(1) Part 2 comes into force on 1 July 2014.

(2) The rest of this Act comes into force on the day after the date on which it receives the Royal assent.

3 Principal Act

This Act amends the Crown Entities Act 2004 (the principal Act).

Part 1
Amendments coming into force on day after date of Royal assent

4 Section 7 amended (Meaning of Crown entity and categories of Crown entities)

(1) In section 7(1)(c), replace the definition in the second column with:
“Definition

“A company that is—
- “(a) a subsidiary of another Crown entity under sections 5 to 8 of the Companies Act 1993; or
- “(b) a multi-parent subsidiary of 2 or more Crown entities”.
(2) After section 7(1), insert:
- “(1A) Despite section 5(3) of the Companies Act 1993, a Crown entity subsidiary must be a company incorporated under that Act.”

5 New section 7A inserted (Meaning of multi-parent subsidiary)

After section 7, insert:
“7A Meaning of multi-parent subsidiary

“(1) A company is a multi-parent subsidiary if, under sections 5 to 8 of the Companies Act 1993,—

“(a) the company is not a subsidiary of any 1 Crown entity; but

“(b) if 2 or more Crown entities were treated as 1 entity (a combined entity), with their rights, entitlements, and interests in relation to the company taken together, the company would be a subsidiary of the combined entity.

“(2) Despite section 5(3) of the Companies Act 1993, a multi-parent subsidiary must be a company incorporated under that Act.

Example

Crown entities A, B, and C each own 20% of the issued shares of Company Limited. The remaining issued shares of Company Limited are not owned by Crown entities. Because Crown entities A, B, and C collectively own more than half of the issued shares of Company Limited (see section 5(1)(a)(iii) of the Companies Act 1993), Company Limited is a multi-parent subsidiary.

6 Section 8 replaced (Meaning of parent Crown entity and Crown entity subsidiary)

Replace section 8 with:
“8 Meaning of parent Crown entity

A Crown entity (A) is a parent Crown entity or parent of another Crown entity (B) if—

“(a) A is a statutory entity or Crown entity company or school board of trustees or tertiary education institution; and

“(b) B is a subsidiary of A, or a multi-parent subsidiary of A and 1 or more other Crown entities, under the definition of Crown entity subsidiaries in the second column of section 7(1)(c).”

7 Section 10 amended (Interpretation)

(1) In section 10(1), replace the definition of Crown entity subsidiary with:

“Crown entity subsidiary has the meaning given in the second column of section 7(1)(c)”.
(2) In section 10(1), insert in its appropriate alphabetical order:
“monitor means, in relation to a monitored Crown entity, 1 or more of the following that performs the role described in section 27A or 88A:

“(a) a department (within the meaning of that term in the Public Finance Act 1989):

“(b) another Crown entity”.
(3) In section 10(1), replace the definition of multi-parent subsidiary with:

“multi-parent subsidiary has the meaning given in section 7A”.

(4) In section 10(1), definition of parent Crown entity or parent, replace “section 8(1)” with “section 8”.

8 New sections 10A and 10B inserted

After section 10, insert:
“10A Provisions affecting application of amendments to this Act

Schedule 1AAA contains application, savings, and transitional provisions relating to amendments made to this Act after 1 January 2013 (see section 199A).
“10B Status of examples

“(1) An example used in this Act is only illustrative of the provisions to which it relates. It does not limit those provisions.

“(2) If an example and a provision to which it relates are inconsistent, the provision prevails.”

9 Section 27 amended (Responsible Minister's role)

(1) In section 27(1), replace “functions,” with “functions”.
(2) After section 27(2), insert:
- “(3) Despite section 28 of the State Sector Act 1988, the responsible Minister may not delegate any power under this Act except as provided in subsection (4).
- “(4) The responsible Minister may delegate the power in section 133 to request information to the chief executive of a monitor (who may subdelegate this delegation to an employee of the monitor or to an individual working for the monitor as a contractor in relation to a function, duty, or power of the monitor).”

10 New section 27A and cross-heading inserted

After section 27, insert:
“Monitor's role
“27A Monitor's role

The role of the monitor is, in relation to the monitored statutory entity,—

“(a) to assist the responsible Minister to carry out his or her role (which is described in section 27); and

“(b) to perform or exercise any or all of the following functions, duties, or powers:

“(i) administering appropriations:

“(ii) administering legislation:

“(iii) tendering advice to Ministers:

“(iv) any other functions, duties, or powers in this Act or another Act that may, or must, be performed or exercised by the monitor.”

11 Section 50 replaced (Functions must be performed efficiently, effectively, and consistently with spirit of service to public)

Replace section 50 with:
“50 Manner in which functions must be performed

The board of a statutory entity must ensure that the statutory entity performs its functions—

“(a) efficiently and effectively; and

“(b) in a manner consistent with the spirit of service to the public; and

“(c) in collaboration with other public entities (within the meaning of that term in the Public Audit Act 2001) where practicable.”

12 Section 62 amended (When interests must be disclosed)

(1) In section 62(3)(a), replace “subsidiary that is owned by the entity together with another parent Crown entity or entities” with “multi-parent subsidiary of the entity and 1 or more other Crown entities”.
(2) After section 62(3)(c), insert:
- “(ca) only because he or she has past or current involvement in the relevant sector, industry, or practice; or”.

13 Section 64 amended (Who disclosure of interests must be made to)

In section 64, after “temporary”, insert “deputy” in each place.

14 Section 68 amended (Permission to act despite being interested in matter)

In section 68(3) and (4), after “temporary”, insert “deputy” in each place.

15 Section 78 amended (Board procedure)

(1) In the heading to section 78, replace “Board” with “Appointment of chairperson, etc, and board”.

(2) In section 78, after “govern”, insert “the appointment of a chairperson and deputy chairperson (including a temporary deputy chairperson) and”.

16 Section 88 amended (Shareholding Ministers' role)

After section 88(3), insert:
- “(4) Despite section 28 of the State Sector Act 1988, the shareholding Ministers may not delegate any power under this Act except as provided in subsection (5).
- “(5) The shareholding Ministers may delegate the power in section 133 to request information to the chief executive of a monitor (who may subdelegate this delegation to an employee of the monitor or to an individual working for the monitor as a contractor in relation to a function, duty, or power of the monitor).”

17 New section 88A and cross-heading inserted

After section 88, insert:
“Monitor's role
“88A Monitor's role

The role of the monitor is, in relation to a monitored Crown entity company,—

“(a) to assist the shareholding Ministers to carry out their role (which is described in section 88); and

“(b) to perform or exercise any or all of the following functions, duties, or powers:

“(i) administering appropriations:

“(ii) administering legislation:

“(iii) tendering advice to Ministers:

“(iv) any other functions, duties, or powers in this Act or another Act that may, or must, be performed or exercised by the monitor.”

18 Section 97 amended (Subsidiaries: rules applying to all Crown entities)

In section 97, replace “to the extent of its powers” with “to the extent that it is reasonably able to do so”.

19 Section 98 amended (Subsidiaries: rules applying only to statutory entities)

(1) In section 98(1), replace “to the extent of its powers” with “to the extent that it is reasonably able to do so”.
(2) Replace section 98(1)(a) with:
- “(a) performs its functions—
  
  “(i) efficiently and effectively; and
  
  “(ii) in a manner consistent with the spirit of service to the public; and
  
  “(iii) in collaboration with other public entities (within the meaning of that term in the Public Audit Act 2001) where practicable; and”.

20 Cross-heading above section 103 amended

In the cross-heading above section 103, delete “on government policy”.

