Crown entity

A Crown entity (from the Commonwealth term Crown) is an organisation that forms part of New Zealand's state sector established under the Crown Entities Act 2004,[1] a unique umbrella governance and accountability statute. The Crown Entities Act is based on the corporate model where the governance of the organisation is split from the management of the organisation.

Types of crown entities

Crown entities come under the following types:

  • Statutory entities – bodies corporate established under an Act
    • Crown agents – organisations that give effect to government policy, such as the Accident Compensation Corporation, which administers no-fault workers compensation
    • Autonomous Crown entities (ACE), which must have regard to government policy, such as Te Papa, the national museum
    • Independent Crown entities (ICE), which are generally independent of government policy, such as the Commerce Commission, which enforces legislation promoting competition
  • Crown entity companies – registered companies wholly owned by the Crown, including Crown Research Institutes (CRIs) and a small number of other companies
  • Crown entity subsidiaries – companies that are subsidiaries of Crown entities
  • School boards of trustees
  • Tertiary education institutions, including universities, colleges of education, polytechnics, and wānanga

Crown entities can be contrasted with other New Zealand public sector organisational forms: departments of state, state-owned enterprises, offices of Parliament and sui generis organisations like the Reserve Bank.

Crown entities, responsible ministers and monitoring departments

Under the Crown Entities Act, ministers are required to "oversee and manage" the Crown's interests in the Crown entities within their portfolio (sections 27 and 88). The board of the entity has the key role in ensuring the entity is achieving results within budget. This is done by a monitoring department on behalf of the minister unless other arrangements for monitoring are made. Monitoring departments make explicit agreements with their minister, setting out what monitoring they will undertake and how they will do it. Crown entity boards should also facilitate clear and transparent monitoring, for example, by providing the minister and monitoring department with good information on which to make judgements about performance.[2]

This table is based on one from the State Services Commission.[3]

