© The Treasury/code Treasury’s Central Role John Whitehead Secretary to the Treasury (Kaitohutohu Kaupapa Rawa: “the people who advise on everything to do with the resources”)

© The Treasury/code What I’ll cover Scene setting Constitutional setting and public sector management  Legislative framework and principles  Public sector (financial) management  Treasury and other “central agencies” Some personal reflections

Scene setting Treasury – 160 years in the making

© The Treasury/code Treasury and the Secretary: roles and functions Treasury, Secretary: No establishing legislation Relevant Acts (esp Public Finance Act 1989, Fiscal Responsibility Act 1994) Fulfils Finance Ministers & Cabinet demands

© The Treasury/code Treasury analysts – no normal life? No normal life? Tom Scott

© The Treasury/code Treasury roles cont’d Treasury roles include: Lead economic and fiscal advisor Manages, monitors Crown financial affairs – incl budget “Second-opinion” advice – all Cabinet proposals “Central agency” leadership – State sector performance

New Zealand’s GDP 1860 – 2004

© The Treasury/code Treasury sees storm clouds Treasury officials always saw a cloud somewhere. Bob Brockie, National Business Review

Net and gross public debt (% GDP) ( ) Year ended 30 June % of GDP Gross debt - % of GDPNet Debt - % of GDP

Constitutional setting and public sector

© The Treasury/code Constitutional setting Parliament controls public finances: appropriates funding to government Treasury advises:  Select Committees: budgeting, reporting, performance  Finance Ministers and Cabinet: all fiscal and economic implications and results

Treasury’s outcome priorities

© The Treasury/code Legislative framework No expenditure without appropriation Public Finance Act 1989 Devolved accountability State Sector Act 1988 Fiscal responsibility Fiscal Responsibility Act 1994 Enterprise governance State-Owned Enterprises Act 1986 The Public Finance (State Sector Management) Bill

© The Treasury/code Public sector financial management Supports constitutional structure and actors Provides accountability and Parliamentary scrutiny Encompasses different organisational forms

© The Treasury/code Public management system: building blocks Design of State sector Decision making system Resource allocation system Accountability system Leadership, values, culture across system Relationship between community, politicians and State sector

© The Treasury/code Public management system: Central agency engagement SSC/Treasury: State sector agencies improve social, economic and environmental outcomes DPMC & SSC with Treasury: CEs understand and translate government direction and decisions for State sector DPMC/SSC/Treasury: public management system supports high performing State sector DPMC/Treasury: Government strategy and priorities coordinated and appropriately resourced

© The Treasury/code Personal Reflections It’s a big role It’s a complex role It can be difficult It’s not necessarily popular But it’s incredibly rewarding