Guidance to Departments in Relation to Crown Entities
Contents
- Title page
- About this guidance
- Overview
- A. Relationships
- B. Roles
- C. Board appointments
- D. Strategic direction and planning
- E. Output agreements
- F. Budget process
- G. Monitoring
- Appendix 1: Some specific powers of Ministers in relation to Crown entities
- Appendix 2: Letter to board chairpersons, 17 December 2004
- Appendix 3: Central agencies' statutory responsibilities
Departments
Last updated: 20 October 2010
The Act describes Ministers' roles in relation to Crown entities. While the Act does not describe a role for departments in relation to Crown entities, departments will help Ministers discharge their responsibilities unless directed otherwise. A department's role derives from its status as an agent of the Minister. Ministers may use other agents, including staff from their private offices, for some tasks, but even in these situations the department will normally have a policy and/or Vote administration role to play.
Ministers usually expect, and will normally receive, the following support services:
- an initial briefing on each entity on becoming Responsible Minister that, among other things, gives the Minister a 'heads up' about how to work with the type of entity (Crown agent, ACE or ICE), and provisions in the entity's empowering legislation or other legislation that materially modify core governance provisions in the Act
- briefings to support Ministers' engagement with entities on strategic matters
- ongoing briefings on each entity that identify emerging governance or performance issues that require the Minister's attention
- management of all processes relating to board membership, including appointments, re-appointments, setting members' fees, helping the board induct and train new members9, and ensuring compliance with Cabinet expectations and processes in respect of these matters
- transmittal of information to each entity about relevant decisions and/or changes in policy by the Government, relevant government processes, especially the Budget, and the Government's expectations of the entity
- critical review of the entity's draft Statement of Intent (SOI)
- negotiation of an annual output agreement and any protocols (e.g. relationship protocols) as required by the Minister
- monitoring of each entity
- advice on the compliance of Crown entities with their legislation, and
- where appropriate, leadership and/or coordination of departments and entities working within a sector, or working in pursuit of interdependent results.
9 Boards must arrange appropriate induction and training of members.