Outcome 3: Improved State Sector Performance
The Treasury provides advice to ensure the work of the State sector represents value for money in achieving the Government’s aims and objectives. This includes advice on policy and regulatory settings, the public management system, and the management of, and return on, the Crown’s assets and liabilities.
Our focus over the longer term is on ensuring we have a sustainable public sector that represents value for money in responding to the challenges set out in the Government’s themes.
We have chosen to focus initially on performance in the fiscally significant areas – health, education, justice, and welfare - as a matter of priority. In these areas we are developing measures of performance, and options to improve performance and manage longer-run fiscal pressures over time.
As stated in the previous outcome area, our move from four outcomes to three has resulted in a splitting of the former Efficient Management of the Crown’s Assets and Liabilities outcome (pages 31-35 of the Statement of Intent 2006-2009). The management of the Crown’s physical assets, ensuring that material risks and liabilities are managed, and ensuring that the government is getting an optimal return on investment held by SOEs, Crown research institutes, Crown companies and Crown financial institutions now contribute to this outcome area. The macroeconomic focus on managing the Crown’s balance sheet to maximise returns and minimise risk on financial assets and liabilities falls under the Stable and Sustainable Macroeconomic Environment outcome.
Key priorities for the 2006/07 year
In order to have more impact, we identified a clear set of priority areas for action for 2006/07. These were: in-depth performance analysis- health; EXG reviews; review of accountability documents; Crown entities; improving systems and processes; Budget design; and review of the public sector management model. In addition, we discuss the central agency outcome.
Output delivery
The results contributing to the Improved State Sector Performance outcome are delivered through the following outputs:
- Policy Advice: Financial and Public Sector Management Systems
- Policy Advice: Regulation and Vote Purchase, Ownership and Performance Issues.
And the results are partially delivered through:
- Management of Claims Against the Crown, Contractual Liabilities and Crown Properties
- Ownership and Performance of Crown Companies and Financial Institutions.
Detailed information relating to individual output classes can be found on pages 24-44.
Priority sectoral in-depth analysis of performance and value for money – health
Our overall focus in health is to help support decisions that take into account the long-term impact on the sector (in terms of policy and fiscal outcomes) and are informed by robust cost-effectiveness analysis. As such, we are seek to support the management of long-term health expenditure, whilst also focusing on improving the efficiency and effectiveness of the health sector as a way of ensuring value for money.
The output class that contributes to this result area is Policy Advice: Regulation and Vote Purchase, Ownership and Performance Issues.
| Key Results Wanted Over 2006/07 | Key Indicators of Success for 2006/07 | Achieved? |
|---|---|---|
| Decision-makers on health take actions that reflect the future impact (in terms of policy and fiscal outcomes), informed by robust cost-effectiveness analysis. | The 2007 health budget is delivered within agreed parameters. Budget documents note challenges in managing health expenditure growth. |
Yes. Budget decisions reflect concern for long-term fiscal outlook. The Budget Policy Statement noted challenges in managing the non-demographic drivers of health expenditure. The Fiscal Strategy Report focused on challenges in managing health expenditure growth, and the need to get the most from existing spending. |
| We raise public and health sector awareness of the long-term challenges in managing health expenditure growth. | The Treasury is invited to present at health sector conferences. | Yes. Officials participated in a number of speaking engagements in the health sector, including the Health Leaders’ Conference and Paying for Tomorrow’s Health. |
| Ministers acknowledge and promote debate on the challenges in managing health expenditure growth. | Ministers noted long-term fiscal challenges in health in speeches to sector conferences, and to wider audiences. | |
| Ministers are confident of returns on health investments and of improving health sector performance. | The Treasury is invited to bring long-term fiscal and value-for-money perspectives to Ministry of Health advice. | Yes. The Ministry of Health invited Treasury perspectives on future work to progress the Primary Health Care Strategy. |
| The Cabinet Committee on Government Expenditure and Administration (EXG) is supported in its expenditure review of the health sector. | There was support for the EXG health review, including advice on health service reviews, establishment of health targets, and productivity. |
EXG reviews – implementation of capital expenditure and central agency reviews, new reviews on SOI process
The result we were looking to achieve in this area is improvement in State sector performance through greater central agency leadership and activity, individually and severally, on key government priorities and ownership issues.
The output class that contributes to this result area is Policy Advice: Regulation and Vote Purchase, Ownership and Performance Issues.
| Key Results Wanted Over 2006/07 | Key Indicators of Success for 2006/07 | Achieved? |
|---|---|---|
| Departmental Statements of Intent (SOIs) are reviewed. | The EXG report is completed with specific recommendations to improve the engagement between Ministers and departments. Updated guidance is issued and workshops with departments are conducted. |
Yes.
|
| There is a central agency review of performance. | There is an agreed central agency definition of performance and focus on areas where central agencies can make the biggest impact on and contribution to the achievement of government priorities by working together differently. | Yes. The report has been completed. Processes have been established to implement key findings. New processes are now in operation. |
| There is a review of capital asset management. | An EXG report is completed on the review of capital asset management in the State sector with specific recommendations for the development of the capital asset management regime. | Yes. |
