What we do

The Treasury

At the Treasury our job is to help the Government to improve economic performance and manage scarce resources. All of this is focused on improving living standards for New Zealanders.

The Treasury has four main roles:

• We provide advice to improve the economic and fiscal conditions for high levels of economic growth and improved living standards.
• We monitor and manage the financial affairs of the Crown.
• We assess and test other agencies’ advice and proposals which have economic and financial implications.
• We provide leadership, with other central agencies, to develop a high-performing State sector.

The Treasury provides advice and services through nine output classes provided to the Minister of Finance through Vote Finance.

Crown Company Monitoring Advisory Unit (CCMAU)

CCMAU is responsible for maintaining and enhancing the Crown’s ownership interest in Crown research institutes (CRIs), State-owned enterprises (SOEs) and a number of Crown-owned companies and entities. CCMAU provides advice to relevant Vote Ministers through output classes under Vote Crown Research Institutes and Vote State-Owned Enterprises.

The Treasury/CCMAU relationship

CCMAU is a stand-alone unit within the Treasury. The Executive Director of the Unit is directly accountable to the Secretary to the Treasury for the Crown’s investment in CCMAU, and for CCMAU’s performance.

Minister’s foreword

The Treasury, as the Government’s lead economic and financial advisor, has a significant role to play in achieving our goal of transforming the New Zealand economy into a high-income, knowledge-based market economy which is both innovative and creative, and provides a unique quality of life for all New Zealanders.

This Annual Report outlines the contribution the Treasury has made over the 2005/06 year to support this central aim.

Over the past 12 months, the Treasury has continued its work to lift New Zealand’s economic growth, ensure a stable and sustainable macroeconomic environment, and improve public sector performance.

The Treasury has also made an important contribution to a number of Government initiatives such as the launch of the KiwiSaver scheme, the business tax review and the development of a single economic market with Australia.

Once again, the Government has received valuable Treasury support through its running of an effective Budget process. Budget 2006 was the first to be organised on the basis of the Government’s three key themes of Economic Transformation, Families – Young and Old and National Identity. The Treasury’s input was vital to ensuring the new process ran smoothly, and that departmental activities in the 2006/07 financial year will be closely aligned with Government objectives.

I look forward to working with the Treasury in 2006/07 to further progress the Government’s goals and raise living standards for New Zealanders.

Hon Dr Michael Cullen Minister of Finance

Highlights of our year

• Completed in-depth reviews of the justice, education, energy and health sectors and provided advice to Ministers.
• With the State Services Commission, provided advice and support to Ministers, departments and Crown entities on the provision of the new Crown Entities Act.
• Provided advice on transport and infrastructural issues.
• Provided advice on the Government’s commitments to the Rugby World Cup 2011, including negotiations with the New Zealand Rugby Union to develop incorporation documentation for the Tournament Management Vehicle to run the event.
• Negotiated a capital restructure with TVNZ, leading to the payment of a special dividend of $70 million.
• Produced and tabled in the House the first Statement on the Long-Term Fiscal Position.
• Completed the Supplementary Stabilisation Instruments Report, a review of policy instruments that could be used to supplement monetary policy, and held a follow-up Macro Policy Forum (both jointly with the Reserve Bank).
• Moved to electronic production of the Estimates of Appropriations via CFISnet.
• Completed a study of Auckland’s economic performance and provided a range of advice on Auckland issues, including transport.
• Contributed to the interdepartmental review of climate change policies.
• Led the coordination and development of legislation and further policy details for KiwiSaver.
• Provided advice on policy and budget priorities for the government themes of Economic Transformation and National Identity.
• Continued to investigate and identify critical issues for growth and apply this knowledge in policy advice for a range of areas including business taxation, innovation, infrastructure and quality of regulation.
• Launched the Development Centre, a comprehensive learning and development resource for all Treasury staff.