence Service; or

      • (v) the Parliamentary Counsel Office; or

      • (vi) the Office of the Clerk of the House of Representatives; or

      • (vii) the Parliamentary Service; but.

    (3) In section 2(1), insert in their appropriate alphabetical order:

    departmental,—

    • (a) in relation to expenses, means expenses incurred by a department or an Office of Parliament; and

    • (b) in relation to capital expenditure, means capital expenditure incurred by a department or an Office of Parliament

    departmental agency has the meaning given in section 27A of the State Sector Act 1988 (see also section 27B of that Act)

    host department, in relation to a departmental agency, has the meaning given in section 27A(1) and (2) of the State Sector Act 1988

    lend money

    • (a) includes—

      • (i) deferring payment for any goods or services supplied or works constructed for any person, organisation, or government; and

      • (ii) entering into hire purchase agreements or agreements that are of the same or a substantially similar nature; and

      • (iii) entering into finance lease arrangements or arrangements that are of the same or a substantially similar nature; but

    • (b) does not include selling or supplying goods or services on credit for a period of 90 days or less from the date the credit is supplied

    non-departmental,—

    • (a) in relation to expenses, means expenses incurred on behalf of the Crown, other than by a department or an Office of Parliament; and

    • (b) in relation to capital expenditure, means capital expenditure incurred on behalf of the Crown, other than by a department or an Office of Parliament

    permanent legislative authority,—

    • (a) in relation to incurring expenses or capital expenditure, means an express authority given by or under an Act other than an Appropriation Act to incur expenses or capital expenditure without further appropriation (see, for example, section 65H(2), which relates to certain finance expenses, and section 9 of the Ombudsmen Act 1975, which relates to salaries and allowances of Ombudsmen); and

    • (b) in relation to spending public money, means an express authority given by or under an Act to spend public money without further authority (see, for example, section 6).

    (4) In section 2(1), definition of public money,—

    • (a) after received by, insert or on behalf of; and

    • (b) delete or money received and held by Crown entities.

    (5) In section 2(1), replace the definition of responsible Minister with:

    responsible Minister means,—

    • (a) in relation to an Office of Parliament, to the Office of the Clerk of the House of Representatives, or to the Parliamentary Service, the Speaker:

    • (b) in relation to any other department, the Minister for the time being responsible for the financial performance of the department:

    • (c) in relation to a Schedule 4 organisation, the Minister for the time being responsible for the financial performance of the organisation:

    • (d) in relation to a Schedule 4A company, the Minister and the other shareholding Minister or Ministers.

    (6) In section 2(1), insert in their appropriate alphabetical order:

    Schedule 4 organisation means an organisation named or described in Schedule 4

    Schedule 4A company means a company named in Schedule 4A.

59A New section 2A inserted (Application, savings, and transitional provisions relating to amendments to Act)
  • After section 2, insert:

    2A Application, savings, and transitional provisions relating to amendments to Act
    • The application, savings, and transitional provisions set out in Schedule 1, which relate to amendments made to this Act on or after 1 July 2013, have effect for the purposes of this Act.

59A New section 2A inserted (Provisions affecting application of amendments to this Act)
  • After section 2, insert:

    2A Provisions affecting application of amendments to this Act
    • Schedule 1 contains application, savings, and transitional provisions relating to amendments made to this Act after 1 January 2013 (see section 88).

59B Section 3A replaced (Power to amend Schedule 4)
  • Replace section 3A with:

    3A Power to amend Schedule 4
    • (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, amend Schedule 4—

      • (a) to add the name or description of—

        • (i) any body, office (except an Office of Parliament), or officer established by or under an Act; or

        • (ii) any trust that is created by the Crown by deed of trust or in respect of which the Crown has appointed, or has the power to appoint, a majority of the trustees:

      • (b) to apply to an organisation any provision of the Crown Entities Act 2004 that appears in Schedule 4 (other than section 165 of that Act):

      • (c) to disapply to an organisation any provision of the Crown Entities Act 2004 that appears in Schedule 4:

      • (d) to substitute the name of an organisation in recognition of a change in its name:

      • (e) to remove the name or description of an organisation.

      (2) The Minister must recommend that an Order in Council be made to remove the name or description of an organisation from Schedule 4 if, and only if, the Minister is satisfied that—

      • (a) the organisation has become a company or a Crown entity; or

      • (b) in the case of a body, office, or officer established by or under an Act, the body, office, or officer has been disestablished; or

      • (c) in the case of a trust,—

        • (i) the trust has been wound up; or

        • (ii) the Crown no longer has the power to appoint a majority of the trustees.

    3AB Power to amend Schedule 4A
    • (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, amend Schedule 4A

      • (a) to add the name of a company that meets the following criteria:

        • (i) Ministers of the Crown hold, on behalf of the Crown, more than 50% of the issued ordinary shares in the capital of the company; and

        • (ii) shares in the company are not listed on a registered market (within the meaning of the Securities Markets Act 1988); and

        • (iii) the company is not a Crown entity or a State enterprise named in Schedule 1 of the State-Owned Enterprises Act 1986:

      • (b) to apply to a company any provision of the Crown Entities Act 2004 that appears in Schedule 4A (other than section 165 of that Act):

      • (c) to disapply to a company any provision of the Crown Entities Act 2004 that appears in Schedule 4A:

      • (d) to substitute the name of a company in recognition of a change in its name:

      • (e) to remove the name of a company.

      (2) The Minister must recommend that an Order in Council be made to remove the name of a company from Schedule 4A if the Minister is satisfied that—

      • (a) the company has been removed from the register of companies kept under the Companies Act 1993; or

      • (b) the company no longer meets the criteria set out in subsection (1)(a).

59C Section 4 amended (Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority)
  • Replace section 4(2)(b)(ii) with:

    • (ia) a Schedule 4 organisation; or

    • (ii) a Schedule 4A company; or.

60 New section 4A inserted (Authority to incur expenses or capital expenditure under Imprest Supply Act)
  • After section 4, insert:

    4A Authority to incur expenses or capital expenditure under Imprest Supply Act
    • (1) The authority given by an Imprest Supply Act to incur expenses or capital expenditure in a financial year in advance of appropriation is an authority under an Act for the purposes of sections 4(1) and 26C(1).

      (2) However, subsection (1) does not apply unless an appropriation for the expenses or capital expenditure is made before the end of the financial year.

60A New section 7C inserted (Responsibility for, and administration and use of, appropriations)
  • After section 7, insert:

    7C Responsibility for, and administration and use of, appropriations
    • (1) An appropriation is made to the Crown or an Office of Parliament.

      (2) In the case of an appropriation made to the Crown,—

      • (a) a Minister (the appropriation Minister) is responsible for the appropriation; and

      • (b) the appropriation must be administered by 1 department (the appropriation administrator) on behalf of the appropriation Minister; and

      • (c) if the appropriation is an appropriation for departmental expenses or a multi-category appropriation, any other department may incur expenses against the appropriation—

        • (i) at the direction of the appropriation Minister; or

        • (ii) with the agreement of the appropriation administrator.

      (3) Despite subsection (2)(a), the Speaker is responsible for any appropriation administered by the Office of the Clerk of the House of Representatives or the Parliamentary Service.

      (4) In the case of an appropriation made to an Office of Parliament,—

      • (a) the Speaker is responsible for the appropriation; and

      • (b) the appropriation must be administered by that Office of Parliament.

61 Section 11 amended (Expenses or payments authorised other than by Appropriation Act)
  • In section 11(2), after in accordance with an appropriation, insert , or other authority,.

61A Section 19 amended (Power of Secretary to obtain information)
  • (1) In section 19(1), after a department, insert , a departmental agency,.

    (2) In section 19(4), after department, insert , departmental agency,.

61AB Section 20 repealed (Departments may incur output expenses for, or on behalf of, other departments)
  • Repeal section 20.

61B Section 25 amended (Expenses or capital expenditure may be incurred in emergencies)
  • Repeal section 25(3).

61C Section 26Z amended (Power of Secretary to obtain information)
  • (1) In section 26Z(1), after department, insert , any departmental agency,.

    (2) In section 26Z(4), after department, insert , departmental agency,.

61CA Section 27 amended (Annual financial statements of Government)
  • Replace section 27(3)(b) with:

    • (ab) all Schedule 4 organisations:

    • (b) all Schedule 4A companies:.

61D Section 29A amended (Power of Secretary to obtain information)
  • (1) In section 29A(1), after department, insert , any departmental agency,.

    (2) In section 29A(4), after department, insert , departmental agency,.

62 Section 29B amended (Auditor-General to be auditor of Government reporting entity)
  • In section 29B, replace this Act with this Act,.

63 Section 31 amended (Annual financial statements must be presented to House of Representatives)
  • (1) In the heading to section 31, after House of Representatives, insert and published.

    (2) In section 31(3), after published, insert , on an Internet site maintained by or on behalf of the Treasury,.

    (3) After section 31(3), insert:

    • (4) The Secretary must ensure that the annual financial statements, the audit report, and the statement of responsibility remain available on that Internet site for inspection by members of the public for at least 5 financial years after the financial year to which the annual financial statements relate.

64 Section 31A amended (Monthly financial statements of Government)
  • (1) In section 31A(4), after published, insert , on an Internet site maintained by or on behalf of the Treasury,.

    (2) After section 31A(4), insert:

    • (5) The Secretary must ensure that the monthly financial statements remain available on that Internet site for inspection by members of the public for at least 5 financial years after the financial year to which the monthly financial statements relate.

65 Section 31B repealed (Publication, inspection, and purchase of financial statements of Government reporting entity)
  • Repeal section 31B.

65A Part 4 heading amended
  • In the Part 4 heading, after departments, insert and departmental agencies.

65B Sections 33 to 36 and cross-heading above section 34 replaced
  • Replace sections 33 to 36 and the cross-heading above section 34 with:

    33 Extended meaning of department for purpose of Part 4
    • In this Part, the following activities, bodies, and statutory offices must be taken to be part of a department:

      • (a) any activities, other than activities performed by a natural person or separate legal entity, that are funded by way of appropriation administered by the department:

      • (b) any bodies or statutory offices, other than natural persons or separate legal entities, that are funded by way of appropriation administered by the department.

    Responsibilities of chief executives

    34 Responsibilities of chief executives: financial management of departmental matters
    • (1) The chief executive of a department—

      • (a) is responsible to the responsible Minister for the financial management, financial performance, and financial sustainability of the department; and

      • (b) must comply with any lawful financial actions required by the Minister or the responsible Minister.

      (2) The chief executive of a department that administers an appropriation—

      • (a) is responsible to the appropriation Minister for what is achieved with departmental expenses and departmental capital expenditure under that appropriation; and

      • (b) is responsible for advising the appropriation Minister on the efficiency and effectiveness of any departmental expenses or departmental capital expenditure under that appropriation.

      (3) However, if a department other than the appropriation administrator, or any departmental agency, incurs departmental expenses or departmental capital expenditure against the appropriation at the direction of the appropriation Minister (under section 7C(2)(c)(i)), then the chief executive of that department or departmental agency, rather than the chief executive of the appropriation administrator, has the responsibility specified in subsection (2)(a) in respect of that expenditure.

    35 Responsibilities of chief executives: financial management of non-departmental matters
    • The chief executive of a department is responsible for—

      • (a) the financial management of, and financial reporting on, appropriations for non-departmental expenses and non-departmental capital expenditure administered by the department; and

      • (b) advising the appropriation Minister on the efficiency and effectiveness of expenditure under those appropriations; and

      • (c) the financial management of, and financial reporting on, assets, liabilities, and revenue managed by the department on behalf of the Crown; and

      • (d) advising the Minister responsible for those assets, liabilities, and revenue on their performance.

    36 Responsibilities of chief executives: reporting
    • (1) The chief executive of a department is responsible to the responsible Minister for ensuring that the department complies with the reporting requirements imposed on the department by or under this or any other Act.

      (2) The chief executive of a departmental agency is responsible, to the Minister for the time being responsible for the performance of the departmental agency, for ensuring that the departmental agency complies with the reporting requirements imposed on the departmental agency by or under this or any other Act.

66 Section 37 amended (Power of departmental chief executives to obtain information)
  • (1) In the heading to section 37, delete departmental.

    (2) Replace section 37(1) with:

    • (1) The chief executive of a department or departmental agency may request any specified person to supply to the chief executive any information that is necessary to enable the chief executive to carry out his or her responsibilities in relation to the department or departmental agency (as applicable) under sections 34 to 36.

    (3) In section 37(3), after department, insert or departmental agency.

66A Section 44 amended (Obligation to present and publish departmental annual reports)
  • After section 44(3), insert:

    • (4) The annual report of a department may be presented or published in a document that includes any other report or information, whether or not that other report or information relates to the department, provided that each report or set of information is separately identifiable within that document.

66A Sections 43 and 44 replaced
  • Replace sections 43 and 44 with:

    43 Departments must prepare annual reports
    • (1) As soon as practicable after the end of each financial year, each department must prepare a report on the operations of the department for that financial year, excluding operations on which any departmental agency hosted by the department is required to report under section 43A.

      (2) Not later than 15 working days after receiving an audit report under section 45D, the department must provide the annual report and the audit report to its responsible Minister.

      (3) This section does not limit any provision in any other Act that requires the chief executive of a department to provide an annual report, but the chief executive need not provide a separate report under each enactment.

    43A Departmental agencies must prepare annual reports
    • (1) As soon as practicable after the end of each financial year, each departmental agency must prepare a report on the operations of the departmental agency for that financial year.

      (2) As soon as practicable after the end of the financial year, but not later than 15 working days after the audit date (as defined in section 44(6)), the departmental agency must provide the annual report and any applicable audit report to—

      • (a) the Minister for the time being responsible for the performance of the departmental agency; and

      • (b) the responsible Minister for the departmental agency's host department.

      (3) This section does not limit any provision in any other Act that requires the chief executive of a departmental agency to provide an annual report, but the chief executive need not provide a separate report under each enactment.

    44 Obligation to present and publish annual reports
    • (1) A responsible Minister must present to the House of Representatives—

      • (a) the annual report of a department for which he or she is the responsible Minister and any applicable audit report; and

      • (b) the annual report of any departmental agency hosted by a department for which he or she is the responsible Minister and any applicable audit report.

      (2) The responsible Minister (or the Minister referred to in subsection (3)(b), if applicable) must comply with subsection (1)

      • (a) not later than 15 working days after the audit date; or

      • (b) if Parliament is not in session, as soon as possible after the commencement of the next session of Parliament.

      (3) A Minister other than the responsible Minister may present an annual report and audit report (if any) to the House of Representatives if—

      • (a) those reports are presented in a document that includes another report or other information (see subsection (5)); and

      • (b) that other Minister is responsible for presenting that other report or information.

      (4) A department or departmental agency must publish its annual report and any applicable audit report—

      • (a) as soon as practicable after the annual report has been presented to the House of Representatives, but, if subsection (2)(b) applies, not later than 15 working days after the audit date; and

      • (b) in accordance with the manner (if any)—

        • (i) prescribed by regulations made under this Act; or

        • (ii) specified in instructions issued by the Minister under section 80A.

      (5) The annual report of a department or departmental agency may be presented or published in a document that includes any other report or information, whether or not that other report or information relates to the department or departmental agency, but only if each report or set of information is separately identifiable within that document.

      (6) In this section,—

      audit date means,—

      • (a) in the case of a department, the date on which the department receives an audit report; and

      • (b) in the case of a departmental agency, the date on which the departmental agency's host department receives an audit report

      audit report means an audit report under section 45D.

66B Section 45 amended (Contents of departmental annual report)
  • After section 45(2), insert:

    • (2A) However, a department's annual report need not include information that any departmental agency hosted by the department is required to include in its annual report under section 45AA.

66C New section 45AA inserted (Contents of departmental agency annual report)
  • After section 45, insert:

    45AA Contents of departmental agency annual report
    • (1) The annual report of a departmental agency must contain the following information in respect of the financial year to which it relates:

      • (a) an assessment of the departmental agency's operations; and

      • (b) an assessment of the departmental agency's progress in relation to any of the host department's future operating intentions that are relevant to the departmental agency; and

      • (c) information about the departmental agency's management of its organisational health and capability; and

      • (d) any other matters that relate to or affect the departmental agency's operations that the departmental agency is required, has undertaken, or wishes to report on in its annual report.

      (2) The annual report of a departmental agency must identify the departmental agency's host department.

      (3) The annual report must be dated and signed on behalf of the departmental agency by its chief executive.

67 Section 45H amended (Application of subpart)
  • (1) Replace section 45H(1) with:

    • (1) This subpart applies to the following entities:

      • (a) a department and any other entity that must provide an annual report that includes audited annual financial statements for presentation to the House of Representatives; and

      • (b) a departmental agency; and

      • (c) an entity that must provide audited annual financial statements (rather than an annual report) for presentation to the House of Representatives.

    (2) In section 45H(2), replace subsection (1)(b) with subsection (1)(c).

68 Sections 45I to 45K replaced
  • Replace sections 45I to 45K with:

    45I First annual report for newly established entities
    • (1) The Minister may (at the Minister's discretion) exempt an entity that is established during the last 4 months of a financial year from the obligation to provide an annual report for that financial year.

      (2) Despite subsection (1), an entity that administers an appropriation must, after the end of that financial year, provide the following statements and report as if they were an annual report:

      • (a) the statements of expenses and capital expenditure required by section 45B(2)(c) and (d); and

      • (b) an audit report on those statements.

      (3) An entity that is exempted under subsection (1) must, after the end of the next entity's first full financial year, provide an annual report that covers the period from the date on which it the entity is established until the end of that next the entity's first full financial year.

      (4) To avoid doubt, the annual report referred to in subsection (3) must contain the information required to be included in the entity's annual report, (except that the information must be in respect of the period referred to in that subsection).

      (5) Subsections (1) to (4) also apply to an entity that, during the last 4 months of a financial year, becomes subject to the requirement to provide an annual report for presentation to the House of Representatives.

    45J Final annual report for disestablished entities
    • (1) An entity that is disestablished must provide a final report for the period—

      • (a) commencing at the start of the financial year in which the entity is disestablished; and

      • (b) ending on the date on which the entity is disestablished (the disestablishment date).

      (2) The final report must be—

      • (a) prepared as if it were an annual report; and

      • (b) provided not later than 3 months after the disestablishment date.

      (3) If the Minister is satisfied that it is necessary or expedient to transfer some or all of the responsibility for providing a final report to another party,—

      • (a) the Minister may approve the transfer of that responsibility; and

      • (b) if the Minister does so, the party to whom that responsibility is transferred each party with responsibility for providing the final report must sign the statement of responsibility for the report in respect of the matters in the report for which the party is responsible.

    45K Final annual report for entities that cease to be subject to requirement to provide annual report
    • (1) An entity that ceases to be subject to the requirement to provide an annual report for presentation to the House of Representatives must provide a final report for the period—

      • (a) commencing at the start of the financial year in which the entity ceases to be subject to the requirement to provide an annual report; and

      • (b) ending on the date on which the entity ceases to be subject to the requirement to provide an annual report (the specified date).

      (2) The final report must be—

      • (a) prepared as if it were an annual report; and

      • (b) provided not later than 3 months after the specified date.

      (3) Despite subsection (2)(b), the Minister may allow the entity to provide the final report later than 3 months after the specified date on any conditions that the Minister thinks fit.

      (4) If the Minister is satisfied that it is necessary or expedient to transfer some or all of the responsibility for providing a final report to another party,—

      • (a) the Minister may approve the transfer of that responsibility; and

      • (b) if the Minister does so, the party to whom that responsibility is transferred each party with responsibility for providing the final report must sign the statement of responsibility for the report in respect of the matters in the report for which the party is responsible.

70AAA Sections 45M and 45N and subpart 2 heading in Part 5 replaced
  • Replace sections 45M and 45N and the subpart 2 heading in Part 5 with:

    Subpart 2Application of Crown Entities Act 2004 to Schedule 4 organisations

    45M Application of Crown Entities Act 2004 to Schedule 4 organisations
    • (1) The following sections of the Crown Entities Act 2004, and any regulations that apply to the matters referred to in those sections, apply to a Schedule 4 organisation as if the organisation were a Crown entity under that Act:

      • (a) sections 133 and 134 (which relate to supply of information):

      • (b) sections 154 to 156 (which relate to annual financial statements, statements of responsibility, and audit reports):

      • (c) section 158 (which relates to bank accounts):

      • (d) if there is a tick in a column of the table in Schedule 4 of this Act alongside the name or description of the organisation, the section indicated in the heading of that column:

      • (e) if section 139 of the Crown Entities Act 2004 (which is the obligation to prepare a statement of intent) applies to the organisation under paragraph (d), sections 138 and 141 to 149 of that Act (which also relate to statements of intent):

      • (f) if section 150 of the Crown Entities Act 2004 (which is the obligation to prepare, present, and publish an annual report) applies to the organisation under paragraph (d), sections 151 (other than subsection (1)(b)), 152, and 154 to 157 of that Act (which also relate to annual reports).

