Crown Entities Amendment Act 2013

1: Title
This Act is the Crown Entities Amendment Act 2013.
2: Commencement
1: Part 2
2: The rest of this Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act
This Act amends the Crown Entities Act 2004 principal Act 2013-07-18 Crown Entities Act 2004 The rest of this Act (except Part 2) comes into force on the day after the date on which it receives the Royal assent. 2014-07-01 Crown Entities Act 2004 Part 2
1: Amendments coming into force on day after date of Royal assent
4: Section 7 amended (Meaning of Crown entity and categories of Crown entities)
1: In section 7(1)(c) 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)
1A: Despite section 5(3) of the Companies Act 1993, a Crown entity subsidiary must be a company incorporated under that Act.
5: New section 7A inserted (Meaning of multi-parent subsidiary)
After section 7
7A: Meaning of multi-parent subsidiary
1: A company is a multi-parent subsidiary
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
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
6: Section 8 replaced (Meaning of parent Crown entity and Crown entity subsidiary)
Replace section 8
8: Meaning of parent Crown entity
A Crown entity ( A parent Crown entity parent B
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 the second column of section 7(1)(c)
7: Section 10 amended (Interpretation)
1: In section 10(1) Crown entity subsidiary Crown entity subsidiary the second column of section 7(1)(c) .
2: In section 10(1) monitor section 27A or 88A
a: a department (within the meaning of that term in the Public Finance Act 1989):
b: another Crown entity .
3: In section 10(1) multi-parent subsidiary multi-parent subsidiary section 7A .
4: In section 10(1) parent Crown entity parent section 8(1) section 8
8: New sections 10A and 10B inserted
After section 10
10A: Provisions affecting application of amendments to this Act
Schedule 1AAA 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.
9: Section 27 amended (Responsible Minister's role)
1: In section 27(1) functions, functions
2: After section 27(2)
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).
10: New section 27A and cross-heading inserted
After section 27 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.
11: Section 50 replaced (Functions must be performed efficiently, effectively, and consistently with spirit of service to public)
Replace section 50
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.
12: Section 62 amended (When interests must be disclosed)
1: In section 62(3)(a) subsidiary that is owned by the entity together with another parent Crown entity or entities multi-parent subsidiary of the entity and 1 or more other Crown entities
2: After section 62(3)(c)
ca: only because he or she has past or current involvement in the relevant sector, industry, or practice; or .
13: Section 64 amended (Who disclosure of interests must be made to)
In section 64 temporary deputy
14: Section 68 amended (Permission to act despite being interested in matter)
In section 68(3) temporary deputy
15: Section 78 amended (Board procedure)
1: In the heading to section 78 Board Appointment of chairperson, etc, and board
2: In section 78 govern the appointment of a chairperson and deputy chairperson (including a temporary deputy chairperson) and
16: Section 88 amended (Shareholding Ministers' role)
After section 88(3)
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).
17: New section 88A and cross-heading inserted
After section 88 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.
18: Section 97 amended (Subsidiaries: rules applying to all Crown entities)
In section 97 to the extent of its powers to the extent that it is reasonably able to do so
19: Section 98 amended (Subsidiaries: rules applying only to statutory entities)
1: In section 98(1) to the extent of its powers to the extent that it is reasonably able to do so
2: Replace section 98(1)(a)
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 .
20: Cross-heading above section 103 amended
In the cross-heading above section 103 on government policy
21: Section 107 amended (Whole of government directions)
1: Replace the heading to section 107 Directions to support whole of government approach
2: Replace section 107(1)
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.
3: In section 107(2)(b) (for example, to all Crown agents) ; or
4: After section 107(2)(b)
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).
5: After section 107(2)
2A: For the purposes of subsection (2)(a), companies named in Schedule 4A
22: Section 108 amended (Process for giving whole of government directions)
In the heading to section 108 whole of government directions directions under section 107
23: Section 109 amended (House of Representatives may resolve to disapply whole of government direction)
1: In the heading to section 109 whole of government direction direction under section 107
2: In section 109 whole of government direction given direction
24: Section 110 amended (Obligation to give effect to direction)
In section 110 category or type or group
25: Section 111 amended (Publication of whole of government direction)
In the heading to section 111 whole of government direction direction under section 107
26: Section 113 amended (Safeguarding independence of Crown entities)
In section 113(3) whole of government directions directions under section 107
27: Cross-heading above section 114 repealed
Repeal the cross-heading above section 114
28: Section 114 amended (Crown entities must comply with directions given under statutory power of direction)
In section 114(1)(b) whole of government direction given to it direction
29: Section 115 amended (Procedure for all Ministerial directions)
1: Replace the heading to section 115 Procedure for ministerial directions on government policy
2: In section 115(3) amended, revoked, amended
3: After section 115(3)
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) whole of government directions given directions
30: New section 115A inserted (Review and expiry of all directions)
After section 115
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.
31: Section 122 replaced (Indemnities in relation to excluded act or omission)
Replace section 122
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).
