The NZ Executive

The Crown

• Body corporate of the state of NZ, usually utilized by the executive.

• Dignified vs. Efficient

Constitutions

• 'An ancient and ever-altering constitution is like an old man who still wears with attached fondness clothes in the fashion of his youth.'

• The British Constitution maintains its external cloak.

  • Externally, it is dignified; internally, it is efficient.

Dignified Executive: Monarch (Governor-General)

• Role now very limited by convention.

  • Appointment of Ministers

• Role as 'protector of democratic constitution'

  • Australia 1975 (Gough Whitlam) - GG called a general election without the advice of the PM.

• Most powers now exercised by ministers.

Dignified Executive: The Executive Council

• Presided over by the Governor-General.

• Advises the Governor-General.

• Ministers of the Crown are Members (only 2 are required).

• Provides Ministers with Executive powers.

• Executive Law Making body (used very very regularly).

  • Orders in Council - Used by powers designated to the Executive Council by Parliament to create laws.

  • In Practice - takes the formal decisions already made in Cabinet.

  • Governor-General does not even have to be at the EC meeting to be "advised" - A simple formality.

The Efficient Executive

• Divided into two elements: Direction and Administration.

Direction

• The Political Executive - Ministers, Cabinet, and the Prime Minister.

The Prime Minister

• The Head of Government in NZ.

• "The Invisible Job" - Previously no mention of Prime Minister in legislation except in relation to pension. Nowadays mentioned but not common e.g. In regards to the security service.

• The Formal Powers of the Prime Minister are simply the Power to Call an Election and to Appoint Ministers. In other countries, the formal powers of the Prime Ministers are set out a lot more.

• However, the PM of NZ arguably wields significant power, but where does it come from?

• The Prime Minister will control a majority in Parliament - Control over the (usually) largest party in Parliament. Much of it lies in the PM's ability to control their own party and their coalition partners. PM as Party Leader promotes MP's to their ministerial portfolios etc therefore party members will usually stay loyal to the PM. Coalition parties trouble this idea though.

Ministers

• Prime Ministers Appoints Ministers

• No formal rules as to how many ministers there can be

• In Executive Council there are currently 20 Cabinet Ministers - 14 National - 3 ACT/3 NZ First

• Ministers Outside Cabinet 8 (2 ACT/1 NZF)

• Associate Ministers (15) + Lead Ministers (2)

  • Associate Ministers elsewhere are usually junior ministers - In NZ every single associate minister is also a full minister.

• Parliamentary Under Secretaries - 2 - Sit outside cabinet - specific delegation to undertake some ministerial roles.

• The Role of Ministers

  • Policy Responsibilities

  • Portfolios - E.g. Health, Education, Defence

  • Act and Bill Responsibilities - Taking Bills through the house and the management of Acts.

  • Public Sector Responsibilities

    • Department

    • Crown Entities

    • SOEs and other Agencies

Cabinet

• Cabinet not a formal creature little mention in formal statute etc

• Operates through the principle of Collective Responsibility - once cabinet makes a decision all members are bound to follow it and carry it out - a constitutional convention.

• Collective Decision making

• The power of the PM in Cabinet - dictates what the cabinet secretary writes down and subsequently what the public service are to follow.

  Executive Law Making Power:

• The Royal Prerogative and Secondary Legislation

• Power that inherently lies with the crown

• The Royal Prerogative

• Power exercised inherently by the Crown, not based upon statute.

• Comes from the remnants of Royal Power, a British concept exercised under “advice”.

• Examples:

• Granting honors and titles

• Command of Armed Forces

• The making of Treaties, Declaring War/Making Peace

• Most of laws in NZ are made through secondary legislation - 2020 - 387 Legislative and Disallowable Instruments. "Other Instruments" - 200+ a year.

  • Secondary Legislation - through powers delegated by Parliamentand allows for detailed implementation of laws without needing to pass new primary legislation, thereby enabling quicker adjustments to changing circumstances.

• The Administrative Executive

• The "Public Sector"

  • State Sector

    • Public Service

    • SOEs

    • Crown Entities

    • Other Public Entities

  • Local Government

    • Regional Councils

    • Territorial Authorities

History of New Zealand's Public Service

Pre 1912

• Ministers themselves were involved in the appointment of the public service - Politicisation and corruption.

Public Service Act 1912

• Draws upon the British Model. Creates an Independent Public Service. Ministers were no longer involved in the appointment. This was delegated to the newly created Public Service Commissioner.

Principles of the system 1912 - 1984

• Non-political

• Independent

• Generalist

• Anonymous

• A single service

  • No divisions between advisors/senior management and delivery

• Ministerial Responsibility

The Crisis of 1984

• Labour elected on a relatively traditional platform

• 1984 Post Electoral Briefing - NZ finances in serious trouble - shrinking of the trade with Britain after them joining European Community in 1973.