      (2) The responsible Minister for a Schedule 4 organisation that is required, under subsection (1)(d), to produce a statement of service performance under section 153 of the Crown Entities Act 2004 must present that statement to the House of Representatives with the annual financial statements required under subsection (1)(b).

      (3) If a Schedule 4 organisation is established or regulated under an Act, the provisions applied by this section apply to the organisation subject to any express negation or modification of the provision in that Act.

    45N Exemptions from certain sections of Crown Entities Act 2004 for Schedule 4 organisations
    • (1) The Minister may exempt a Schedule 4 organisation, for 1 or more financial years or until further notice, from any of the requirements in sections 141, 151, and 152 of the Crown Entities Act 2004, other than the requirements in section 151(1)(c) to (e).

      (2) If the Minister considers that it is necessary or desirable to grant an exemption under this section, the Minister may grant the exemption—

      • (a) by notice in writing to the organisation; and

      • (b) on any conditions that the Minister thinks fit.

70AAB New Part 5AAA inserted
  • After section 45O, insert:

    Part 5AAA
    Non-listed companies in which the Crown is majority or sole shareholder

    45OA Application of Crown Entities Act 2004 to non-listed companies in which the Crown is majority or sole shareholder
    • (1) The following provisions of the Crown Entities Act 2004 apply to a Schedule 4A company as if the company were a Crown entity company under the Crown Entities Act 2004:

      • (a) section 79 (which relates to formation and acquisition of shares):

      • (b) sections 81 and 82 (which require a constitution to be presented to the House of Representatives), except that section 81 must be read as if it required the constitution to contain a statement to the effect that the company is a company named in Schedule 4A of the Public Finance Act 1989:

      • (c) sections 83 and 84 (which relate to the shareholding Minister), except that, if the company is not 100% Crown-owned, the references in section 84 to a shareholding Minister must be read as if they were references to the shareholders:

      • (d) section 85 (which relates to the interface between the Crown Entities Act 2004 and the Companies Act 1993 and other Acts in respect of Crown entity companies):

      • (e) if the company is 100% Crown-owned,—

        • (i) section 88 (which sets out the shareholding Ministers' role):

        • (ii) section 88A (which sets out the monitor's role):

      • (f) sections 89 to 92, 94, and 95 (which relate to appointment, removal, and duties of board members), except that, if the company is not 100% Crown-owned, the reference in section 94(1) to duties owed to the shareholding Ministers must be read as a reference to duties owed to shareholders:

      • (g) sections 96, 97, and 99 (which relate to subsidiaries):

      • (h) section 100 (which relates to the acquisition of shares or interests in companies, trusts, and partnerships, etc):

      • (i) section 102 (which relates to the interface between the Crown Entities Act 2004 and the Companies Act 1993 and other Acts in respect of Crown entity subsidiaries):

      • (j) sections 107 to 111 and 113 (which relate to directions under section 107 of the Crown Entities Act 2004):

      • (k) section 114 (which relates to government directions):

      • (l) section 118 (which is the obligation to be a good employer):

      • (m) sections 132 to 135 (miscellaneous provisions):

      • (n) sections 136 to 157 (which relate to reporting obligations):

      • (o) section 158 (which relates to bank accounts):

      • (p) if there is a tick in a column of the table in Schedule 4A of this Act alongside the name of the company, the section indicated in the heading of that column.

      (2) In the case of a Schedule 4A company that is not 100% Crown-owned, subsection (1)(n) does not prevent the shareholders from agreeing on a process for minority shareholders to be involved in the process of preparing, reviewing, or amending the statement of intent or statement of performance expectations referred to in sections 136 to 157 of the Crown Entities Act 2004, but only if the agreed process is not inconsistent with those sections.

      (3) For the purposes of subsections (1) and (2), a Schedule 4A company is 100% Crown-owned if Ministers of the Crown, on behalf of the Crown, hold 100% of the issued ordinary shares in the capital of the company.

      (4) For the purposes of section 107(2)(a) of the Crown Entities Act 2004, Schedule 4A companies may be treated as a category of Crown entities.

      (5) If a Schedule 4A company is established or regulated under an Act, the provisions applied by this section apply to the company subject to any express negation or modification of the provision in that Act.

70AAC Section 49 amended (The Crown not liable for debts of Crown entities, etc)
  • (1) In section 49(1)(a), replace or an organisation named or described in Schedule 4 with , a Schedule 4 organisation, or a Schedule 4A company.

    (2) In section 49(1)(b), replace or of an organisation named or described in Schedule 4 with , a Schedule 4 organisation, or a Schedule 4A company.

70AAD Section 65I amended (Investment of public money)
  • In section 65I(3), after Crown Bank Account, insert or, if the Minister directs, a Departmental Bank Account.

70AAE Section 65K replaced (The Crown must not lend money except under statute)
  • Replace section 65K with:

    65K The Crown must not lend money except under statute
    • Except as expressly authorised by any Act, the Crown must not lend money to a person or an organisation.

70AAF Section 65N repealed (Authority to lend money includes authority to defer payments)
  • Repeal section 65N.

70AAG Section 65Z amended (Auditor-General may direct Ministers to report to House of Representatives in cases involving unlawful expenses, etc)
  • Replace section 65Z(1)(a) and (b) with:

    • (a) is not within the scope, amount, or period of any appropriation, or other authority, by or under an Act; or

    • (b) is, for any other reason, unlawful.

70AAH Section 65ZA amended (Auditor-General may stop payments out of Bank Accounts)
  • In section 65ZA(1), replace paragraphs (a) and (b) with:

    • (a) is not within the scope, amount, or period of any appropriation, or other authority, by or under an Act; or

    • (b) is, for any other reason, unlawful.

70A Section 65ZD amended (Minister may give guarantee or indemnity if in public interest)
  • (1) In section 65ZD(2)(b), replace the person with a person.

    (2) Replace section 65ZD(3) with:

    • (3) If the contingent liability of the Crown under a guarantee or an indemnity given by the Minister under subsection (1) exceeds $10 million, the Minister must, as soon as practicable after giving the guarantee or indemnity, present a statement to the House of Representatives that the guarantee or indemnity has been given.

70B Section 65ZE amended (Departments may give guarantee or indemnity specified in regulations if in public interest)
  • Replace section 65ZE(3) with:

    • (3) If the contingent liability of the Crown under a guarantee or an indemnity given by a department under subsection (1) exceeds $10 million, the responsible Minister must, as soon as practicable after the guarantee or indemnity is given, present to the House of Representatives a statement that the guarantee or indemnity has been given.

71 Section 67 amended (Establishment of bank accounts for trust money)
  • Replace section 67(2) with:

    • (2) All trust money must, as soon as practicable after being identified as trust money, be lodged in a Trust Bank Account.

72 Section 71AA amended (Delegation of Secretary's powers)
  • Replace section 71AA(1)(b) with:

    • (b) conferred on the Minister by this Act and delegated to the Secretary by the Minister.

72A Section 73 amended (Payment of fines to local authorities and other organisations that conduct prosecutions)
  • In section 73(1), replace or an organisation named or described in Schedule 4 with a Schedule 4 organisation, or a Schedule 4A company.

72B Section 74 amended (Unclaimed money)
  • (1) In section 74(1), replace or organisation named or described in Schedule 4 with Schedule 4 organisation, or Schedule 4A company.

    (2) In section 74(3), replace or Crown entity with Crown entity, organisation, or company.

73 Section 75 amended (Minister may exercise powers relating to bona vacantia)
  • (1AAA) Replace section 75(2) with:

    • (2) If the Minister or any department or departmental agency, on the application of any person, performs an act under subsection (1), the Minister, department, or departmental agency is entitled to charge the person all reasonable fees and costs incurred.

    (1) In section 75(3), replace in this section shall derogate from with in subsection (1) or (2) limits.

    (2) After section 75(3), insert:

    • (4) If the Minister, a department, or a departmental agency performs an act under subsection (1) that involves the transfer or disposal of property or a right, that transfer or disposal may be made without further authority than this section.

    • (5) If the Minister, a department, or a departmental agency performs an act under subsection (1) that involves the spending of public money, that money may be paid out of a Crown Bank Account without further authority than this section.

    • (6) Subsections (4) and (5) do not affect the validity of anything done before those subsections come into force.

74 Section 76 amended (Offences)
  • In section 76(2), replace who with who,.

75 Section 80 amended (Treasury instructions)
  • (1) Replace section 80(1) with:

    • (1) Subject to the provisions of this Act and of any regulations made under this Act, the Treasury may—

      • (a) issue instructions to departments or departmental agencies for the purpose specified in section 81(1)(a); and

      • (b) issue instructions to departments for all or any of the purposes specified in section 81(1)(ab), (b), (bc), (bd), and (c) to (e).

    (2) In section 80(2), after department, insert or departmental agency in each place.

75A Section 80A amended (Minister of Finance instructions)
  • (1) After section 80A(3)(a)(i), insert:

    • (ia) a departmental agency; or.

    (2) In section 80A(4), after a department,, insert a departmental agency,.

    (3) In section 80A(4), after that department,, insert departmental agency,.

    (2) Replace section 80A(3)(a)(iii) with:

    • (iii) a Schedule 4 organisation; or

    • (iv) a Schedule 4A company; and.

    (3) Replace section 80A(4) with:

    • (4) A chief executive of a department, a departmental agency, an Office of Parliament, a Schedule 4 organisation, a Schedule 4A company, or any other entity referred to in section 27(3) must comply with any instructions issued under this section to the extent that the instructions apply to that department, departmental agency, Office, organisation, company, or entity.

75B Section 81 amended (Regulations, Orders in Council, and notices)
  • (1) In section 81(1)(a), after departments, insert , departmental agencies,.

    (2) Replace section 81(1)(ac) with:

    • (ac) prescribing minimum requirements concerning the publication of information that departments, departmental agencies, Offices of Parliament, Schedule 4 organisations, and Schedule 4A companies must publish under this Act:.

    (3) In section 81(1)(b), replace or organisations named or described in Schedule 4 with Schedule 4 organisations, or Schedule 4A companies.

    (4) Replace section 81(1)(ba) with:

    • (ba) prescribing the non-financial reporting standards that Ministers, departments, departmental agencies, Offices of Parliament, Schedule 4 organisations, or Schedule 4A companies must apply and the form in which they must provide the information they are required to present to the House of Representatives under this Act:.

75BA Section 82 amended (Consultation and approval requirements for regulations or instructions relating to reporting standards)
  • In section 82(1)(a), replace departments or organisations named or described in Schedule 4 with departments, departmental agencies, Schedule 4 organisations, or Schedule 4A companies.

75BB Section 83 repealed (Abolition of certain accounts)
  • Repeal section 83.

75BC Sections 85 to 87 repealed
  • Repeal sections 85 to 87.

75BD Section 88 replaced (Transitional provisions)
  • Replace section 88 with:

    88 Application, savings, and transitional provisions relating to amendments to Act
    • The application, savings, and transitional provisions set out in Schedule 1, which relate to amendments made to this Act after 1 January 2013, have effect for the purposes of this Act.

75C Schedule 1 replaced
  • Replace Schedule 1 with the Schedule 1 set out in Schedule 1A of this Act.

76 Schedule 2 repealed
  • Repeal Schedule 2.

76A Schedule 4 amended
  • (1) In Schedule 4, repeal the items relating to the following organisations:

    • (a) Crown Asset Management Limited:

    • (b) Crown Fibre Holdings Limited:

    • (c) Dispute Resolution Services Limited:

    • (d) Health Benefits Limited:

    • (e) Learning State Limited:

    • (f) The Network for Learning Limited:

    • (g) Research and Education Advanced Network New Zealand Limited:

    • (h) Southern Response Earthquake Services Limited:

    • (i) Tāmaki Redevelopment Company Limited:

    • (j) Transferee companies under the New Zealand Railways Corporation Restructuring Act 1990 in which the Crown holds 50% or more of the issued ordinary shares.

    (2) In Schedule 4, item relating to New Zealand Game Bird Habitat Trust Board, column relating to section 153 of the Crown Entities Act 2004, delete the tick.

    (3) In Schedule 4, item relating to Reserves Boards as defined in section 2 of the Reserves Act 1977, column relating to section 153 of the Crown Entities Act 2004, delete the tick.

76B New Schedule 4A inserted
  • After Schedule 4, insert the Schedule 4A set out in Schedule 2 of this Act.

76C Consequential amendments arising from amendments to Public Finance Act 1989 that come into force on day after Royal assent
  • The enactments listed in Schedule 3 are consequentially amended in the manner indicated in that schedule.

Subpart 2Amendments coming into force on 1 July 2013

77 Section 1A amended (Purpose)
  • (1) In section 1A(2)(d), replace and organisations named or described in Schedule 4 with Schedule 4 organisations, and Schedule 4A companies.

    (2) In section 1A(2)(e), replace organisations named or described in Schedule 4 with Schedule 4 organisations and Schedule 4A companies.

78 Section 2 amended (Interpretation)
  • (1) In section 2(1), definition of Crown or the Sovereign,—

    • (a) in paragraph (c)(iii), after State-Owned Enterprises Act 1986, insert ; or; and

    • (b) after paragraph (c)(iii), insert:

      • (iv) a Schedule 4 organisation; or

      • (v) a Schedule 4A company; or

      • (vi) a mixed ownership model company.”

    (2) In section 2(1), replace the definition of responsible Minister with:

    responsible Minister means,—

    • (a) in relation to an Office of Parliament, to the Office of the Clerk of the House of Representatives, or to the Parliamentary Service, the Speaker:

    • (b) in relation to any other department, the Minister for the time being responsible for the financial performance of the department:

    • (c) in relation to a Schedule 4 organisation, the Minister for the time being responsible for the financial performance of the organisation:

    • (d) in relation to a Schedule 4A company, the Minister and the other shareholding Minister or Ministers.

    (3) In section 2(1), insert in their appropriate alphabetical order:

    appropriation administrator,—

    • (a) in relation to an appropriation made to the Crown, means the department that administers the appropriation on behalf of the appropriation Minister; and

    • (b) in relation to an appropriation made to an Office of Parliament, means that Office of Parliament

    appropriation Minister,—

    • (a) in relation to an appropriation made to an Office of Parliament, means the Speaker; and

    • (b) in relation to an appropriation administered by the Office of the Clerk of the House of Representatives or the Parliamentary Service, means the Speaker; and

    • (c) in relation to any other appropriation, means the Minister responsible for that appropriation

    category,—

    • (a) in relation to expenses, means a grouping of similar or related expenses; and

    • (b) in relation to capital expenditure, means a grouping of similar or related items of capital expenditure

    departmental,—

    • (a) in relation to expenses, means expenses incurred by a department or an Office of Parliament; and

    • (b) in relation to capital expenditure, means capital expenditure incurred by a department or an Office of Parliament

    lend money

    • (a) includes—

      • (i) deferring payment for any goods or services supplied or works constructed for any person, organisation, or government; and

      • (ii) entering into hire purchase agreements or agreements that are of the same or a substantially similar nature; and

      • (iii) entering into finance lease arrangements or arrangements that are of the same or a substantially similar nature; but

    • (b) does not include selling or supplying goods or services on credit for a period of 90 days or less from the date the credit is supplied

    non-departmental,—

    • (a) in relation to expenses, means expenses incurred on behalf of the Crown, other than by a department or an Office of Parliament; and

    • (b) in relation to capital expenditure, means capital expenditure incurred on behalf of the Crown, other than by a department or an Office of Parliament

    Schedule 4 organisation means an organisation named or described in Schedule 4

    Schedule 4A company means a company named in Schedule 4A.

79 Section 3A replaced (Power to amend Schedule 4)
  • Replace section 3A with:

    3A Power to amend Schedule 4
    • (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, amend Schedule 4—

      • (a) to add the name or description of—

        • (i) any body, office (except an Office of Parliament), or officer established by or under an Act; or

        • (iii) any trust that is created by the Crown by deed of trust or in respect of which the Crown has appointed, or has the power to appoint, a majority of the trustees:

      • (b) to apply to an organisation any provision of the Crown Entities Act 2004 that appears in Schedule 4 (other than section 165 of that Act):

      • (ba) to disapply to an organisation any provision of the Crown Entities Act 2004 that appears in Schedule 4:

      • (c) to substitute the name of an organisation in recognition of a change in its name:

      • (d) to remove the name or description of an organisation.

      (2) The Minister must recommend that an Order in Council be made to remove the name or description of an organisation from Schedule 4 if, and only if, the Minister is satisfied that—

      • (a) the organisation has become a company or a Crown entity; or

      • (b) in the case of a body, office, or officer established by or under an Act, the body, office, or officer has been disestablished; or

      • (c) in the case of a trust,—

        • (i) the trust has been wound up; or

        • (ii) the Crown no longer has the power to appoint a majority of the trustees.

    3AB Power to amend Schedule 4A
    • (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, amend Schedule 4A

      • (a) to add the name of a company that meets the following criteria:

        • (i) Ministers of the Crown hold, on behalf of the Crown, more than 50% of the issued ordinary shares in the capital of the company; and

        • (ii) shares in the company are not listed on a registered market (within the meaning of the Securities Markets Act 1988); and

        • (iii) the company is not a Crown entity or a State enterprise named in Schedule 1 of the State-Owned Enterprises Act 1986:

      • (b) to apply to a company any provision of the Crown Entities Act 2004 that appears in Schedule 4A (other than section 165 of that Act):

      • (ba) to disapply to a company any provision of the Crown Entities Act 2004 that appears in Schedule 4A:

      • (c) to substitute the name of a company in recognition of a change in its name:

      • (d) to remove the name of a company.

      (2) The Minister must recommend that an Order in Council be made to remove the name of a company from Schedule 4A if the Minister is satisfied that—

      • (a) the company has been removed from the register of companies kept under the Companies Act 1993; or

      • (b) the company no longer meets the criteria set out in subsection (1)(a).

80 Section 4 amended (Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority)
  • Replace section 4(2)(b)(ii) with:

    • (ia) a Schedule 4 organisation; or

    • (ii) a Schedule 4A company; or.

81 New section 7C inserted (Responsibility for, and administration and use of, appropriations)
  • After section 7, insert:

    7C Responsibility for, and administration and use of, appropriations
    • (1) An appropriation is made to the Crown or an Office of Parliament.

      (2) In the case of an appropriation made to the Crown,—

      • (a) a Minister (the appropriation Minister) is responsible for the appropriation; and

      • (b) the appropriation must be administered by 1 department (the appropriation administrator) on behalf of the appropriation Minister; and

      • (c) if the appropriation is an appropriation for departmental expenses or a multi-category appropriation, any other department may incur expenses against the appropriation—

        • (i) at the direction of the appropriation Minister; or

        • (ii) with the agreement of the appropriation administrator.

      (3) Despite subsection (2)(a), the Speaker is responsible for any appropriation administered by the Office of the Clerk of the House of Representatives or the Parliamentary Service.

      (4) In the case of an appropriation made to an Office of Parliament,—

      • (a) the Speaker is responsible for the appropriation; and

      • (b) the appropriation must be administered by that Office of Parliament.

82 Section 20 repealed (Departments may incur output expenses for, or on behalf of, other departments)
  • Repeal section 20.

83 Section 27 amended (Annual financial statements of Government)
  • Replace section 27(3)(b) with:

    • (ab) all Schedule 4 organisations:

    • (b) all Schedule 4A companies:.

84 Part 4 heading amended
  • In the Part 4 heading, after departments, insert and departmental agencies.

85 Sections 33 to 36 replaced
  • Replace sections 33 to 36 with:

    33 Interpretation
    • In this Part, the following activities, bodies, and statutory offices must be taken to be part of a department:

      • (a) any activities, other than activities performed by a natural person or separate legal entity, that are funded by way of appropriation:

      • (b) any bodies or statutory offices, other than natural persons or separate legal entities, that are funded by way of appropriation.

    34 Responsibilities of chief executives: financial management of departmental matters
    • (1) The chief executive of a department—

      • (a) is responsible to the responsible Minister for the financial management, financial performance, and financial sustainability of the department; and

      • (b) must comply with any lawful financial actions required by the Minister or the responsible Minister.

      (2) The chief executive of a department that administers an appropriation—

      • (a) is responsible to the appropriation Minister for what is achieved with expenditure under that appropriation; and

      • (b) is responsible for advising the appropriation Minister on the efficiency and effectiveness of departmental expenses and departmental capital expenditure under that appropriation.

      (3) However, if a department other than the appropriation administrator, or any departmental agency, incurs departmental expenses or departmental capital expenditure against the appropriation at the direction of the appropriation Minister (under section 7C(2)(c)(i)), then the chief executive of that department or departmental agency, rather than the chief executive of the appropriation administrator, has the responsibility specified in subsection (2)(a) in respect of that expenditure.

    35 Responsibilities of chief executives: financial management of non-departmental matters
    • The chief executive of a department is responsible for—

      • (a) the financial management of, and financial reporting on, appropriations for non-departmental expenses and non-departmental capital expenditure administered by the department; and

      • (b) advising the appropriation Minister on the efficiency and effectiveness of expenditure under those appropriations; and

      • (c) the financial management of, and financial reporting on, assets, liabilities, and revenue managed by the department on behalf of the Crown; and

      • (d) advising the Minister responsible for those assets, liabilities, and revenue on their performance.

