Crown Entities Reform Bill introduced

The Crown Entities Reform Bill has been introduced to the House.

This omnibus Bill provides for structural changes to the way the government is organised across the health and charitable sectors, including:

• establishing a new Health Promotion Agency that will take over the functions of the Alcohol Advisory Council of New Zealand (ALAC), the Health Sponsorship Council (HSC) and relevant functions of the Ministry of Health
• disestablishing the Crown Health Financing Agency, and transferring some its functions to the Ministry of Health, while others continue to be provided by Treasury’s Debt Management Office
• bringing forward the disestablishment of the Mental Health Commission and transferring functions to the Office of the Health and Disability Commissioner (HDC), and establishing a new Mental Health Commissioner within the HDC
• disestablishing the Charities Commission and transferring its functions to the Department of Internal Affairs, while providing for independent registration and related functions through a statutorily independent  board.

State Services Minister Tony Ryall said “These changes are part of the Government’s overall programme to improve State sector performance as a whole."

"These changes will reduce duplication of corporate and governance overheads, and ensure that agencies can continue to deliver the front line services that New Zealanders expect.”

The changes are anticipated to save $19.6m in the four years from 1 July 2012, with ongoing annual savings after that of $4.1m.  The expected transition costs of $1.3m will come from existing budgets.