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Committee review of public bodies

Committee review of public bodies. The New Zealand Experience. Introduction. In NZ a ‘Select Committee’ can be a standing committee or an ad hoc committee Estimates traditionally an annual free-for-all on government expenditure / performance

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Committee review of public bodies

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  1. Committee review of public bodies The New Zealand Experience

  2. Introduction • In NZ a ‘Select Committee’ can be a standing committee or an ad hoc committee • Estimates traditionally an annual free-for-all on government expenditure / performance • 1980s move towards increased accountability and transparency

  3. Financial reviews • Systematic scrutiny of public bodies, Crown accounts, Budget Policy Statement • Estimates now forward-looking and can progress more quickly • Reviews cover Government departments, Offices of Parliament, State enterprises, Crown entities, and ‘public organisations’

  4. Definitions • ‘Crown entities’ listed in 6th Schedule of the Public Finance Act 1989 • ‘Public organisation’ defined in Standing Orders as ‘any organisation …that the House resolves to be a public organisation’ • Air New Zealand recently resolved to be a ‘public organisation’ following Auditor-General’s recommendation

  5. Early experience • MPs took some time to adjust • One department declined invitation to appear for financial review • Some other organisations struggled with concept of accountability to Parliament

  6. Current view • Recent edict from Minister for State-owned Enterprises requiring co-operation • Still plenty of evidence of practices that do not reflect sound management of public money/assets • Committees have embraced the process

  7. Problems to consider • Heavy committee workload in conjunction with legislation and other business • Relentless annual cycle of Estimates and financial reviews • Organisations over-burdened with committees’ written questions • Some organisations respond with ridiculous amounts of paper rather than discussing the problem with the committee

  8. Inquiries • Committees can initiate own inquiries within terms of reference • Mixed Member Proportional electoral system (MMP) has produced minority governments • Committee membership is proportional • Therefore the Government often unable to prevent unfriendly inquiries as issues arise in public bodies

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