    36 Responsibilities of chief executives: reporting
    • (1) The chief executive of a department is responsible to the responsible Minister for ensuring that the department complies with the reporting requirements imposed on the department by or under this or any other Act.

      (2) The chief executive of a departmental agency is responsible, to the Minister for the time being responsible for the performance of the departmental agency, for ensuring that the departmental agency complies with the reporting requirements imposed on the departmental agency by or under this or any other Act.

86 Section 43 replaced (Departments must prepare annual reports)
  • Replace section 43 with:

    43 Departments must prepare annual reports
    • (1) As soon as practicable after the end of each financial year, each department must prepare a report on the operations of the department for that financial year, excluding operations on which any departmental agency hosted by the department is required to report under section 43A.

      (2) No later than 15 working days after receiving an audit report under section 45D, the department must provide the annual report and the audit report to its responsible Minister.

      (3) This section does not limit any provision in any other Act that requires the chief executive of a department to provide an annual report, but the chief executive need not provide a separate report under each enactment.

87 New section 43A inserted (Departmental agencies must prepare annual reports)
  • After section 43, insert:

    43A Departmental agencies must prepare annual reports
    • (1) As soon as practicable after the end of each financial year, each departmental agency must prepare a report on the operations of the departmental agency for that financial year.

      (2) As soon as practicable after the end of the financial year, but not later than 15 working days after the audit date (as defined in section 44(6)(b)), the departmental agency must provide the annual report to—

      • (a) the Minister for the time being responsible for the performance of the departmental agency; and

      • (b) the responsible Minister for the departmental agency's host department.

      (3) This section does not limit any provision in any other Act that requires the chief executive of a departmental agency to provide an annual report, but the chief executive need not provide a separate report under each enactment.

88 Section 44 replaced (Obligation to present and publish departmental annual reports)
  • Replace section 44 with:

    44 Obligation to present and publish annual reports
    • (2) A responsible Minister must present to the House of Representatives—

      • (a) the annual report of a department for which he or she is the responsible Minister and any applicable audit report; and

      • (b) the annual report of any departmental agency hosted by a department for which he or she is the responsible Minister and any applicable audit report.

      (2A) However, an annual report and audit report (if any) may be presented to the House of Representatives by a Minister other than the responsible Minister if—

      • (a) those reports are presented in a document that includes another report or other information (see subsection (4)); and

      • (b) a Minister other than the responsible Minister is responsible for presenting that other report or information.

      (3) The responsible Minister (or the Minister referred to in subsection (2A)(b), if applicable) must comply with subsection (2)

      • (a) no later than 15 working days after the audit date; or

      • (b) if Parliament is not in session, as soon as possible after the commencement of the next session of Parliament.

      (4) A department or departmental agency must publish its annual report and any applicable audit report—

      • (a) as soon as practicable after the annual report has been presented to the House of Representatives, but, if subsection (3)(b) applies, not later than 15 working days after the audit date; and

      • (b) in accordance with the manner (if any)—

        • (i) prescribed by regulations made under this Act; or

        • (ii) specified in instructions issued by the Minister of Finance under section 80A.

      (5) The annual report of a department or departmental agency may be presented or published in a document that includes any other report or information, whether or not that other report or information relates to the department or departmental agency, provided that each report or set of information is separately identifiable within that document.

      (6) In this section,—

      audit date means,—

      • (a) in the case of a department, the date on which the department receives an audit report; and

      • (b) in the case of a departmental agency,—

        • (i) the date on which the departmental agency receives an audit report on end-of-year performance information provided by the departmental agency; or

        • (ii) if subparagraph (i) does not apply, the date on which the departmental agency's host department receives an audit report

      audit report means an audit report under section 45D.

89 Section 45 amended (Contents of departmental annual report)
  • After section 45(2), insert:

    • (2A) However, a department's annual report need not include information that any departmental agency hosted by the department is required to include in its annual report under section 45AA.

90 New section 45AA inserted (Contents of departmental agency annual report)
  • After section 45, insert:

    45AA Contents of departmental agency annual report
    • (1) The annual report of a departmental agency must contain the following information in respect of the financial year to which it relates:

      • (a) an assessment of the departmental agency's operations; and

      • (b) an assessment of the departmental agency's progress in relation to any of the host department's future operating intentions that are relevant to the departmental agency; and

      • (c) information about the departmental agency's management of its organisational health and capability; and

      • (d) any other matters that relate to or affect the departmental agency's operations that the departmental agency is required, has undertaken, or wishes to report on in its annual report.

      (1A) The annual report of a departmental agency must identify the departmental agency's host department.

      (2) The annual report must be dated and signed on behalf of the departmental agency by its chief executive.

91 Sections 45M and 45N and subpart heading replaced
  • Replace sections 45M and 45N and the subpart 2 heading in Part 5 with:

    Subpart 2Application of Crown Entities Act 2004 to Schedule 4 organisations

    45M Application of Crown Entities Act 2004 to Schedule 4 organisations
    • (1) The following sections of the Crown Entities Act 2004, and any regulations that apply to the matters referred to in those sections, apply to a Schedule 4 organisation as if the organisation were a Crown entity under that Act:

      • (a) sections 133 and 134 (which relate to supply of information):

      • (b) sections 154 to 156 (which relate to annual financial statements, statements of responsibility, and audit reports):

      • (c) section 158 (which relates to bank accounts):

      • (d) if there is a tick in a column of the table in Schedule 4 of this Act alongside the name or description of the organisation, the section indicated in the heading of that column:

      • (e) if section 139 of the Crown Entities Act 2004 (which is the obligation to prepare a statement of intent) applies to the organisation under paragraph (d), sections 138, 141, and 144 to 149AAA of that Act (which also relate to statements of intent):

      • (f) if section 150 of the Crown Entities Act 2004 (which is the obligation to prepare, present, and publish an annual report) applies to the organisation under paragraph (d), sections 151 (other than subsection (1)(b)), 152, and 154 to 157 of that Act (which also relate to annual reports).

      (2) The responsible Minister for a Schedule 4 organisation that is required, under subsection (1)(d), to produce a statement of service performance under section 153 of the Crown Entities Act 2004 must present that statement to the House of Representatives with the annual financial statements required under subsection (1)(b).

      (3) If a Schedule 4 organisation is established or regulated under an Act, the provisions applied by this section apply to the organisation subject to any express negation or modification of the provision in that Act.

    45N Exemptions from certain sections of Crown Entities Act 2004 for Schedule 4 organisations
    • (1) The Minister may exempt a Schedule 4 organisation, for 1 or more financial years or until further notice, from any of the requirements in sections 141, 149C, 151, and 152 of the Crown Entities Act 2004, other than the requirements in section 151(1)(c) to (e).

      (2) The Minister may grant an exemption under this section—

      • (a) if the Minister considers that it is necessary or desirable to grant the exemption; and

      • (b) by notice in writing to the organisation, on any conditions that the Minister thinks fit.

92 New Part 5AA inserted
  • After section 45O, insert:

    Part 5AA
    Non-listed companies in which the Crown is majority or sole shareholder

    45OA Application of Crown Entities Act 2004 to non-listed companies in which the Crown is majority or sole shareholder
    • (1) The following provisions of the Crown Entities Act 2004 apply to a Schedule 4A company as if the company were a Crown entity company under the Crown Entities Act 2004:

      • (a) section 79 (which relates to formation and acquisition of shares):

      • (b) sections 81 and 82 (which require a constitution to be presented to the House of Representatives), except that section 81 must be read as if it required the constitution to contain a statement to the effect that the company is a company named in Schedule 4A of the Public Finance Act 1989:

      • (c) sections 83 and 84 (which relate to the shareholding Minister), except that, if the company is not 100% Crown-owned, the references in section 84 to a shareholding Minister must be read as if they were references to the shareholders:

      • (d) section 85 (which relates to the interface between the Crown Entities Act 2004 and the Companies Act 1993 and other Acts in respect of Crown entity companies):

      • (e) if the company is 100% Crown-owned,—

        • (i) section 88 (which sets out the shareholding Ministers' role):

        • (ii) section 88A (which sets out the monitor's role):

      • (f) sections 89 to 92, 94, and 95 (which relate to appointment, removal, and duties of board members), except that, if the company is not 100% Crown-owned, the reference in section 94(1) to duties owed to the shareholding Ministers must be read as a reference to duties owed to shareholders:

      • (g) sections 96, 97, and 99 (which relate to subsidiaries):

      • (h) section 100 (which relates to the acquisition of shares or interests in companies, trusts, and partnerships, etc):

      • (i) section 102 (which relates to the interface between the Crown Entities Act 2004 and the Companies Act 1993 and other Acts in respect of Crown entity subsidiaries):

      • (j) sections 107 to 111 and 113 (which relate to whole of government directions):

      • (k) section 114 (which relates to Government directions):

      • (l) section 118 (which is the obligation to be a good employer):

      • (m) sections 132 to 135 (miscellaneous provisions):

      • (n) sections 136 to 157 (which relate to reporting obligations):

      • (o) section 158 (which relates to bank accounts):

      • (p) if there is a tick in a column of the table in Schedule 4A of this Act alongside the name of the company, the section indicated in the heading of that column.

      (2) In the case of a Schedule 4A company that is not 100% Crown-owned, subsection (1)(n) does not prevent the shareholders from agreeing a process for minority shareholders to be involved in the process of preparing, reviewing, or amending the statement of intent or statement of performance expectations referred to in sections 136 to 157 of the Crown Entities 2004, provided that the agreed process is not inconsistent with those sections.

      (3) For the purposes of subsections (1) and (2), a Schedule 4A company is 100% Crown-owned if Ministers of the Crown, on behalf of the Crown, hold 100% of the issued ordinary shares in the capital of the company.

      (4) For the purposes of section 107(2)(a) of the Crown Entities Act 2004, Schedule 4A companies may be treated as a category of Crown entities.

      (5) If a Schedule 4A company is established or regulated under an Act, the provisions applied by this section apply to the company subject to any express negation or modification of the provision in that Act.

93 Section 49 amended (The Crown not liable for debts of Crown entities, etc)
  • (1) In section 49(1)(a), replace or an organisation named or described in Schedule 4 with , a Schedule 4 organisation, or a Schedule 4A company.

    (2) In section 49(1)(b), replace or of an organisation named or described in Schedule 4 with , a Schedule 4 organisation, or a Schedule 4A company.

94 Section 61 repealed (Expenses in respect of money borrowed by the Crown)
  • Repeal section 61.

95 Section 65D amended (Payments under public securities)
  • Replace section 65D(2) with:

    • (2) In this section and section 65ZH, public security does not include a guarantee or an indemnity on behalf of or in the name of the Crown given under this Act or any other enactment.

96 Section 65E repealed (Expenses in respect of securities)
  • Repeal section 65E.

97 Section 65H amended (Payments relating to derivative transactions of the Crown)
  • Repeal section 65H(2).

98 Section 65I amended (Investment of public money)
  • In section 65I(3), after Crown Bank Account, insert or, if the Minister directs, a Departmental Bank Account.

99 Section 65J repealed (Payment of expenses relating to investment)
  • Repeal section 65J.

99A Section 65K replaced (The Crown must not lend money except under statute)
  • Replace section 65K with:

    65K The Crown must not lend money except under statute
    • Except as expressly authorised by any Act, the Crown must not lend money to a person or an organisation.

100 Section 65N repealed (Authority to lend money includes authority to defer payments)
  • Repeal section 65N.

100A Section 65Z amended (Auditor-General may direct Ministers to report to House of Representatives in cases involving unlawful expenses, etc)
  • Replace section 65Z(1)(a) and (b) with:

    • (a) is not within the scope, amount, or period of any appropriation, or other authority, by or under an Act; or

    • (b) is, for any other reason, unlawful.

101 Section 65ZA amended (Auditor-General may stop payments out of Bank Accounts)
  • In section 65ZA(1), replace paragraphs (a) and (b) with:

    • (a) is not within the scope, amount, or period of any appropriation, or other authority, by or under an Act; or

    • (b) is, for any other reason, unlawful.

103 New subpart 7 of Part 6 inserted
  • After section 65ZG, insert:

    Subpart 7Permanent appropriation for payment of certain expenses

    65ZH Permanent appropriation for payment of certain expenses
    • (1) Any expenses incurred in connection with any of the following matters may be incurred without further appropriation, and must be paid without further authority, than this section:

      • Expenses in respect of money borrowed by the Crown
      • (a) negotiating the borrowing of money by the Crown:

      • (b) undertaking, managing, servicing, converting, or repaying the borrowing:

      • Expenses in respect of securities
      • (g) issuing a public security in respect of the Crown:

      • (h) executing, redeeming, or varying the public security:

      • Expenses relating to derivative transactions of the Crown
      • (k) negotiating a derivative transaction:

      • (l) managing, servicing, or making payments under the derivative transaction:

      • Expenses relating to investment
      • (o) negotiating an investment referred to in section 65I:

      • (p) placing, managing, servicing, or converting the investment.

      (2) In this section, expenses

      • (a) includes—

        • (i) duties, taxes, premiums, bonuses, fees, interests, and commissions; and

        • (ii) any expenses incurred on personnel and equipment necessary in connection with the matters set out in subsection (1); but

      • (b) does not include expenses incurred in connection with—

        • (i) money borrowed by the Crown under a hire purchase agreement, a finance lease agreement, or any agreement that is of the same nature as or a substantially similar nature to either of those agreements; or

        • (ii) a guarantee or an indemnity on behalf of or in the name of the Crown given under this Act or any other enactment.

104 Section 73 amended (Payment of fines to local authorities and other organisations that conduct prosecutions)
  • In section 73(1), replace or an organisation named or described in Schedule 4 with a Schedule 4 organisation, or a Schedule 4A company.

105 Section 74 amended (Unclaimed money)
  • (1) In section 74(1), replace or organisation named or described in Schedule 4 with Schedule 4 organisation, or Schedule 4A company.

    (2) In section 74(3), replace or Crown entity with Crown entity, organisation, or company.

106 Section 80A amended (Minister of Finance instructions)
  • (1) Replace section 80A(3)(a)(iii) with:

    • (iii) a Schedule 4 organisation; or

    • (iv) a Schedule 4A company; and.

    (2) Replace section 80A(4) with:

    • (4) A chief executive of a department, a departmental agency, an Office of Parliament, a Schedule 4 organisation, a Schedule 4A company, or an entity referred to in section 27(3)(a) to (f) must comply with any instructions issued under this section to the extent that the instructions apply to that department, departmental agency, Office, organisation, company, or entity.

107 Section 81 amended (Regulations, Orders in Council, and notices)
  • (1) Replace section 81(1)(ac) with:

    • (ac) prescribing minimum requirements concerning the publication of information that departments, departmental agencies, Offices of Parliament, Schedule 4 organisations, and Schedule 4A companies must publish under this Act:.

    (2) In section 81(1)(b), replace or organisations named or described in Schedule 4 with Schedule 4 organisations, or Schedule 4A companies.

    (3) Replace section 81(1)(ba) with:

    • (ba) prescribing the non-financial reporting standards that Ministers, departments, departmental agencies, Offices of Parliament, Schedule 4 organisations, or Schedule 4A companies must apply and the form in which they must provide the information they are required to present to the House of Representatives under this Act:.

108 Section 82 amended (Consultation and approval requirements for regulations or instructions relating to reporting standards)
  • In section 82(1)(a), replace departments or organisations named or described in Schedule 4 with departments, departmental agencies, Schedule 4 organisations, or Schedule 4A companies.

110 Sections 83 and 85 to 88 repealed
  • Repeal sections 83 and 85 to 88.

111 Schedule 4 amended
  • (1) In Schedule 4, repeal the items relating to the following organisations:

    • (a) Crown Asset Management Limited:

    • (b) Crown Fibre Holdings Limited:

    • (c) Dispute Resolution Services Limited:

    • (d) Health Benefits Limited:

    • (e) Learning State Limited:

    • (ea) The Network for Learning Limited:

    • (f) Research and Education Advanced Network New Zealand Limited:

    • (g) Southern Response Earthquake Services Limited:

    • (ga) Tāmaki Redevelopment Company Limited:

    • (h) Transferee companies under the New Zealand Railways Corporation Restructuring Act 1990 in which the Crown holds 50% or more of the issued ordinary shares.

    (2) In Schedule 4, in the table, column heading relating to section 153 of the Crown Entities Act 2004, replace SSP with SP.

    (3) In Schedule 4, in the table, item relating to New Zealand Game Bird Habitat Trust Board, column relating to section 153 of the Crown Entities Act 2004, delete the tick.

    (4) In Schedule 4, in the table, item relating to Reserves Boards as defined in section 2 of the Reserves Act 1977, column relating to section 153 of the Crown Entities Act 2004, delete the tick.

112 New Schedule 4A inserted
  • After Schedule 4, insert the Schedule 4A set out in Schedule 2 of this Act.

113 Consequential amendments arising from amendments to Public Finance Act 1989 that come into force on 1 July 2013
  • The enactments listed in Schedule 3 are consequentially amended in the manner indicated in that schedule.

Subpart 3Amendments coming into force on 1 July 2014

114 Section 2 amended (Interpretation)
  • (1) In section 2(1), definition of Budget, replace first Appropriation Bill with main Appropriation Bill.

    (2) In section 2(1), definition of Estimates, replace first Appropriation Bill that relates to with main Appropriation Bill for.

    (2A) In section 2(1), repeal the definition of impact.

    (3) In section 2(1), repeal the definition of multi-class output expense appropriation.

    (4) In section 2(1), definition of other expenses, replace paragraph (b) with:

    • (b) benefits or related expenses; or.

    (4A) In section 2(1), repeal the definition of outcome.

    (5) In section 2(1), definition of type, replace section 7(1) with section 7A(1).

    (6) In section 2(1), insert in their appropriate alphabetical order:

    main Appropriation Bill, in respect of a financial year, means the first Appropriation Bill that relates to that financial year, and main Appropriation Act has a corresponding meaning

    multi-category appropriation means an appropriation described in section 7A(1)(g)

    permanent legislative authority,—

    • (a) in relation to incurring expenses or capital expenditure, means an express authority given by or under an Act other than an Appropriation Act to incur expenses or capital expenditure without further appropriation (see, for example, section 65ZH, which relates to certain finance expenses, and section 9 of the Ombudsmen Act 1975, which relates to salaries and allowances of Ombudsmen); and

    • (b) in relation to spending public money, means an express authority given by or under an Act to spend public money without further authority (see, for example, section 6).

    (7) In section 2(1), definition of permanent legislative authority (as inserted by section 59 of this Act), replace section 65H(2) with section 65ZH.

115 Section 7 replaced (Separate appropriation required for types of expenses and capital expenditure)
  • Replace section 7 with:

    7 Expenses and capital expenditure must be allocated to appropriation type
    • All expenses and capital expenditure to be incurred in any financial year must be allocated to one of the appropriation types set out in section 7A(1) within a Vote specified in an Appropriation Act.

    7A Appropriation types
    • (1) An appropriation must be an appropriation for—

      • (a) 1 category of output expenses; or

      • (b) 1 category of benefits or related expenses; or

      • (c) 1 category of borrowing expenses; or

      • (d) 1 category of other expenses; or

      • (e) 1 category of capital expenditure; or

      • (f) expenses and capital expenditure to be incurred by an intelligence and security department; or

      • (g) 1 2 or more categories of 1 or more of the following:

        • (i) output expenses:

        • (ii) other expenses:

        • (iii) non-departmental capital expenditure.

      (2) For the purposes of this section,—

      • (a) a category of output expenses must not include both departmental and non-departmental expenses; and

      • (b) a category of other expenses must not include both departmental and non-departmental expenses; and

      • (c) a category of capital expenditure must not include both departmental and non-departmental capital expenditure.

    7B Requirements for multi-category appropriations
    • A multi-category appropriation described in section 7A(1)(g)

      • (a) must be approved by the Minister; and

      • (b) must include only categories of expenses or non-departmental capital expenditure that contribute to a single overarching purpose.

116 Section 9 amended (Appropriation limited by scope)
  • Replace section 9(2)(a) with:

    • (a) the scope of a multi-category appropriation is the scope of each of the individual categories of expenses or non-departmental capital expenditure included in that appropriation; and.

117 Section 12 amended (Timing of first Appropriation Bill for financial year)
  • (1) In the heading to section 12, replace first Appropriation Bill with main Appropriation Bill.

    (2) In section 12, replace first Appropriation Bill that relates to with main Appropriation Bill for.

118 New sections 12A and 12B and cross-heading inserted
  • After section 12, insert:

    Requirements for capital injections

    12A Capital injections must be authorised
    • (1) The Crown must not make a capital injection to a department (other than an intelligence and security department) or an Office of Parliament unless the capital injection is authorised under an Appropriation Act.

      (2) The authority to make the capital injection—

      • (a) is limited by the amount specified for the capital injection by or under that Appropriation Act; and

      • (b) may must not be exceeded (except as provided for in section 25A).

    12B Authority to make capital injections under Imprest Supply Act
    • (1) The authority given by an Imprest Supply Act to make a capital injection in a financial year in advance of authorisation under an Appropriation Act must be treated as an authority under an Appropriation Act for the purposes of sections 12A and 26CA.

