Nature and Scope of Functions
The Treasury is Government's leading economic, financial and regulatory advisor. Our job is to help the Government improve New Zealand's overall economic performance, and to increase the living standards of New Zealanders, through the provision of high-quality advice and support. Like other government agencies, the Treasury manages its work programme through a focus on key outcomes that support government priorities.
Our main services are:
- providing advice on economic, financial and regulatory matters, including through the National Infrastructure Unit
- monitoring and managing the financial affairs of the Crown, including managing the Crown's debt through the New Zealand Debt Management Office
- supporting New Zealand's economic performance through the provision of services through the Export Credit Office, Crown Wholesale Guarantee Facility and the Deposit Guarantee Scheme
- assessing the economic and financial implications of other government agencies' proposals, and
- working with the Department of Prime Minister and Cabinet and the State Services Commission to lead improvements in State sector management and performance.
The Treasury provides advice and services through 14 output classes provided to the Minister of Finance and one output class provided to the Minister for Infrastructure under Vote Finance.
Legislation we administer
The Treasury currently administers around 33 pieces of legislation plus the Appropriation and Imprest Supply Acts relating to each financial year, and various Finance Acts, on behalf of the Government. Most significant of these are the Public Finance Act 1989 and the State-Owned Enterprises Act 1986 (http://www.treasury.govt.nz/abouttreasury/legislation).
The Public Finance Act 1989 provides the platform for the advisory roles expected of us by the Government. The Treasury's scope includes an interest in institutions, macroeconomic performance and structural policy issues and financial advice to the Government.
Outcomes we contribute to
As the Government's lead economic, financial and regulatory advisor, the Treasury contributes to higher living standards by providing sound and timely advice to the Government on three outcomes. The relationship between these output classes and our three outcome areas is illustrated in the diagram on page 6.
- Improved economic performance
Increasing incomes and living standards for New Zealanders.
- A stable and sustainable macroeconomic environment
Enhancing economic growth by enabling individuals, businesses and the Government to plan more effectively for the longer term. We achieve this through low and stable inflation rates, predictability in tax and spending, and minimising unnecessary volatility in aggregate output (GDP).
- Improved State sector performance
Ensuring the State sector provides well-targeted, effective and cost-efficient services to the public. The Treasury works closely with the State Services Commission and the Department of Prime Minister and Cabinet to lead the drive for improved wider State sector agency, policy and system performance.
Outputs we deliver
The Treasury delivers a range of policy advice, financial forecasting and reporting, administration and management outputs. These fall under the output classes listed below for the 2009/10 year. The following simplified diagram shows the relation- ship between our 15 output classes, our three outcomes and the three groups through which we manage the Treasury's work. The complex linkages between the work undertaken in the three outcomes is not represented in this diagram.
Rather than providing policy advice on all fiscal and economic issues, the Treasury focuses on issues with regulatory or policy implications that have a significant or pervasive impact on the performance of the economy as a whole.
The Crown Company Monitoring Advisory Unit (CCMAU)
CCMAU is a stand-alone unit within the Treasury. This unit provides ownership, governance and performance advice under two output class appropriations:
- Crown company monitoring advice to the Minister of Research, Science and Technology and the Minister for Economic Development (Vote Crown Research Institutes), and
- Crown company monitoring advice to the Minister for State-Owned Enterprises and other Responsible Ministers (Vote State-Owned Enterprises).
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.