21 Section 107 amended (Whole of government directions)

(1) Replace the heading to section 107 with “Directions to support whole of government approach”.
(2) Replace section 107(1) with:
- “(1) The Minister of State Services and the Minister of Finance may jointly direct Crown entities to support a whole of government approach by complying with specified requirements for any of the following purposes:
  
  “(a) to improve (directly or indirectly) public services:
  
  “(b) to secure economies or efficiencies:
  
  “(c) to develop expertise and capability:
  
  “(d) to ensure business continuity:
  
  “(e) to manage risks to the Government's financial position.
  
  Example
  
  A direction may be given requiring that all Crown entities comply with e-government requirements to improve public services.
(3) In section 107(2)(b), after “(for example, to all Crown agents)”, insert “; or”.
(4) After section 107(2)(b), insert:
- “(c) to a group of Crown entities (whether made up of categories or types) if—
  
  “(i) the group is made up of at least 3 Crown entities; and
  
  “(ii) the entities in the group have in common at least 1 significant characteristic that relates to the direction (for example, the characteristic could relate to the Crown entities' asset holdings or presence in a region).”
(5) After section 107(2), insert:
- “(2A) For the purposes of subsection (2)(a), companies named in Schedule 4A of the Public Finance Act 1989 may be treated as a category of Crown entities.”

22 Section 108 amended (Process for giving whole of government directions)

In the heading to section 108, replace “whole of government directions” with “directions under section 107”.

23 Section 109 amended (House of Representatives may resolve to disapply whole of government direction)

(1) In the heading to section 109, replace “whole of government direction” with “direction under section 107”.

(2) In section 109, replace “whole of government direction given” with “direction”.

24 Section 110 amended (Obligation to give effect to direction)

In section 110, after “category or type”, insert “or group”.

25 Section 111 amended (Publication of whole of government direction)

In the heading to section 111, replace “whole of government direction” with “direction under section 107”.

26 Section 113 amended (Safeguarding independence of Crown entities)

In section 113(3), replace “whole of government directions” with “directions under section 107”.

27 Cross-heading above section 114 repealed

Repeal the cross-heading above section 114.

28 Section 114 amended (Crown entities must comply with directions given under statutory power of direction)

In section 114(1)(b), replace “whole of government direction given to it” with “direction”.

29 Section 115 amended (Procedure for all Ministerial directions)

(1) Replace the heading to section 115 with “Procedure for ministerial directions on government policy”.

(2) In section 115(3), replace “amended, revoked,” with “amended”.
(3) After section 115(3), insert:
- “(3A) A Minister who is entitled to give a direction to a Crown entity is also entitled to revoke it by notice in writing to the entity, and, as soon as practicable after doing so, the Minister must publish that notice in the Gazette.”
(4) In section 115(4), replace “whole of government directions given” with “directions”.

30 New section 115A inserted (Review and expiry of all directions)

After section 115, insert:
“115A Review and expiry of all directions

“(1) A ministerial direction under this Act or another Act may specify its expiry date.

“(2) A direction that does not specify its expiry date must be reviewed by the Minister or Ministers after the later of the following:

“(a) 5 years after the direction was given:

“(b) 5 years after the commencement of this section.

“(3) A Minister or Ministers reviewing a direction must, to the extent that they consider it necessary in the circumstances,—

“(a) consult the Crown entity or entities to which the direction applies; and

“(b) consult any persons that they consider are representative of the interests of persons likely to be substantially affected by the direction.

“(4) As soon as practicable after completing the review, the Minister or Ministers must notify the outcome of the review to—

“(a) the Crown entity or entities to which the direction applies; and

“(b) persons that were consulted under subsection (3)(b).

“(5) This section does not apply, in the case of directions given under another Act, if the other Act contains a procedure for reviewing directions.”

31 Section 122 replaced (Indemnities in relation to excluded act or omission)

Replace section 122 with:
“122 Indemnities in relation to excluded act or omission

A statutory entity may only indemnify a member, an office holder, or an employee in respect of an excluded act or omission (including costs incurred in defending or settling any claim or proceeding relating to that excluded act or omission).”

32 Section 127 amended (Method of contracting)

In section 127(2)(b), replace “in accordance with this Part” with “under section 129(1)”.

33 Section 133 amended (Power to request information)

After section 133(2), insert:
- “(2A) The board of a Crown entity must supply to the Minister of State Services any information requested by the Minister in accordance with subsection (2B).
- “(2B) The Minister of State Services—
  
  “(a) may request a Crown entity to supply information only for the purpose of assessing the capability and performance of the State services; and
  
  “(b) must make the request to a group of Crown entities that—
  
  “(i) is made up of at least 3 Crown entities; and
  
  “(ii) has in common at least 1 significant characteristic that relates to the information requested (for example, the characteristic could relate to the Crown entities' asset holdings or presence in a region).
- “(2C) Information supplied under subsection (2A) must not be used for the purpose of assessing the operations and performance of the Crown entity or the Crown entity group.”

34 Section 135 amended (Members, office holders, and employees are officials)

After section 135(1), insert:
- “(1A) In this section, individuals working for the Crown entity as contractors or secondees in relation to a function, duty, or power of the Crown entity are to be treated as if they are employees.
- “(1B) This section also applies to a person who was formerly a person described in subsection (1)(a) or (b) or (1A) in respect of any acts or omissions or decisions made—
  
  “(a) while that person was a person described in subsection (1)(a) or (b) or (1A); and
  
  “(b) after the commencement of this subsection.”

35 Section 148 amended (Amendments to statement of intent by Crown entity)

In section 148(2)(b)(i), replace “whole of government direction” with “direction under section 107”.

36 Section 150 amended (Obligation to prepare, present, and publish annual report)

(1) Replace subsection (3) with:
- “(3) A responsible Minister of a Crown entity (or another Minister, if subsection (6) applies) must present the entity's annual report to the House of Representatives within 5 working days after the responsible Minister receives the annual report or, if Parliament is not in session, as soon as possible after the commencement of the next session of Parliament.”
(2) After section 150(4), insert:
- “(5) An entity's annual report may be presented or published in a document that includes any other report or information, whether or not that other report or information relates to the entity, but only if each report or set of information is separately identifiable within that document.
- “(6) A Minister other than the responsible Minister may present an entity's annual report to the House of Representatives if—
  
  “(a) the report is presented in a document that includes another report or other information; and
  
  “(b) that other Minister is responsible for presenting that other report or information.”

37 Section 151 amended (Form and content of annual report)

Replace section 151(1)(f) with:
- “(f) any new direction given to the entity by a Minister in writing under any enactment during that financial year, as well as other such directions that remain current; and”.

38 New section 199A inserted (Application, savings, and transitional provisions relating to amendments to Act)

After section 199, insert:
“199A Application, savings, and transitional provisions relating to amendments to Act

The application, savings, and transitional provisions set out in Schedule 1AAA, which relate to amendments made to this Act on or after 1 January 2013, have effect for the purposes of this Act.”

39 New Schedule 1AAA inserted

Before Schedule 1, insert the Schedule 1AAA set out in Schedule 1 of this Act.

40 Schedule 3 amended

In Schedule 3, item relating to section 107, second column, replace “Whole of government directions” with “Directions to support a whole of government approach”.

41 Schedule 5 amended

(1) In the Schedule 5 heading, replace “Board” with “Appointment of chairperson, etc, and board”.