      (2) However, subsection (1) does not apply unless the capital injection is authorised under an Appropriation Act before the end of the financial year.

119 Section 13 amended (Estimates and other supporting information must be presented with first Appropriation Bill)
  • (1) Replace the heading to section 13 with Estimates and supporting information must be presented with main Appropriation Bill.

    (2) In section 13(2),—

    • (a) delete other in each place; and

    • (b) replace section 15 with sections 15 to 15E.

120 Sections 14 and 15 replaced
  • Replace sections 14 and 15 with:

    14 Content of Estimates
    • (1) The Estimates must state, for each appropriation sought in the main Appropriation Bill for a financial year and each appropriation authorised for that financial year by an Appropriation Act,—

      • (a) the Vote to which the appropriation relates; and

      • (b) the appropriation Minister; and

      • (c) the appropriation administrator; and

      • (d) the type of the appropriation (in terms of section 7A(1)); and

      • (e) in the case of a multi-category appropriation, the overarching purpose of the appropriation (in terms of section 7B(1)(b)); and

      • (f) the amount authorised by the appropriation (in terms of section 8); and

      • (g) the scope of the appropriation (in terms of section 9); and

      • (h) the period of the appropriation (in terms of section 10), but only if the period is more or less than 1 financial year.

      (1A) The Estimates must state, for each appropriation authorised by a permanent legislative authority against which it is proposed to incur expenses or capital expenditure in a financial year the financial year to which the Estimates relate,—

      • (a) the authority for the appropriation; and

      • (b) the information specified in subsection (1)(a) to (h), other than subsection (1)(f); and

      • (c) the amount forecast to be incurred under the appropriation.

      (2) The Estimates must state,—

      • (a) for each department, the responsible Minister for the department; and

      • (b) for each department other than an intelligence and security department, the amount of capital injections authorised to be made to the department for the financial year to which the Estimates relate.

      (3) The Minister may, in addition to the information referred to in this section, include in the Estimates any further information that the Minister considers necessary or desirable.

    15 Main Appropriation Bill: supporting information relating to Votes
    • (1) The supporting information for the main Appropriation Bill must include, for the total in each Vote of each type of appropriation,—

      • (a) voted departmental and non-departmental expenses or capital expenditure for the financial year to which the Appropriation Bill relates; and

      • (b) comparative voted and estimated actual expenses or capital expenditure for the previous financial year; and

      • (c) comparative actual expenses or capital expenditure for each of the 4 financial years that preceded the previous financial year; and

      • (d) projected expenses or capital expenditure for each of the 3 financial years following the financial year to which the Appropriation Bill relates.

      (2) However, if the Vote has been restructured 1 or more times since the beginning of the period in respect of which supporting information is required under subsection (1), then the comparative information required under that subsection must, to the extent practicable, be prepared as if the restructuring had occurred before the beginning of that period.

      (3) For the purposes of subsection (2), a Vote has been restructured if—

      • (a) it has been combined with, or separated from, any other Vote; or

      • (b) an appropriation, or a category within a multi-category appropriation, has been moved into the Vote from, or moved out of the Vote into, any other Vote; or

      • (c) a category of expenses or non-departmental capital expenditure has been moved into or out of a multi-category appropriation within the Vote.

    15A Main Appropriation Bill: supporting information relating to appropriations
    • (1) The supporting information for the main Appropriation Bill for a financial year must include the information specified in subsections (2) and (3), including any information required by section 15AA(2), for—

      • (a) each appropriation sought in the Bill; and

      • (b) each appropriation authorised for that financial year by an Appropriation Act; and

      • (c) each appropriation authorised by a permanent legislative authority against which it is proposed to incur expenses or capital expenditure in that financial year.

      (2) The following information is required for each appropriation:

      • (a) a concise explanation of what the appropriation is intended to achieve; and

      • (b) comparative voted and estimated actual expenses or capital expenditure for the previous financial year; and

      • (c) 1 of the following:

        • (i) the end-of-year performance information details described in section 15AB:

        • (ii) if the Minister has, under section 15B, granted an exemption from the end-of-year performance information requirements, the Minister’s reasons for granting the exemption.

      (3) The following additional information is required for each category of a multi-category appropriation:

      • (a) a concise explanation of what the category is intended to achieve; and

      • (b) projected expenses or non-departmental capital expenditure to be incurred for the category; and

      • (c) comparative projected and estimated actual expenses or non-departmental capital expenditure for the category for the previous financial year.

      (4) However,—

      • (a) in the case of an appropriation for expenses and capital expenditure to be incurred by an intelligence and security department, subsection (2)(a) and (c) do not apply; and

      • (b) in the case of an appropriation for borrowing expenses, subsection (2)(c) does not apply.

    15AA Comparative information requirements if no directly corresponding appropriation or category
    • (1) This section applies if—

      • (a) section 15A requires the supporting information for the main Appropriation Bill for a financial year to include, for an appropriation or a category within a multi-category appropriation, comparative information for the previous financial year; and

      • (b) that appropriation or category (the new appropriation or category) does not directly correspond to an appropriation or category for the previous financial year.

      (2) The comparative information for the new appropriation or category must include all comparable expenses or capital expenditure.

      (3) The comparative information for the new appropriation or category must also, to the extent practicable,—

      • (a) identify each previous appropriation or category that includes comparable expenses or capital expenditure; and

      • (b) identify the amount of comparable expenses or capital expenditure for that previous appropriation or category.

      (4) In this section, comparable expenses or capital expenditure, in relation to a new appropriation or category, means voted or projected (as applicable) and estimated actual expenses or capital expenditure for a previous appropriation or category that would, if the new appropriation or category had been authorised for the previous financial year, have been within the scope of the new appropriation or category.

    15AB End-of-year performance information requirements
    • (1) The end-of-year performance information details for an appropriation (see section 15A(2)(c)(i)) are—

      • (a) a concise explanation of how performance against the appropriation will be assessed; and

      • (b) in the case of a multi-category appropriation, a concise explanation of how performance against each category of the appropriation will be assessed; and

      • (c) who, in accordance with subsection (2), will provide information at the end of the financial year on what has been achieved with the appropriation; and

      • (d) the document in which the end-of-year performance information will be presented to the House of Representatives.

      (2) End-of-year performance information on an appropriation must be provided,—

      • (a) for a multi-category appropriation, by the appropriation administrator; and

      • (b) for an appropriation described in subsection (3), by the appropriation Minister; and

      • (c) for any other appropriation, by a department, a departmental agency, an Office of Parliament, or a Crown entity.

      (3) Subsection (2)(b) applies in respect of an appropriation for non-departmental expenses, or non-departmental capital expenditure, from which resources will be provided to a person or an entity other than a department, a departmental agency, an Office of Parliament, or a Crown entity.

    15B Exemptions from end-of-year performance information requirements for certain categories of expenses and capital expenditure
    • (1) The Minister may grant an exemption from the end-of-year performance information requirements in respect of an appropriation for departmental output expenses, or a category of departmental output expenses within a multi-category appropriation, if the Minister is satisfied that the appropriation or category relates exclusively to outputs supplied by a department to 1 or more other departments.

      (2) The Minister may grant an exemption from the end-of-year performance information requirements in respect of an appropriation for non-departmental expenses or non-departmental capital expenditure, or a category of non-departmental expenses or non-departmental capital expenditure within a multi-category appropriation, if the Minister is satisfied that—

      • (a) the appropriation or category is one from which resources will be provided to a person or an entity other than a department, a departmental agency, an Office of Parliament, or a Crown entity; and

      • (b) 1 of the following applies:

        • (i) key performance information relevant to the appropriation or category will be otherwise readily available to the House of Representatives; or:

        • (ii) end-of-year performance information for the appropriation or category is not likely to be informative in the light of the nature of the transaction or causal event giving rise to the expenses or capital expenditure; or:

        • (iii) the amount of the annual appropriation (or its annual average equivalent if the appropriation is a multi-year or permanent appropriation) or the projected amount of the expenses or non-departmental capital expenditure in the category (or its annual average equivalent if the category is part of a multi-year or permanent appropriation) is less than $5 million for expenses or less than $15 million for capital expenditure.

      (2A) An exemption under this section may be granted for 1 or more financial years or until further notice.

      (3) The Minister’s reasons for granting an exemption must be included in the supporting information for an Appropriation Bill (see section 15A(2)(c)(ii)).

      (4) In subsection (2)(b)(iii),—

      multi-year appropriation means an appropriation authorised to apply for more than 1 financial year (see section 10)

      permanent appropriation means an appropriation authorised by a permanent legislative authority.

    15D Main Appropriation Bill: supporting information relating to capital injections
    • (1) The supporting information for the main Appropriation Bill must include, for each capital injection authorised for the financial year to which the Appropriation Bill relates,—

      • (a) the department to which the capital injection is to be made; and

      • (b) a concise explanation of what the capital injection is to be used for; and

      • (c) the amount of the capital injection.

      (2) Subsection (1) does not apply to a capital injection to an intelligence and security department.

    15E Minister may present further supporting information
    • The Minister may, in addition to the information referred to in sections 15 to 15D, include in the supporting information for the main Appropriation Bill any further information that the Minister considers necessary or desirable.

121 Section 16 amended (Supplementary Estimates must be presented with Supplementary Appropriation Bill)
  • (1) In the heading to section 16, after Supplementary Estimates, insert and supporting information.

    (2) In section 16(a), replace first Appropriation Bill with main Appropriation Bill.

    (3) In section 16, insert as subsection (2):

    • (2) The Minister must also present to the House of Representatives the supporting information referred to in sections 17A and 17B at the same time that he or she presents the Supplementary Estimates under subsection (1), unless that supporting information is already contained in the Supplementary Estimates.

122 Section 17 replaced (Content of Supplementary Estimates)
  • Replace section 17 with:

    17 Content of Supplementary Estimates
    • (1) The Supplementary Estimates for a financial year must include—

      • (a) the information specified in section 14(1) for—

        • (i) each appropriation authorised for that financial year by an Appropriation Act; and

        • (ii) each appropriation sought in an Appropriation Bill relating to that financial year; and

      • (b) the information specified in section 14(1A) for each appropriation authorised by a permanent legislative authority against which it is proposed to incur expenses or capital expenditure in that financial year.

      (2) The Supplementary Estimates must state,—

      • (a) for each department, the responsible Minister for the department; and

      • (b) for each department other than an intelligence and security department, the amount of capital injections authorised to be made to the department for the financial year.

      (3) The Minister may, in addition to the information referred to in this section, include in the Supplementary Estimates any further information that the Minister considers necessary or desirable.

    17A Supplementary Appropriation Bill: supporting information relating to appropriations
    • (1) The supporting information for a supplementary Appropriation Bill must include,—

      • (a) for each new appropriation, the information (excluding comparative information) specified in section 15A; and

      • (b) for each existing appropriation, any change to the information (excluding comparative information) specified in section 15A that was most recently included in the supporting information for an Appropriation Act in respect of the appropriation.

      (2) In this section,—

      comparative information means the information specified in section 15A(2)(b) and (3)(c)

      existing appropriation, in relation to a supplementary Appropriation Bill for a financial year, means an appropriation for which the information specified in section 15A is included in the supporting information for an Appropriation Act relating to that financial year

      new appropriation, in relation to a supplementary Appropriation Bill for a financial year, means—

      • (a) an appropriation—

        • (i) that is sought in that Bill; and

        • (ii) for which the information specified in section 15A is not included in the supporting information for any Appropriation Act relating to that financial year; or

      • (b) an appropriation—

        • (i) that is authorised by a permanent legislative authority to incur expenses or capital expenditure; and

        • (ii) against which it is proposed to incur expenses or capital expenditure in that financial year; and

        • (iii) for which the information specified in section 15A is not included in the supporting information for any Appropriation Act relating to that financial year.

    17B Supplementary Appropriation Bill: supporting information relating to capital injections
    • (1) The supporting information for a supplementary Appropriation Bill must include,—

      • (a) for each new capital injection, the information specified in section 15D; and

      • (b) for each existing capital injection, any change to the information specified in section 15D that is included in the supporting information for an Appropriation Act relating to that financial year.

      (2) In this section,—

      existing capital injection, in relation to a supplementary Appropriation Bill and a financial year, means a capital injection for which the information specified in section 15D is included in the supporting information for an Appropriation Act relating to that financial year

      new capital injection, in relation to a supplementary Appropriation Bill and a financial year, means a capital injection—

      • (a) that is authorised for that financial year; and

      • (b) for which the information specified in section 15D is not included in the supporting information for any Appropriation Act relating to that financial year.

      (3) This section does not apply to a capital injection to an intelligence and security department.

123 Section 18 amended (Minister must consult on proposal to change format or content of information presented with Appropriation Bills)
  • Replace section 18(1) with:

    • (1) This section applies if the Minister proposes to significantly change the format or content of—

      • (a) the Estimates (see section 14); or

      • (b) the supporting information for a main Appropriation Bill (see sections 15 to 15D); or

      • (c) the Supplementary Estimates (see section 17); or

      • (d) the supporting information for a supplementary Appropriation Bill (see sections 17A and 17B).

124 Section 19 amended (Power of Secretary to obtain information)
  • (1) Replace section 19(1)(a) to (c) with:

    • (a) the Estimates; or

    • (b) the supporting information for a main Appropriation Bill (see sections 15 to 15D); or

    • (c) the Supplementary Estimates (see section 17); or

    • (d) the supporting information for a supplementary Appropriation Bill (see sections 17A and 17B).

    (2) Replace section 19(3)(a) and (b) with:

    • (a) the Estimates and the supporting information for a main Appropriation Bill (see section 13); and

    • (b) the Supplementary Estimates and the supporting information for a supplementary Appropriation Bill (see section 16).

125 New sections 19A to 19C and cross-heading inserted
  • After section 19, insert:

    Reporting on appropriations: end-of-year performance information

    19A Provision of end-of-year performance information other than by Ministers
    • (1) This section applies to the department, departmental agency, Office of Parliament, or Crown entity (performance reporter) most recently identified in the supporting information for an Appropriation Act as providing end-of-year performance information on an appropriation for a financial year.

      (2) As soon as practicable after the end of each financial year, the performance reporter must prepare the information that is required by section 19C.

      (3) Not later than 15 working days after the performance reporter receives an audit report on the information under section 45D of this Act or section 156 of the Crown Entities Act 2004 (as applicable),—

      • (a) the performance reporter must, unless the performance reporter is the appropriation administrator, provide the information and the audit report to the appropriation administrator; and

      • (b) the appropriation administrator must provide the information and the audit report to the appropriation Minister; and

      • (c) the appropriation Minister must ensure that the information and the audit report are presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.

      (4) If Parliament is not in session, subsection (3)(c) does not apply, but the appropriation Minister must ensure that, as soon as possible after the commencement of the next session of Parliament, the information and the audit report are presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.

      (5) The performance reporter must ensure that the information is published as soon as practicable after the information is presented to the House of Representatives, or, if subsection (4) applies, not later than 15 working days after receiving the audit report.

    19B Provision of end-of-year performance information by Ministers
    • (1) This section applies to the appropriation Minister most recently identified in the supporting information for an Appropriation Act as providing end-of-year performance information on an appropriation for a financial year.

      (2) Within 4 months after the end of the financial year, the appropriation Minister must—

      • (a) prepare the information that is required by section 19C; and

      • (b) ensure that the information is presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.

      (3) If Parliament is not in session, subsection (2)(b) does not apply, but the appropriation Minister must ensure that, as soon as possible after the commencement of the next session of Parliament, the information is presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.

      (4) The appropriation Minister must ensure that the information is published as soon as practicable after the information is presented to the House of Representatives, or, if subsection (3) applies, not later than 4 months after the end of the financial year.

    19C Requirements for end-of-year performance information
    • (1) The end-of-year performance information for an appropriation must include the following:

      • (a) an assessment of what has been achieved with the appropriation in the financial year; and

      • (b) a comparison of the actual expenses or capital expenditure incurred in relation to the appropriation in the financial year with the expenses or capital expenditure that were appropriated or forecast to be incurred.

      (2) In the case of a multi-category appropriation, subsection (1)(a) and (b) must be read as if the references in those paragraphs to an appropriation included a reference to each category of expenses or capital expenditure within that appropriation.

      (3) The end-of-year performance information for an appropriation must be prepared in accordance with generally accepted accounting practice, to the extent that the information is of a form or nature for which provision is made in financial reporting standards (within the meaning of section 2 of the Financial Reporting Act 1993) that form part of generally accepted accounting practice.

126 Section 22 amended (Operating surplus of department)
  • Repeal section 22(2) to (4).

127 Section 23 repealed (Net assets of departments must be confirmed)
  • Repeal section 23.

128 Section 24 amended (Movements within departmental statement of financial position)
  • In section 24(1), after A department, insert other than an intelligence and security department.

129 New section 25A inserted (Capital injections may be made in emergencies)
  • After section 25, insert:

    25A Capital injections may be made in emergencies
    • (1) The Minister may approve a capital injection to meet an emergency or disaster described in section 25(1).

      (2) A capital injection approved under subsection (1) may be made despite not being authorised under an Appropriation Act and despite section 12A.

      (4) A statement about any capital injection made under subsection (2) in any financial year that has not been authorised in an Appropriation Act (other than a capital injection to an intelligence and security department) must be included in—

      • (a) the annual financial statements of the Government; and

      • (b) an Appropriation Bill for confirmation by Parliament.

      (5) Subsection (4) does not limit the validity of any capital injection made under this section.

130 Section 26 amended (Minister may determine terms and conditions of capital injections)
  • In section 26(1)(a), replace section 7(1)(e) with section 7A(1)(e).

131 New section 26CA inserted (Capital injections made without authority or approval require validation by Parliament)
  • After section 26C, insert:

    26CA Capital injections made without authority or approval require validation by Parliament
    • (1) The making of a capital injection without authority under an Appropriation Act or approval under section 25A is unlawful, unless it is validated by Parliament in an Appropriation Act.

      (2) The Minister must, on the introduction of any Appropriation Bill that seeks validation by Parliament of any capital injection made without authority under an Appropriation Act or approval under section 25A, present to the House of Representatives a report that sets out—

      • (a) the amount of each capital injection so made; and

      • (b) an explanation by the responsible Minister for the department to which the capital injection was made.

      (3) This section does not apply to a capital injection to an intelligence and security department.

132 Section 26D amended (Reporting requirements in relation to expenses or capital expenditure incurred in excess of, or without, appropriation)
  • (1) In the heading to section 26D, after appropriation, insert and capital injections made in excess of, or without, authorisation.

    (2) Replace section 26D(1) with:

    • (1) This section applies to—

      • (a) any expenses that have, or capital expenditure that has, been incurred—

        • (i) without appropriation or other authority; or

        • (ii) in excess of an existing appropriation or other authority; and

      • (b) any capital injection (other than a capital injection to an intelligence and security department) that has been made—

        • (i) without authority under an Appropriation Act or approval under section 25A; or

        • (ii) in excess of an existing authority under an Appropriation Act or an existing approval under section 25A.

    (3) In section 26D(2), replace or capital expenditure with , capital expenditure, or capital injection.

    (4) Replace section 26D(2)(b) with:

    • (b) the annual report of the administering department for the financial year in accordance with section 45A(1)(c) and (e).

133 Section 26E replaced (Application of this Part to Offices of Parliament)
  • Replace section 26E with:

    26E Application of this Part to Offices of Parliament
    • (1) Before an appropriation in a Vote administered by an Office of Parliament may be included in an Appropriation Bill for a financial year, the chief executive of the Office concerned must prepare and submit to the House of Representatives the following information:

      • (a) an estimate of expenses and capital expenditure to be incurred for—

        • (i) each proposed appropriation; and

        • (ii) each proposed category of expenses or non-departmental capital expenditure within a multi-category appropriation; and

      • (b) the revenue of the Office (including the revenue associated with each proposed expenses appropriation and each proposed category of expenses within a multi-category appropriation).

      (2) Before an authorisation for a capital injection to be made to an Office of Parliament may be included in an Appropriation Bill for a financial year, the chief executive of the Office concerned must submit to the House of Representatives the amount of the proposed capital injection.

      (3) The House of Representatives, after considering the information provided under subsections (1) and (2), may for each Office of Parliament commend to the Governor-General, by way of an address,—

      • (a) the estimates referred to in subsection (1)(a); and

      • (b) the capital injection referred to in subsection (2).

      (4) The House of Representatives may, in that address, request that the estimates be included as a Vote, and the capital injection be authorised, in an Appropriation Bill for that year.

      (5) If the Vote or authorisation is included in an Appropriation Bill for that year, this Part applies, with all necessary modifications, as if references to a department were references to an Office of Parliament.

      (6) An alteration to the Vote or authorisation during that year is subject to the provisions of this section.

134 Section 27 amended (Annual financial statements of Government)
  • Replace section 27(2)(c)(ii) and (iii) with:

    • (ii) a statement of unappropriated expenses and capital expenditure and unauthorised capital injections (excluding any capital injection to an intelligence and security department):

    • (iii) a statement of emergency expenses and capital expenditure incurred under section 25 and emergency capital injections (excluding any capital injection to an intelligence and security department) made under section 25A:.

