Health Crown Entity Change Project
In May 2011, the Government signalled an intention to review a number of Crown entities as part of a programme of state sector reform.
Due diligence was conducted on a series of proposals and on 11 August 2011, State Services Minister Tony Ryall announced the Government’s decisions which included the following.
- Create an arm’s-length 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.
- Disestablish the Crown Health Financing Agency, and transfer some of its functions to the Ministry of Health, while others continue to be provided by Treasury’s Debt Management Office.
- Bring forward the disestablishment of the Mental Health Commission and transfer functions to the Health and Disability Commissioner (HDC) and establish a new Mental Health Commissioner within the HDC.
- Disestablish the Health Act Boards of Appeal and transfer its functions to the District Court.
- The Ministry of Health is managing the transition to the above arrangements.
The indicative timeline for the changes is:
October 2011
First Reading
The Crown Entities Reform Bill had its first reading on 4 October 2011 and was referred to the Government Administration Committee.
November 2011
Health Promotion Agency Establishment Board Appointed
The Minister of Health confirmed the appointment of the Health Promotion Agency (HPA) Establishment Board. The Establishment Board is chaired by Dr Lee Mathias, with members Katherine Rich and Professor Grant Schofield. The existing Chairs of ALAC and HSC, Rea Wikaira and Hayden Wano, are also members of the Establishment Board.
The Establishment Board will set the strategic direction and oversee the operational establishment of the health promotion agency. It will also select a foundation chief executive to work with the Establishment Board and make decisions on the structure and personnel of the new entity. Decisions regarding personnel will likely be made during the first half of 2012.
Profiles of all members are available in the document below:
Members of the Health Promotion Agency Establishment Board (PDF, 17.8 KB)
The Establishment Board’s Terms of Reference are available in the document below:
Health Promotion Agency Establishment Board Terms of Reference (Word, 62 KB)
February 2012
Select Committee process.
The Select Committee had its first meeting on 8 February 2012. Public submissions on the Bill closed on 27 February 2012.
March 2012
The Select Committee presented its report to the House on 30 March 2012. This report is available on the Parliament website.
April 2012
Clive Nelson has been appointed as the first chief executive of the new Health Promotion Agency. For more information read the media release (PDF, 23 KB).
May 2012
The Crown Entities Reform Bill had its second reading on 22 May 2012, and was heard by the Committee of the Whole House on 29 May 2012. The Committee of the Whole House divided the Bill into three parts: the New Zealand Public Health and Disability Amendment Bill, the Mental Health Commission Amendment Bill, and the Charities Amendment Bill (no. 2).
The three bills had their third readings and were passed by the House on 30 May 2012.
June 2012
The three Acts arising from the Crown Entities Reform Bill received the Royal assent and became law.
On 27 June, Hon Jo Goodhew announced the appointment of the Health Promotion Agency board. Details can be found on Beehive.govt.nz.
July 2012
1 July: Changes took effect.
Relevant Cabinet Papers and Minutes are provided in the Related Files section of the State Services Commission website.
The Bill is accessible on the Parliament New Zealand website.
Page last updated: 04 July 2012
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