Explanatory note

The purpose of this Supplementary Order Paper is to remove clauses 6 and 7 from the Mixed Ownership Model Bill. These clauses would exclude the mixed ownership model companies from the coverage of the Ombudsmen Act 1975 and the Official Information Act 1982, respectively.

In their evidence to the Finance and Expenditure Select Committee, the Ombudsmen argued persuasively that there are no valid grounds to exclude the mixed ownership model companies from the coverage of these Acts and gave strong reasons why they should remain within the coverage of these Acts. They concluded: “In our view, any possible advantage that may be seen in the MOM companies being removed from the Ombudsmen’s jurisdiction under the OA and OIA appears to be minimal, if not illusory, and needs to be balanced against the public interest in maintaining their accountability to the public of New Zealand, so long as the Crown retains a majority interest in them. We see no reason in principle for their removal, particularly given the potential removal of other accountability requirements.”