- Title page
- 1: Relationships, roles and responsibilities
- 2 : Appointing and maintaining an effective board
- 3: Participating in setting the expectations and direction for entities
- 4: How can your monitoring department assist you?
- Appendix 1: How Crown entities fit into the public sector
- Appendix 2: Information for Crown entity companies
What is a Crown entity?
Crown entities are part of the State sector4
and are owned by the Crown. The CEA provides the framework for establishing, governing and operating all categories of Crown entities. It also clarifies the roles, responsibilities and the accountability relationships between Crown entities and their boards, responsible Ministers, and their departments.5
Establishing a Crown entity reflects a decision by Parliament that a function or functions should be carried out at 'arm's-length' from Ministers. This arm's-length separation from Ministers may be required to credibly distance Ministers from involvement in decision-making that relates to individual persons or organisations (e.g. around funding culture and heritage), and to provide access to the broader range of skills that a governance board brings. Despite this separation, Ministers are answerable to Parliament for overseeing and managing the Crown's interests in, and relationships with, the Crown entities in their portfolios.
Lists of all Crown entities by Ministerial portfolio can be found at: www.dpmc.govt.nz/cabinet/portfolios/list.
Crown entities matter because they deliver many public services of importance to New Zealanders and often are the 'face of government'.
5: Crown entities are subject to both their enabling legislation and the CEA. If there is a conflict between a Crown entity's own enabling legislation and the CEA, the CEA prevails unless the entity's enabling legislation specifically provides otherwise. The Education Act 1989 is the primary statute for the establishment, governance and operation of School Boards of Trustees and Tertiary Education Institutions.