How we work

5. We intend to be open and transparent in the relationships that relate to the monitoring function. To this end we:

• have established a Memorandum of Understanding (MOU) with MBIE which sets out the roles and responsibilities of both agencies with respect to HNZC and TRC. It sets out that the relationship will be based on good faith and collaboration[1]
• have established an open and positive relationship with senior leaders at HNZC, including providing HNZC with the opportunity to comment on our advice to Ministers
• intend to initiate a relationship with the Board of HNZC, which has not previously been a feature of the monitoring relationship, and
• are in the process of developing relationships with the new Board of TRC and the Auckland Council, which is the other shareholder in TRC.

6. We have established a virtual team that spans advice on housing sector issues and monitoring of the housing entities. This means that Treasury advice on policy and monitoring is the responsibility of one manager (Ruth Isaac, Manager, Health and Housing) and a single deputy secretary (Cath Atkins, Deputy Secretary, Strategy, Change and Performance).[2] Decisions as part of the SHRP have the potential to significantly affect HNZC and TRC and we consider it important that advice on TRC and HNZC is consistent with SHRP decisions. This is discussed in more detail below.

7. You are responsible for appointments to the HNZC Board, and most of the members of the TRC Board (in conjunction with the Auckland Council). Treasury's Appointments and Governance team will administer the requisite processes on your behalf (along with another 54 boards across 9 other Ministerial portfolios).

8. While it is the Board of HNZC's responsibility to induct the Chief Executive, the Corporate Centre has agreed to provide an introduction to the State Sector for Mr Sowry and intend to use this introduction as the basis for a supportive ongoing relationship.

Working with you

9. You are the Responsible Minister for HNZC and TRC, although the Minister of Finance also has a formal role in relation to both of these entities. As the monitoring agency we report directly to you and the Minister of Finance on the performance and strategy of both entities. We also retain our role in advising the Minister of Finance. This means that we will also directly advise the Minister of Finance on non-monitoring related housing matters (for example, Budget related matters). Forwarding this information to you will be at the discretion of the Minister of Finance.

10. With the former Minister we were in the process of establishing regular meetings between the Minister of Housing, the Minister of Finance, and Treasury to discuss matters relating to the monitoring of HNZC. If you agree, we would like to set up a similar arrangement with you.

11. In the past the Minister of Housing has held monthly meetings with the HNZC Board Chair, and the Chief Executive and the Treasury or MBIE has also attended these meetings. We understand that one of these meetings has been scheduled with the Minister of Finance and the chair of HNZC's Board on 12 February.