Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Treasury completes review of commercial operations

Treasury completes review of commercial operations

The Treasury has completed a review of its commercial operations as the makeup of the Crown’s commercial assets changes, and the Government Share Offer programme nears completion.

The Treasury monitors 49 government-owned enterprises with full or partial commercial objectives, and assets of around $125 billion. It also advises Government on a range of commercial issues, such as major transactions and entities in distress.

The review of the commercial operations portfolio is part of a work programme focused on strengthening management of the Crown’s balance sheet.

“The commercial environment has changed a lot over the last few years. The world has been grappling with a major economic downturn, and there’s been a fresh focus on how companies are governed. Some of the companies owned by the government are also operating in very challenging industries.”

“The makeup of the government’s portfolio as a whole is also changing – for example we now have more companies operating under a Mixed Ownership Model, and Crown Financial Institutions like ACC and the NZ Superannuation Fund are becoming more prominent.”

“In that context, and with the Government Share Offer programme due to be completed in 2014, it made sense to look at how we approach our work in this area, and how our commercial operations are organised,” says Treasury Secretary and Chief Executive Gabriel Makhlouf.

The review builds on a programme initiated in 2012 to improve monitoring of commercial enterprises owned by the Crown, looking at the structure and incentives needed to support closer engagement with boards, governance processes, and potential new monitoring approaches. Key changes include:

· Board appointment and entity monitoring functions will be combined into a Governance & Performance team, more closely integrating these areas

· The establishment of new commercial policy and operational teams, supporting greater expertise in these areas

· The Crown Ownership Monitoring Unit (COMU) brand will be disestablished as the commercial operations function as a whole is more closely integrated with the wider Treasury

· Establishment of an advisory board to the commercial operations function with members from outside the Treasury.

The transition to the new structure will take place in February 2014.

“The government’s assets will keep changing over time, as will the markets and industries we operate in. The Treasury’s Investment Statement due to be published in the New Year will outline how different parts of the balance sheet are changing in value, and how they are going to continue to evolve.”

“This new structure will give us the flexibility to adapt and help make sure we’re getting the best value from the government’s commercial assets for New Zealanders.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Drone Strikes And Judith Collins‘ Last Stand

The news that a New Zealand citizen was killed last November in a US drone attack in Yemen brings the drones controversy closer to home.

To the US, drones are a legitimate response to the threat posed by the al Qaeda organisation and its franchisees... To the US, the drones carry the added advantage of not putting US troops at risk on the ground, and minimises the need for putting them in large numbers in bases in the countries concerned, always a politically sensitive point.

The counter-argument, well articulated by security analyst Paul Buchanan on RNZ this morning, is that this particular drone attack can be said to amount to an extra-judicial execution of a New Zealand citizen by one of our military allies, in circumstances where the person concerned posed no threat to New Zealand’s domestic security. More>>


Parliament Today:

Policies: Labour’s Economic Upgrade For Manufacturing

Labour Leader David Cunliffe has today announced his Economic Upgrade for the manufacturing sector – a plan that will create better jobs and higher wages. More>>


Gordon Campbell: On The Life And ACC Work Of Sir Owen Woodhouse

With the death of Sir Owen Woodhouse, the founding father of the Accident Compensation Scheme, New Zealand has lost one of the titans of its post-war social policy. More>>


Bad Transnationals: Rio Tinto Wins 2013 Roger Award

It won the 2011 Roger Award and was runner up in 2012, 2009 and 08. One 2013 nomination said simply and in its entirety: “Blackmailing country”... More>>


Select Committees: Tobacco Plain Packaging Hearings

The Stroke Foundation is today backing the Cancer Society and Smokefree Coalition who are making oral submissions to the Health Select Committee in support of proposed legislation to remove of all branding from tobacco products. More>>


Milk: Oravida Asked For Cabinet Help

New evidence released by New Zealand First today reveals Justice Minister Judith Collins used her position to manipulate the Government to help her husband’s company, Oravida, after the Fonterra botulism scare, says New Zealand First Leader Rt Hon Winston Peters. More>>


With Conditions: Ruataniwha Consents Approved In Draft Decision

The Tukituki Catchment Proposal Board of Inquiry has granted 17 resource consents relating to the $265 million Ruataniwha Water Storage Scheme in a draft decision that would open more of the Hawke’s Bay to irrigation. More>>


Fast Lanes, Campervans: Labour 'Making The Holidays Easier For Kiwi Drivers'

The next Labour Government will make the holidays easier and journeys quicker for Kiwi families driving on the roads, says Labour Leader David Cunliffe. More>>


Gordon Campbell: On Royalty And Its Tourism Spin-Offs

Ultimately the Queen’s longevity has been one of her most significant accomplishments. A transition to Prince Charles while the monarchy was in the pits of public esteem in the mid to late 1990s would have been disastrous for the Royal Firm. Far more congenial representatives have now emerged... More>>


Privacy (Again): ACC Demands Excessive Privacy Waivers

Labour: “This is just another example of ACC under National deliberately acting to deny treatment and compensation... Those who did fill in the form have effectively been victims of yet another ACC privacy breach. This time Judith Collins knew it was happening..." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news