(2) In Schedule 5, clause (2)(d), after “unless the member”, insert “continues to hold office as a member in accordance with section 32(3) or”.
(3) In Schedule 5, replace clause 7(4)(c) with:
- “(c) must be given or sent to each member's current postal or electronic address.”
(4) In Schedule 5, clause 13(1), after “by all members”, insert “who are entitled to vote on the matter”.

42 Consequential amendments arising from amendments to Crown Entities Act 2004 made by this Part

The enactments listed in Schedule 2 are consequentially amended in the manner indicated in that schedule.

Part 2
Amendments coming into force on 1 July 2014

43 Section 27 amended (Responsible Minister's role)

Replace section 27(1)(f) with:
- “(f) to participate in the process of setting the entity's strategic direction and performance expectations and monitoring the entity's performance under Part 4:”.

44 Section 49 amended (Entity must act consistently with objectives, functions, statement of intent, and output agreement)

(1) In the heading to section 49, replace “output agreement” with “statement of performance expectations”.

(2) In section 49, replace “output agreement (if any)” with “current statement of performance expectations”.

45 Section 88 amended (Shareholding Ministers' role)

Replace section 88(1)(d) with:
- “(d) to participate in the process of setting the company's strategic direction and performance expectations and monitoring the company's performance under Part 4; and”.

46 Section 92 amended (Duty to act consistently with objectives, functions, statement of intent, and output agreement)

(1) In the heading to section 92, replace “output agreement” with “statement of performance expectations”.

(2) In section 92, replace “output agreement (if any)” with “statement of performance expectations”.

47 Section 136 amended (Interpretation for this Part)

(1) In section 136(1), definition of Crown entity group, replace paragraph (b) with:
- “(b) its Crown entity subsidiaries, other than multi-parent subsidiaries; and”.
(2) In section 136(1), insert in their appropriate alphabetical order:
“next Budget day means the day on which the Minister of Finance will next deliver a Budget under the Public Finance Act 1989
“pre-Budget period means—

“(a) the period of 3 months ending when the Minister of Finance next delivers a Budget under the Public Finance Act 1989; or

“(b) if the Minister of Finance gives less than 3 months' notice of the next Budget day, the period commencing on the day on which the Minister of Finance gives that notice and ending when the Minister of Finance delivers the Budget
“reportable class of outputs, in respect of a financial year, means a class of outputs—

“(a) that the Crown entity proposes to supply in the financial year; and

“(b) that is directly funded (in whole or in part) by the Crown in accordance with an appropriation for the purpose, or by grants distributed under any Act, or by levies, fees, or charges prescribed by or under any Act; and

“(c) that is not exempted for that financial year under section 149F”.

48 Section 138 amended (Purpose of statement of intent)

In section 138(a), replace “medium-term intentions and undertakings” with “strategic intentions and medium-term undertakings”.

49 Section 139 replaced (Obligation to prepare statement of intent)

Replace section 139 with:
“139 Obligation to prepare statement of intent

“(1) A Crown entity must provide to its responsible Minister a statement of intent for the Crown entity that complies with this section and section 141.

“(2) A statement of intent must relate to the forthcoming financial year and at least the following 3 financial years.

“(3) The Crown entity must provide a statement of intent at least once in every 3-year period.

“(4) This section applies unless the Crown entity is exempted from the requirements of this section by or under this or another Act.
“139A Minister may require Crown entity to prepare new statement of intent at any time

“(1) A Crown entity's responsible Minister may, if the Minister considers it necessary or desirable, require the Crown entity to provide a new statement of intent at any time.

“(2) A statement of intent provided under this section must comply with sections 139 and 141.

“(3) Despite section 139(2), the Minister may require the new statement of intent to relate to the remainder of the current financial year in addition to the forthcoming financial year and at least the following 3 financial years.
“139B Minister may grant extension of time for, or waive, requirement to provide statement of intent

“(1) If a Crown entity is likely to have a significant change in the nature or scope of its functions, the responsible Minister may grant the Crown entity an extension, of up to 1 year, of the period specified in section 139(3).

“(2) However, the responsible Minister must not grant an extension unless he or she is satisfied that the extension will enable the entity to improve the quality of the statement of intent that it provides.

“(3) If a Crown entity is likely to be disestablished or, in the case of a Crown entity company, removed from the register under the Companies Act 1993, the responsible Minister may grant the entity a waiver of the requirements in section 139.

“(4) If the responsible Minister grants an extension or a waiver under this section,—

“(a) the responsible Minister must, as soon as practicable after granting the extension or waiver, notify the Crown entity of the extension or waiver and the Minister's reasons for granting it; and

“(b) the Crown entity must, as soon as practicable after receiving notice under paragraph (a), publish notice of the extension or waiver, and the Minister's reasons for granting it, on an Internet site maintained by or on behalf of the Crown entity; and

“(c) the Crown entity must include, in the next annual report that it provides to its responsible Minister for presentation to the House of Representatives under section 150, a statement of the exemption or waiver and the Minister's reasons for granting it.”

50 Section 140 amended (Statement of intent for newly established Crown entities)

(1) Repeal section 140(2).

(2) In section 140(3), replace “section 141(1)(b) to (d), (g), and (h)” with “section 141(1) and (2)(a), (b), (d), and (e)”.

(3) Repeal section 140(6).

51 Section 141 replaced (Content of statement of intent)

Replace section 141 with:
“141 Content of statement of intent

“(1) A statement of intent must, for the period to which it relates, set out the strategic objectives that the entity intends to achieve or contribute to (strategic intentions).

“(2) A statement of intent must also, for the period to which it relates,—

“(a) explain the nature and scope of the entity's functions and intended operations:

“(b) explain how the entity intends to manage its functions and operations to meet its strategic intentions:

“(c) explain how the entity proposes to manage its organisational health and capability:

“(d) explain how the entity proposes to assess its performance:

“(e) identify any process to be followed for the purpose of section 100:

“(f) set out and explain any other matters—

“(i) that are reasonably necessary to achieve an understanding of the entity's strategic intentions and capability:

“(ii) that the entity is required to include in its statement of intent under this Act or another Act.

“(3) A statement of intent—

“(a) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and

“(b) is a final statement of intent when it has been signed in accordance with paragraph (a).”

52 Sections 142 and 143 repealed

Repeal sections 142 and 143.

53 Section 144 amended (Application and term of statement of intent)

In section 144(b), delete “or group”.

54 Section 145 amended (Ministerial involvement in statements of intent)

In section 145(a), replace “sections 141 and 142” with “section 141”.

55 Section 146 amended (Process for providing statement of intent to responsible Minister)

Replace section 146(2) with:
- “(2) The process that must be followed in providing a statement of intent is as follows:
  
  “(a) the Crown entity must provide a draft statement of intent to its responsible Minister—
  
  “(i) not later than 2 months before the start of the first financial year to which the statement of intent relates; or
  
  “(ii) in the case of a newly established Crown entity, within the time frame specified by the responsible Minister; or
  
  “(iii) if the responsible Minister has requested the statement of intent under section 139A, within the time frame specified by the responsible Minister; and
  
  “(b) the responsible Minister must provide to the entity any comments that he or she may have on the draft not later than 15 working days after receiving it; and
  
  “(c) the entity must consider the comments (if any) on the draft and provide the final statement of intent to its responsible Minister—
  
  “(i) as soon as practicable after receiving the comments (if any) but before the start of the first financial year to which the statement of intent relates; or
  
  “(ii) in the case of a newly established Crown entity,—
  
  “(A) as soon as practicable, but not later than 25 working days, after receiving the comments; or
  
  “(B) if the responsible Minister does not provide comments within the period specified in paragraph (b), not later than 25 working days after the end of that period; or
  
  “(iii) if the responsible Minister has requested the statement of intent under section 139A,—
  
  “(A) as soon as practicable, but not later than 25 working days, after receiving the comments; or
  
  “(B) if the responsible Minister does not provide comments within the period specified in paragraph (b), not later than 25 working days after the end of that period.”