32: Section 127 amended (Method of contracting)
In section 127(2)(b) in accordance with this Part under section 129(1)
33: Section 133 amended (Power to request information)
After section 133(2)
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 a Crown entity to supply information 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—
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)
34: Section 135 amended (Members, office holders, and employees are officials)
After section 135(1)
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)
a: while that person was a person described in subsection (1)(a) or (b) or (1A)
b: after the commencement of this subsection.
35: Section 148 amended (Amendments to statement of intent by Crown entity)
In section 148(2)(b)(i) whole of government direction direction under section 107
36: 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)
2: After section 150(4)
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.
37: Section 151 amended (Form and content of annual report)
Replace section 151(1)(f)
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 .
38: New section 199A inserted (Application, savings, and transitional provisions relating to amendments to Act)
After section 199
199A: Application, savings, and transitional provisions relating to amendments to Act
The application, savings, and transitional provisions set out in Schedule 1AAA
39: New Schedule 1AAA inserted
Before Schedule 1 Schedule 1AAA Schedule 1
40: Schedule 3 amended
In Schedule 3 section 107 Whole of government directions Directions to support a whole of government approach
41: Schedule 5 amended
1: In the Schedule 5 Board Appointment of chairperson, etc, and board
2: In Schedule 5, clause (2)(d) unless the member continues to hold office as a member in accordance with section 32(3) or
3: In Schedule 5, replace clause 7(4)(c)
c: must be given or sent to each member's current postal or electronic address.
4: In Schedule 5, clause 13(1) by all members who are entitled to vote on the matter
42: Consequential amendments arising from amendments to Crown Entities Act 2004 made by this Part
The enactments listed in Schedule 2 2013-07-18 Accident Compensation Act 2001 Crown Research Institutes Act 1992 Education Act 1989 Gambling Act 2003 Housing Corporation Act 1974 New Zealand Public Health and Disability Act 2000 New Zealand Superannuation and Retirement Income Act 2001 Public Trust Act 2001 Radio New Zealand Act 1995
2: Amendments coming into force on 1 July 2014
43: Section 27 amended (Responsible Minister's role)
Replace section 27(1)(f)
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: .
44: Section 49 amended (Entity must act consistently with objectives, functions, statement of intent, and output agreement)
1: In the heading to section 49 output agreement statement of performance expectations
2: In section 49 output agreement (if any) current statement of performance expectations
45: Section 88 amended (Shareholding Ministers' role)
Replace section 88(1)(d)
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 .
46: Section 92 amended (Duty to act consistently with objectives, functions, statement of intent, and output agreement)
1: In the heading to section 92 output agreement statement of performance expectations
2: In section 92 output agreement (if any) statement of performance expectations
47: Section 136 amended (Interpretation for this Part)
1: In section 136(1) Crown entity group
b: its Crown entity subsidiaries, other than multi-parent subsidiaries; and .
2: In section 136(1) next Budget day pre-Budget period
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
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 149F .
48: Section 138 amended (Purpose of statement of intent)
In section 138(a) medium-term intentions and undertakings strategic intentions and medium-term undertakings
49: Section 139 replaced (Obligation to prepare statement of intent)
Replace section 139
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
2: A statement of intent must relate to the forthcoming financial year and at least the following 3 financial years.
3: The Crown entity must provide a statement of intent at least once in every 3-year period.
4: This section applies unless the Crown entity is exempted from the requirements of this section by or under this or another Act.
139A: 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(2)
139B: 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(3)
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)
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.
50: Section 140 amended (Statement of intent for newly established Crown entities)
1: Repeal section 140(2)
2: In section 140(3) section 141(1)(b) to (d), (g), and (h) section 141(1) and (2)(a), (b), (d), and (e)
3: Repeal section 140(6)
51: Section 141 replaced (Content of statement of intent)
Replace section 141
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—
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—
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)
52: Sections 142 and 143 repealed
Repeal sections 142 143
53: Section 144 amended (Application and term of statement of intent)
In section 144(b) or group
54: Section 145 amended (Ministerial involvement in statements of intent)
In section 145(a) sections 141 and 142 section 141
55: Section 146 amended (Process for providing statement of intent to responsible Minister)
Replace section 146(2)
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 139A
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—
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)
iii: if the responsible Minister has requested the statement of intent under section 139A
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)
56: Section 147 amended (Amendments to statement of intent by responsible Minister)
1: In the heading to section 147 Amendments to final
2: Replace section 147(1) and (2)
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)
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)
57: Section 148 amended (Amendments to statement of intent by Crown entity)
1: In the heading to section 148 Amendments to final
2: In section 148(1) statement of intent final statement of intent
3: In section 148(4) A Crown entity must amend its statement of intent in accordance with the following process The following process applies to an amendment under subsection (1) or (2)
4: In section 148(4)(b) 14 days 15 working days
5: In section 148(4)(c) ; and
6: Repeal section 148(4)(d)
7: After section 148(4)
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)
6: A final amendment under this section is in force from the date on which it is provided to the responsible Minister.
7: 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
58: Section 149 replaced (Obligation to present and publish statement of intent)
Replace section 149
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)
3: The responsible Minister (or another Minister, if subsection (5)
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
b: in any other document presented on or before the date on which the annual report described in paragraph (a)
4: 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.
