Hon Steve Maharey
Minister of Social Services and Employment
Associate Minister of Education (Tertiary Education)
Minister for the Community and Voluntary Sector
MP for Palmerston North

02 February 2000

Board goes as Maharey sets new direction for WINZ

The Minister of Social Services and Employment, Steve Maharey, announced today that an external WINZ Advisory Board was being disestablished as he moved to effect a culture change within the department.

Mr. Maharey said he had instructed WINZ Chief Executive, Christine Rankin, to disestablish her Advisory Board to the Chief Executive, because he wished to avoid any potential conflict over the strategic direction he had set for the department. The terms of reference for the former board specifically charged it with being a sounding board for Mrs Rankin to use when determining the future direction of WINZ.

“Mrs Rankin and I have discussed my expectations for WINZ regularly since the election. My associate ministers, Ruth Dyson and Parekura Horomia, and I, have adopted a firm hands-on approach to our oversight of WINZ. We are determined to provide clear direction on the sort of culture we wish to build within the WINZ and we do not see a role for this board any longer.

“Our objective is to achieve a culture change within WINZ that reflects the roles and responsibilities of a core public sector department. An advisory board made up of private sector representatives charged with influencing strategic direction could be in conflict with this objective.

“I am advised that the seven-member board has met six times since it was established on 26 May 1999. The board’s costs to date total $23,679”, Steve Maharey said.

RELEASE ENDS

Attached is a list of the current members of the Advisory Board to the Chief Executive, Work and Income NZ and its terms of reference.

MEMBERSHIP OF THE ADVISORY BOARD TO THE CHIEF EXECUTIVE, WORK & INCOME NZ

The WINZ Advisory Board to the Chief Executive was established on 26 May 1999. The following were members of the Board until its disestablishment:

Lincoln Gould (Chairperson), Chair, Victoria University of Wellington Graduate
School of Business and Government Management
Steve Marshall, former CEO, Employers Federation
George Hickton, CE, New Zealand Tourism Board
Lee Mathias, MD, Birthcare NZ
Jan Dowland, CE, IHC
June McCabe, Chief Manager Government Business, Westpac Trust
Gareth Morgan, Director, Infometrics

It is the chief Executive’s intention to establish a Board which will be made up of selected individuals who have experience and involvement in various business/community activities. They would be invited to share their collective wisdom and intellectual capacity to add value to the strategic development of the Department. In essence their contribution would be to provide the Chief Executive and her management team with a wider perspective on issues/ideas, in the roles of enquirer, supporter, facilitator and mentor. It is in this spirit that the following terms of reference are based.

ADVISORY BOARD TO THE CHIEF EXECUTIVE, WORK & INCOME NZ

Terms of Reference

1. Purpose of the Advisory Board

1.1 The Advisory Board of Work & Income NZ is to provide advice and support to the Chief Executive of Work & Income NZ to ensure WINZ is managed in a manner consistent with best practice in both the private and public sectors, such that WINZ is fully able to meet its obligations under the Chief Executive’s Performance Agreement and Purchase Agreements.

1.2 The Advisory Board to Work & Income NZ should challenge Management to continuously improve its efficiency and effectiveness in the manner which is described in the preface above. Board members in giving advice need to be conversant with the restrictions and restraints on the Department namely the Public Finance Act 1989, State Sector Act, Purchase Agreements and Government Strategies but also need to challenge management in the interpretation of these restrictions and constraints.

2. Chief Executive’s Expectations of the Board

2.1 Assist the Chief Executive of WINZ to institute a formalised strategic and business planning and performance measurement process and contribute to the development of monitoring strategies to ensure that the Chief Executive is provided with robust management information.

2.2 Act as a sounding Board for the Chief Executive in developing a strategic service delivery plan and annual business plan, both of which have regard to the Government’s strategic policy directions, the Chief Executive’s Performance Agreements, the Purchase Agreement and the overriding principle of being both efficient and effective with business case assumptions that are soundly based.

2.2.1 The scope of this advice should extend to contributing and commenting, as appropriate on specialist functional areas (e.g. human resources, information systems, property management).

2.3 Advise on ways the efficiency and effectiveness of WINZ might be continually improved.

2.4 Provide a view to the Chief Executive on the robustness of business cases for any significant amendments to the plans which may be proposed.

2.5 Assist and advise the Chief Executive in identifying key stakeholders and developing effective relationships and appropriate consultation protocols.

2.6 Assist the Chief Executive in characterising and managing risks.

2.7 Support management and advise in respect to appropriate organisational structures, systems, processes and resources.

2.8 Provide feedback, as requested by the Chief Executive, on the overall performance of the Department in relation to the Performance Agreement held with the Minister of Employment and in relation to the goals of the Department as outlined in the Strategic Plan.

3. Composition of the Board

3.1 The appointment, terms of office and removal of Board members shall be the prerogative of the Chief Executive.

3.2 The Board shall have:

3.2.1 A chairperson who shall be appointed by the Chief Executive

3.2.2 Four to six other members appointed by the Chief Executive

4. Confidentiality

4.1 Members of the Board are expected to act at all times in the best interests of the Department.

4.2 Information about the Department, its clients or other key stakeholders, which is obtained as a consequence of Board membership, must not be used, acted upon or disclosed to other parties, without the express permission of the CEO except as required:

4.2.1. For internal use within the Department

4.2.2 As required by law

4.3 Any comments to the media by Board members on the affairs of the Department may only be made with the express approval of the Chief Executive.

4.4 Board members need to be aware that any information provided to or generated by the Department is subject to the Official Information Act 1982 and may be made available to the media or members of the public on request.

5. Conflict of Interest

5.1 Members must avoid conflicts of interest with respect to their duty of care to WINZ. Any actual or potential conflict should be brought to the attention of the Chief Executive as soon as possible. In particular:

5.1.1. There should be no conduct of private business or personal services between any Board member and the Department

5.1.2 When the Board is discussing any Departmental matter in which a member has a material personal interest the member must declare that interest and, if appropriate, take no part in the discussion.

5.1.3 Board members must not use their position on the Board to obtain favourable treatment or position themselves, family members, friends or close associates

6. Administrative

6.1 Fees – Board members from outside the Department will be paid fees at the rate of $750 per day for the chairperson and $500 per day for other members (fees are GST exclusive).

6.2 Facilities and Resources – Meeting and secretarial facilities and any other resources necessary for the functioning of the Board will be provided by WINZ.

6.3 Meetings of the Board

6.3.1 Board meetings will be scheduled on a regular basis and scheduled in advance to ensure all members are available to attend. Additional meetings may be called for by the Chief Executive from time to time

6.3.2 Meeting agendas and papers shall be circulated five working days prior to each meeting

6.3.2 A record of meetings will be circulated to all Board members and the Chief Executive

7. Date from which Board Effective

The Board shall be established effective ………….. 1998 and shall remain in existence until disbanded by the Chief Executive.

ENDS

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