56 Section 147 amended (Amendments to statement of intent by responsible Minister)

(1) In the heading to section 147, after “Amendments to”, insert “final”.
(2) Replace section 147(1) and (2) with:
- “(1) A responsible Minister of a Crown entity may direct a Crown entity to amend any provision that is included in the entity's final statement of intent under section 141(1) or (2)(a), (b), (d), or (e).
- “(2) Sections 113 to 115 (other than section 115(2)) apply to a direction under subsection (1).”
(3) Replace section 147(4) with:
- “(4) An amendment under this section—
  
  “(a) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and
  
  “(b) is a final amendment when it has been signed in accordance with paragraph (a).”

57 Section 148 amended (Amendments to statement of intent by Crown entity)

(1) In the heading to section 148, after “Amendments to”, insert “final”.

(2) In section 148(1), replace “statement of intent” with “final statement of intent”.

(3) In section 148(4), replace “A Crown entity must amend its statement of intent in accordance with the following process” with “The following process applies to an amendment under subsection (1) or (2)”.

(4) In section 148(4)(b), replace “14 days” with “15 working days”.

(5) In section 148(4)(c), delete “; and”.

(6) Repeal section 148(4)(d).
(7) After section 148(4), insert:
- “(5) An amendment under this section—
  
  “(a) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and
  
  “(b) is a final amendment when it has been signed in accordance with paragraph (a).
- “(6) A final amendment under this section is in force from the date on which it is provided to the responsible Minister.
- “(7) A Crown entity may, instead of amending its final statement of intent, provide to its responsible Minister under section 146 a new statement of intent that complies with sections 139 and 141.”

58 Section 149 replaced (Obligation to present and publish statement of intent)

Replace section 149 with:
“149 Obligation to publish and present statement of intent

“(1) A Crown entity must, as soon as practicable after providing a final statement of intent to its responsible Minister, publish the statement of intent on an Internet site maintained by or on behalf of the entity.

“(2) Despite subsection (1), if a final statement of intent relates to a period commencing on or after the next Budget day, the responsible Minister may require the Crown entity not to publish the statement in the pre-Budget period.

“(3) The responsible Minister (or another Minister, if subsection (5) applies) must present a copy of the final statement of intent to the House of Representatives—

“(a) in the same document as the entity's annual report for the financial year before the first full financial year to which the statement of intent relates (see section 150); or

“(b) in any other document presented on or before the date on which the annual report described in paragraph (a) is presented.

“(4) An entity's statement of intent may be presented or published in a document that includes any other statement or information, whether or not that other statement or information relates to the entity, but only if each statement or set of information is separately identifiable within that document.

“(5) A Minister other than the responsible Minister may present an entity's statement of intent to the House of Representatives if—

“(a) the statement is presented in a document that includes another statement or other information; and

“(b) that other Minister is responsible for presenting that other statement or information.
“149A Obligation to publish and present amendments to statement of intent

“(1) As soon as practicable after an amendment to a statement of intent is finalised under section 147 or 148,—

“(a) the Crown entity must publish the amendment on an Internet site maintained by or on behalf of the entity; and

“(b) the responsible Minister must present a copy of the amendment to the House of Representatives.

“(2) Despite subsection (1),—

“(a) if the amendment will come into force on or after the next Budget day, the responsible Minister—

“(i) may require the entity not to publish the amendment in the pre-Budget period; and

“(ii) need not present the amendment to the House of Representatives in that period; and

“(b) the entity must not publish an amendment to a statement of intent before publishing the statement of intent under section 149; and

“(c) the responsible Minister must not present a copy of an amendment to a statement of intent to the House of Representatives before presenting a copy of the statement of intent to the House of Representatives under section 149; and

“(d) if Parliament is not in session, subsection (1)(b) does not apply, but the responsible Minister must present a copy of the amendment to the House of Representatives as soon as possible after the commencement of the next session of Parliament.
“Planning: statement of performance expectations
“149B Purpose of statement of performance expectations

The purpose of a statement of performance expectations for a Crown entity is to—

“(a) enable the responsible Minister to participate in the process of setting annual performance expectations; and

“(b) enable the House of Representatives to be informed of those expectations; and

“(c) provide a base against which actual performance can be assessed.
“149C Obligation to prepare statement of performance expectations

“(1) Before the start of each financial year, a Crown entity must prepare a statement of performance expectations for that financial year that complies with section 149E.

“(2) However, if the Crown entity does not propose to supply any reportable classes of outputs in that financial year, the entity's statement of performance expectations—

“(a) must comply with section 149E(1)(b) to (d) and (3); but

“(b) need not comply with section 149E(1)(a) or (2).
“149D Statement of performance expectations for newly established Crown entities

“(1) As soon as practicable after a Crown entity is established, the Crown entity must comply with section 149C as if it were the start of the financial year.

“(2) However, if the Crown entity is established during the last 4 months of its financial year, the responsible Minister may—

“(a) waive the requirement for the entity to comply with subsection (1); and

“(b) require the entity's first statement of performance expectations to cover the period from the date on which the entity is established until the end of the entity's first full financial year.

“(3) The responsible Minister may, at any time before the entity's first statement of performance expectations becomes final (see section 149E(3)(c)), give directions to the Crown entity on any matters referred to in section 149E, other than the forecast financial statements referred to in section 149E(1)(d).

“(4) The directions apply as if they were the Crown entity's statement of performance expectations until the entity's first statement of performance expectations becomes final.

“(5) Sections 113 to 115 apply to the directions.
“149E Content of statement of performance expectations

“(1) Each statement of performance expectations must, in relation to a Crown entity and a financial year,—

“(a) identify each reportable class of outputs for the financial year; and

“(b) identify each exemption granted under section 149F(1)(a) for the financial year; and

“(c) state whether the entity proposes to supply any class of outputs in the financial year that is not a reportable class of outputs; and

“(d) contain forecast financial statements that comply with section 149G.

“(2) For each reportable class of outputs, the statement of performance expectations must—

“(a) include a concise explanation of what the class of outputs is intended to achieve; and

“(b) identify the expected revenue and proposed expenses for the class of outputs; and

“(c) include a concise explanation of how the performance of the class of outputs will be assessed.

“(3) A statement of performance expectations—

“(a) must comply with generally accepted accounting practice; and

“(b) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and

“(c) is a final statement of performance expectations when it has been signed in accordance with paragraph (b).
“149F Exemption for certain outputs

“(1) The Minister of Finance may exempt, for 1 or more financial years or until further notice, 1 or more classes of outputs from—

“(a) any statement of performance expectations required under section 149C or 149D; or

“(b) any statement of performance required under section 151(1)(b).

“(2) The Minister of Finance must not exempt a class of outputs from a statement of performance expectations or a statement of performance unless he or she is satisfied that—

“(a) the class of outputs is not material to the statement; or

“(b) the class of outputs will be adequately reported on to the House of Representatives by a Minister, a department, or another public entity; or

“(c) for any other reason, the exemption does not unreasonably compromise accountability for the performance of the Crown entity.
“149G Forecast financial statements

“(1) Each statement of performance expectations, in relation to a Crown entity and a financial year, must contain forecast financial statements for the financial year, prepared in accordance with generally accepted accounting practice.