Responsible minister(s) Crown entities Monitoring department(s) Category / type Empowering legislation
ACC Accident Compensation Corporation Labour Crown agent Injury Prevention, Rehabilitation, and Compensation Act 2001 (Part 7/Sched 5)
Arts, Culture and Heritage Arts Council of New Zealand Toi Aotearoa Culture and Heritage ACE Arts Council of New Zealand Toi Aotearoa Act 1994 (Part 1)
Arts, Culture and Heritage Museum of New Zealand Te Papa Tongarewa Board Culture and Heritage ACE Museum of New Zealand Te Papa Tongarewa Act 1992 (Part 1 and Schedule 1)
Arts, Culture and Heritage New Zealand Film Commission Culture and Heritage ACE New Zealand Film Commission Act 1978
Arts, Culture and Heritage Heritage New Zealand (Pouhere Taonga) Culture and Heritage ACE Heritage New Zealand Pouhere Taonga Act 2014
Arts, Culture and Heritage New Zealand Symphony Orchestra Culture and Heritage ACE New Zealand Symphony Orchestra Act 2004 (Part 2 and Schedule 1)
Broadcasting Broadcasting Commission (New Zealand On Air) Culture and Heritage ACE Broadcasting Act 1989 (Part 4 and Schedule 1)
Broadcasting Broadcasting Standards Authority Culture and Heritage ICE Broadcasting Act 1989 (Part 3 and Schedule 1)
Broadcasting and Finance (2) Radio New Zealand Limited CCMAU / Culture and Heritage and Treasury CEC Radio New Zealand Act 1995
Broadcasting and Finance (2) Television New Zealand Limited CCMAU / Culture and Heritage and Treasury CEC Television New Zealand Act 2003
Commerce Accounting Standards Review Board Economic Development ICE Financial Reporting Act 1993 (Part 3 and Schedule 1)
Commerce Commerce Commission Economic Development ICE Commerce Act 1986 (Part 1)
Commerce Securities Commission Economic Development ICE Securities Act 1978 (Part 1)
Commerce Standards Council Economic Development ACE Standards Act 1988
Commerce Takeovers Panel Economic Development ICE Takeovers Act 1993 (Part 1 and Schedule)
Commerce Testing Laboratory Registration Council Economic Development ACE Testing Laboratory Registration Act 1972
Community and Voluntary Sector Charities Services Internal Affairs ACE Charities Act 2005 (Part 1)
CRIs and Finance (2) Crown research institutes (9) CCMAU and Treasury CEC Crown Research Institutes Act 1992
Economic Development and Finance (2) New Zealand Venture Investment Fund Limited CCMAU and Treasury CEC None (company constitution)
Education New Zealand Qualifications Authority Education Crown agent Education Act 1989 (Part 20)
Education New Zealand Teachers Council Education ACE Education Act 1989 (Part 10A)
Education School boards of trustees (2,474) Education School BoTs Education Act 1989 (Parts 7, 7A, 8, 9 and 12 and Schedules 5A and 6)
Energy Electricity Authority Economic Development Crown agent Electricity Act 1992 (Part 15)
Energy Energy Efficiency and Conservation Authority Environment Crown agent Energy Efficiency and Conservation Act 2000 (and Schedule)
Environment Environmental Protection Authority Environment ACE Environmental Protection Authority Act 2011 (the EPA Act)
Finance Earthquake Commission (Natural Hazards Commission) Treasury Crown agent Earthquake Commission Act 1993 (Part 1 and Schedule 1)
Finance Government Superannuation Fund Authority Treasury ACE Government Superannuation Fund Act 1956 (Part 1 and Schedule 4)
Finance Guardians of New Zealand Superannuation Treasury ACE New Zealand Superannuation and Retirement Income Act 2001 (Part 2 and Schedule 3)
Finance[4] New Zealand Productivity Commission Treasury ICE New Zealand Productivity Commission Act, 2010
Foreign Affairs New Zealand Antarctic Institute Foreign Affairs and Trade Crown agent New Zealand Antarctic Institute Act 1996 (Part 1 and Schedule 1)
Health Alcohol Advisory Council of New Zealand Health ACE Alcohol Advisory Council Act 1976
Health Crown Health Financing Agency Health Crown agent New Zealand Public Health and Disability Act 2000 (Part 4 and Schedule 6)
Health District health boards (21) Health Crown agent New Zealand Public Health and Disability Act 2000 (Part 3 and Scheds 2 and 3)
Health Health and Disability Commissioner Health ICE Health and Disability Commissioner Act 1994 (Part 1 and Schedule 2)
Health Health Research Council of New Zealand Health Crown agent Health Research Council Act 1990 (Part 1 and Schedule 1)
Health Health Sponsorship Council Health Crown agent Smoke-free Environments Act 1990 (Part 3)
Health Mental Health Commission Health ACE Mental Health Commission Act 1998 (Schedule 1)
Health New Zealand Blood Service Health Crown agent New Zealand Public Health and Disability Act 2000 (Part 4 and Schedule 6)
Health Pharmaceutical Management Agency Health Crown agent New Zealand Public Health and Disability Act 2000 (Part 4 and Schedule 6)