135 Section 32A repealed (Additional reports in relation to non-departmental appropriations)
  • Repeal section 32A.

136 Sections 38 to 41 and cross-heading above section 38 replaced
  • Replace sections 38 to 41 and the cross-heading above section 38 with:

    Reporting requirements: information on strategic intentions

    38 Departments must provide information on strategic intentions
    • (1) A department must provide to its responsible Minister—

      • (a) information on the department’s strategic intentions that complies with this section and section 40; and

      • (b) a statement of responsibility for the information, signed by the department’s chief executive.

      (2) The information—

      • (a) must relate to the forthcoming financial year and at least the following 3 financial years; and

      • (b) may also relate to the remainder of the current financial year.

      (3) The information must identify the period to which it relates.

      (4) The department must provide the information—

      • (a) at least once in every 3-year period, unless the Minister has granted an extension of time under section 41; and

      • (b) in the case of a new department, as soon as practicable, but not later than 6 months, after the date on which the department is established; and

      • (c) if there has been a significant change in the nature or scope of the department's functions, as soon as practicable, but not later than 6 months, after that change.

      (5) Despite subsection (4)(a), the department must comply with subsection (1) as soon as practicable if the information most recently provided by the department under this section—

      • (a) becomes out of date because of a material change in the department's strategic intentions; or

      • (b) is otherwise false or misleading in a material particular.

    38A Minister Responsible Minister may require department to provide information on strategic intentions at any time
    • (1) A department's responsible Minister may, if the that Minister considers it necessary or desirable, require the department to provide new information on strategic intentions at any time.

      (2) Information on strategic intentions provided under this section must comply with sections 38 and 40.

      (3) The responsible Minister may require the information to relate to the remainder of the current financial year in addition to the forthcoming financial year and at least the following 3 financial years.

    39 Obligation to publish and present information on strategic intentions
    • (1) A department must, as soon as practicable after providing information on its strategic intentions to its responsible Minister, publish the information on an Internet site maintained by or on behalf of the department.

      (2) However, the department must not publish the information—

      • (a) in the period of 3 months before the Minister delivers the Budget for the first full financial year to which the information relates; or

      • (b) if the Minister gives less than 3 months' notice of the day on which he or she will deliver that Budget, in the period commencing on the day on which the Minister gives that notice and ending when the Minister delivers the Budget.

      (3) In the case of information provided by an intelligence and security department, the responsible Minister must forward a copy of the information, as soon as practicable after receiving it, to the members of the Intelligence and Security Committee established under the Intelligence and Security Committee Act 1996.

      (3A) In the case of information provided by any other department, the responsible Minister (or the Minister referred to in subsection (3C), if applicable) must present the information to the House of Representatives—

      • (a) in the same document as the department's annual report for the financial year before the first full financial year to which the information relates; or

      • (b) in any other document, in which case the information must be presented as soon as practicable after the responsible Minister receives it and not later than the date on which the annual report described in paragraph (a) is presented.

      (3B) However, the responsible Minister (or the Minister referred to in subsection (3C), if applicable) must not present the information to the House of Representatives in the period described in subsection (2).

      (3C) A Minister other than the responsible Minister may present the information to the House of Representatives if—

      • (a) the information is presented in a document that includes other information; and

      • (b) that other Minister is responsible for presenting that other information.

      (4) Information presented to the House of Representatives under subsection (3A) must be accompanied by a statement signed by the responsible Minister stating,—

      • (a) in the case of the Office of the Clerk of the House of Representatives or the Parliamentary Service, that the information is consistent with the policies and performance expectations of the responsible Minister; or

      • (b) in the case of any other department, that the information is consistent with the policies and performance expectations of the Government.

    40 Requirements for information on strategic intentions
    • (1) The information required under section 38 must, for the period to which it relates, set out the strategic objectives that the department intends to achieve or contribute to (strategic intentions).

      (2) The information must also, for the period to which it relates,—

      • (a) explain the nature and scope of the department's functions and intended operations; and

      • (aa) identify any departmental agencies hosted by the department; and

      • (b) explain how the department intends to manage its functions and operations to meet its strategic intentions; and

      • (c) set out and explain any other matters that—

        • (i) are reasonably necessary to achieve an understanding of the department's strategic intentions and capability; or

        • (ii) may be specified by the Minister or the responsible Minister for the purposes of subparagraph (i).

    41 Minister may grant extension of time for, or waive, requirement to provide information on strategic intentions
    • (1) If a department is likely to have a significant change in the nature or scope of its functions, the Minister may grant the department an extension, of up to 1 year, of the period specified in section 38(4)(a).

      (2) However, the Minister must not grant an extension unless the Minister is satisfied that the extension will enable the department to improve the quality of the information on strategic intentions that the department provides to its responsible Minister.

      (3) If a department is likely to be disestablished, the Minister may grant the department a waiver of the requirements in section 38.

      (4) As soon as practicable after granting an extension or a waiver, the Minister must present to the House of Representatives notice of the extension or waiver and the Minister's reasons for granting it.

137 Section 42 repealed (Information on future operating intentions must include statement of responsibility)
  • Repeal section 42.

138 Section 45 replaced (Contents of annual report of department)
  • Replace section 45 with:

    45 Contents of annual report of department
    • (1) The annual report of a department must provide the information that is necessary to enable an informed assessment to be made of the department's performance during the financial year, including how well the department is managing the resources it controls.

      (2) The annual report of a department must contain the following information in respect of the financial year to which it relates:

      • (a) an assessment of the department's operations (excluding operations on which any departmental agency hosted by the department is required to report under section 43A); and

      • (b) an assessment of the department's progress in relation to its strategic intentions; and

      • (c) information about the department's management of its organisational health and capability; and

      • (d) statements of expenses and capital expenditure for the department that comply with section 45A; and

      • (e) annual financial statements for the department that comply with section 45B; and

      • (f) a statement of responsibility that complies with section 45C; and

      • (g) any other matters that relate to or affect the department's operations that the department is required, has undertaken, or wishes to report on in its annual report.

      (3) The annual report of a department must also contain, in respect of the financial year after the financial year to which the annual report relates, forecast financial statements for the department that comply with section 45BA.

      (3A) The annual report of a department must identify any departmental agencies hosted by the department.

      (4) The annual report must be dated and signed on behalf of the department by its chief executive.

138A Section 45AA amended (Contents of departmental agency annual report)
  • In section 45AA(1)(b), as inserted by section 90 section 66C of this Act, replace future operating intentions with strategic intentions.

138B Section 45A replaced (Statement of service performance)
  • Replace section 45A with:

    45A Statements of expenses and capital expenditure
    • (1) A department's annual report must include—

      • (a) a statement of the budgeted and actual expenses and capital expenditure incurred against—

        • (i) each appropriation administered by the department; and

        • (ii) each category of expenses or non-departmental capital expenditure included in a multi-category appropriation administered by the department; and

      • (b) for each appropriation administered by the department, details of the document in which the end-of-year performance information for the appropriation for the previous financial year (if required) is presented to the House of Representatives; and

      • (c) a statement of expenses and capital expenditure incurred without appropriation or other authority, or in excess of an existing appropriation or other authority, in relation to the activities of, or appropriations administered by, the department, together with an explanation of the reasons for the unappropriated expenses and capital expenditure; and

      • (d) a statement of the amount of any capital injection authorised, under an Appropriation Act, to be made to the department compared with the actual amount of any capital injection made to the department; and

      • (e) a statement of any capital injection made to the department without authority, or in excess of an existing authority, under an Appropriation Act, together with an explanation of the reasons for the unauthorised capital injection.

      (2) Subsection (1)(b) does not apply to an appropriation exempted from end-of-year performance information requirements under section 15B.

139 Section 45B amended (Annual financial statements)
  • (1) In section 45B(2)(b), delete ; and.

    (2) Repeal section 45B(2)(c) and (d).

140 New section 45BA inserted (Forecast financial statements)
  • After section 45B, insert:

    45BA Forecast financial statements
    • (1) A department's forecast financial statements must be prepared in accordance with generally accepted accounting practice.

      (2) In addition to what is required by generally accepted accounting practice, a department's forecast financial statements must include—

      • (a) a statement of all significant assumptions underlying the forecast financial statements; and

      • (b) any other information or explanations needed to fairly reflect the forecast financial operations and financial position of the department.

141 Section 45C replaced (Statement of responsibility)
  • Replace section 45C with:

    45C Statement of responsibility
    • (1) A statement of responsibility relating to the annual report of a department must include—

      • (a) a statement of the responsibility of the department's chief executive for the preparation of the financial statements, and statements of expenses and capital expenditure, and for the judgements expressed in them; and

      • (b) a statement of the responsibility of the department's chief executive for having in place a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; and

      • (ca) a statement of the responsibility of the department's chief executive for ensuring that end-of-year performance information on each appropriation administered by the department is provided in accordance with sections 19A to 19C, whether or not that information is included in the annual report; and

      • (cb) a statement of the responsibility of the department's chief executive for the accuracy of any end-of-year performance information prepared by the department (see section 19A), whether or not that information is included in the annual report; and

      • (d) a statement that, in the opinion of the department's chief executive,—

        • (i) the financial statements fairly reflect the financial position and operations of the department for the reporting period; and

        • (ii) the forecast financial statements fairly reflect the forecast financial position and operations of the department for the financial year to which the forecast financial statements relate.

      (2) A statement of responsibility for the annual report of a departmental agency must include—

      • (a) a statement that, in the opinion of the chief executive of the departmental agency, the annual report fairly reflects the operations, progress, and organisational health and capability of the departmental agency; and

      • (b) a statement of the responsibility of the departmental agency's chief executive for the accuracy of any end-of-year performance information prepared by the departmental agency (see section 19A), whether or not that information is included in the annual report.

      (3) A statement of responsibility must be signed by the chief executive of the department or departmental agency (as applicable).

142 Section 45D amended (Audit report)
  • (1) In section 45D(1)(a), replace statement of service performance with statements of expenses and capital expenditure.

    (3) After section 45D(1), insert:

    • (1A) The department or departmental agency most recently identified in the supporting information for an Appropriation Act as providing end-of-year performance information on an appropriation for a financial year must, within 2 months after the end of that financial year, forward that information to the Auditor-General.

    (4) In section 45D(2)(a), after statements referred to in subsection (1)(a), insert and the information referred to in subsections (1)(a) and (1A).

    (5) In section 45D(2)(b), after department, insert or departmental agency (as the case may be).

143 Section 45E amended (Application of this Part to intelligence and security departments)
  • (1) In section 45E(1)(a), replace section 40(e)(ii) with section 40(2)(c)(ii).

    (2) In section 45E(1)(b), replace sections 41 and 45B(1) and (2)(a) and (b) with sections 45B and 45BA.

    (3) In section 45E(1)(c)(ii), delete ; and.

    (4) Repeal section 45E(1)(d).

    (5) Replace section 45E(2) with:

    • (2) Section 39 (which requires information provided by a department on its strategic intentions to be presented to the House of Representatives and to be published) does not apply to an intelligence and security department.

    • (3) However, subsection (2) does not affect the obligations of the responsible Minister of an intelligence and security department under section 39(3).

    • (4) Section 45A(1)(d) and (e) (which requires statements of expenses and capital expenditure to include statements relating to capital injections) does not apply to an intelligence and security department.

144 Section 45F replaced (Application of this Part to Offices of Parliament)
  • Replace section 45F with:

    45F Application of this Part to Offices of Parliament
    • (1) This Part applies to an Office of Parliament, subject to subsection (2) and with the following (and any other necessary) modifications:

      • (a) references to a department must be read as references to an Office of Parliament; and

      • (b) references to the Auditor-General must be read as references to an auditor appointed by the House of Representatives to audit the financial statements, statements of expenses and capital expenditure, and end-of-year performance information of Offices of Parliament; and

      • (c) section 40(2)(c) must be read as if an Office of Parliament were not required to comply with the requirement for the information on strategic intentions to set out and explain any other matters that may be specified by the Minister or responsible Minister, but were instead required to have regard to those matters in the preparation of that information; and

      • (d) section 41 must be read as if the references in that section to the Minister were references to the Speaker.

      (2) Section 39(4)(b) (which requires the information on strategic intentions to be accompanied by a statement that the information is consistent with the policy and performance expectations of the Government) does not apply to an Office of Parliament.

145 Section 45G repealed (This Part modified for purpose of applying Part to Offices of Parliament)
  • Repeal section 45G.

145A Section 45I amended (First annual report for newly established entities)
  • Replace section 45I(2)(a), as inserted by section 68 of this Act, with:

    • (a) the statements and details required by section 45A; and.

146 Section 45L amended (Minister may allow certain information to be included in another entity's annual report if operations transferred)
  • In section 45L(2)(a), replace statement of service performance with statement of performance.

146A Section 45M amended (Application of Crown Entities Act 2004 to Schedule 4 organisations)
  • (1) In section 45M(1)(e), as inserted by section 91 of this Act, after 138,, insert 139A,.

    (1) In section 45M(1)(e), as inserted by section 70AAA of this Act, replace sections 138 and 141 to 149 with sections 138, 139AAA, 139A, 141, and 144 to 149AAA.

    (1A) In section 45M(1)(f), as inserted by section 70AAA of this Act, replace 157 with 157A.

    (2) In section 45M(2), as inserted by section 91 section 70AAA of this Act, replace statement of service performance with statement of performance.

146AA Section 45N amended (Exemptions from certain sections of Crown Entities Act 2004 for Schedule 4 organisations)
  • In section 45N(1), as inserted by section 70AAA of this Act, after 141,, insert 149C,.

146AB Section 45OA amended (Application of Crown Entities Act 2004 to non-listed companies in which the Crown is majority or sole shareholder)
  • In section 45OA(1)(n) and (2), as inserted by section 70AAB of this Act, replace 157 with 157A.

146AC Section 61 repealed (Expenses in respect of money borrowed by the Crown)
  • Repeal section 61.

146AD Section 65D amended (Payments under public securities)
  • Replace section 65D(2) with:

    • (2) In this section and section 65ZH, public security does not include a guarantee or an indemnity on behalf of or in the name of the Crown given under this Act or any other enactment.

146AE Section 65E repealed (Expenses in respect of securities)
  • Repeal section 65E.

146AF Section 65H amended (Payments relating to derivative transactions of the Crown)
  • Repeal section 65H(2).

146AG Section 65J repealed (Payment of expenses relating to investment)
  • Repeal section 65J.

146AH New subpart 7 of Part 6 inserted
  • After section 65ZG, insert:

    Subpart 7Permanent legislative authority for payment of certain expenses

    65ZH Permanent legislative authority for payment of certain expenses
    • (1) Any expenses incurred in connection with any of the following matters may be incurred without further appropriation, and must be paid without further authority, than this section:

      • Expenses in respect of money borrowed by the Crown
      • (a) negotiating the borrowing of money by the Crown:

      • (b) undertaking, managing, servicing, converting, or repaying borrowing described in paragraph (a):

      • Expenses in respect of securities
      • (c) issuing a public security in respect of the Crown:

      • (d) executing, redeeming, or varying a public security described in paragraph (c):

      • Expenses relating to derivative transactions of the Crown
      • (e) negotiating a derivative transaction of the Crown:

      • (f) managing, servicing, or making payments under a derivative transaction described in paragraph (e):

      • Expenses relating to investment
      • (g) negotiating an investment referred to in section 65I:

      • (h) placing, managing, servicing, or converting an investment referred to in section 65I.

      (2) In this section, expenses

      • (a) includes—

        • (i) duties, taxes, premiums, bonuses, fees, interests, and commissions; and

        • (ii) any expenses incurred on personnel and equipment necessary in connection with the matters set out in subsection (1); but

      • (b) does not include expenses incurred in connection with—

        • (i) money borrowed by the Crown under a hire purchase agreement, a finance lease agreement, or any agreement that is of the same nature as or a substantially similar nature to either of those agreements; or

        • (ii) a guarantee or an indemnity on behalf of or in the name of the Crown given under this Act or any other enactment.

146AI Schedule 4 amended
  • In Schedule 4, column heading relating to section 153 of the Crown Entities Act 2004, replace SSP with SP.

146B Consequential amendments arising from amendments to Public Finance Act 1989 that come into force on 1 July 2014
  • The enactments listed in Schedule 3A are consequentially amended in the manner indicated in that schedule.

Part 3
Amendments to Crown Entities Act 2004

148 Principal Act
  • This Part amends the Crown Entities Act 2004 (the principal Act).

Subpart 1Amendments coming into force on day after date of Royal assent

148A Section 7 amended (Meaning of Crown entity and categories of Crown entities)
  • (1) In section 7(1)(c), replace the definition in the second column with:

    Definition

    A company that is—

    • (a) a subsidiary of another Crown entity under sections 5 to 8 of the Companies Act 1993; or

    • (b) a multi-parent subsidiary of 2 or more Crown entities.

    (2) After section 7(1), insert:

    • (1A) Despite section 5(3) of the Companies Act 1993, a Crown entity subsidiary must be a company incorporated under that Act.

148B New section 7A inserted (Meaning of multi-parent subsidiary)
  • After section 7, insert:

    7A Meaning of multi-parent subsidiary
    • (1) A company is a multi-parent subsidiary if, under sections 5 to 8 of the Companies Act 1993,—

      • (a) the company is not a subsidiary of any 1 Crown entity; but

      • (b) if 2 or more Crown entities were treated as 1 entity (a combined entity), with their rights, entitlements, and interests in relation to the company taken together, the company would be a subsidiary of the combined entity.

      (2) Despite section 5(3) of the Companies Act 1993, a multi-parent subsidiary must be a company incorporated under that Act.

      Example

      Crown entities A, B, and C each own 20% of the issued shares of Company Limited. The remaining issued shares of Company Limited are not owned by Crown entities. Because Crown entities A, B, and C collectively own more than half of the issued shares of Company Limited (see section 5(1)(a)(iii) of the Companies Act 1993), Company Limited is a multi-parent subsidiary.

148C Section 8 replaced (Meaning of parent Crown entity and Crown entity subsidiary)
  • Replace section 8 with:

    8 Meaning of parent Crown entity
    • A Crown entity (A) is a parent Crown entity or parent of another Crown entity (B) if—

      • (a) A is a statutory entity or Crown entity company or school board of trustees or tertiary education institution; and

      • (b) B is a subsidiary of A, or a multi-parent subsidiary of A and 1 or more other Crown entities, under the definition of Crown entity subsidiaries in column 2 of section 7(1)(c).

149 Section 10 amended (Interpretation)
  • (1AA) In section 10(1), replace the definition of Crown entity subsidiary with:

    Crown entity subsidiary has the meaning given in column 2 of section 7(1)(c).

    (1) In section 10(1), insert in its appropriate alphabetical order:

    monitor means, in relation to a monitored Crown entity, 1 or more of the following that performs the role described in section 27A or 88A:

    • (a) a department (within the meaning of that term in the Public Finance Act 1989):

    • (b) another Crown entity.

    (2) In section 10(1), replace the definition of multi-parent subsidiary with:

    multi-parent subsidiary has the meaning given in section 7A.

    (3) In section 10(1), definition of parent Crown entity or parent, replace section 8(1) with section 8.

150 New sections 10A and 10B inserted
  • After section 10, insert:

    10A Application, savings, and transitional provisions relating to amendments to Act
    • The application, savings, and transitional provisions set out in Schedule 1AA, which relate to amendments made to this Act on or after the day on which this section comes into force, have effect for the purposes of this Act.

    10A Provisions affecting application of amendments to this Act
    • Schedule 1AAA contains application, savings, and transitional provisions relating to amendments made to this Act after 1 January 2013 (see section 199A).

    10B Status of examples
    • (1) An example used in this Act is only illustrative of the provisions to which it relates. It does not limit those provisions.

      (2) If an example and a provision to which it relates are inconsistent, the provision prevails.

151 Section 27 amended (Responsible Minister's role)
  • (1) In section 27(1), replace functions, with functions.

    (2) After section 27(2), insert:

    • (3) Despite section 28 of the State Sector Act 1988, the responsible Minister may not delegate any power under this Act except as provided in subsection (4).

    • (4) The responsible Minister may delegate the power in section 133 to request information to the chief executive of a monitor (who may subdelegate this delegation to an employee of the monitor or to an individual working for the monitor as a contractor in relation to a function, duty, or power of the monitor).

152 New section 27A and cross-heading inserted
  • After section 27, insert:

    Monitor's role

    27A Monitor's role
    • The role of the monitor is, in relation to the monitored statutory entity,—

      • (a) to assist the responsible Minister to carry out his or her role (which is described in section 27); and

      • (b) to perform or exercise any or all of the following functions, duties, or powers:

        • (i) administering appropriations:

        • (ii) administering legislation:

        • (iii) tendering advice to Ministers:

        • (iv) any other functions, duties, or powers in this Act or another Act that may, or must, be performed or exercised by the monitor.