“(2) The forecast financial statements must include—

“(a) a statement of all significant assumptions underlying the forecast financial statements; and

“(b) any additional information and explanations needed to fairly reflect the forecast financial operations and financial position of the entity.
“149H Ministerial involvement in statements of performance expectations

Ministers may participate in determining the contents of statements of performance expectations as follows:

“(a) a responsible Minister may agree with a Crown entity that information additional to that required by section 149E be included in the statement of performance expectations:

“(b) a responsible Minister may, by written notice to 1 or more Crown entities, specify the particular form in which any information in the statement of performance expectations must be disclosed:

“(c) a responsible Minister may make comments on a draft statement of performance expectations under section 149I or on an amendment to a final statement of performance expectations proposed by a Crown entity under section 149K:

“(d) a responsible Minister may direct amendments to information in a final statement of performance expectations under section 149J.
“149I Process for providing statement of performance expectations to responsible Minister

“(1) A Crown entity that is required to prepare a statement of performance expectations must provide it to its responsible Minister.

“(2) The process that must be followed in providing a statement of performance expectations is as follows:

“(a) the Crown entity must provide a draft statement of performance expectations to its responsible Minister—

“(i) not later than 2 months before the start of the financial year to which the statement of performance expectations relates; or

“(ii) in the case of a newly established Crown entity to which section 149D applies, within the time frame specified by the responsible Minister; and

“(b) the responsible Minister must provide to the entity any comments that he or she may have on the draft not later than 15 working days after receiving it; and

“(c) the entity must consider the comments (if any) on the draft and provide the final statement of performance expectations to the responsible Minister—

“(i) as soon as practicable after receiving the comments (if any), but before the start of the financial year to which the statement of performance expectations relates; or

“(ii) if the Crown entity is a newly established entity to which section 149D applies,—

“(A) as soon as practicable, but not later than 25 working days, after receiving the comments; or

“(B) if the responsible Minister does not provide comments within the period specified in paragraph (b), not later than 25 working days after the end of that period.
“149J Amendments to final statement of performance expectations by responsible Minister

“(1) A responsible Minister for a Crown entity may direct a Crown entity to amend any provision that is included in the entity's final statement of performance expectations.

“(2) However, subsection (1) does not apply in respect of the forecast financial statements included in an entity's statement of performance expectations.

“(3) Sections 113 to 115 (other than section 115(2)) apply to a direction under subsection (1).

“(4) An amendment under this section—

“(a) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and

“(b) is a final amendment when it has been signed in accordance with paragraph (a).

“(5) Section 149K does not apply to amendments made under this section.
“149K Amendments to final statement of performance expectations by Crown entity

“(1) A Crown entity may amend its final statement of performance expectations at any time.

“(2) A Crown entity must amend its final statement of performance expectations if—

“(a) the information contained in the final statement of performance expectations is false or misleading in a material particular; or

“(b) the intentions and undertakings in the final statement of performance expectations are significantly altered or affected by—

“(i) a direction given to the Crown entity by a Minister; or

“(ii) a direction under section 107; or

“(iii) any change in the law; or

“(iv) any other change in the entity's operating environment.

“(3) The Crown entity must make an amendment required under subsection (2) as soon as practicable after the entity becomes aware of the facts that give rise to the obligation to amend under this section.

“(4) A Crown entity must amend its statement of performance expectations in accordance with the following process:

“(a) the Crown entity must provide a draft amendment to its responsible Minister; and

“(b) the responsible Minister must provide to the entity any comments that he or she may have not later than 15 working days after receiving the draft; and

“(c) the entity must consider the comments (if any) and provide the final amendment to its responsible Minister as soon as practicable.

“(5) An amendment under this section—

“(a) must be in writing, be dated, and be signed on behalf of the board by 2 members or, in the case of a corporation sole, by the sole member; and

“(b) is a final amendment when it has been signed in accordance with paragraph (a).
“149L Obligation to publish and present statement of performance expectations

“(1) A Crown entity must, as soon as practicable after providing a final statement of performance expectations to its responsible Minister, publish the statement on an Internet site maintained by or on behalf of the entity.

“(2) However, if the final statement of performance expectations relates to a period commencing on or after the next Budget day, the responsible Minister may require the Crown entity not to publish the statement in the pre-Budget period.

“(3) The responsible Minister (or another entity's responsible Minister, if subsection (5) applies) must present a copy of the final statement of performance expectations to the House of Representatives—

“(a) in the same document as the entity's annual report for the previous financial year (see section 150); or

“(b) in any other document presented on or before the date on which the annual report described in paragraph (a) is presented.

“(4) An entity's statement of performance expectations may be presented or published in a document that includes any other statement or information, whether or not that other statement or information relates to the entity, but only if each statement or set of information is separately identifiable within that document.

“(5) A Minister other than the responsible Minister may present an entity's statement of performance expectations to the House of Representatives if—

“(a) the statement is presented in a document that includes another statement or other information; and

“(b) that other Minister is responsible for presenting that other statement or information.
“149M Obligation to publish and present amendments to statement of performance expectations

“(1) As soon as practicable after an amendment to a final statement of performance expectations is finalised under section 149J or 149K,—

“(a) the Crown entity must publish the amendment on an Internet site maintained by or on behalf of the entity; and

“(b) the responsible Minister must present a copy of the amendment to the House of Representatives.

“(2) Despite subsection (1),—

“(a) if the amendment will come into force on or after the next Budget day, the responsible Minister—

“(i) may require the entity not to publish the amendment in the pre-Budget period; and

“(ii) need not present the amendment to the House of Representatives in that period; and

“(b) the entity must not publish an amendment to a statement of performance expectations before publishing the statement of performance expectations under section 149L; and

“(c) the responsible Minister must not present a copy of an amendment to a statement of performance expectations to the House of Representatives before presenting a copy of the statement of performance expectations to the House of Representatives under section 149L; and

“(d) if Parliament is not in session, subsection (1)(b) does not apply, but the responsible Minister must present a copy of the amendment to the House of Representatives as soon as possible after the commencement of the next session of Parliament.”

59 Section 150 amended (Obligation to prepare, present, and publish annual report)

(1) In section 150(1)(a), replace “at” with “as soon as practicable after”.

(2) Repeal section 150(2).

60 New section 150A inserted (Special annual reporting requirements)

After section 150, insert:
“150A Special annual reporting requirements

Section 150 is subject to subpart 1 of Part 5 of the Public Finance Act 1989, which sets out special reporting requirements for newly established entities and entities that are disestablished.”

61 Section 151 amended (Form and content of annual report)

(1) In section 151(1)(b), delete “service”.
(2) Replace section 151(1)(c) with:
- “(c) the annual financial statements for the entity in accordance with section 154; and”.
(3) After section 151(1), insert:
- “(1A) However, subsection (1)(b) does not apply unless the Crown entity supplied 1 or more reportable classes of outputs in that financial year.
- “(1B) An annual report may contain end-of-year performance information that the Crown entity is required to prepare under section 19A of the Public Finance Act 1989.”
(4) In section 151(2), replace “against the intentions, measures, and standards set out in the statement of intent prepared at the beginning of the financial year” with “of the entity's progress in relation to its strategic intentions as set out in the most recent statement of intent”.

62 Section 152 amended (Disclosure of payments in respect of members, committee members, and employees)

(1) In section 152(1), delete “or, in the case of a Crown entity group, for each Crown entity in the group”.

(2) In section 152(1)(a), delete “(or entities in the group, as the case may be)”.