5: 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.
149A: 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)
a: 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
b: the entity must not publish an amendment to a statement of intent before publishing the statement of intent under section 149
c: 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
d: if Parliament is not in session, subsection (1)(b) Planning: statement of performance expectations
149B: 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.
149C: 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 149E
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 149E(1)(b) to (d) and (3)
b: need not comply with section 149E(1)(a) or (2)
149D: 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 149C
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)
b: require the 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 ( see section 149E(3)(c) section 149E section 149E(1)(d)
4: The directions apply as if they were the Crown entity's statement of performance expectations until the entity's first statement of performance expectations becomes final.
5: Sections 113 to 115 apply to the directions.
149E: 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 for the financial year; and
b: identify each exemption granted under section 149F(1)(a)
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 149G
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—
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)
149F: 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 149C or 149D
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.
149G: 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.
2: 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.
149H: 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 149E
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 149I section 149K
d: a responsible Minister may direct amendments to information in a final statement of performance expectations under section 149J
149I: 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 149D
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 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 149D
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)
149J: 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)
3: Sections 113 to 115 (other than section 115(2)) apply to a direction under subsection (1)
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 149K
149K: 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
ii: a direction under section 107; or
iii: any change in the law; or
iv: any other change in the entity's operating environment.
3: The Crown entity must make an amendment required under subsection (2)
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 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)
149L: 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 (5)
a: in the same document as the entity's annual report for the previous financial year ( see
b: in any other document presented on or before the date on which the annual report described in paragraph (a)
4: 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.
5: 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.
149M: 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 149J or 149K
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)
a: 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
b: the entity must not publish an amendment to a statement of performance expectations before publishing the statement of performance expectations under section 149L
c: 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 149L
d: if Parliament is not in session, subsection (1)(b)
59: Section 150 amended (Obligation to prepare, present, and publish annual report)
1: In section 150(1)(a) at as soon as practicable after
2: Repeal section 150(2)
60: New section 150A inserted (Special annual reporting requirements)
After section 150
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.
61: Section 151 amended (Form and content of annual report)
1: In section 151(1)(b) service
2: Replace section 151(1)(c)
c: the annual financial statements for the entity in accordance with section 154; and .
3: After section 151(1)
1A: However, subsection (1)(b) does not apply unless the Crown entity supplied 1 or more reportable classes of outputs 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
4: In section 151(2) against the intentions, measures, and standards set out in the statement of intent prepared at the beginning of the financial year of the entity's progress in relation to its strategic intentions as set out in the most recent statement of intent
62: Section 152 amended (Disclosure of payments in respect of members, committee members, and employees)
1: In section 152(1) or, in the case of a Crown entity group, for each Crown entity in the group
2: In section 152(1)(a) (or entities in the group, as the case may be)
3: In section 152(1)(b) (or entities in the group, as the case may be)
4: After section 152(1)
1A: Despite section 156A
63: Section 153 replaced (Form and content of statement of service performance)
Replace section 153
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 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.
64: Section 154 amended (Annual financial statements)
Replace section 154(1) and (2)
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.
65: Section 155 amended (Statement of responsibility)
1: In section 155(a) and (c) service
2: After section 155(c)
ca: contain a statement of the signatories' responsibility for any end-of-year performance information provided by the Crown entity under section 19A .
66: Section 156 replaced (Audit report)
Replace section 156
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 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
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)
b: provide an audit report to the Crown entity within 4 months after the end of each financial year.
67: New sections 156A and 156B and cross-heading inserted
After section 156 section 66 Application of this subpart to Crown entity groups
156A: Application of this subpart to Crown entity groups
1: A Crown entity ( entity A 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
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
a: statement of intent ( see section 139
b: statement of performance expectations ( see section 149C
c: forecast financial statements ( see section 149G
d: annual report ( see
e: statement of performance ( see section 153
f: annual financial statements ( see subsidiary paragraph (b)
156B: Minister of Finance may require additional reporting
1: Despite section 156A specified entity
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.
68: Section 157 replaced and cross-heading inserted
Replace section 157 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)
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
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
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.
69: Section 163 amended (Restrictions on giving of guarantees and indemnities)
In section 163(1) give a guarantee to, or indemnify, another person , or amend the terms of any such guarantee or indemnity,
70: Section 170 replaced (Power to require output agreement)
Replace section 170
170: Responsible 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 that a Crown entity proposes to supply.
71: Schedule 1 amended
In Schedule 1
72: Consequential amendments arising from amendments to Crown Entities Act 2004 made by this Part
The enactments listed in Schedule 3 2014-07-01 Accident Compensation Act 2001 Civil Aviation Act 1990 Crown Research Institutes Act 1992 Education Act 1989 Government Superannuation Fund Act 1956 Housing Corporation Act 1974 Maritime Transport Act 1994 New Zealand Antarctic Institute Act 1996 New Zealand Public Health and Disability Act 2000 New Zealand Superannuation and Retirement Income Act 2001 New Zealand Tourism Board Act 1991 Public Trust Act 2001 Transport Accident Investigation Commission Act 1990