153 Section 50 replaced (Functions must be performed efficiently, effectively, and consistently with spirit of service to public)
  • Replace section 50 with:

    50 Manner in which functions must be performed
    • The board of a statutory entity must ensure that the statutory entity performs its functions—

      • (a) efficiently and effectively; and

      • (b) in a manner consistent with the spirit of service to the public; and

      • (c) in collaboration with other public entities (within the meaning of that term in the Public Audit Act 2001) where practicable.

154 Section 62 amended (When interests must be disclosed)
  • (1) In section 62(3)(a), replace subsidiary that is owned by the entity together with another parent Crown entity or entities with multi-parent subsidiary of the entity and 1 or more other Crown entities.

    (2) After 62(3)(c), insert:

    • (ca) only because he or she has past or current involvement in the relevant sector, industry, or practice; or.

155 Section 64 amended (Who disclosure of interests must be made to)
  • In section 64, after temporary, insert deputy in each place.

156 Section 68 amended (Permission to act despite being interested in matter)
  • In section 68(3) and (4), after temporary, insert deputy in each place.

157 Section 78 amended (Board procedure)
  • (1) In the heading to section 78, replace Board with Appointment of chairperson, etc, and board.

    (2) In section 78, after govern, insert the appointment of a chairperson and deputy chairperson (including a temporary deputy chairperson) and.

158 Section 88 amended (Shareholding Ministers' role)
  • After section 88(3), insert:

    • (4) Despite section 28 of the State Sector Act 1988, the shareholding Ministers may not delegate any power under this Act except as provided in subsection (5).

    • (5) The shareholding Ministers may delegate the power in section 133 to request information to the chief executive of a monitor (who may subdelegate this delegation to an employee of the monitor or to an individual working for the monitor as a contractor in relation to a function, duty, or power of the monitor).

159 New section 88A and cross-heading inserted
  • After section 88, insert:

    Monitor's role

    88A Monitor's role
    • The role of the monitor is, in relation to a monitored Crown entity company,—

      • (a) to assist the shareholding Ministers to carry out their role (which is described in section 88); and

      • (b) to perform or exercise any or all of the following functions, duties, or powers:

        • (i) administering appropriations:

        • (ii) administering legislation:

        • (iii) tendering advice to Ministers:

        • (iv) any other functions, duties, or powers in this Act or another Act that may, or must, be performed or exercised by the monitor.

159A Section 97 amended (Subsidiaries: rules applying to all Crown entities)
  • In section 97, replace to the extent of its powers with to the extent that it is reasonably able to do so.

160 Section 98 amended (Subsidiaries: rules applying only to statutory entities)
  • (1) In section 98(1), replace to the extent of its powers with to the extent that it is reasonably able to do so.

    (2) Replace section 98(1)(a) with:

    • (a) performs its functions—

      • (i) efficiently and effectively; and

      • (ii) in a manner consistent with the spirit of service to the public; and

      • (iii) in collaboration with other public entities (within the meaning of that term in the Public Audit Act 2001) where practicable; and.

161 Cross-heading above section 103 amended
  • In the cross-heading above section 103, delete on government policy.

162 Section 107 amended (Whole of government directions)
  • (1AAA) Replace the heading to section 107 with Directions to support whole of government approach.

    (1) Replace section 107(1) with:

    • (1) The Minister of State Services and the Minister of Finance may jointly direct Crown entities to support a whole of government approach by complying with specified requirements for any of the following purposes:

      • (a) to improve (directly or indirectly) public services:

      • (b) to secure economies or efficiencies:

      • (c) to develop expertise and capability:

      • (d) to ensure business continuity:

      • (e) to manage risks to the government's financial position.

      Example

      A direction may be given requiring that all Crown entities comply with e-government requirements to improve public services.

    (2) In section 107(2)(b), after (for example, to all Crown agents), insert ; or.

    (3) After section 107(2)(b), insert:

    • (c) to a group of Crown entities (whether made up of categories or types) if—

      • (i) the group is made up of at least 3 Crown entities; and

      • (ii) the entities in the group have in common at least 1 significant characteristic that relates to the direction (for example, the characteristic could relate to the Crown entities' asset holdings or presence in a region).

    (4) After section 107(2), insert:

    • (2A) For the purposes of subsection (2)(a), companies named in Schedule 4A of the Public Finance Act 1989 may be treated as a category of Crown entities.

162AAA Section 108 amended (Process for giving whole of government directions)
  • In the heading to section 108, replace whole of government directions with directions under section 107.

162AAB Section 109 amended (House of Representatives may resolve to disapply whole of government direction)
  • (1) In the heading to section 109, replace whole of government direction with direction under section 107.

    (2) In section 109, replace whole of government direction given with direction.

162A Section 110 amended (Obligation to give effect to direction)
  • In section 110, after category or type, insert or group.

162B Section 111 amended (Publication of whole of government direction)
  • In the heading to section 111, replace whole of government direction with direction under section 107.

162C Section 113 amended (Safeguarding independence of Crown entities)
  • In section 113(3), replace whole of government directions with directions under section 107.

163 Cross-heading above section 114 repealed
  • Repeal the cross-heading above section 114.

163A Section 114 amended (Crown entities must comply with directions given under statutory power of direction)
  • In section 114(1)(b), replace whole of government direction given to it with direction.

164 Section 115 amended (Procedure for all Ministerial directions)
  • (1) Replace the heading to section 115 with Procedure for ministerial directions on government policy.

    (2) In section 115(3), replace amended, revoked, with amended.

    (3) After section 115(3), insert:

    • (3A) A Minister who is entitled to give a direction to a Crown entity is also entitled to revoke it by notice in writing to the entity, and, as soon as practicable after doing so, the Minister must publish that notice in the Gazette.

    (4) In section 115(4), replace whole of government directions given with directions.

165 New section 115A inserted (Review and expiry of all directions)
  • After section 115, insert:

    115A Review and expiry of all directions
    • (1) A ministerial direction under this Act or another Act may specify its expiry date.

      (2) A direction that does not specify its expiry date must be reviewed by the Minister or Ministers after the later of the following:

      • (a) 5 years after the direction was given:

      • (b) 5 years after the commencement of this section.

      (3) A Minister or Ministers reviewing a direction must, to the extent that they consider it necessary in the circumstances,—

      • (a) consult the Crown entity or entities to which the direction applies; and

      • (b) consult any persons that they consider are representative of the interests of persons likely to be substantially affected by the direction.

      (4) As soon as practicable after completing the review, the Minister or Ministers must notify the outcome of the review to—

      • (a) the Crown entity or entities to which the direction applies; and

      • (b) persons that were consulted under subsection (3)(b).

      (5) This section does not apply, in the case of directions given under another Act, if the other Act contains a procedure for reviewing directions.

166 Section 122 replaced (Indemnities in relation to excluded act or omission)
  • Replace section 122 with:

    122 Indemnities in relation to excluded act or omission
    • A statutory entity may only indemnify a member, an office holder, or an employee in respect of an excluded act or omission (including costs incurred in defending or settling any claim or proceeding relating to that excluded act or omission).

167 Section 127 amended (Method of contracting)
  • In section 127(2)(b), replace in accordance with this Part with under section 129(1).

168 Section 133 amended (Power to request information)
  • After section 133(2), insert:

    • (2A) The board of a Crown entity must supply to the Minister of State Services any information requested by the Minister in accordance with subsection (2B).

    • (2B) The Minister of State Services—

      • (a) may request the a Crown entity to supply of information under subsection (2A) only for the purpose of assessing the capability and performance of the State services; and

      • (b) must make the request to a group of Crown entities that is

        • (i) is made up of at least 3 Crown entities; and

        • (ii) has in common at least 1 significant characteristic that relates to the information requested (for example, the characteristic could relate to the Crown entities' asset holdings or presence in a region).

    • (2C) Information supplied under subsection (2A) must not be used for the purpose of assessing the operations and performance of the Crown entity or the Crown entity group.

169 Section 135 amended (Members, office holders, and employees are officials)
  • After section 135(1), insert:

    • (1A) In this section, individuals working for the Crown entity as contractors or secondees in relation to a function, duty, or power of the Crown entity are to be treated as if they are employees.

    • (1B) This section also applies to a person who was formerly a person described in subsection (1)(a) or (b) or (1A) in respect of any acts or omissions or decisions made—

      • (a) while that person was a person described in subsection (1)(a) or (b) or (1A); and

      • (b) after the commencement of this subsection.

169A Section 148 amended (Amendments to statement of intent by Crown entity)
  • In section 148(2)(b)(i), replace whole of government direction with direction under section 107.

169B Section 150 amended (Obligation to prepare, present, and publish annual report)
  • (1) Replace subsection (3) with:

    • (3) A responsible Minister of a Crown entity (or another Minister, if subsection (6) applies) must present the entity's annual report to the House of Representatives within 5 working days after the responsible Minister receives the annual report or, if Parliament is not in session, as soon as possible after the commencement of the next session of Parliament.

    (2) After section 150(4), insert:

    • (5) An entity's annual report may be presented or published in a document that includes any other report or information, whether or not that other report or information relates to the entity, but only if each report or set of information is separately identifiable within that document.

    • (6) A Minister other than the responsible Minister may present an entity's annual report to the House of Representatives if—

      • (a) the report is presented in a document that includes another report or other information; and

      • (b) that other Minister is responsible for presenting that other report or information.

170 Section 151 amended (Form and content of annual report)
  • Replace section 151(1)(f) with:

    • (f) any new direction given to the entity by a Minister in writing under any enactment during that financial year, as well as other such directions that remain current; and.

170AAA New section 199A inserted (Application, savings, and transitional provisions relating to amendments to Act)
  • After section 199, insert:

    199A Application, savings, and transitional provisions relating to amendments to Act
    • The application, savings, and transitional provisions set out in Schedule 1AAA, which relate to amendments made to this Act on or after 1 January 2013, have effect for the purposes of this Act.

170A New Schedule 1AAA inserted
  • Before Schedule 1, insert the Schedule 1AAA set out in Schedule 3B of this Act.

170B Schedule 3 amended
  • In Schedule 3, item relating to section 107, second column, replace Whole of government directions with Directions to support a whole of government approach.

171 Schedule 5 amended
  • (1) In the Schedule 5 heading, replace Board with Appointment of chairperson, etc, and board.

    (1A) In Schedule 5, clause (2)(d), after unless the member, insert continues to hold office as a member in accordance with section 32(3) or.

    (2) In Schedule 5, replace clause 7(4)(c) with:

    • (c) must be given or sent to each member's current postal or electronic address.

    (3) In Schedule 5, clause 13(1), after by all members, insert who are entitled to vote on the matter.

171A Consequential amendments arising from amendments to Crown Entities Act 2004 made by this subpart
  • The enactments listed in Schedule 3C of this Act are consequentially amended in the manner indicated in that schedule.

Subpart 2Amendments coming into force on 1 July 2014

174 Section 27 amended (Responsible Minister's role)
  • Replace section 27(1)(f) with:

    • (f) to participate in the process of setting the entity's strategic direction and performance expectations and monitoring the entity's performance under Part 4:.

175 Section 49 amended (Entity must act consistently with objectives, functions, statement of intent, and output agreement)
  • (1) In the heading to section 49, replace output agreement with statement of performance expectations.

    (2) In section 49, replace output agreement (if any) with current statement of performance expectations.

176 Section 88 amended (Shareholding Ministers' role)
  • Replace section 88(1)(d) with:

    • (d) to participate in the process of setting the company's strategic direction and performance expectations and monitoring the company's performance under Part 4; and.

177 Section 92 amended (Duty to act consistently with objectives, functions, statement of intent, and output agreement)
  • (1) In the heading to section 92, replace output agreement with statement of performance expectations.

    (2) In section 92, replace output agreement (if any) with statement of performance expectations.

177A Section 136 amended (Interpretation for this Part)
  • (1) In section 136(1), definition of Crown entity group, replace paragraph (b) with:

    • (b) its Crown entity subsidiaries, other than multi-parent subsidiaries; and.

    (2) In section 136(1), insert in their appropriate alphabetical order:

    next Budget day means the day on which the Minister of Finance will next deliver a Budget under the Public Finance Act 1989

    pre-Budget period means—

    • (a) the period of 3 months ending when the Minister of Finance next delivers a Budget under the Public Finance Act 1989; or

    • (b) if the Minister of Finance gives less than 3 months' notice of the next Budget day, the period commencing on the day on which the Minister of Finance gives that notice and ending when the Minister of Finance delivers the Budget

    reportable class of outputs, in respect of a financial year, means a class of outputs—

    • (a) that the Crown entity proposes to supply in the financial year; and

    • (b) that is directly funded (in whole or in part) by the Crown in accordance with an appropriation for the purpose, or by grants distributed under any Act, or by levies, fees, or charges prescribed by or under any Act; and

    • (c) that is not exempted for that financial year under section 149D.

178 Section 138 amended (Purpose of statement of intent)
  • In section 138(a), replace medium-term intentions and undertakings with strategic intentions and medium-term undertakings.

179 Section 139 replaced (Obligation to prepare statement of intent)
  • Replace section 139 with:

    139 Obligation to prepare statement of intent
    • (1) A Crown entity must provide to its responsible Minister a statement of intent for the Crown entity that complies with this section and section 141.

      (3) A statement of intent must relate to the forthcoming financial year and at least the following 3 financial years.

      (4) The Crown entity must provide a statement of intent at least once in every 3-year period.

      (6) This section applies unless the Crown entity is exempted from the requirements of this section by or under this or another Act.

    139AAA Minister may require Crown entity to prepare new statement of intent at any time
    • (1) A Crown entity's responsible Minister may, if the Minister considers it necessary or desirable, require the Crown entity to provide a new statement of intent at any time.

      (2) A statement of intent provided under this section must comply with sections 139 and 141.

      (3) Despite section 139(3), the Minister may require the new statement of intent to relate to the remainder of the current financial year in addition to the forthcoming financial year and at least the following 3 financial years.

    139A Minister may grant extension of time for, or waive, requirement to provide statement of intent
    • (1) If a Crown entity is likely to have a significant change in the nature or scope of its functions, the responsible Minister may grant the Crown entity an extension, of up to 1 year, of the period specified in section 139(4).

      (2) However, the responsible Minister must not grant an extension unless he or she is satisfied that the extension will enable the entity to improve the quality of the statement of intent that it provides.

      (3) If a Crown entity is likely to be disestablished or, in the case of a Crown entity company, removed from the register under the Companies Act 1993, the responsible Minister may grant the entity a waiver of the requirements in section 139.

      (4) If the responsible Minister grants an extension or a waiver under this section,—

      • (a) the responsible Minister must, as soon as practicable after granting the extension or waiver, notify the Crown entity of the extension or waiver and the Minister's reasons for granting it; and

      • (b) the Crown entity must, as soon as practicable after receiving notice under paragraph (a), publish notice of the extension or waiver, and the Minister's reasons for granting it, on an Internet site maintained by or on behalf of the Crown entity; and

      • (c) the Crown entity must include, in the next annual report that it provides to its responsible Minister for presentation to the House of Representatives under section 150, a statement of the exemption or waiver and the Minister's reasons for granting it.

180 Section 140 amended (Statement of intent for newly established Crown entities)
  • (1) Repeal section 140(2).

    (2) In section 140(3), replace section 141(1)(b) to (d), (g), and (h) with section 141(1) and (2)(a), (b), (d), and (e).

    (3) Repeal section 140(6).

181 Section 141 replaced (Content of statement of intent)
  • Replace section 141 with:

    141 Content of statement of intent
    • (1) A statement of intent must, for the period to which it relates, set out the strategic objectives that the entity intends to achieve or contribute to (strategic intentions).

      (2) A statement of intent must also, for the period to which it relates,—

      • (a) explain the nature and scope of the entity's functions and intended operations:

      • (b) explain how the entity intends to manage its functions and operations to meet its strategic intentions:

      • (c) explain how the entity proposes to manage its organisational health and capability:

      • (d) explain how the entity proposes to assess its performance:

      • (e) identify any process to be followed for the purpose of section 100:

      • (f) set out and explain any other matters that

        • (i) that are reasonably necessary to achieve an understanding of the entity's strategic intentions and capability:

        • (ii) that the entity is required to include in its statement of intent under this Act or another Act.

      (3) A statement of intent must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member.

      • (a) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and

      • (b) is a final statement of intent when it has been signed in accordance with paragraph (a).

      (4) A statement of intent is a final statement of intent when it has been signed in accordance with subsection (3).

182 Sections 142 and 143 repealed
  • Repeal sections 142 and 143.

182A Section 144 amended (Application and term of statement of intent)
  • In section 144(b), delete or group.

183 Section 145 amended (Ministerial involvement in statements of intent)
  • In section 145(a), replace sections 141 and 142 with section 141.

184 Section 146 amended (Process for providing statement of intent to responsible Minister)
  • Replace section 146(2) with:

    • (2) The process that must be followed in providing a statement of intent is as follows:

      • (a) the Crown entity must provide a draft statement of intent to its responsible Minister—

        • (i) not later than 2 months before the start of the first financial year to which the statement of intent relates; or

        • (ii) in the case of a newly established Crown entity, within the time frame specified by the responsible Minister; or

        • (iii) if the responsible Minister has requested the statement of intent under section 139AAA, within the time frame specified by the responsible Minister; and

      • (b) the responsible Minister must provide to the entity any comments that he or she may have on the draft not later than 15 working days after receiving it; and

      • (c) the entity must consider the comments (if any) on the draft and provide the final statement of intent to its responsible Minister as soon as practicable after receiving the comments (if any), but in any case—

        • (i) before the start of the first financial year to which the statement of intent relates; or

        • (ii) in the case of a newly established Crown entity, no later than 25 working days after receiving the comments (if any); or

        • (iii) if the responsible Minister has requested the statement of intent under section 139AAA, no later than 25 working days after receiving the comments (if any).

      • (c) the entity must consider the comments (if any) on the draft and provide the final statement of intent to its responsible Minister—

        • (i) as soon as practicable after receiving the comments (if any) but before the start of the first financial year to which the statement of intent relates; or

        • (ii) in the case of a newly established Crown entity,—

          • (A) as soon as practicable, but not later than 25 working days, after receiving the comments; or

          • (B) if the responsible Minister does not provide comments within the period specified in paragraph (b), not later than 25 working days after the end of that period; or

        • (iii) if the responsible Minister has requested the statement of intent under section 139AAA,—

          • (A) as soon as practicable, but not later than 25 working days, after receiving the comments; or

          • (B) if the responsible Minister does not provide comments within the period specified in paragraph (b), not later than 25 working days after the end of that period.

185 Section 147 amended (Amendments to statement of intent by responsible Minister)
  • (1) In the heading to section 147, after Amendments to, insert final.

    (2) Replace section 147(1) and (2) with:

    • (1) A responsible Minister of a Crown entity may direct a Crown entity to amend any provision that is included in the entity's final statement of intent under section 141(1) or (2)(a), (b), (d), or (e).

    • (2) Sections 113 to 115 (other than section 115(2)) apply to a direction under subsection (1).

    (3) Replace section 147(4) with:

    • (4) An amendment under this section—

      • (a) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and

      • (b) is a final amendment when it has been signed in accordance with paragraph (a).

186 Section 148 amended (Amendments to statement of intent by Crown entity)
  • (1) In the heading to section 148, after Amendments to, insert final.

    (1A) In section 148(1), replace statement of intent with final statement of intent.

    (2) In section 148(4), replace A Crown entity must amend its statement of intent in accordance with the following process with The following process applies to an amendment under subsection (1) or (2).

    (2A) In section 148(4)(b), replace 14 days with 15 working days.

    (2B) In section 148(4)(c), delete ; and.

    (2C) Repeal section 148(4)(d).

    (3) After section 148(4), insert:

    • (5) The final amendment must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member.

    • (5) An amendment under this section—

      • (a) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and

      • (b) is a final amendment when it has been signed in accordance with paragraph (a).

    • (5A) A final amendment under this section is in force from the date on which it is provided to the responsible Minister.

    • (6) A Crown entity may, instead of amending its final statement of intent, provide to its responsible Minister under section 146 a new statement of intent that complies with sections 139 and 141.

188 Section 149 replaced (Obligation to present and publish statement of intent)
  • Replace section 149 with:

    149 Obligation to publish and present statement of intent
    • (1) A Crown entity must, as soon as practicable after providing a final statement of intent to its responsible Minister, publish the statement of intent on an Internet site maintained by or on behalf of the entity.

      (2) Despite subsection (1), if a final statement of intent relates to a period commencing on or after the next Budget day, the responsible Minister may require the Crown entity not to publish the statement in the pre-Budget period.

      (3) The responsible Minister (or another Minister, if subsection (3B) applies) must present a copy of the final statement of intent to the House of Representatives—

      • (a) in the same document as the entity's annual report for the financial year before the first full financial year to which the statement of intent relates (see section 150); or

      • (b) in any other document presented on or before the date on which the annual report described in paragraph (a) is presented.

      (3A) An entity's statement of intent may be presented or published in a document that includes any other statement or information, whether or not that other statement or information relates to the entity, but only if each statement or set of information is separately identifiable within that document.

