Vote State-Owned Enterprises

Crown company monitoring advice to the Minister for State-Owned Enterprises and other responsible Ministers.

This appropriation is limited to provision by CCMAU of ownership monitoring advice to, and management of issues on behalf of, the Minister for SOEs and other responsible Ministers in respect of the Ministers’ shareholder responsibilities.

Output Class Description

This output includes:

• advising the Minister for SOEs and other responsible Ministers on the strategic direction of SOEs; the commercial and fiscal risks associated with Crown ownership; proposals to establish and restructure SOEs; and the processes and outcomes of significant SOE divestments and acquisitions
• providing advice which assists Ministers to set ownership objectives and targets for SOEs
• monitoring and advising Ministers of SOEs' performance against these objectives and targets
• providing policy advice on, and managing issues arising out of, the ownership of SOEs, including residual implementation issues
• managing, on behalf of responsible Ministers, the appointment of SOE directors and monitoring the performance of those directors and boards, and
• assisting responsible Ministers 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 entities contributes to the efficient management of the Crown's assets and liabilities.

Significant Work Completed During 2008/09

• Analysed and reported on each company's draft SCI/SOI and Business Plan so that shareholding Ministers were able to communicate informed expectations to boards.
• Completed quarterly performance reports for the June, September, December and March quarters, which were presented to Cabinet.
• Provided a briefing to the incoming Minister for SOEs (and other responsible Ministers).
• Provided advice on the Government's response to the Commerce Select Committee's report on “Inquiry into Valuation Methodology and Practice for Valuing State-Owned Enterprises”.
• Provided advice on actions to enhance SOE performance and a proposed framework for engagement during the 2009 business planning round.
• Received notification of various company issues and provided advice to Ministers on such issues.
• Continued to take a lead agency role in the INGOA, including organising and chairing the annual meeting of members in October.
• Hosted three core training programmes for recently appointed or aspiring directors.
• Hosted six professional director 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 SOE 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 appointment rounds, and
  • the level of director fees for 2008/09.

Actual 2008/09 output class expenditure was $51,000 or 2% under Supplementary Estimates budgets.

The appropriation for this output class was increased by $100,000 in the Supplementary Estimates to cover the cost of monitoring an expanded New Zealand Railways Corporation (following the acquisition of KiwiRail).