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Glossary of Terms


The Crown (including departments) cannot spend any public money, or incur any expenses without the authority of Parliament. This longstanding feature of our constitutional arrangements is enshrined in the Constitution Act 1986 and the Public Finance Act 1989. Such an authority is generally called an appropriation, and the Government and its departments must spend money (including contracting) within the relevant appropriation.


The definition of Crown in the Public Finance Act 1989 is used in these guidelines.

“Crown” or “Her Majesty”

  1. Means Her Majesty the Queen in right of New Zealand; and
  2. Includes all Ministers of the Crown and all departments; but
  3. Does not include –
    1. An Office or Parliament; or
    2. A Crown entity; or
    3. A State enterprise named in the First Schedule to the State-Owned Enterprises Act 1986.”

Crown entity

Corporate bodies legally separate from the Crown, but subject to a measure of control by the Crown (e.g. ACC and District Health Boards). Does not include State Owned Enterprises. Defined by listing on the 4th schedule to the Public Finance Act 1989, or being a subsidiary of an organisation listed.


An organisation that is part of the Crown (e.g. Ministry of Foreign Affairs & Trade, Department of Labour).

“Good employer” practices

Compliance with relevant employment relations and human rights legislation[11] as well as fair and ethical practices, such as:

  • positive relationships with unions in the contractor’s trade or industry;
  • participatory mechanisms for employees, in addition to participation in matters such as health and safety;
  • observance of EEO principles and opportunities;
  • work/life balance policies;
  • provision of training and development opportunities; and
  • ethics and integrity.


A “factor of production” used to produce an output (e.g. staff time, travel, telephone calls, computer equipment, rental accommodation).


“Non-Government organisation”. In this guide unless context requires otherwise “NGO” encompasses:

  • community or voluntary organisations;
  • Maori iwi and hapu organisations;
  • for-profit organisations where Government organisations contract with them for the delivery of outputs


Defined in the Public Finance Act 1989 as the “impacts on, or consequences for the community of the outputs or activities of the Government”.


Goods or services produced.


  • [11]This includes the Employment Relations Act 2000, Human Rights Act 1993, Minimum Wage Act 1983, Equal Pay Act 1972, Wages Protection Act 1983, Holidays Act 1981, Parental Leave and Employment Protection Act 1987, Volunteers Employment Protection Act 1973, Health and Safety in Employment Act 1992, Machinery Act 1950, Hazardous Substances and New Organisms Act 1996.
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