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Which entities are covered by the directions?

Coverage for the Procurement, ICT and Property directions is set out in the table below.

 

Property

Procurement

ICT

Group of 7 specific Crown agents (*)                                      

Yes                                 

Yes                                 

Yes                                 

District Health Boards

-

Yes

Yes

All other Crown agents, except the NZ Blood Service (**)

Yes

Yes

-

Autonomous Crown Entities (ACEs)

-

Yes

-

Independent Crown Entities (ICEs)

-

Yes

-

Crown entity companies

-

Yes

-

PFA Schedule 4A companies

-

Yes

-

School Boards of Trustees

-

-

-

(*):  7 specific Crown agents with the common characteristic of sizeable ICT business transactions and investment:  Accident Compensation Corporation, Earthquake Commission, Housing New Zealand Corporation, New Zealand Qualifications Authority, New Zealand Trade and Enterprise, New Zealand Transport Agency, and Tertiary Education Commission.

(**): The NZ Blood Service was excluded from coverage of the Property direction following consultation on the same basis as for District Health Boards (all office space is going to be within operational sites).

A list of State Sector organisations is at   www.ssc.govt.nz/state_sector_organisations .

What dates do the directions apply to affected entities?

  • Procurement direction applies from 1 February 2015
  • ICT direction applies from the date at which the direction comes into force, except that the ICT assurance requirements apply to District Health Boards from 1 July 2015
  • Property direction applies from 1 July 2014

Are Crown entity subsidiaries subject to section 107 directions?

The Ministers of State Services and Finance cannot issue a direction to subsidiaries [Crown Entities Act 2004 s107(3)]

However, there is an obligation on the parent entity to ensure that their subsidiaries comply, to the extent that the direction relates to the subsidiary.  [Crown Entities Act 2004 s 97(e)].

Why do directions under section 107 of the Crown Entities Act apply to Public Finance Act (PFA) Schedule 4A entities?

Under one of the 2013 amendments to the Crown Entities Act 2004, companies named in Schedule 4A of the Public Finance Act 1989 may be treated as a category of Crown entities for the purposes of giving whole of government directions to one or more categories of Crown entities.  See www.ssc.govt.nz/state_sector_organisations for the current list of PFA Schedule 4A entities.

 

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