New Zealand Treasury

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.{{cite web| url=http://www.treasury.govt.nz/abouttreasury/history| title=History of the Treasury| date=10 October 2014| publisher=The Treasury}}

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, and often controversial, 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, co-ordination and monitoring.

Between 2008 and 2011 Treasury administered the Crown Retail Deposit Guarantee Scheme. Under the scheme the government bailed out nine finance firms including South Canterbury Finance to the value of approximately $2 billion.{{Cite web|url = http://www.oag.govt.nz/2011/treasury/docs/crown-retail-deposit-guarantee-scheme.pdf|title = The Treasury: Implementing and managing the Crown Retail Deposit Guarantee Scheme|date = September 2011|access-date = 1 May 2015|website = Office of the Auditor-General|publisher = New Zealand Government}}

Today{{when|date=February 2017}} the Treasury employs 363 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.

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
• 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 results sought by the elected Government.
• Releasing a Prefu or Pre-election fiscal update before each general election.{{cite web|url= https://www.stuff.co.nz/business/money/300969384/prefu-befu-and-what-it-means-for-your-interest-rates |title= prefu-befu and what it means for your interest rates |publisher= Stuff/Fairfax |date= 2023}}

The Treasury serves 12 portfolios and 8 ministers.{{cite web |title=Our Ministers |url=https://www.treasury.govt.nz/about-treasury/who-we-are/our-ministers |publisher=The Treasury |access-date=24 January 2025}}

The Secretary to the Treasury is the public service head of the department. The role was created in 1873 when the offices of paymaster-general and under treasurer were amalgamated.{{cite news |url=https://paperspast.natlib.govt.nz/newspapers/NZMAIL18721026.2.3 |title=Parliament |date=26 October 1872 |work=New Zealand Mail |page=2 |access-date=12 March 2021}}

Senior leadership{{Cite web|url=http://www.treasury.govt.nz/abouttreasury/structure|title=Treasury Organisation Structure – The Treasury – New Zealand|website=treasury.govt.nz|access-date=30 August 2016}}

• Secretary and Chief Executive
• Chief Economist and Deputy Secretary, Economic System
• Chief Operating Officer and Deputy Secretary, Strategy, Performance & Engagement
• Deputy Secretary, Budget & Public Services
• Deputy Secretary, Financial & Commercial Operations
• Deputy Secretary, Growth & Public Services
• Deputy Secretary, Macroeconomics & Growth

The New Zealand Debt Management Office (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.{{cite web |url= http://www.nzdmo.govt.nz/ |title=Welcome to the New Zealand Debt Management Office (NZDMO) |publisher=New Zealand Debt Management Office |access-date=15 March 2014}}

Central Agencies Shared Services (CASS) is a shared services centre housed within the Treasury. Set up in March 2012, it provides information technology and management, human resources, and finance services to the Treasury, the Department of the Prime Minister and Cabinet, and the Public Service Commission.{{cite web |url=http://www.treasury.govt.nz/abouttreasury/structure/cass |title=Central Agencies Shared Services (CASS) |date=18 September 2014 |access-date=10 May 2016 |publisher=The Treasury}} Aside from providing these services, the goal of CASS is to set an example for other state sector organisations in sharing service delivery functions.{{cite report |url=http://www.oag.govt.nz/2014/cass/docs/cass.pdf |title=Setting up Central Agencies Shared Services |date=June 2014 |publisher=Controller and Auditor-General of New Zealand |location=Wellington |page=7 }}

The Crown owns many companies, including state-owned enterprises, Crown entities, and Crown Research Institutes. The Treasury's Commercial Operations group assists the Crown in the running of these. This group includes what was the Crown Ownership Monitoring Unit (COMU, pronounced "co-moo") from November 2009 to February 2014,{{cite web |url= http://www.treasury.govt.nz/publications/media-speeches/media/19dec13 |title=Treasury completes review of commercial operations |date=19 December 2013 |publisher=Treasury |access-date=15 March 2014}} and before that the Crown Company Monitoring and Advisory Unit.{{cite web |url= http://www.treasury.govt.nz/commercial/publications/annual-portfolio-report/2010/21.html |title=Corporate governance |work=2010 Annual Portfolio Report |date=19 December 2013 |publisher=Crown Ownership Monitoring Unit |access-date=15 March 2014}}

The Treasury has courted controversy, particularly since the Rogernomics reforms of the 1980s. Given the agency's key influence and impact on fiscal policy, it has been accused by critics in recent years of inaccurate forecasts,{{cite web|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10725668|title=Take forecasts with grain of salt|author=Bernard Hickey|location=Auckland|work=The New Zealand Herald|date=15 May 2011}} regulatory capture and political partisanism,{{cite web|url=http://www.interest.co.nz/news/58146/treasury-defends-accounting-practice-not-booking-potential-soe-dividend-losses-soe-sell-d|title=Treasury defends accounting practice of not booking potential SOE dividend losses from SOE sell-down until after election|publisher=Interest.co.nz|date=29 February 2012}}{{cite web|url=http://www.stuff.co.nz/dominion-post/news/politics/6608543/Stick-to-knitting-teachers-tell-Treasury|title=Stick to knitting, teachers tell Treasury|author=John Hartevelt|location=Wellington|work=Dominion Post|date=21 March 2012}}{{cite web|url=http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=10797142|title=Commission fiddles while its cred burns|author=John Armstrong|location=Wellington|work=The New Zealand Herald|date=7 April 2012}}{{cite web|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10780835|title=Treasury stuck in its ways – stakeholders|author=Paul McBeth|work=The New Zealand Herald|date=24 January 2012}} and accepting corporate gifts from the financial industry.{{cite web|url=http://www.stuff.co.nz/dominion-post/news/5329280/Treasury-gift-investigation-considered|title=Treasury gift investigation considered|author=John Hartevelt|location=Wellington|work=Dominion Post|date=23 July 2011}}{{cite web|url=http://www.stuff.co.nz/national/politics/5323435/Greens-demand-audit-over-corporate-gifts|title=Greens demand audit over corporate gifts|author=John Hartevelt|location=Wellington|work=Dominion Post|date=22 July 2011}}

{{Reflist}}

• {{official website|http://www.treasury.govt.nz/}}
• [https://debtmanagement.treasury.govt.nz/ New Zealand Debt Management Office]
• [http://www.treasury.govt.nz/commercial/ Commercial Operations], The Treasury

{{NZ Public Service Departments}}

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Category:Government of New Zealand

New Zealand

Category:New Zealand Public Service departments