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Crown Entities Act 2004

Operation of Crown entities - Provisions applying generally to Crown entities - Directions to statutory entities and Crown entity companies

107: Directions to support whole of government approach

You could also call this:

"Government ministers can give instructions to government departments and companies to help them work together better"

The Minister of State Services and the Minister of Finance can tell Crown entities what to do to help the government work together better. They can give directions to improve public services, save money, develop expertise, keep businesses running, or manage financial risks. You can think of Crown entities like government departments or companies that work for the government.

The Ministers can give these directions to different types of Crown entities, like all the government departments or just the ones in a certain area. They can also give directions to a group of Crown entities if the group has at least three entities and they have something important in common. For example, the entities might all be in the same region or have similar assets.

When deciding which Crown entities to give directions to, the Ministers can consider companies listed in Schedule 4A of the Public Finance Act 1989 as a category of Crown entities. However, the Ministers cannot give directions to subsidiaries of Crown entities, which are like smaller companies owned by the Crown entities.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330355.

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Part 3Operation of Crown entities
Provisions applying generally to Crown entities: Directions to statutory entities and Crown entity companies

107Directions to support whole of government approach

  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:

  2. to improve (directly or indirectly) public services:
    1. to secure economies or efficiencies:
      1. to develop expertise and capability:
        1. to ensure business continuity:
          1. to manage risks to the Government's financial position.

              1. Example

              A direction may be given requiring that all Crown entities comply with e-government requirements to improve public services.

            1. The direction may be given only—

            2. to 1 or more categories of Crown entities (for example, to all statutory entities, all Crown entity companies, or all school boards); or
              1. to 1 or more types of statutory entity (for example, to all Crown agents); or
                1. to a group of Crown entities (whether made up of categories or types) if—
                  1. the group is made up of at least 3 Crown entities; and
                    1. 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).

                    2. For the purposes of subsection (2)(a) and (c), companies named in Schedule 4A of the Public Finance Act 1989 may be treated as a category of Crown entities.

                    3. No direction may be given under this section to Crown entity subsidiaries.

                    Notes
                    • Section 107 heading: replaced, on , by section 21(1) of the Crown Entities Amendment Act 2013 (2013 No 51).
                    • Section 107(1): replaced, on , by section 21(2) of the Crown Entities Amendment Act 2013 (2013 No 51).
                    • Section 107(2)(a): amended, on , by section 668 of the Education and Training Act 2020 (2020 No 38).
                    • Section 107(2)(b): amended, on , by section 21(3) of the Crown Entities Amendment Act 2013 (2013 No 51).
                    • Section 107(2)(c): inserted, on , by section 21(4) of the Crown Entities Amendment Act 2013 (2013 No 51).
                    • Section 107(2A): inserted, on , by section 21(5) of the Crown Entities Amendment Act 2013 (2013 No 51).
                    • Section 107(2A): amended, on , by section 39 of the Statutes Amendment Act 2016 (2016 No 104).