      (3B) A Minister other than the responsible Minister may present an entity's statement of intent to the House of Representatives if—

      • (a) the statement is presented in a document that includes another statement or other information; and

      • (b) that other Minister is responsible for presenting that other statement or information.

      (4) In this section,—

      next Budget day means the day on which the Minister of Finance will next deliver a Budget

      pre-Budget period means—

      • (a) the period of 3 months before the next Budget day; or

      • (b) if the Minister of Finance gives less than 3 months' notice of the next Budget day, the period commencing on the day on which the Minister of Finance gives that notice and ending when the Minister of Finance delivers the Budget.

    149AAA Obligation to publish and present amendments to statement of intent
    • (1) As soon as practicable after an amendment to a statement of intent is finalised under section 147 or 148,—

      • (a) the Crown entity must publish the amendment on an Internet site maintained by or on behalf of the entity; and

      • (b) the responsible Minister must present a copy of the amendment to the House of Representatives.

      (2) Despite subsection (1),—

      • (aaa) if the amendment will come into force on or after the next Budget day, the responsible Minister—

        • (i) may require the entity not to publish the amendment in the pre-Budget period; and

        • (ii) need not present the amendment to the House of Representatives in that period; and

      • (a) the entity must not publish an amendment to a statement of intent before publishing the statement of intent under section 149; and

      • (b) the responsible Minister must not present a copy of an amendment to a statement of intent to the House of Representatives before presenting a copy of the statement of intent to the House of Representatives under section 149; and

      • (c) if Parliament is not in session, subsection (1)(b) does not apply, but the responsible Minister must present a copy of the amendment to the House of Representatives as soon as possible after the commencement of the next session of Parliament.

    Planning: statement of performance expectations

    149A Purpose of statement of performance expectations
    • The purpose of a statement of performance expectations for a Crown entity is to—

      • (a) enable the responsible Minister to participate in the process of setting annual performance expectations; and

      • (b) enable the House of Representatives to be informed of those expectations; and

      • (c) provide a base against which actual performance can be assessed.

    149B Obligation to prepare statement of performance expectations
    • (1) Before the start of each financial year, a Crown entity must prepare a statement of performance expectations for that financial year that complies with section 149C.

      (2) However, if the Crown entity does not propose to supply any reportable classes of outputs in that financial year, the entity's statement of performance expectations—

      • (a) must comply with section 149C(1)(b) to (d) and (3); but

      • (b) need not comply with section 149C(1)(a) or (2).

      (3) In subsection (2), reportable class of outputs, in respect of a financial year, means a class of outputs—

      • (a) that the Crown entity proposes to supply in the financial year; and

      • (b) that is directly funded (in whole or in part) by the Crown in accordance with an appropriation for the purpose, or by grants distributed under any Act, or by levies, fees, or charges prescribed by or under any Act; and

      • (c) that is not exempted for that financial year under section 149D.

    149BA Statement of performance expectations for newly established Crown entities
    • (1) As soon as practicable after a Crown entity is established, the Crown entity must comply with section 149B as if it were the start of the financial year.

      (2) However, if the Crown entity is established during the last 4 months of its financial year, the responsible Minister may—

      • (a) waive the requirement for the entity to comply with subsection (1); and

      • (b) require the entity to prepare its statement of performance expectations for the next financial year as if that financial year included the financial year in which it was established entity's first statement of performance expectations to cover the period from the date on which the entity is established until the end of the entity's first full financial year.

      (3) The responsible Minister may, at any time before the entity's first statement of performance expectations becomes final under section 149G(2)(c) (see section 149C(3)(c)), give directions to the Crown entity on any matters referred to in section 149C, other than the forecast financial statements referred to in section 149C(1)(d).

      (4) The directions apply (for the purposes of sections 49 and 92) as if they were the Crown entity's statement of performance expectations, until the entity's first statement of performance expectations becomes final under section 149G(2)(c).

      (5) Sections 113 to 115 apply to the directions.

    149C Content of statement of performance expectations
    • (1) Each statement of performance expectations must, in relation to a Crown entity and a financial year,—

      • (a) identify each reportable class of outputs (as defined in section 149B(3)) for the financial year; and

      • (b) identify each exemption granted under section 149D(1)(a) for the financial year; and

      • (c) state whether the entity proposes to supply any class of outputs in the financial year that is not a reportable class of outputs; and

      • (d) contain forecast financial statements that comply with section 149E.

      (2) For each reportable class of outputs, the statement of performance expectations must—

      • (a) include a concise explanation of what the class of outputs is intended to achieve; and

      • (b) identify the expected revenue and proposed expenses for the class of outputs; and

      • (c) include a concise explanation of how the performance of the class of outputs will be assessed.

      (3) A statement of performance expectations must

      • (a) must comply with generally accepted accounting practice; and

      • (b) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and

      • (c) is a final statement of performance expectations when it has been signed in accordance with paragraph (b).

      (4) The statement of performance expectations is a final statement of performance expectations when it has been signed in accordance with subsection (3)(b).

    149D Exemption for certain outputs
    • (1) The Minister of Finance may exempt, for 1 or more financial years or until further notice, 1 or more classes of outputs from—

      • (a) any statement of performance expectations required under section 149B or 149BA; or

      • (b) any statement of performance required under section 151(1)(b).

      (2) The Minister of Finance must not exempt a class of outputs from a statement of performance expectations or a statement of performance unless he or she is satisfied that—

      • (a) the class of outputs is not material to the statement; or

      • (b) the class of outputs will be adequately reported on to the House of Representatives by a Minister, a department, or another public entity; or

      • (c) for any other reason, the exemption does not unreasonably compromise accountability for the performance of the Crown entity.

    149E Forecast financial statements
    • (1) Each statement of performance expectations, in relation to a Crown entity and a financial year, must contain forecast financial statements for the financial year, prepared in accordance with generally accepted accounting practice.

      (4) The forecast financial statements must include—

      • (a) a statement of all significant assumptions underlying the forecast financial statements; and

      • (b) any additional information and explanations needed to fairly reflect the forecast financial operations and financial position of the entity.

    149F Ministerial involvement in statements of performance expectations
    • Ministers may participate in determining the contents of statements of performance expectations as follows:

      • (a) a responsible Minister may agree with a Crown entity that information additional to that required by section 149C be included in the statement of performance expectations:

      • (b) a responsible Minister may, by written notice to 1 or more Crown entities, specify the particular form in which any information in the statement of performance expectations must be disclosed:

      • (c) a responsible Minister may make comments on a draft statement of performance expectations under section 149G or on an amendment to a final statement of performance expectations proposed by a Crown entity under section 149I:

      • (d) a responsible Minister may direct amendments to information in a final statement of performance expectations under section 149H.

    149G Process for providing statement of performance expectations to responsible Minister
    • (1) A Crown entity that is required to prepare a statement of performance expectations must provide it to its responsible Minister.

      (2) The process that must be followed in providing a statement of performance expectations is as follows:

      • (a) the Crown entity must provide a draft statement of performance expectations to its responsible Minister—

        • (i) not later than 2 months before the start of the financial year to which the statement of performance expectations relates; or

        • (ii) in the case of a newly established Crown entity to which section 149BA applies, within the time frame specified by the responsible Minister; and

      • (b) the responsible Minister must provide to the entity any comments that he or she may have on the draft not later than 15 working days after receiving it; and

      • (c) the entity must consider the comments (if any) on the draft and provide the final statement of performance expectations to its responsible Minister as soon as practicable after receiving the comments (if any), but in any case—

        • (i) before the start of the financial year to which the statement of performance expectations relates; or

        • (ii) if the Crown entity is a newly established entity to which section 149BA applies, no later than 25 working days after receiving the comments (if any).

      • (c) the entity must consider the comments (if any) on the draft and provide the final statement of performance expectations to the responsible Minister—

        • (i) as soon as practicable after receiving the comments (if any), but before the start of the financial year to which the statement of performance expectations relates; or

        • (ii) if the Crown entity is a newly established entity to which section 149BA applies,—

          • (A) as soon as practicable, but not later than 25 working days, after receiving the comments; or

          • (B) if the responsible Minister does not provide comments within the period specified in paragraph (b), not later than 25 working days after the end of that period.

    149H Amendments to final statement of performance expectations by responsible Minister
    • (1) A responsible Minister for a Crown entity may direct a Crown entity to amend any provision that is included in the entity's final statement of performance expectations.

      (2) However, subsection (1) does not apply in respect of the forecast financial statements included in an entity's statement of performance expectations.

      (3) Sections 113 to 115 (other than section 115(2)) apply to a direction under subsection (1).

      (4) The final amendment must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member.

      (4) An amendment under this section—

      • (a) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and

      • (b) is a final amendment when it has been signed in accordance with paragraph (a).

      (5) Section 149I does not apply to amendments made under this section.

    149I Amendments to final statement of performance expectations by Crown entity
    • (1) A Crown entity may amend its final statement of performance expectations at any time.

      (2) A Crown entity must amend its final statement of performance expectations if—

      • (a) the information contained in the final statement of performance expectations is false or misleading in a material particular; or

      • (b) the intentions and undertakings in the final statement of performance expectations are significantly altered or affected by—

        • (i) a direction given to the Crown entity by a Minister or by a whole of government direction; or

        • (ia) a direction under section 107; or

        • (ii) any change in the law; or

        • (iii) any other change in the entity's operating environment.

      (3) The Crown entity must make an amendment required under subsection (2) as soon as practicable after the entity becomes aware of the facts that give rise to the obligation to amend under this section.

      (4) The process that applies to an amendment under subsection (1) or (2) is the same as the process set out in section 148(4) and (5), except that references in those subsections to a statement of intent must be read as references to a statement of performance expectations.

      (4) A Crown entity must amend its statement of performance expectations in accordance with the following process:

      • (a) the Crown entity must provide a draft amendment to its responsible Minister; and

      • (b) the responsible Minister must provide to the entity any comments that he or she may have not later than 15 working days after receiving the draft; and

      • (c) the entity must consider the comments (if any) and must provide the final amendment to its responsible Minister as soon as practicable.

      (5) An amendment under this section—

      • (a) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and

      • (b) is a final amendment when it has been signed in accordance with paragraph (a).

    149J Obligation to publish and present statement of performance expectations
    • (1) A Crown entity must, as soon as practicable after providing a final statement of performance expectations to its responsible Minister, publish the statement on an Internet site maintained by or on behalf of the entity.

      (2) However, if the final statement of performance expectations relates to a period commencing on or after the next Budget day, the responsible Minister may require the Crown entity not to publish the statement in the pre-Budget period.

      (3) The responsible Minister (or another entity's responsible Minister, if subsection (3B) applies) must present a copy of the final statement of performance expectations to the House of Representatives—

      • (a) in the same document as the entity's annual report for the previous financial year (see section 150); or

      • (b) in any other document presented on or before the date on which the annual report described in paragraph (a) is presented.

      (3A) An entity's statement of performance expectations may be presented or published in a document that includes any other statement or information, whether or not that other statement or information relates to the entity, but only if each statement or set of information is separately identifiable within that document.

      (3B) A Minister other than the responsible Minister may present an entity's statement of performance expectations to the House of Representatives if—

      • (a) the statement is presented in a document that includes another statement or other information; and

      • (b) that other Minister is responsible for presenting that other statement or information.

      (4) In this section,—

      next Budget day means the day on which the Minister of Finance will next deliver a Budget

      pre-Budget period means—

      • (a) the period of 3 months before the next Budget day; or

      • (b) if the Minister of Finance gives less than 3 months' notice of the next Budget day, the period commencing on the day on which the Minister of Finance gives that notice and ending when the Minister of Finance delivers the Budget.

    149K Obligation to publish and present amendments to statement of performance expectations
    • (1) As soon as practicable after an amendment to a final statement of performance expectations is finalised under section 149H or 149I,—

      • (a) the Crown entity must publish the amendment on an Internet site maintained by or on behalf of the entity; and

      • (b) the responsible Minister must present a copy of the amendment to the House of Representatives.

      (2) Despite subsection (1),—

      • (aaa) if the amendment will come into force on or after the next Budget day, the responsible Minister—

        • (i) may require the entity not to publish the amendment in the pre-Budget period; and

        • (ii) need not present the amendment to the House of Representatives in that period; and

      • (a) the entity must not publish an amendment to a statement of performance expectations before publishing the statement of performance expectations under section 149J; and

      • (b) the responsible Minister must not present a copy of an amendment to a statement of performance expectations to the House of Representatives before presenting a copy of the statement of performance expectations to the House of Representatives under section 149J; and

      • (c) if Parliament is not in session, subsection (1)(b) does not apply, but the responsible Minister must present a copy of the amendment to the House of Representatives as soon as possible after the commencement of the next session of Parliament.

189 Section 150 amended (Obligation to prepare, present, and publish annual report)
  • (1) In section 150(1)(a), replace at with as soon as practicable after.

    (2) Repeal section 150(2).

190 New section 150A inserted (Special annual reporting requirements)
  • After section 150, insert:

    150A Special annual reporting requirements
    • Section 150 is subject to subpart 1 of Part 5 of the Public Finance Act 1989, which sets out special reporting requirements for newly established entities and entities that are disestablished.

191 Section 151 amended (Form and content of annual report)
  • (1) In section 151(1)(b), delete service.

    (1A) Replace section 151(1)(c) with:

    • (c) the annual financial statements for the entity in accordance with section 154; and.

    (2) After section 151(1), insert:

    • (1A) However, subsection (1)(b) does not apply unless the Crown entity supplied 1 or more reportable classes of outputs (as defined in section 149B(3)) in that financial year.

    • (1B) An annual report may contain end-of-year performance information that the Crown entity is required to prepare under section 19A of the Public Finance Act 1989.

    (3) In section 151(2), replace against the intentions, measures, and standards set out in the statement of intent prepared at the beginning of the financial year with of actual operations as compared with the intended operations the entity's progress in relation to its strategic intentions as set out in the most recent statement of intent.

191A Section 152 amended (Disclosure of payments in respect of members, committee members, and employees)
  • (1) In section 152(1), delete or, in the case of a Crown entity group, for each Crown entity in the group.

    (2) In section 152(1)(a), delete (or entities in the group, as the case may be).

    (3) In section 152(1)(b), delete (or entities in the group, as the case may be).

    (4) After section 152(1), insert:

    • (1A) Despite section 156A, the annual report of a Crown entity that has 1 or more subsidiaries must include the information specified in subclause (1) in respect of each subsidiary as well as in respect of the Crown entity.

192 Section 153 replaced (Form and content of statement of service performance)
  • Replace section 153 with:

    153 Form and content of statement of performance
    • A statement of performance must, in relation to a Crown entity and a financial year,—

      • (a) be prepared in accordance with generally accepted accounting practice; and

      • (b) describe each reportable class of outputs (as defined in section 149B(3)) for the financial year; and

      • (c) include, for each reportable class of outputs identified in the entity's statement of performance expectations for the financial year,—

        • (i) the standards of delivery performance achieved by the entity, as compared with the forecast standards included in the entity's statement of performance expectations for the financial year; and

        • (ii) the actual revenue earned and output expenses incurred, as compared with the expected revenues and proposed output expenses included in the entity's statement of performance expectations for the financial year.

193 Section 154 amended (Annual financial statements)
  • Replace section 154(1) and (2) with:

    • (1) As soon as practicable after the end of each financial year, a Crown entity must prepare financial statements in relation to the entity for that financial year.

195 Section 155 amended (Statement of responsibility)
  • (1) In section 155(a) and (c), delete service.

    (2) After section 155(c), insert:

    • (ca) contain a statement of the signatories' responsibility for any end-of-year performance information provided by the Crown entity under section 19A of the Public Finance Act 1989, whether or not that information is included in the Crown entity's annual report; and.

196 Section 156 replaced (Audit report)
  • Replace section 156 with:

    156 Audit report
    • (1) A Crown entity must forward to the Auditor-General,—

      • (a) within 3 months after the end of each financial year,—

        • (i) the Crown entity's annual financial statements (if applicable) and statement of performance (if applicable); and

        • (ii) any end-of-year performance information that the Crown entity is required to provide under section 19A of the Public Finance Act 1989; and

        • (iii) any other information that the Auditor-General has agreed, or is required, to audit; and

      • (b) the Crown entity's annual report in a timely manner to enable the Auditor-General to review that report before providing the audit report required under subsection (2)(b).

      (2) The Auditor-General must—

      • (a) audit the statements and information referred to in subsection (1)(a); and

      • (b) provide an audit report to the Crown entity within 4 months after the end of each financial year.

196A New sections 156A and 156B and cross-heading inserted
  • After section 156, as inserted by section 196, insert:

    Application of this subpart to Crown entity groups

    156A Application of this subpart to Crown entity groups
    • (1) A Crown entity (entity A) that is a member of a Crown entity group need not comply with this subpart except as required by this section and section 156B.

      (2) Entity A must prepare a statement or report under this subpart if, at the relevant time,—

      • (a) entity A has 1 or more subsidiaries; and

      • (b) entity A is not a subsidiary of another Crown entity.

      (3) If entity A is required by this section to prepare a statement or report, this subpart—

      • (a) must be read as if it required the statement or report to include consolidated information in respect of the Crown entity group comprising entity A and its subsidiaries, rather than information in respect of entity A only; and

      • (b) otherwise applies with any necessary modifications.

      (4) In this section,—

      relevant time, in relation to a statement or report, means—

      • (a) the end of the period to which the statement or report relates; or

      • (b) if the statement or report relates to a period that includes a future period, the time when the statement or report is provided to entity A's responsible Minister

      statement or report means any of the following:

      • (a) statement of intent (see section 139):

      • (b) statement of performance expectations (see section 149B):

      • (c) forecast financial statements (see section 149E):

      • (d) annual report (see section 150):

      • (e) statement of performance (see section 153):

      • (f) annual financial statements (see section 154)

      subsidiary means a subsidiary within the meaning of paragraph (b) or (c) of the definition of Crown entity group in section 136(1).

    156B Minister of Finance may require additional reporting
    • (1) Despite section 156A, the Minister of Finance may, by notice in writing, require entity A or any other member of a Crown entity group (a specified entity) to prepare 1 or more statements or reports under this subpart as if it were not a member of a Crown entity group.

      (2) A notice must specify—

      • (a) which statements and reports are required; and

      • (b) the financial years or other period (which may be until further notice) for which each statement or report is required.

      (3) Before issuing a notice, the Minister of Finance must—

      • (a) consider the operations and functions of the specified entity; and

      • (b) consult the responsible Minister for the parent Crown entity of the Crown entity group to which the specified entity belongs; and

      • (c) be satisfied that each statement or report is necessary or desirable to enhance public accountability of the specified entity.

      (4) If a specified entity is required under this section to prepare a statement or report, this subpart applies with any necessary modifications.

197 Section 157 replaced (Reporting by multi-parent subsidiaries)
  • Replace section 157 with:

    Multi-parent subsidiaries: exemptions from reporting requirements under this subpart

    157 Multi-parent subsidiaries part-owned by school board of trustees or tertiary education institution
    • (1) This section applies to a multi-parent subsidiary if any of its parent Crown entities is a school board of trustees or tertiary education institution.

      (2) The Minister of Finance may, by notice in writing, exempt the multi-parent subsidiary from the requirement to prepare a statement or report (as defined in section 156A(4)) if the Minister is satisfied that—

      • (a) it would be unduly onerous for the multi-parent subsidiary to comply with the requirement; and

      • (b) the exemption is consistent with maintaining reasonable public accountability of the multi-parent subsidiary.

      (3) A notice must specify—

      • (a) which statements or reports are not required; and

      • (b) the financial years or other period (which may be until further notice) for which each statement or report is not required.

      (4) The exemption may be granted subject to any terms or conditions the Minister thinks fit (which may include a condition that a parent Crown entity must, in its equivalent statement or report, include certain information about the multi-parent subsidiary).

      (5) As soon as practicable after granting an exemption, the Minister must—

      • (a) notify the exemption, and its terms and conditions, in the Gazette; and

      • (b) present to the House of Representatives a statement of the exemption and its terms and conditions.

    157A Other multi-parent subsidiaries
    • (1) This section applies to a multi-parent subsidiary other than a multi-parent subsidiary to which section 157 applies.

      (2) The multi-parent subsidiary need not comply with this subpart except as required under this section.

      (3) The Minister of Finance may, by notice in writing, require the multi-parent subsidiary to prepare 1 or more statements or reports (as defined in section 156A(4)).

      (4) A notice must specify—

      • (a) which statements or reports are required; and

      • (b) the financial years or other period (which may be until further notice) for which each statement or report is required.

      (5) Before issuing a notice, the Minister of Finance must—

      • (a) consider the operations and functions of the multi-parent subsidiary; and

      • (b) consult the responsible Minister for each parent Crown entity of the multi-parent subsidiary; and

      • (c) be satisfied that each statement or report is necessary or desirable to enhance public accountability of the multi-parent subsidiary.

198 Section 163 amended (Restrictions on giving of guarantees and indemnities)
  • In section 163(1), after give a guarantee to, or indemnify, another person, insert , or amend the terms of any such guarantee or indemnity,.

