CCMAU Output Class Performance

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

Vote Crown Research Institutes

Crown company monitoring advice to the Minister of Research, Science and Technology (RS&T) and Minister for Economic Development.

This appropriation is limited to provision by CCMAU of ownership monitoring advice to, and management of issues on behalf of, the Minister of RS&T and the Minister for Economic Development in respect of the Ministers' responsibilities as shareholders in CRIs, REANNZ and NZVIF.[12]

Output Class Description

This output includes:

• advising the Minister of RS&T, the Minister for Economic Development and the Minister for SOEs on the strategic direction of CRIs, REANNZ, NZVIF and NZFF Fund respectively and the commercial and fiscal risks associated with Crown ownership
• providing advice that assists the Minister of RS&T, Minister for Economic Development and the Minister for SOEs to set ownership objectives and targets for CRIs, REANNZ, NZVIF and NZFF Fund
• advising the Minister of RS&T, Minister for Economic Development and the Minister for SOEs on the performance of CRIs, REANNZ, NZVIF and NZFF Fund against these objectives and targets
• advising the Minister for SOEs on the establishment and disestablishment of NZFF Fund
• providing policy advice on, and managing issues arising from, the ownership of CRIs, REANNZ, NZVIF and NZFF Fund including residual implementation issues
• managing, on behalf of the responsible Ministers, the appointment of CRI, REANNZ, NZVIF and NZFF Fund directors and monitoring the performance of those directors and boards, and
• assisting the responsible Minister in the formulation of shareholders' expectations in relation to the governance practices and structures companies adopt.

Maintaining and enhancing the Crown's ownership interest in these companies contributes to the efficient management of the Crown's assets and liabilities. The CRIs, NZVIF, REANNZ and NZFF Fund have an important role to play in the New Zealand innovation system, thereby contributing to improving New Zealand's overall economic performance.

Significant Work Completed During 2008/09

• Analysed and reported on each company's draft SCI/SOI and Strategic Plan so that shareholding Ministers were able to provide informed advice to boards.
• Completed quarterly performance reports for the June, September, December and March quarters, which were presented to Cabinet.
• Contributed to the 2009 Outline of Shareholder Expectations for CRIs and outlook letters (letters of expectations) for the CRIs and NZVIF.
• Provided a briefing to the incoming Minister of RS&T.
• Managed various company issues, and provided advice to Ministers on such issues.
• Continued to take a lead agency role in the International Network of Government Ownership Agencies (INGOA), including organising and chairing the annual meeting of members in October 2008.
• Hosted three core training programmes for recently appointed or aspiring directors.
• Hosted six professional development updates for existing Crown directors (two series of three workshops on board evaluation and governance in an economic downturn).
• Hosted a one‐day induction seminar for new CRI directors.
• Commissioned a new director appointment and board management database.
• 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:
  • the 2008/09 CRI appointment round, and
  • the level of director fees for 2008/09.

Actual 2008/09 output class expenditure was $77,000 or 7% under Supplementary Estimates budgets.