Introduction

Under section 107 of the Crown Entities Act, 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.  Cabinet approval must be sought to undertake consultation and issue such directions. The directions must be referred to the House before they come into force. 

Directions in force as at 19 June 2014

On 22 April 2014, the Minister of State Services and the Minister of Finance issued directions to apply whole of government approaches to Procurement, ICT and Property.  These directions have now come into force 

Links to the 2014 directions are available here:

The three directions, together with explanatory material provided to the House, are available at:
www.parliament.nz/en-nz/pb/presented/papers/50DBHOH_PAP26152_1/directions-to-support-a-whole-of-government-approach-given.

The select committee report back to the House on the directions is at:  
www.parliament.nz/en-nz/pb/sc/documents/reports/50DBSCH_SCR6231_1/whole-of-government-directions-regarding-procurement-ict

The direction on use of authentication services issued in July 2008 continues to apply to all Crown agents, apart from those with sizeable ICT business transactions and investment specifically listed within the 2014 direction.  See: AoG direction shared authentication services July 08

Cabinet papers and minutes for the 2014 directions

The Cabinet papers and minutes setting out the proposed directions, and the changes following consultation with affected entities, are set out in the table below:

Cabinet Papers Cabinet Minutes

Cabinet Paper: Amended Directions to Extend Functional Leadership to Crown Entities, Following Consultation
   [SEC (14)14]
   15 April 2014
   (Released 19 June 2014)

Cabinet Minute: Amended Directions to Extend Functional Leadership to Crown Entities, Following Consultation
    [SEC Min (14) 5/2]
    15 April 2014
    (Released 19 June 2014)

Cabinet Paper: Proposed Directions under the Crown Entities Act 2004 to Support a Whole of Government Approach for Procurement, ICT and Property Functional Leadership - Paper 1: Overview
    [SEC (13) 70]
    3 December 2013
    (Released 16 December 2013)

Cabinet Minute: Proposed Direction under the Crown Entities Act 2004 to Support a Whole of Government Approach for Procurement, ICT and Property Functional Leadership - Overview
    [SEC Min (13) 18/2.1]
    3 December 2013
    (Released 16 December 2013)

Cabinet Minute: Proposed Direction under the Crown Entities Act 2004 - Procurement Functional Leadership and Government Rules of Sourcing
    [SEC Min (13) 18/2.2]
    3 December 2013
    (Released 16 December 2013)

Cabinet Paper: Proposed Directions under the Crown Entities Act 2004 - Paper 3: ICT Functional Leadership  
    [SEC (13) 65]
    3 December 2013
    (Released 16 December 2013)

Cabinet Minute: Proposed Direction under the Crown Entities Act 2004  - ICT Functional Leadership
    [SEC Min (13) 18/2.3]
    3 December 2013
    (Released 16 December 2013)

Cabinet Paper: Proposed Directions under the Crown Entities Act 2004 - Paper 4: Functional Leadership for Property
    [SEC (13) 63]
    3 December 2013
    (Released 16 December 2013)

Cabinet Minute: Proposed Direction under the Crown Entities Act 2004 - Functional Leadership for Property
    [SEC Min (13) 18/2.4]
    3 December 2013
    (Released 16 December 2013)

 

Direction in force as from 8 July 2016

On 10 May 2016, the Minister of State Services and the Minister of Finance issued a direction to apply a whole of government approach setting out requirements and timeframes for specified Crown entities to implement the New Zealand Business Number programme. The direction came into force on 8 July 2016.

The following link to the Ministry of Business, Innovation, and Employment website provides more information and access to relevant documents including the Cabinet paper and the signed direction:

http://www.mbie.govt.nz/info-services/business/better-for-business/nzbn/?searchterm=NZBN 

Related material

Application of directions: decision and resolution processes

Extending the mandate of functional leaders to Crown entities does affect the duties, responsibilities and operating model of a Crown entity board and its responsible Minister.  The diagram below shows what Ministers are answerable for, and the responsibilities of central agencies, Crown entity boards, and functional leaders in respect of functional leadership. 

Minister of State Services and Minister of Finance Minister Responsible for Crown entity Minister Responsible for Functional Leader
Answerable to the House for functional leader's overall mandate as it applies to Crown entities Answerable to the House for Board’s performance in complying with specified requirements Answerable to the House for functional leader’s performance
SSC and Treasury Entity Board Functional Leader
Responsible for quality of advice on overall mandate for functional leadership as it applies to Crown entities Responsible for performance of entity in complying with specified requirements Responsible for quality of advice on content of specified requirements and scope of application. Responsible for leading the application of the specified requirements to entities as appropriate

Under section 151 of the Crown Entities Act, an entity's annual report must include information of "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".  A full account of the activities affected by a requirement will assist Ministers, the Office of the Auditor-General and Parliament to understand where responsibilities lie for particular activities of the entity.

Further background information on directions, decision processes and processes for resolving any areas of concern about how the directions are being applied is available at Extending functional leadership to Crown entities - Decision and resolution process June 2014 (PowerPoint file 558k).

Related links

 

 

 

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