Both the Public Service Commission and the Treasury are involved in changes involving mixed public policy and commercial functions. The Public Service Commission has overarching responsibility for the for machinery of government. The Treasury is the government’s policy advisor on systems related to commercial performance, governance and structures.
The Treasury is involved with and may lead machinery of government reviews of commercial functions. Reviews are also led by agencies providing policy advice to responsible Ministers. A review may be a response to a change in the government’s ownership rationale for an entity and accordingly to what its “performance” should look like. However, because of the potential for cost and disruption, there should be a strong case for proposals to establish an entity, or to change an entity’s form.
Framework for organising mixed commercial and public policy functions
For further information about entity form choice refer to Guidance: Advising on organisational form - Te Kawa Mataaho Public Service Commission, which is designed to help public servants prepare advice on changes to structure and governance and work through possible options for organisational form, whether this is for an existing or new agency.