• Lead to series of reforms:

  • Maximisation of efficiency

  • Improve co-ordination

  • Reduce the range of state functions

  • Ensure clear accountability

  • Ensure clear missions

  • High quality and contestable advice

  • Move in focus from delivery of processes to outputs

State Services Act 1988

• Introduces New public management principles into the Public Sector

• Break up the single Public Service

Public Finance Act 1989

• Financial transparency

• Financial targets

State Owned Enterprises Act 1984

• Removed state-owned companies from the public service.

New Public Service Structure

• End of Departmental/Permanent Secretaries

• End of Single Public Service

Division of Public Sector

• Central Service (Treasury, DPMC)

• Departments

  • Policy (Ministries)

  • Administration (Departments) SOE's

• Crown Entities

Current Statutory Framework in NZ

• Public Service Act 2020

  • Chief Executives appointed for all agencies and departments

    • Finite 5-year term

    • Acts in accordance with the PSA

• Public Finance Act 1989

  • Sets out the financial framework for all of the executive

Key Feature of the Public Service - Decoupling (e.g., Health)

Ministry of Health (Manatu Haura)

• Policy

• Service agreements and other accountability

Te Whatu Ora - Health NZ (& Te Aka Whai Ora)

• Health NZ Regions (Previously DHBs)

• Purchase health services from providers

• Directly provide hospital and other services

Providers

• GPs

• Pharmacies

• Etc

The Public Service Commission

• Institution of the central services

• The employer of the CE's

  • HR responsibilities delegated to Ces

• Recommends appointment of CE's

  • Independent Appointment process BUT

    • Cabinet can overrule

• Monitors SOI & Outputs

  • Performance of COEs

  • Improved Effectiveness

  • Ensures independence of Public Service

State Owned Enterprises

• Enterprises Owned and operated by the state. Managed by the SOE Act 1986. Interests invested in the Minister Of SOEs and the Minister of Finance.

Examples of SOE's Today

• Solid Energy

• Kiwirail

• Landcorp

• NZ Post

• Transpower

• Metservice

• Airways

Non-SOE State Owned Companies

Mixed-Ownership Model

• Air New Zealand

• Meridian Energy

• Genesis Energy

• Mighty River Power

• Crown Entity Corporations

  • TVNZ

  • RNZ

Crown Entities

• The Quango (Quasi-Autonomous (Non) Governmental Organizations)

  • Bodies created by the Crown and exercise power on behalf of the Crown.

  • Often distribute money

  • Appointed by Ministers

  • Established by Prerogative or Statute

  • Part of the state sector but not part of the public service

  • Recognized by Public Finance Act 1989

Examples:

• Accident Compensation Corporation

• Families Commission

• Commerce Commission

Executive Accountability in Aotearoa New Zealand

• Executive accountability exists in two forms:

  • Political accountability (Parliament)

  • Technical Accountability (Audit, Targets, etc)

Political Accountability: The Role of Parliament

• The Buckle: Ministerial Responsibility

  • Responsible to Parliament for all things that fall within their portfolios

• Ministers Responsible for the Public Sector - Departments, SOEs, and other Agencies

• Ministers Responsible for their Portfolios

  • Crucial to the executive system - We do not elect the executive government, but do Parliament - This is why the buckle is needed.

• Ministerial Responsibility - A convention

Parliamentary Mechanisms

• Question Times

  • 12 Questions per session

  • For each Minister in rotation

  • Question must be answered

  • Minister must answer truthfully

  • MPs can make an unlimited number of written questions

• Debates

  • Primarily instigated by the executive

    • General Debates

    • Special Debates

    • Urgent Debates

• Select Committees

  • Can investigate any matter within their remit

  • Often examine government performance

  • Can call witnesses from inside and outside government

  • Appointed proportionately to strength in the House

  • Politically divided

  • Spend most time examining bills

• Regulation Review Committee

  • Regulations (Disallowance Act) - Examine secondary legislation created by the executive branch - Look at if the regulation is supported by statutory power, if the legislation is "unusual", are they clear, are they retrospective etc.

Technical Accountability: Government by Contract

• Largely managed by Public Finance Act

3 main points: Inputs, Outputs, and Outcomes

• Broad Outcomes (aims) but Specific Inputs and Outputs

Accountability through

• Strategic Intentions (General aim)

  • Cover four years

  • Once every three years (previously annual)

• Output Plans

  • Can be difficult to link outcomes with output plans - Plans have to be specific and measurable such as traffic offence quotas.

• Performance Agreements

• Annual Reports

• Targets