In the State Services

"State Services" is the term for a broad range of organisations that serve as instruments of the Crown in respect of the Government of New Zealand. It consists of:

• all Public Service departments;
• other departments that are not part of the Public Service;
• all Crown entities (except tertiary education institutions);
• a variety of organisations included in the Government's annual financial statements by virtue of being listed on the Fourth Schedule to the Public Finance Act; and
• the Reserve Bank of New Zealand.

Until the passage of the State Sector Amendment Act (No 2) 2004 and the Crown Entities Act 2004, the responsibilities of the State Services Commissioner were, in general, limited to the Public Service. However, the 2001 Review of the Centre identified a need for the Commissioner to provide leadership to the State Services beyond the Public Service. The new legislation provides for this by extending to the State Services some of the roles that the Commissioner has in relation to the Public Service.

• For the first time the person holding the title State Services Commissioner, which has been in use since 1962, now has a mandate to provide advice and guidance on integrity and conduct to employees across the State Services (apart from Crown Research Institutes and their subsidiaries), and to set minimum standards of integrity and conduct for a defined range of agencies in the State Services (predominantly most Crown entities). This includes the power to issue a code of conduct that can be varied to reflect an agency's circumstances.
• The State Services Commissioner's ability to provide advice on management systems, structures and organisations, which was previously limited to the Public Service, now extends to most Crown entities.
• The State Services Commissioner also has the ability to promote senior leadership and management development in the State Services by communicating the strategies and initiatives in the Public Service to the wider State Services, and by inviting their participation in the Public Service development activities.

In addition to the Commissioner's extended roles, the Prime Minister and the Minister responsible for any part of the State Services can direct the Commissioner to perform in the relevant part of the State Services any of the functions and exercise the powers that apply to the Public Service. The head of any part of the State Services can also make this request to the Commissioner.

In the State sector

The "State sector" is broader than the "State Services". It is the common term for the organisations whose financial situation and performance is reported in the annual financial statements of the Government. The State sector includes:

• all the State Services;
• some departments that are not part of the State Services;
• tertiary education institutions;
• Offices of Parliament; and
• State-owned Enterprises.

Some of the State Services Commissioner's responsibilities extend beyond the State Services to the wider State sector.

• The State Services Commissioner has a statutory function advising the Government on the structure of the State sector, including the allocation of functions between agencies. In performing this function the Commissioner needs to form a view on whether certain activities of the State should best be conducted in a Government department or in an organisation with a different statutory basis and form. By extension, this responsibility also includes giving more general advice to the Government about the structural, governance and accountability arrangements within the State sector as a whole.
• The Commissioner is responsible for administering the fees framework for the remuneration of board members of most Crown entities and a range of other agencies and committees in the State sector.
• The Commissioner's role also involves consultation on, or concurrence in, the terms and conditions of employment of a chief executive. This includes the majority of the State Services as well as tertiary education institutions, which must also consult on collective employment agreements for employees. State-owned Enterprises can also request the Commissioner's assistance on collective employment agreements.