New Zealand Treasury
Encyclopedia
The New Zealand Treasury (in Māori
, Kaitohutohu Kaupapa Rawa) is a public sector organisation
and the Government’s lead advisor on economic and financial policy. Its role is to help the Government improve economic performance and manage scarce resources. The Treasury has four main functions:
The Minister of Finance
, Bill English
, is the Minister responsible for the Treasury. The current Secretary to the Treasury and Chief Executive is John Whitehead
.
However, the most dramatic change to the role of the Treasury came in the 1950s when the department began to develop its role as economic advisor to the Government. The Treasury “hit the spotlight” in this role during a wave of far-reaching economic reforms in the 1980s and early 1990s. This period also coincided with a general shift towards higher scrutiny of government activity and performance, making the Finance portfolio and Treasury operations more transparent.
Since the 1950s, the Treasury has evolved from being a control agency to a “central agency”. During this time, departments have become largely free to manage their own resources, with the Treasury’s role being to provide central agency leadership, coordination and monitoring.
Today the Treasury employs just over 300 people, is the Government’s lead advisor on economic and financial policy, and has the overall vision of helping governments achieve higher living standards for New Zealanders.
The 1988 reforms of the Government’s financial management led to its establishment with the aim of improving the management of the Government’s debt portfolio.
, Crown Entities
, and Crown Research Institutes
. The Crown is assisted in the running of SOEs and other Crown-owned companies by the Crown Ownership Monitoring Unit or COMU within Treasury.
Maori language
Māori or te reo Māori , commonly te reo , is the language of the indigenous population of New Zealand, the Māori. It has the status of an official language in New Zealand...
, Kaitohutohu Kaupapa Rawa) is a public sector organisation
State sector organisations in New Zealand
Public sector organisations in New Zealand include the State sector plus the organisations of local government.Within the State sector lies the State services, and within this, lies the core Public service....
and the Government’s lead advisor on economic and financial policy. Its role is to help the Government improve economic performance and manage scarce resources. The Treasury has four main functions:
- Providing advice to improve the economic and fiscal conditions for high levels of economic growth and improved living standards.
- Monitoring and managing the financial affairs of the Crown.
- Assessing and testing other agencies’ advice and proposals which have economic and financial implications.
- Providing leadership, with other central agencies, to develop a high-performing State sector.
The Minister of Finance
Minister of Finance (New Zealand)
The Minister of Finance is a senior figure within the government of New Zealand. The position is often considered to be the most important Cabinet role after that of the Prime Minister....
, Bill English
Bill English
Simon William "Bill" English is the Deputy Prime Minister, Minister of Finance and Minister of Infrastructure of New Zealand.English entered parliament in 1990 as a National party MP representing the Wallace electorate...
, is the Minister responsible for the Treasury. The current Secretary to the Treasury and Chief Executive is John Whitehead
John Whitehead (New Zealand)
John H. Whitehead, CNZM, is a former Secretary of the New Zealand Treasury, having been appointed in April 2003. He succeeded Alan Bollard.-Early career:...
.
History
The Treasury is one of New Zealand’s oldest institutions, having been first established in 1840. Initially the Treasury consisted of just a few officials responsible for managing the Government’s day-to-day financial affairs. In the 1920s the department took on a supervisory role over other departments’ spending and oversight of government borrowing.However, the most dramatic change to the role of the Treasury came in the 1950s when the department began to develop its role as economic advisor to the Government. The Treasury “hit the spotlight” in this role during a wave of far-reaching economic reforms in the 1980s and early 1990s. This period also coincided with a general shift towards higher scrutiny of government activity and performance, making the Finance portfolio and Treasury operations more transparent.
Since the 1950s, the Treasury has evolved from being a control agency to a “central agency”. During this time, departments have become largely free to manage their own resources, with the Treasury’s role being to provide central agency leadership, coordination and monitoring.
Today the Treasury employs just over 300 people, is the Government’s lead advisor on economic and financial policy, and has the overall vision of helping governments achieve higher living standards for New Zealanders.
Role
Specific areas of work undertaken by the Treasury include:- advice on the government’s economic strategy and macroeconomic policies
- advice on financial and public sector management systems in use across the Crown
- advice on tax strategy, including the objectives of the tax system and the choice and mix of taxes
- advice on Budget strategy and the design of the Budget process. This includes managing the Budget initiatives process and producing the Budget documents
- preparation and publication of macroeconomic, tax revenue and fiscal forecasts, and monitoring of the domestic and international economies
- preparation and publication of monthly and annual consolidated Crown financial statements
- management of the Crown’s debt portfolio and associated financial investments
- management of commercial, contractual and Treaty of Waitangi-related claims against the Crown
- advice on the Crown’s ownership interests in Crown companies including state-owned enterprises (SOEs), Crown financial institutions and Air New Zealand
- advice on policy interventions, departmental votes and Crown entities to ensure the state’s resources and powers are used effectively to achieve the desired results.
List of Secretaries to the Treasury
The Secretary to the Treasury is the public service head of the department.| Name | Dates |
|---|---|
| George Cooper George Cooper George Stephen Cooper , was an Australian cricket Test match umpire.He umpired two Test matches between 1948 and 1950... |
1840–1842 |
| Alexander Shepherd Alexander Shepherd Alexander Shepherd may refer to:*Alex Shepherd , Canadian Member of Parliament*Alexander Robey Shepherd, Governor of the District of Columbia... |
1842–1856 |
| Christopher Richmond | 1857–1858 |
| G. C. Rodda | 1935–1939 |
| Bernard Ashwin | 1939–1955 |
| Noel Davis | |
| Henry Lang | 1968–1977 |
| Bernie Galvin | 1980–1986 |
| Graham Scott | 1986–1993 |
| Alan Bollard Alan Bollard Alan Bollard is the current governor of the Reserve Bank of New Zealand, having been appointed on 23 September 2002. He succeeded Donald Brash in this role.... |
1998 – April 2002 |
| John Whitehead John Whitehead (New Zealand) John H. Whitehead, CNZM, is a former Secretary of the New Zealand Treasury, having been appointed in April 2003. He succeeded Alan Bollard.-Early career:... |
8 April 2003 - 1 June 2011 |
| Gabriel Makhlouf (Acting) | 1 June 2011 - |
The New Zealand Debt Management Office (NZDMO)
The NZDMO is the part of The Treasury responsible for managing the Crown’s debt, its cash flows and its interest-bearing deposits.The 1988 reforms of the Government’s financial management led to its establishment with the aim of improving the management of the Government’s debt portfolio.
COMU
The Crown owns many companies, which are include State-Owned EnterprisesState-Owned Enterprises of New Zealand
State-owned enterprises in New Zealand are registered companies listed under Schedules 1 and 2 of the State-Owned Enterprises Act 1986...
, Crown Entities
Crown entities
A Crown entity is an organisation that forms part of New Zealand's state sector established under the Crown Entities Act 2004, a unique umbrella governance and accountability statute...
, and Crown Research Institutes
Crown Research Institutes
In New Zealand, Crown Research Institutes are corporatised Crown entities charged with conducting scientific research.Crown Research Institutes date from 1992, with most formed out of the parts of the former Department of Scientific and Industrial Research and of elements of various government...
. The Crown is assisted in the running of SOEs and other Crown-owned companies by the Crown Ownership Monitoring Unit or COMU within Treasury.