CCMAU Output Class Performance

Statement of Objectives and Service Performance Section 45A of the Public Finance Act 1989

Vote State-Owned Enterprises

Significant work completed during the year

• Completed the 2006/07 SOE business planning round, which includes analysing and reporting on each company’s draft SCI and business plan so that shareholding Ministers are able to provide informed feedback to boards. The 2007/08 SOE business planning round was also substantially completed by 30 June 2007.
• Completed Crown Company Quarterly Performance reports for the June, September, December and March quarters, which were presented to Cabinet.
• Completed long-term hold owners’ reviews for New Zealand Post and Genesis; and substantially progressed the review of Kordia.
• Managed a number of company issues, and the provision of advice to Ministers on them, including:
  • progress on the facilitator’s review of the organisational and purchase arrangements supporting New Zealand’s weather, climate and environmental forecasting functions provided by MetService and NIWA
  • the evaluation, legislative support and other advice relating to the proposed merger between AgriQuality and Asure
  • a range of issues relating to Solid Energy, including snail preservation on the West Coast and land acquisition for potential lignite developments in Southland
  • Solid Energy’s joint venture arrangements in relation to the Spring Creek coal mine on the West Coast
  • Timberlands’ ongoing financial viability and the provision of a Letter of Comfort
  • assessment of a business case to revise Public Trust’s strategic direction to improve its financial viability
  • the acquisition by Kiwibank of a portfolio of existing mortgages, and the issuance of some Tier II capital
  • clarification of owners’ expectations over capital structure for Quotable Value
  • progress towards the completion of Genesis’ e3p project
  • Mighty River Power’s review of its participation in the Electricity and Gas Complaints Commission scheme
  • matters relating to Mercury Energy/Mighty River Power and the Muliaga case
  • issues around Transpower’s planned major upgrades
  • land issues affecting Landcorp and the subsequent wider land review and interim process for the disposal of land
  • Kordia’s proposed digital terrestrial television network investment and proposed acquisition of Orcon
  • the revision of RNZ’s charter and consideration of changes to its institutional form
  • assessment of TVNZ’s digital television content proposal
  • the second phase of TVNZ’s capital structure review and its five-year Strategic Plan
  • SOE executive remuneration and profitability in the context of the publication of SOE annual results.
• Conducted a pilot exercise on the potential use of private sector equity analysts to assess the value and projected performance of large SOEs.
• Carried out a review of corporate social responsibility and SOEs, including setting in train a process that will result in a more robust framework for SOE social responsibility in the future.
• Drafted a Cabinet paper for the Minister for SOEs on the wider issues relating to SOEs and the Commerce Act in the context of proposals to merge AgriQuality and Asure.
• Continued to take a “lead agency” role in the establishment of an international best-practice sharing network of organisations with a similar role to that of CCMAU including the completion of a website.
• Continued to participate actively in the wider governance officials’ forum.
• Hosted two core training programmes for recently appointed or aspiring directors.
• Hosted three networking functions and three professional director updates for existing Crown directors.
• Hosted a one-day induction seminar for new SOE directors.
• Managed expressions of interest from candidates wishing to be considered for Crown governance roles.
• Continued to provide assistance to other agencies regarding nominations.
• Provided advice to Ministers on a number of appointments and governance issues, including:
  • completion of two SOE appointment rounds and appointments and reappointments to a number of other companies and entities
  • the 2006/07 directors’ fees for SOEs and a number of other companies and entities
  • generic advice to boards on the mechanisms for paying directors’ fees and associated tax implications.