Legislation Administered by the Treasury

Page updated 2 Nov 2007

This page provides details of legislation administered by the Treasury including the Public Finance Act 1989.

The Treasury administers two of the three major statutes that establish the legislative framework for the public sector financial management system:

• Public Finance Act 1989
• State-Owned Enterprises Act 1986

The third statute is the State Sector Act 1988, which is administered by the State Services Commission.

Public Finance (State Sector Management) Bill and Changes to Legislation

Parliament passed the Public Finance (State Sector Management) Bill on 16 December 2004 and four resulting acts received Royal Assent on 21 December 2004. These include:

• Public Finance Amendment Act 2004
• State Sector Amendment Act 2004
• Crown Entities Act 2004
• State-owned Enterprises Amendment Act 2004.

The Acts came into force on 25 January 2005. There are several transitional provisions that for example apply specific parts from the 2005/06 financial year.

New Zealand Acts can be viewed free of charge at http://www.legislation.govt.nz/.

The full list of legislation administered by the Treasury includes:

Budget legislation administered during the year:

• Appropriation Act(s)
• Imprest Supply Act(s)
• Bank of New Zealand Act 1988
• Crown Entities Act 2004
• Crown Forest Assets Act 1989
• Crown Research Institutes Act 1992
• Export Guarantee Act 1964
• Farm and Fishing Vessel Ownership Savings Schemes (Closure) Act 1998
• Finance Acts (Various)
• Government Superannuation Fund Act 1956
• Hawkes Bay Earthquake Act 1931
• Institute of Chartered Accountants of New Zealand Act 1996
• International Finance Agreements Act 1961
• National Expenditure Adjustment Act 1932
• National Provident Fund Restructuring Act 1990
• National Savings Act 1940
• New Zealand Council Planning Dissolution Act 1991
• New Zealand Government Property Corporation Act 1953
• New Zealand Railways Corporation Restructuring Act 1990
• New Zealand Railways Staff Welfare Society Dissolution Act 1999
• New Zealand Superannuation and Retirement Income Act 2001
• Overseas Investment Act 2005
• Post Office Bank Act 1987
• Public Audit Act 2001
• Public Finance Act 1977
• Rural Banking and Finance Corporation of New Zealand Act 1989
• Southland Electricity Act 1993
• State Insurance Act 1990
• State Owned Enterprises Act 1986
• State Owned Enterprises (AgriQuality Limited and Assure New Zealand Limited) Act 2007.
• Superannuation Schemes Act 1989
• Tourist Hotel Corporation of New Zealand Act 1989
• Treasurer (Statutory References) Act 1997
• Delegated legislation:
• Bank of New Zealand Order 1989
• Cityline (NZ) Vesting Order 1992
• Crown Entities (Financial Powers) Regulations 2005
• Electricity Industry Reform Act Commencement Orders (Various)
• Export Guarantee Amendment Act Commencement Order 1990
• Finance Acts Orders (various)
• International Finance Agreements Amendment Act Commencement Order 1978
• National Provident Fund (Approval of Amendments to Restructuring Proposal) Order 1993
• National Savings Investment Account Regulations (Various)
• New Zealand Railways Corporation Restructuring Act Orders (various)
• New Zealand Railways Staff Welfare Society Dissolution Act
• Commencement Order 1999
• Overseas Investment Regulations (various)
• Post Office Bank Amendment Act Orders (various)
• Public Audit (West Coast Development Trust) Order 2002
• Public Finance Act  Regulations (Various)
• State-Owned Enterprises Orders (Various)
• Tourist Hotel Corporation of New Zealand Act Commencement Order 1990
• Tower Corporation Act Commencement Order 1990

Public Finance Act 1989 (PFA)

The Public Finance Act provides a framework for Government financial activity and expenditure of public money.  The PFA:

• provides the basis for the appropriation and management of public resources;
• specifies how the Crown, government departments and Crown entities report to Parliament on their intentions and results;
• requires an appropriation by Act of Parliament for all expenditure of public money;
• determines the way Parliament votes appropriations to Ministers; and
• makes provision for banking, investing and borrowing arrangements.

State-Owned Enterprises Act 1986

Where government services may be managed as commercial operations, the State-Owned Enterprises Act allows the government to provide these services through a similar organisational form as private sector enterprises.

State-owned enterprises (SOEs) have been established as Crown companies charged with achieving a commercial return on the Government's equity investment.

State Sector Act 1988

The State Sector Act establishes the accountability relationship between departmental chief executives and their Ministers.  Chief executives are appointed for a fixed term. They are responsible for employing their own staff under similar conditions to those applying in the private sector.

The Act devolves responsibility to chief executives for running their departments and for managing the resources allocated to those departments, with minimal central input control.

The State Sector Act 1988 is administered by the State Services Commission.