Housing and Finance (2) Kāinga Ora (formerly, Housing New Zealand) Building and Housing / Treasury Crown agent Housing Corporation Act 1974 (Part 1 and Schedule 1A)
Industry and Regional Development, and Trade (2) New Zealand Trade and Enterprise Economic Development, and Foreign Affairs and Trade Crown agent New Zealand Trade and Enterprise Act 2003 (Part 2)
Internal Affairs Fire and Emergency New Zealand Board Internal Affairs Crown agent Fire and Emergency New Zealand Act 2017 (Part 1)
Internal Affairs New Zealand Lotteries Commission CCMAU ACE Gambling Act 2003 (Part 3, Subpart 2, and Schedule 4)
Internal Affairs Office of Film and Literature Classification Internal Affairs ICE Films, Videos, and Publications Classification Act 1993 (Part 6 and Schedule 1)
Justice Electoral Commission Justice ICE Electoral Act 1993 (Part 1 and Schedule 1)
Justice Human Rights Commission (New Zealand) Justice ICE Human Rights Act 1993 (Part 1 and Schedule 1)
Justice Independent Police Complaints Authority Justice ICE Independent Police Complaints Authority Act 1988
Justice Privacy Commissioner Justice ICE Privacy Act 2020 (Part 2)
Justice Real Estate Authority Justice Crown agent Real Estate Agents Act 2008 (Part 2)
Justice Law Commission Justice ICE Law Commission Act 1985 (and Schedule 1)
Maori Affairs Te Reo Whakapuaki Irirangi (Te Mangai Paho) TPK (Maori Development) ACE Broadcasting Act 1989 (Part 4A and Schedule 1)
Maori Affairs Te Taura Whiri I te Reo Maori (Maori Language Commission) TPK (Maori Development)) ACE Maori Language Act 1987 (and Schedule 2)
Public Trust and Finance (2) Public Trust CCMAU / Justice and Treasury ACE Public Trust Act 2001 (Part 2)
Research, Science and Technology Foundation for Research, Science and Technology MoRST Crown agent Foundation for Research, Science and Technology Act 1990 (and Schedule 1)
Social Development and Employment Children's Commissioner Social Development ICE Children's Commissioner Act 2003 (and Schedule 1)
Social Development and Employment Social Policy Evaluation and Research Unit (Superu) Social Development ACE Families Commission Act 2003 (Part 1), Families Commission Amendment Act 2014
Social Development and Employment New Zealand Artificial Limb Board Social Development ACE Social Welfare (Transitional Provisions) Act 1990 (Part 3 and Schedule 3)
Social Development and Employment Retirement Commissioner Social Development ACE New Zealand Superannuation and Retirement Income Act 2001 (Part 4 and Schedule 6)
Social Development and Employment Social Workers Registration Board Social Development Crown agent Social Workers Registration Act 2003 (Part 6 and Schedule 1)
Sport and Recreation Drug Free Sport New Zealand Culture and Heritage ICE Sports Anti-Doping Act 2006 (Part 2)
Sport and Recreation Sport and Recreation New Zealand Culture and Heritage Crown agent Sport and Recreation New Zealand Act 2002 (Part 2)
Tertiary Education Tertiary Education Commission Education Crown agent Education Act 1989 (Part 13A)
Tertiary Education Tertiary education institutions (33) Education TEIs Education Act 1989 (Parts 14 and 15 and Schedule 13A)
Tourism New Zealand Tourism Board Economic Development Crown agent New Zealand Tourism Board Act 1991 (Part 1 and Schedule 1)
Transport Civil Aviation Authority of New Zealand Transport Crown agent Civil Aviation Act 1990 (Part 6A and Schedule 3)
Transport NZ Transport Agency Transport Crown agent[needs update] Land Transport Management Act 2003 (Part 3 and Schedule 4)[needs update]
Transport Maritime New Zealand Transport Crown agent Maritime Transport Act 1994 (Part 29 and Schedule 1)
Transport Transit New Zealand[needs update] Transport Crown agent Land Transport Management Act 2003 (Part 3 and Schedule 4)
Transport Transport Accident Investigation Commission Transport ICE Transport Accident Investigation Commission Act 1990 (Part 2 and Schedule)

Abbreviations used:

  • ACE = autonomous Crown entity
  • CCMAU = Crown Company Monitoring Advisory Unit
  • CEC = Crown entity company
  • CRIs = Crown research institutes (all CECs)
  • ICE = independent Crown entity
  • TPK = Te Puni Kokiri (Ministry of Maori Development)
  • MoRST = Ministry of Research, Science and Technology
  • TEIs = tertiary education institutions
  • School BoTs = school boards of trustees

See also

References

  1. ^ "Crown Entities Act 2004". New Zealand Legislation. Parliamentary Counsel Office.
  2. ^ Statutory Crown Entities: A guide for Ministers, State Services Commission, June 2014, ISBN 978-0-478-43404-0
  3. ^ "Crown Entities: A guide for Ministers". State Services Commission. 14 September 2008. Archived from the original on 22 May 2010.
  4. ^ New Zealand Productivity Commission Initial Inquiry Terms of References, Office of the Minister of Finance