(3) In section 152(1)(b), delete “(or entities in the group, as the case may be)”.
(4) After section 152(1), insert:
- “(1A) Despite section 156A, the annual report of a Crown entity that has 1 or more subsidiaries must include the information specified in subsection (1) in respect of each subsidiary as well as in respect of the Crown entity.”

63 Section 153 replaced (Form and content of statement of service performance)

Replace section 153 with:
“153 Form and content of statement of performance

A statement of performance must, in relation to a Crown entity and a financial year,—

“(a) be prepared in accordance with generally accepted accounting practice; and

“(b) describe each reportable class of outputs for the financial year; and

“(c) include, for each reportable class of outputs identified in the entity's statement of performance expectations for the financial year,—

“(i) the standards of delivery performance achieved by the entity, as compared with the forecast standards included in the entity's statement of performance expectations for the financial year; and

“(ii) the actual revenue earned and output expenses incurred, as compared with the expected revenues and proposed output expenses included in the entity's statement of performance expectations for the financial year.”

64 Section 154 amended (Annual financial statements)

Replace section 154(1) and (2) with:
- “(1) As soon as practicable after the end of each financial year, a Crown entity must prepare financial statements in relation to the entity for that financial year.”

65 Section 155 amended (Statement of responsibility)

(1) In section 155(a) and (c), delete “service”.
(2) After section 155(c), insert:
- “(ca) contain a statement of the signatories' responsibility for any end-of-year performance information provided by the Crown entity under section 19A of the Public Finance Act 1989, whether or not that information is included in the Crown entity's annual report; and”.

66 Section 156 replaced (Audit report)

Replace section 156 with:
“156 Audit report

“(1) A Crown entity must forward to the Auditor-General,—

“(a) within 3 months after the end of each financial year,—

“(i) the Crown entity's annual financial statements and statement of performance (if applicable); and

“(ii) any end-of-year performance information that the Crown entity is required to provide under section 19A of the Public Finance Act 1989; and

“(iii) any other information that the Auditor-General has agreed, or is required, to audit; and

“(b) the Crown entity's annual report in a timely manner to enable the Auditor-General to review that report before providing the audit report required under subsection (2)(b).

“(2) The Auditor-General must—

“(a) audit the statements and information referred to in subsection (1)(a); and

“(b) provide an audit report to the Crown entity within 4 months after the end of each financial year.”

67 New sections 156A and 156B and cross-heading inserted

After section 156, as inserted by section 66, insert:
“Application of this subpart to Crown entity groups
“156A Application of this subpart to Crown entity groups

“(1) A Crown entity (entity A) that is a member of a Crown entity group need not comply with this subpart except as required by this section and section 156B.

“(2) Entity A must prepare a statement or report under this subpart if, at the relevant time,—

“(a) entity A has 1 or more subsidiaries; and

“(b) entity A is not a subsidiary of another Crown entity.

“(3) If entity A is required by this section to prepare a statement or report, this subpart—

“(a) must be read as if it required the statement or report to include consolidated information in respect of the Crown entity group comprising entity A and its subsidiaries, rather than information in respect of entity A only; and

“(b) otherwise applies with any necessary modifications.

“(4) In this section,—

“relevant time, in relation to a statement or report, means—

“(a) the end of the period to which the statement or report relates; or

“(b) if the statement or report relates to a period that includes a future period, the time when the statement or report is provided to entity A's responsible Minister

“statement or report means any of the following:

“(a) statement of intent (see section 139):

“(b) statement of performance expectations (see section 149C):

“(c) forecast financial statements (see section 149G):

“(d) annual report (see section 150):

“(e) statement of performance (see section 153):

“(f) annual financial statements (see section 154)

“subsidiary means a subsidiary within the meaning of paragraph (b) or (c) of the definition of Crown entity group in section 136(1).
“156B Minister of Finance may require additional reporting

“(1) Despite section 156A, the Minister of Finance may, by notice in writing, require entity A or any other member of a Crown entity group (a specified entity) to prepare 1 or more statements or reports under this subpart as if it were not a member of a Crown entity group.

“(2) A notice must specify—

“(a) which statements and reports are required; and

“(b) the financial years or other period (which may be until further notice) for which each statement or report is required.

“(3) Before issuing a notice, the Minister of Finance must—

“(a) consider the operations and functions of the specified entity; and

“(b) consult the responsible Minister for the parent Crown entity of the Crown entity group to which the specified entity belongs; and

“(c) be satisfied that each statement or report is necessary or desirable to enhance public accountability of the specified entity.

“(4) If a specified entity is required under this section to prepare a statement or report, this subpart applies with any necessary modifications.”

68 Section 157 replaced and cross-heading inserted

Replace section 157 with:
“Multi-parent subsidiaries: exemptions from reporting requirements under this subpart
“157 Multi-parent subsidiaries part-owned by school board of trustees or tertiary education institution

“(1) This section applies to a multi-parent subsidiary if any of its parent Crown entities is a school board of trustees or tertiary education institution.

“(2) The Minister of Finance may, by notice in writing, exempt the multi-parent subsidiary from the requirement to prepare a statement or report (as defined in section 156A(4)) if the Minister is satisfied that—

“(a) it would be unduly onerous for the multi-parent subsidiary to comply with the requirement; and

“(b) the exemption is consistent with maintaining reasonable public accountability of the multi-parent subsidiary.

“(3) A notice must specify—

“(a) which statements or reports are not required; and

“(b) the financial years or other period (which may be until further notice) for which each statement or report is not required.

“(4) The exemption may be granted subject to any terms or conditions the Minister thinks fit (which may include a condition that a parent Crown entity must, in its equivalent statement or report, include certain information about the multi-parent subsidiary).

“(5) As soon as practicable after granting an exemption, the Minister must—

“(a) notify the exemption, and its terms and conditions, in the Gazette; and

“(b) present to the House of Representatives a statement of the exemption and its terms and conditions.
“157A Other multi-parent subsidiaries

“(1) This section applies to a multi-parent subsidiary other than a multi-parent subsidiary to which section 157 applies.

“(2) The multi-parent subsidiary need not comply with this subpart except as required under this section.

“(3) The Minister of Finance may, by notice in writing, require the multi-parent subsidiary to prepare 1 or more statements or reports (as defined in section 156A(4)).

“(4) A notice must specify—

“(a) which statements or reports are required; and

“(b) the financial years or other period (which may be until further notice) for which each statement or report is required.

“(5) Before issuing a notice, the Minister of Finance must—

“(a) consider the operations and functions of the multi-parent subsidiary; and

“(b) consult the responsible Minister for each parent Crown entity of the multi-parent subsidiary; and

“(c) be satisfied that each statement or report is necessary or desirable to enhance public accountability of the multi-parent subsidiary.”

69 Section 163 amended (Restrictions on giving of guarantees and indemnities)

In section 163(1), after “give a guarantee to, or indemnify, another person”, insert “, or amend the terms of any such guarantee or indemnity,”.

70 Section 170 replaced (Power to require output agreement)

Replace section 170 with:
“170 Responsible Minister may set standards, terms, and conditions in respect of certain classes of outputs

A responsible Minister may set standards, terms, and conditions in respect of any reportable class of outputs that a Crown entity proposes to supply.”

71 Schedule 1 amended

In Schedule 1, table in Part 3, alongside the item relating to the Electricity Authority, in the column relating to section 165 of the Crown Entities Act 2004, insert a tick.

