Crown entities and agents

Health Crown entities and agents

In addition to District Health Boards, the Crown Entities Act 2004 lists a number of other health Crown entities which are also responsible to the Minister of Health.

The Act establishes three different types of Crown Entity, as described below.

Crown agents

Crown agents are entities whose functions pose high strategic, policy, contractual or fiscal risk, and are therefore subject to a significant degree of Ministerial control.

To reflect that closeness, the main governance and accountability arrangements are:

Crown agents must give effect to the government policy when directed by the Minister (although this can be qualified by other legislation)
the Minister appoints the board members for a renewable term of up to three years
in general terms, board members serve at the pleasure of the Minister
the Minister sets board members’ fees (in accordance with the fees framework under the Act).

Crown agents include:

The Crown Health Financing Agency (CHFA)
Health Research Council of New Zealand (HRC)
Health Sponsorship Council (HSC)
New Zealand Blood Service (NZBS)
Pharmaceutical Management Agency (Pharmac)

Autonomous Crown entities

In the ‘middle ground’ between Crown agents and independent Crown entities, these organisations are subject to a lesser degree of Ministerial control than Crown agents.

Governance and accountability arrangements include:

autonomous Crown entities must have regard to government policy when directed by the Minister
the Minister appoints the board members for a renewable term of up to three years
board members may be dismissed by the Minister for ‘just cause’
the Minister sets board members’ fees.

Autonomous Crown entities include:

Alcohol Advisory Council of New Zealand (ALAC)
Mental Health Commission (MHC)

Independent Crown entities

These organisations typically have monitoring functions, where a high level of decision-making independence from Ministers is necessary. For this reason, they are not subject to influence or easy dismissal by Ministers, and they are not required to give effect or have regard to government policy.

Governance and accountability arrangements include:

board members or office-holders are appointed by the Governor-General on the advice of the Minister
board members or office-holders may be dismissed by the Governor-General for just cause, on the advice of the Minister in consultation with the Attorney-General
appointments are for five-year renewable terms
the Remuneration Authority sets members’ or office-holders’ fees.

Independent Crown entities include:

Health and Disability Commissioner (HDC)

More information

For more information about each Crown entity, refer to the other Ministry of Health related websites page.