199 Section 170 replaced (Power to require output agreement)
  • Replace section 170 with:

    170 Ministerial involvement in delivery of outputsResponsible Minister may set standards, terms, and conditions in respect of certain classes of outputs
    • A responsible Minister may set standards, terms, and conditions in respect of any reportable class of outputs (as defined in section 149B(3)) that a Crown entity proposes to supply.

201 Schedule 1 amended
  • In Schedule 1, table in Part 3, alongside the item relating to the Electricity Authority, in the column relating to section 165 of the Crown Entities Act 2004, insert a tick.

202 Consequential amendments arising from amendments to Crown Entities Act 2004 made by this subpart
  • The enactments listed in Schedule 4 of this Act are consequentially amended in the manner indicated in that schedule.


Schedule 1
New Schedule 1A inserted into State Sector Act 1988 principal Act

s 56

Schedule 1A

ss 27A, 30A

Departmental agencyHost department

Schedule 1A
Replacement Schedule 1 inserted into Public Finance Act 1989Schedule 1 of principal Act replaced

s 75C

Schedule 1
Application, savings, and transitional provisions relating to amendments made to Act on or after 1 July 2013 after 1 January 2013

s 2Ass 2A, 88

1 Interpretation
  • In this schedule,—

    2013/14 financial year means the financial year ending with 30 June 2014

    2014/15 financial year means the financial year ending with 30 June 2015

    amendment Act means the State Sector and Public Finance Reform Act 2012

    commencement date means the date on which the amendment Act comes into force

    new provision means a provision of this Act as amended or inserted by the amendment Act, and new section has a corresponding meaning

    old provision means a provision of this Act as in force immediately before its amendment or repeal by the amendment Act, and old section has a corresponding meaning.

General application of provisions relating to financial year

2 Amendments made on 1 July 2013 apply to 2013/14 financial year and subsequent financial years
  • (1) This clause applies to any provision of this Act that—

    • (a) relates to a financial year; and

    • (b) is amended on 1 July 2013 by subpart 2 of Part 2 of the amendment Act.

    (2) The provision must,—

    • (a) to the extent that it relates to the 2013/14 financial year and subsequent financial years, be treated as if it were amended on the commencement date rather than 1 July 2013; and

    • (b) to the extent that it relates to previous financial years, be treated as if it were not amended on 1 July 2013.

3 Amendments made on 1 July 2014 apply to 2014/15 financial year and subsequent financial years
  • (1) This clause applies to any provision of this Act that—

    • (a) relates to a financial year; and

    • (b) is amended on 1 July 2014 by subpart 3 of Part 2 of the amendment Act.

    (2) The provision must,—

    • (a) to the extent that it relates to the 2014/15 financial year and subsequent financial years, be treated as if it were amended on the commencement date rather than 1 July 2014; and

    • (b) to the extent that it relates to previous financial years, be treated as if it were not amended on 1 July 2014.

    (3) This clause is subject to clause 4.

4 Multi-category appropriations may be used in 2013/14 financial year
  • Despite clause 3, in the 2013/14 financial year,—

    • (a) old section 7(1) must be read as if it included, as a type of appropriation, a multi-category appropriation described in new section 7A(1)(g) (as inserted by section 115 of the amendment Act); and

    • (b) any new provision that relates to a multi-category appropriation must, for the purposes of the multi-category appropriation and any expenses or capital expenditure incurred under it, be treated as if it were amended on 1 July 2013 the commencement date.

5 Annual report for 2013/14 financial year must include forecast financial statements for 2014/15 financial year
  • Despite clause 3, old section 45 must be read as if it included a requirement for a department's annual report for the 2013/14 financial year to include forecast financial statements for the 2014/15 financial year that comply with new section 45BA (as inserted by section 140 of the amendment Act).

6 First information on strategic intentions under new section 38 must relate to 2014/15 financial year and subsequent financial years
  • (1) A department must provide to its responsible Minister, under new section 38 (as inserted by section 136 of the amendment Act), information on its strategic intentions for the 2014/15 financial year and at least the following 3 financial years.

    (2) A department must comply with subsection (1) not later than the day on which it provides, to its responsible Minister, its annual report for the 2013/14 financial year.

Additional transitional provisions applicable to Schedule 4 organisations and Schedule 4A companies

7 Additional transitional provisions applicable to Schedule 4 organisations and Schedule 4A companies
  • (1) Clauses 1 to 3 of Schedule 1AAA of the Crown Entities Act 2004 (the CEA transitional schedule) apply to Schedule 4 organisations and Schedule 4A companies, except that references in clause 1 of the CEA transitional schedule to a Crown entity must be read as if they were references to a Schedule 4 organisation or a Schedule 4A company (as applicable).

    (2) If new section 139 of the Crown Entities Act 2004 applies to a Schedule 4 organisation or a Schedule 4A company, then clause 4 of the CEA transitional schedule also applies to the organisation or company, except that references in that clause to a Crown entity must be read as if they were references to a Schedule 4 organisation or a Schedule 4A company (as applicable).

8 Exception to section 45OA(1)(g) for Crown Fibre Holdings Limited in respect of certain subsidiaries
  • (1) Despite section 45OA(1)(g), section 97 of the Crown Entities Act 2004 (which sets out rules that apply to a parent Crown entity in respect of its subsidiaries) does not apply to Crown Fibre Holdings Limited in respect of a specified subsidiary.

    (2) For the purposes of subclause (1), specified subsidiary means a subsidiary that, on the commencement date, is a company with no shareholders other than—

    • (a) Crown Fibre Holdings Limited; and

    • (b) the Crown; and

    • (c) 1 of the following:

      • (i) Chorus Limited:

      • (ii) Enable Services Limited:

      • (iii) Northpower Limited:

      • (iv) Waikato Networks Limited:

      • (v) a wholly owned subsidiary of Chorus Limited, Enable Services Limited, Northpower Limited, or Waikato Networks Limited.

    (3) This clause is repealed on the close of 30 June 2021.

9 Application of Crown Entities Act 2004 to Tāmaki Redevelopment Company Limited's statement of intent for 2013/14 financial year
  • (1) Despite new section 45OA(1)(n),—

    • (a) sections 138 to 144, 145(a) and (b), and 146 of the Crown Entities Act 2004 do not apply to TRCL's first statement of intent; and

    • (b) sections 145(c) and 149—

      • (i) do not apply to TRCL's first statement of intent; but

      • (ii) apply to an amendment to TRCL's first statement of intent.

    (2) If TRCL's first statement of intent includes information described in section 141(1)(b), (c), (d), (f), (g), or (h) or section 142(1)(b) (a specified provision) of the Crown Entities Act 2004, section 147 of that Act applies as if the information were included in TRCL's first statement of intent under the specified provision.

    (3) In this clause, TRCL's first statement of intent means Tāmaki Redevelopment Company Limited's statement of intent for the 2013/14 financial year.

Schedule 2
New Schedule 4A inserted into Public Finance Act 1989 principal Act

s 112s 76B

Schedule 4A
Non-listed companies in which Crown is majority or sole shareholder

ss 3AB, 45OA

Note: A tick alongside the name of a company means that the section of the Crown Entities Act 2004 that appears above the tick applies to that company.

CompanySections of Crown Entities Act 2004 (relating to financial powers)
 161162163164165
Crown Asset Management Limited  
Crown Fibre Holdings Limited     
Dispute Resolution Services Limited 
Health Benefits Limited 
Learning State Limited 
The Network for Learning Limited     
Research and Education Advanced Network New Zealand Limited 
Southern Response Earthquake Services Limited  
Tāmaki Redevelopment Company Limited 

Schedule 3
Consequential amendments arising from amendments to Public Finance Act 1989 that come into force on 1 July 2013 principal Act that come into force on day after Royal assent

s 113s 76C

Part 1
Amendments to Acts

Crown Organisations (Criminal Liability) Act 2002 (2002 No 37)

In section 4, definition of Crown entity, paragraph (b), after Schedule 4, insert , or a company named in Schedule 4A,.

Government Superannuation Fund Act 1956 (1956 No 47)

In section 93B(1A)(a), delete , and comprising the same statements that are required by section 42(2) of the Public Finance Act 1989 as if the Fund were a Crown entity.

Hazardous Substances and New Organisms Act 1996 (1996 No 30)

In section 2(1), definition of Crown entity, paragraph (b), after Schedule 4, insert , or a company named in Schedule 4A,.

In section 49A, definition of government agency, paragraph (b), after Schedule 4, insert or 4A.

Income Tax Act 2007 (2007 No 97)

In section YA 1, definition of Venture Investment Fund, replace Schedules 4, 5, and 6 of the Public Finance Act 1989 with Schedule 2 of the Crown Entities Act 2004.

Land Transport Management Act 2003 (2003 No 118)

In section 5(1), definition of public organisation, after paragraph (ca), insert:

  • (cb) a company named in Schedule 4A of the Public Finance Act 1989:.

New Zealand Railways Corporation Restructuring Act 1990 (1990 No 105)

Repeal section 18.

New Zealand Superannuation and Retirement Income Act 2001 (2001 No 84)

In section 39(4), replace 65J with 65ZH(1)(o) and (p).

Ombudsmen Act 1975 (1975 No 9)

In Schedule 1, Part 2, insert in its appropriate alphabetical order Companies named in Schedule 4A of the Public Finance Act 1989.

In Schedule 1, Part 2, repeal the items relating to Crown Asset Management Limited, Crown Fibre Holdings Limited, Dispute Resolution Services Limited, Health Benefits Limited, Learning State Limited, Research and Education Advanced Network New Zealand Limited, and Southern Response Earthquake Services Limited.

Public Audit Act 2001 (2001 No 10)

Repeal section 36(5).

In Schedule 1, insert in its appropriate alphabetical order Companies named in Schedule 4A of the Public Finance Act 1989.

Part 2
Amendment to regulations

Anti-Money Laundering and Countering Financing of Terrorism (Requirements and Compliance) Regulations 2011 (SR 2011/225)

After regulation 5(1)(d), insert:

  • (da) a company named in Schedule 4A of the Public Finance Act 1989:.

Schedule 3A
Consequential amendments arising from amendments to Public Finance Act 1989 principal Act that come into force on 1 July 2014

s 146B

National Animal Identification and Tracing Act 2012 (2012 No 2)

In Schedule 2, clause 74, replace section 39 with section 43.

New Zealand Geographic Board (Ngā Pou Taunaha o Aotearoa) Act 2008 (2008 No 30)

In section 14(3), replace section 39 with section 44.

Parliamentary Service Act 2000 (2000 No 17)

In Schedule 1, clause 16(b), replace section 14 or section 15 with sections 14 to 15A and 15D.

Search and Surveillance Act 2012 (2012 No 24)

In section 170(1), replace section 39 with section 43.

In section 171(1), replace section 39 with section 43.

Schedule 3B
New Schedule 1AAA inserted into Crown Entities Act 2004 principal Act

s 170A

Schedule 1AAA
Application, savings, and transitional provisions relating to amendments made to Act on or after 1 July 2013 after 1 January 2013

s 10Ass 10A, 199A

Provisions relating to State Sector and Public Finance Reform Act 2012

1 Interpretation
  • In this schedule,—

    2013/14 financial year, in relation to a Crown entity, means the entity's financial year that includes 30 June 2014

    2014/15 financial year, in relation to a Crown entity, means the entity's financial year that includes 30 June 2015

    amendment Act means the State Sector and Public Finance Reform Act 2012

    commencement date means the date on which the amendment Act comes into force

    new provision means a provision of this Act as amended or inserted by the amendment Act, and new section has a corresponding meaning

    old provision means a provision of this Act as in force immediately before its amendment or repeal by the amendment Act, and old section has a corresponding meaning.

1A Application of new sections 150 and 151 (annual reports)
  • New sections 150(3), (5) and (6) and 151(1)(f), as inserted on the commencement date by section 169B of the amendment Act,—

    • (a) apply to an annual report for the 2013/14 financial year and subsequent financial years; but

    • (b) do not apply to an annual report for any prior financial year.

2 Amendments made on 1 July 2014 apply to 2014/15 financial year and subsequent financial years
  • (1) This clause applies to any provision of this Act that—

    • (a) relates to a financial year; and

    • (b) is amended on 1 July 2014 by subpart 2 of Part 3 of the amendment Act.

    (2) The provision must,—

    • (a) to the extent that it relates to the 2014/15 financial year and subsequent financial years, be treated as if it were amended on the commencement date rather than 1 July 2014; and

    • (b) to the extent that it relates to previous financial years, be treated as if it were not amended on 1 July 2014.

    (3) This clause is subject to clause 3.

3 Annual report prepared after 1 July 2014 must comply with new section 151
  • Despite clause 2, section 151, as amended by section 170 of the amendment Act, applies to any annual report prepared on or after the commencement date.

4 First statement of intent under new section 139(1) must relate to 2014/15 financial year and subsequent financial years
  • (1) A Crown entity must provide to its responsible Minister, under new section 139(1) (as inserted by section 179 of the amendment Act), information on its strategic intentions for the 2014/15 financial year and at least the following 3 financial years.

    (2) A Crown entity must comply with subsection (1) not later than the day on which it provides, to its responsible Minister, its annual report for the 2013/14 financial year.

Schedule 3C
Consequential amendments arising from amendments to Crown Entities Act 2004 principal Act that come into force on day after Royal assent

s 171A

Accident Compensation Act 2001 (2001 No 49)

In section 6(1), definition of Crown entity subsidiary, replace section 8(2) with column 2 of section 7(1)(c).

In section 229(3), replace section 270 with section 103 of the Crown Entities Act 2004.

In section 331(3)(b), replace section 270 with section 103 of the Crown Entities Act 2004.

In section 345(2), replace section 270 with section 103 of the Crown Entities Act 2004.

Crown Research Institutes Act 1992 (1992 No 47)

In section 2, definition of Crown entity subsidiary, replace section 8(2) with column 2 of section 7(1)(c).

In section 2, definition of parent Crown Research Institute , replace section 8(1) with section 8.

Education Act 1989 (1989 No 80)

In section 78NA(2), replace to the extent of its powers with to the extent that it is reasonably able to do so.

In Schedule 5A, second column, item relating to section 107, replace Whole of government directions with Directions under section 107.

In Schedule 6, heading above clause 1G, replace Whole of government directions with Directions under section 107 of Crown Entities Act 2004.

In Schedule 6, heading to clause 1G, replace Whole of government directions with Directions under section 107 of Crown Entities Act 2004.

In Schedule 6, clause 1G(1), delete whole of government.

Gambling Act 2003 (2003 No 51)

In section 242(2), delete under subsection (1).

Housing Corporation Act 1974 (1974 No 19)

In section 2, definition of Crown entity subsidiary, replace section 8(2) with column 2 of section 7(1)(c).

In section 3C(1), after prepare, insert or review.

In section 3C(1), replace 2 months with 3 months.

New Zealand Public Health and Disability Act 2000 (2000 No 91)

In section 6(1), definition of Crown entity subsidiary, replace section 8(2) with column 2 of section 7(1)(c).

New Zealand Superannuation and Retirement Income Act 2001 (2001 No 84)

In section 59(4), replace section 8 with column 2 of section 7(1)(c).

Replace section 64(2) and (3) with:

  • (2) Despite anything to the contrary in the Crown Entities Act 2004, the Minister—

    • (a) must not give a direction that is inconsistent with the Guardians’ duty to invest the Fund on a prudent, commercial basis, in accordance with section 58; and

    • (b) must not give a direction to the Guardians in respect of the Fund except in accordance with this section.

Public Trust Act 2001 (2001 No 100)

In section 4, definition of Crown entity subsidiary, replace section 8(2) with column 2 of section 7(1)(c).

Radio New Zealand Act 1995 (1995 No 52)

In section 2, definition of Crown entity subsidiary, replace section 8(2) with column 2 of section 7(1)(c).

Schedule 4
Consequential amendments arising from amendments to Crown Entities Act 2004 principal Act that come into force on 1 July 2014

s 202

Accident Compensation Act 2001 (2001 No 49)

In section 271(3)(c), delete and to the next 2 following years.

After section 271(3), insert:

  • (3A) A service agreement entered into under this section must—

    • (a) contain the information that is required in a statement of performance expectations under section 149C(1) and (2) of the Crown Entities Act 2004; and

    • (b) comply with generally accepted accounting practice (as defined in section 2(1) of the Public Finance Act 1989); and

    • (c) set out—

      • (i) assumptions to be relied on by the Corporation in relation to assessing the cost of capital:

      • (ii) matters relating to the provision of services by the Corporation (including provision through its Crown entity subsidiaries on a commercial basis), including pricing information, forecasts of revenue and expenditure, and how the revenue and expenditure will be allocated among the Accounts:

      • (iii) the Corporation's functions and duties in relation to the management of each Account:

      • (iv) procedures, conditions, restrictions, or other provisions to be complied with by the Corporation in the performance of functions or duties in relation to the management of each Account:

      • (v) the Corporation's investment statement, being a statement of policies, standards, and procedures that must include a statement relating to ethical investment for avoiding prejudice to New Zealand's reputation as a responsible member of the world community; and

    • (d) be published, as soon as practicable after it is signed in accordance with subsection (3), on an Internet site maintained by or on behalf of the Corporation.

Replace section 271(5) and (6) with:

  • (5) The Minister must present a copy of the service agreement to the House of Representatives—

    • (a) in the same document as the Corporation's annual report for the previous financial year (see section 150 of the Crown Entities Act 2004); or

    • (b) in any other document presented on or before the date on which the annual report described in paragraph (a) is presented.

  • (6) A service agreement entered into under this section must be treated, for the purposes of section 49 of the Crown Entities Act 2004, as if it were a statement of performance expectations, and the Corporation need not prepare a separate statement of performance expectations under that Act.

In section 272(2), replace sections 141 and 142 with section 141.

Repeal section 272(2)(e) to (i).

Civil Aviation Act 1990 (1990 No 98)

Replace the heading to section 72F with Restriction applying to statement of intent.

Repeal section 72F(1) and (2).

Crown Research Institutes Act 1992 (1992 No 47)

In section 12(4), replace 138 to 157 with 138 to 157A.

Education Act 1989 (1989 No 80)

Repeal section 159KE(1)(c).

In section 159KE(1)(d)(iii), delete ; and.

Repeal section 159KE(1)(e).

In section 159KE(2), replace section 141(1)(b), (e), and (f) with section 141(1) and (2)(a) to (c).

Repeal section 159KE(3).

In section 159KE(4), delete and (e).

After section 159KE, insert:

159KEA Statement of performance expectations
  • (1) The statement of performance expectations that the Commission is required to provide to its responsible Minister under section 149G of the Crown Entities Act 2004—

    • (a) must be consistent with the tertiary education strategy; and

    • (b) may relate to more than 1 financial year.

    (2) The grouping of outputs in the statement of performance expectations must be done so that, in the case of outputs funded by appropriation, a group of outputs does not contain outputs funded from more than 1 appropriation in the Estimates.

Repeal section 283C.

Government Superannuation Fund Act 1956 (1956 No 47)

Replace the heading to section 15N with Forecast financial statements.

In section 15N, replace The statement of intent of the Authority prepared each financial year under Part 4 with The forecast financial statements of the Authority prepared each financial year under section 149E.

In section 93B(1A)(b), replace statement of intent with forecast financial statements.

Housing Corporation Act 1974 (1974 No 19)

In section 2, insert in their appropriate alphabetical order:

annual financial statements means annual financial statements under section 154 of the Crown Entities Act 2004

statement of performance expectations means a statement of performance expectations under section 149B of the Crown Entities Act 2004.

In section 3C(2), replace statements of intent with statements of performance expectations.

In section 3C(3), replace 142 with 149C.

Repeal section 30.

In section 30AA(a), replace section 30 with subpart 3 of Part 4 of the Crown Entities Act 2004.

In section 30AA(b) and (c), delete section 30 or.

In section 40(2), replace statement of intent with statement of performance expectations and annual financial statements.

Maritime Transport Act 1994 (1994 No 104)

Repeal section 189(2)(h).

Replace the heading to section 436 with Restriction applying to statement of intent.

Repeal section 436(1) and (2).

New Zealand Antarctic Institute Act 1996 (1996 No 38)

Repeal section 9.

New Zealand Public Health and Disability Act 2000 (2000 No 91)

Repeal section 10(2A).

Repeal section 10(6).

Repeal section 21(3)(k).

New Zealand Superannuation and Retirement Income Act 2001 (2001 No 84)

Replace the heading to section 65 with Statement of performance expectations.

In section 65, replace statement of intent with statement of performance expectations.

In section 68(d), replace statement of intent with statement of performance expectations.

New Zealand Tourism Board Act 1991 (1991 No 110)

Repeal section 8.

Repeal section 10.

Public Trust Act 2001 (2001 No 100)

Replace section 44(4) with:

  • (4) Public Trust may include an agreement under subsection (1) in a statement of performance expectations prepared for the purpose of section 149B of the Crown Entities Act 2004.

Transport Accident Investigation Commission Act 1990 (1990 No 99)

Replace section 6A(1) and (2) with:

  • The Commission must include, in its statement of intent under section 139 of the Crown Entities Act 2004, policies and priorities in exercising its discretion with respect to the investigation of accidents and incidents.