72 Consequential amendments arising from amendments to Crown Entities Act 2004 made by this Part

The enactments listed in Schedule 3 are consequentially amended in the manner indicated in that schedule.

s 39

Schedule 1AAA
Application, savings, and transitional provisions relating to amendments made to Act after 1 January 2013

ss 10A, 199A

1 Interpretation

In this schedule,—

2013/14 financial year, in relation to a Crown entity, means the entity's financial year that includes 30 June 2014

2014/15 financial year, in relation to a Crown entity, means the entity's financial year that includes 30 June 2015

amendment Act means the Crown Entities Amendment Act 2013

commencement date means the date on which the amendment Act comes into force

new provision means a provision of this Act as amended or inserted by the amendment Act, and new section has a corresponding meaning

old provision means a provision of this Act as in force immediately before its amendment or repeal by the amendment Act, and old section has a corresponding meaning.

2 Application of new sections 150 and 151 (annual reports)

New sections 150(3), (5), and (6) and 151(1)(f), as inserted on the commencement date by section 36 of the amendment Act,—

(a) apply to an annual report for the 2013/14 financial year and subsequent financial years; but

(b) do not apply to an annual report for any prior financial year.

3 Amendments made on 1 July 2014 apply to 2014/15 financial year and subsequent financial years

(1) This clause applies to any provision of this Act that—

(a) relates to a financial year; and

(b) is amended on 1 July 2014 by Part 2 of the amendment Act.

(2) The provision must,—

(a) to the extent that it relates to the 2014/15 financial year and subsequent financial years, be treated as if it were amended on the commencement date rather than on 1 July 2014; and

(b) to the extent that it relates to previous financial years, be treated as if it were not amended on 1 July 2014.

4 First statement of intent under new section 139(1) must relate to 2014/15 financial year and subsequent financial years

(1) A Crown entity must provide to its responsible Minister, under new section 139(1) (as inserted by section 49 of the amendment Act), information on its strategic intentions for the 2014/15 financial year and at least the following 3 financial years.

(2) A Crown entity must comply with subsection (1) not later than the day on which it provides, to its responsible Minister, its annual report for the 2013/14 financial year.

s 42

Accident Compensation Act 2001 (2001 No 49)

In section 6(1), definition of Crown entity subsidiary, replace “section 8(2)” with “the second column of section 7(1)(c)”.

In section 229(3), replace “section 270” with “section 103 of the Crown Entities Act 2004”.

In section 331(3)(b), replace “section 270” with “section 103 of the Crown Entities Act 2004”.

In section 345(2), replace “section 270” with “section 103 of the Crown Entities Act 2004”.

Crown Research Institutes Act 1992 (1992 No 47)

In section 2, definition of Crown entity subsidiary, replace “section 8(2)” with “the second column of section 7(1)(c)”.

In section 2, definition of parent Crown Research Institute, replace “section 8(1)” with “section 8”.

Education Act 1989 (1989 No 80)

In section 78NA(2), replace “to the extent of its powers” with “to the extent that it is reasonably able to do so”.

In Schedule 5A, second column, item relating to section 107, replace “Whole of government directions” with “Directions under section 107”.

In Schedule 6, heading above clause 1G, replace “Whole of government directions” with “Directions under section 107 of Crown Entities Act 2004”.

In Schedule 6, heading to clause 1G, replace “Whole of government directions” with “Directions under section 107 of Crown Entities Act 2004”.

In Schedule 6, clause 1G(1), delete “whole of government”.

Gambling Act 2003 (2003 No 51)

In section 242(2), delete “under subsection (1)”.

Housing Corporation Act 1974 (1974 No 19)

In section 2, definition of Crown entity subsidiary, replace “section 8(2)” with “the second column of section 7(1)(c)”.

In section 3C(1), after “prepare”, insert “or review”.

In section 3C(1), replace “2 months” with “3 months”.

New Zealand Public Health and Disability Act 2000 (2000 No 91)

In section 6(1), definition of Crown entity subsidiary, replace “section 8(2)” with “the second column of section 7(1)(c)”.

New Zealand Superannuation and Retirement Income Act 2001 (2001 No 84)

In section 59(4), replace “section 8” with “the second column of section 7(1)(c)”.

Replace section 64(2) and (3) with:

“(2) Despite anything to the contrary in the Crown Entities Act 2004, the Minister—

“(a) must not give a direction that is inconsistent with the Guardians’ duty to invest the Fund on a prudent, commercial basis, in accordance with section 58; and

“(b) must not give a direction to the Guardians in respect of the Fund except in accordance with this section.”

Public Trust Act 2001 (2001 No 100)

In section 4, definition of Crown entity subsidiary, replace “section 8(2)” with “the second column of section 7(1)(c)”.

Radio New Zealand Act 1995 (1995 No 52)

In section 2, definition of Crown entity subsidiary, replace “section 8(2)” with “the second column of section 7(1)(c)”.

s 72

Accident Compensation Act 2001 (2001 No 49)

In section 271(3)(c), delete “and to the next 2 following years”.

After section 271(3), insert:

“(3A) A service agreement entered into under this section must—

“(a) contain the information that is required in a statement of performance expectations under section 149E(1) and (2) of the Crown Entities Act 2004; and

“(b) comply with generally accepted accounting practice (as defined in section 2(1) of the Public Finance Act 1989); and

“(c) set out—

“(i) assumptions to be relied on by the Corporation in relation to assessing the cost of capital:

“(ii) matters relating to the provision of services by the Corporation (including provision through its Crown entity subsidiaries on a commercial basis), including pricing information, forecasts of revenue and expenditure, and how the revenue and expenditure will be allocated among the Accounts:

“(iii) the Corporation's functions and duties in relation to the management of each Account:

“(iv) procedures, conditions, restrictions, or other provisions to be complied with by the Corporation in the performance of functions or duties in relation to the management of each Account:

“(v) the Corporation's investment statement, being a statement of policies, standards, and procedures that must include a statement relating to ethical investment for avoiding prejudice to New Zealand's reputation as a responsible member of the world community; and

“(d) be published, as soon as practicable after it is signed in accordance with subsection (3), on an Internet site maintained by or on behalf of the Corporation.”

Replace section 271(5) and (6) with:

“(5) The Minister must present a copy of the service agreement to the House of Representatives—

“(a) in the same document as the Corporation's annual report for the previous financial year (see section 150 of the Crown Entities Act 2004); or

“(b) in any other document presented on or before the date on which the annual report described in paragraph (a) is presented.

“(6) A service agreement entered into under this section must be treated, for the purposes of section 49 of the Crown Entities Act 2004, as if it were a statement of performance expectations, and the Corporation need not prepare a separate statement of performance expectations under that Act.”

In section 272(2), replace “sections 141 and 142” with “section 141”.

Repeal section 272(2)(e) to (i).

Civil Aviation Act 1990 (1990 No 98)

Replace the heading to section 72F with “Restriction applying to statement of intent”.

Repeal section 72F(1) and (2).

Crown Research Institutes Act 1992 (1992 No 47)

In section 12(4), replace “138 to 157” with “138 to 157A”.

Education Act 1989 (1989 No 80)

Repeal section 159KE(1)(c).

In section 159KE(1)(d)(iii), delete “; and”.

Repeal section 159KE(1)(e).

In section 159KE(2), replace “section 141(1)(b), (e), and (f)” with “section 141(1) and (2)(a) to (c)”.

Repeal section 159KE(3).

In section 159KE(4), delete “and (e)”.

After section 159KE, insert:

“159KEA Statement of performance expectations

“(1) The statement of performance expectations that the Commission is required to provide to its responsible Minister under section 149I of the Crown Entities Act 2004—

“(a) must be consistent with the tertiary education strategy; and

“(b) may relate to more than 1 financial year.

“(2) The grouping of outputs in the statement of performance expectations must be done so that, in the case of outputs funded by appropriation, a group of outputs does not contain outputs funded from more than 1 appropriation in the Estimates.”

Repeal section 283C.

Government Superannuation Fund Act 1956 (1956 No 47)

Replace the heading to section 15N with “Forecast financial statements”.

In section 15N, replace “The statement of intent of the Authority prepared each financial year under Part 4” with “The forecast financial statements of the Authority prepared each financial year under section 149G”.

In section 93B(1A)(b), replace “statement of intent” with “forecast financial statements”.

Housing Corporation Act 1974 (1974 No 19)

In section 2, insert in their appropriate alphabetical order:

“annual financial statements means annual financial statements under section 154 of the Crown Entities Act 2004

“statement of performance expectations means a statement of performance expectations under section 149C of the Crown Entities Act 2004”.

In section 3C(2), replace “statements of intent” with “statements of performance expectations”.

In section 3C(3), replace “142” with “149E”.

Repeal section 30.

In section 30AA(a), replace “section 30” with “subpart 3 of Part 4 of the Crown Entities Act 2004”.

In section 30AA(b) and (c), delete “section 30 or”.

In section 40(2), replace “statement of intent” with “statement of performance expectations and annual financial statements”.

Maritime Transport Act 1994 (1994 No 104)

Repeal section 189(2)(h).

Replace the heading to section 436 with “Restriction applying to statement of intent”.

Repeal section 436(1) and (2).

New Zealand Antarctic Institute Act 1996 (1996 No 38)

Repeal section 9.

New Zealand Public Health and Disability Act 2000 (2000 No 91)

Repeal section 10(2A).

Repeal section 10(6).

Repeal section 21(3)(k).

New Zealand Superannuation and Retirement Income Act 2001 (2001 No 84)

Replace the heading to section 65 with “ Statement of performance expectations”.

In section 65, replace “statement of intent” with “statement of performance expectations”.

In section 68(d), replace “statement of intent” with “statement of performance expectations”.

New Zealand Tourism Board Act 1991 (1991 No 110)

Repeal section 8.

Repeal section 10.

Public Trust Act 2001 (2001 No 100)

Replace section 44(4) with:

“(4) Public Trust may include an agreement under subsection (1) in a statement of performance expectations prepared for the purpose of section 149C of the Crown Entities Act 2004.”

Transport Accident Investigation Commission Act 1990 (1990 No 99)

Replace section 6A(1) and (2) with:

“The Commission must include, in its statement of intent under section 139 of the Crown Entities Act 2004, policies and priorities in exercising its discretion with respect to the investigation of accidents and incidents.”

Legislative history
2 July 2013	Divided from State Sector and Public Finance Reform Bill (Bill 55–2) by committee of the whole House as Bill 55–3C
10 July 2013	Third reading
17 July 2013	Royal assent

This Act is administered by the State Services Commission and the Treasury.

Crown Entities Amendment Act 2013

Crown Entities Amendment Act 2013

Crown Entities Amendment Act 2013

Contents

1 Title

2 Commencement

3 Principal Act

Part 1Amendments coming into force on day after date of Royal assent

4 Section 7 amended (Meaning of Crown entity and categories of Crown entities)

5 New section 7A inserted (Meaning of multi-parent subsidiary)

“7A Meaning of multi-parent subsidiary

Example

6 Section 8 replaced (Meaning of parent Crown entity and Crown entity subsidiary)

“8 Meaning of parent Crown entity

7 Section 10 amended (Interpretation)

8 New sections 10A and 10B inserted

“10A Provisions affecting application of amendments to this Act

“10B Status of examples

9 Section 27 amended (Responsible Minister's role)

10 New section 27A and cross-heading inserted

“Monitor's role

“27A Monitor's role

11 Section 50 replaced (Functions must be performed efficiently, effectively, and consistently with spirit of service to public)

“50 Manner in which functions must be performed

12 Section 62 amended (When interests must be disclosed)

13 Section 64 amended (Who disclosure of interests must be made to)

14 Section 68 amended (Permission to act despite being interested in matter)

15 Section 78 amended (Board procedure)

16 Section 88 amended (Shareholding Ministers' role)

17 New section 88A and cross-heading inserted

“Monitor's role

“88A Monitor's role

18 Section 97 amended (Subsidiaries: rules applying to all Crown entities)

19 Section 98 amended (Subsidiaries: rules applying only to statutory entities)

20 Cross-heading above section 103 amended

21 Section 107 amended (Whole of government directions)

Example

22 Section 108 amended (Process for giving whole of government directions)

23 Section 109 amended (House of Representatives may resolve to disapply whole of government direction)

24 Section 110 amended (Obligation to give effect to direction)

25 Section 111 amended (Publication of whole of government direction)

26 Section 113 amended (Safeguarding independence of Crown entities)

27 Cross-heading above section 114 repealed

28 Section 114 amended (Crown entities must comply with directions given under statutory power of direction)

29 Section 115 amended (Procedure for all Ministerial directions)

30 New section 115A inserted (Review and expiry of all directions)

“115A Review and expiry of all directions

31 Section 122 replaced (Indemnities in relation to excluded act or omission)

“122 Indemnities in relation to excluded act or omission

32 Section 127 amended (Method of contracting)

33 Section 133 amended (Power to request information)

34 Section 135 amended (Members, office holders, and employees are officials)

35 Section 148 amended (Amendments to statement of intent by Crown entity)

36 Section 150 amended (Obligation to prepare, present, and publish annual report)

37 Section 151 amended (Form and content of annual report)

38 New section 199A inserted (Application, savings, and transitional provisions relating to amendments to Act)

“199A Application, savings, and transitional provisions relating to amendments to Act

39 New Schedule 1AAA inserted

40 Schedule 3 amended

41 Schedule 5 amended

42 Consequential amendments arising from amendments to Crown Entities Act 2004 made by this Part

Part 2Amendments coming into force on 1 July 2014

43 Section 27 amended (Responsible Minister's role)

44 Section 49 amended (Entity must act consistently with objectives, functions, statement of intent, and output agreement)

45 Section 88 amended (Shareholding Ministers' role)

46 Section 92 amended (Duty to act consistently with objectives, functions, statement of intent, and output agreement)

47 Section 136 amended (Interpretation for this Part)

48 Section 138 amended (Purpose of statement of intent)

49 Section 139 replaced (Obligation to prepare statement of intent)

“139 Obligation to prepare statement of intent

“139A Minister may require Crown entity to prepare new statement of intent at any time

“139B Minister may grant extension of time for, or waive, requirement to provide statement of intent

50 Section 140 amended (Statement of intent for newly established Crown entities)

51 Section 141 replaced (Content of statement of intent)

“141 Content of statement of intent

52 Sections 142 and 143 repealed

53 Section 144 amended (Application and term of statement of intent)

54 Section 145 amended (Ministerial involvement in statements of intent)

55 Section 146 amended (Process for providing statement of intent to responsible Minister)

56 Section 147 amended (Amendments to statement of intent by responsible Minister)

Part 1
Amendments coming into force on day after date of Royal assent

Part 2
Amendments coming into force on 1 July 2014

Schedule 1
New Schedule 1AAA inserted into principal Act

Schedule 1AAA
Application, savings, and transitional provisions relating to amendments made to Act after 1 January 2013

Schedule 2
Consequential amendments arising from amendments to principal Act that come into force on day after Royal assent

Schedule 3
Consequential amendments arising from amendments to principal Act that come into force on 1 July 2014