New Zealand - Crown Company Monitoring Advisory Unit (CCMAU)
CCMAU was established in 1993 to provide high-quality advice to shareholding Ministers on company performance and to recommend qualified persons to sit on the boards of these companies.
CCMAU is attached administratively to the New Zealand Treasury (the Treasury) but is an operationally independent unit. CCMAU and the Treasury have closely related but complementary roles. Both advise shareholding Ministers on Crown company performance and ownership issues. However, the two agencies focus on different aspects of the Crown's ownership objectives. The Treasury's approach is targeted at the Crown's overall balance sheet and fiscal position. CCMAU primarily manages issues and focuses on performance and commercial environment and risk at a company level. CCMAU has sole responsibility for advising on board composition and performance.
The Executive Director of CCMAU is directly accountable to the Secretary to the Treasury for the Crown's investment in CCMAU, and for CCMAU's performance in providing the output classes Ministers seek.
CCMAU's role
CCMAU provides advice in the following areas:
- Monitoring - reporting on company business plans, performance against targets, and sectoral trends.
- Ownership - advising on strategic issues, investment and diversification opportunities, and the impact of government policy.
- Governance and appointments - identifying and screening potential directors, managing the appointments process, and promoting corporate governance best practice
- Ministerial servicing - managing issues and drafting replies to correspondence, parliamentary questions, and requests under the Official Information Act 1982
Structure
CCMAU has three sector-focused advisory teams:
- Communications, services & infrastructure.
- Energy, land & environment.
- Science & innovation.
These three teams are supported by a dedicated Appointments & Governance team and corporate staff.
Size of organisation
CCMAU employs 22 staff and currently has an annual budget of NZ$3.5 million.
CCMAU monitors a number of state-owned enterprises (SOEs), Crown research institutes (CRIs), Crown companies and commercial Crown entities. The SOEs collectively control over NZ$14 billion of assets (about 10% of GDP).
CCMAU outputs
CCMAU advises the Minister for SOEs, the Minister for CRIs and other responsible Ministers on:
- the strategic direction of SOEs, CRIs, Crown companies and commercial Crown entities
- the commercial and fiscal risks associated with Crown ownership
- proposals to establish and restructure SOEs, CRIs, Crown companies and commercial Crown entities
- the processes and outcomes of significant SOE, CRI, Crown company and commercial Crown entity divestments and acquisitions
This advice includes:
- providing advice which assists Ministers to set ownership objectives and targets for SOEs, CRIs, Crown companies and commercial Crown entities respectively
- monitoring and advising Ministers of performance against these objectives and targets
- providing policy advice on, and managing issues arising out of, the ownership of SOEs, CRIs, Crown companies and commercial Crown entities, including residual implementation issues
- managing, on behalf of responsible Ministers, the appointment of SOE, CRIs, Crown companies and commercial Crown entities directors and monitoring the performance of those directors and boards
- assisting responsible Ministers in the formulation of shareholders' expectations in relation to the governance practices and structures companies adopt.
Maintaining and enhancing the Crown's ownership interest in these entities contribute to the efficient management of the Crown's assets and liabilities. The CRIs, Crown companies and commercial Crown entities have an important role to play in the New Zealand innovation system, thereby contributing to improving New Zealand's overall economic performance.
CCMAU - Portfolio of companies and entities
Communications, Services & Infrastructure |
|
|
Airways Corporation of New Zealand Ltd (Airways) |
Airways provides air navigation services within New Zealand's two flight information regions and internationally. It also pursues related businesses such as international air navigation consulting and aviation publishing. |
|
Christchurch International Airport Ltd (CIAL) |
CIAL is a council-controlled trading organisation in which the Crown has a 25% shareholding. The remaining 75% is owned by Christchurch City Council. CIAL is New Zealand's second-largest airport facility. It has a strong tourism focus, and international passenger numbers have undergone significant growth in recent years. Approximately one-third of traffic and two-thirds of revenue is international-based. Property management is a significant task for the company with substantial revenue coming from the rental of retail space. |
|
Dunedin International Airport Ltd (DIAL) |
DIAL is a council-controlled trading organisation in which the Crown has a 50% shareholding. The remaining 50% is owned by Dunedin City Council. DIAL operates the Dunedin International Airport facility, a surrounding dairy farm and a nearby residential village on the Taieri Plains just south of Dunedin. The airport is largely domestic-based but has international flights to Australia. |
|
Invercargill Airport Ltd (IAL)
|
IAL is a council-controlled trading organisation in which the Crown has a 45% shareholding. The remaining 55% is owned by Invercargill City Council. IAL operates the Invercargill Airport facility, west of Invercargill, servicing the Southland and Fiordland regions. |
|
Learning Media Ltd (LML) |
LML's core business is the publication, production, marketing and sale of educational materials, particularly to the Ministry of Education. LML warehouses educational material and fulfils orders for this material, mainly from New Zealand schools. LML also develops education material for overseas markets, in particular the United States. LML was established as a Crown-owned company in 1993 but became a state-owned enterprise in January 2005. |
|
New Zealand Lotteries Commission (NZLC) |
NZLC promotes, organises and conducts New Zealand lotteries in accordance with the Gambling Act 2003. NZLC's profits are transferred to the New Zealand Lottery Grants Board, which distributes them to sporting and cultural agencies and other community recipients. |
|
New Zealand Post Ltd (NZ Post) |
NZ Post operates New Zealand's largest postal and courier businesses. NZ Post is one of the largest state-owned enterprises in terms of revenue, assets and employees. It also has a number of related business activities, such as philatelic and international consultancy business units and an extensive network of retail outlets. In February 2002, NZ Post launched Kiwibank Ltd, which leverages off NZ Post's existing investment in its existing infrastructure. |
|
ONTRACK |
ONTRACK managed the lease of the rail corridor between TranzRail Ltd and the Crown until 30 June 2004, when the Crown entered into an arrangement to re-acquire New Zealand's rail infrastructure from Toll New Zealand Ltd (Toll) (formerly TranzRail Ltd). Following recent changes within the rail industry, ONTRACK's role and scope of business have changed. From 1 July 2004, ONTRACK has assumed the Crown's responsibilities under the access agreement with Toll and both owns and manages the rail infrastructure. ONTRACK also manages the upgrading of the Wellington Railway Station. |
|
Pacific Forum Line Ltd (PFL) |
The South Pacific Forum established PFL in 1977 as a commercial shipping company and as an instrument for regional development. The New Zealand Government holds 23.2% of the shares in PFL and 8.3% of the voting rights, which are divided equally between 12 of the South Pacific Forum countries. PFL is registered in Samoa, although its head office is in Auckland. It operates through its New Zealand subsidiary, Pacific Forum Line (NZ) Ltd. New Zealand appoints one of seven directors on the PFL Board. |
|
Public Trust |
Public Trust is New Zealand's largest and oldest trustee organisation and provides trustee, executor and agency services. Its role has since expanded, but its primary focus is to help people protect and manage their family interests and assets during their lifetime, and after their death. Public Trust is also a trustee for a large number of corporate funds. |
|
Radio New Zealand Ltd (RNZ) |
RNZ provides four radio networks: National Radio, Concert FM, Parliamentary Radio and RNZ International. RNZ's aim is to provide innovative, comprehensive, and independent broadcasting services of a high standard to New Zealanders and listeners in the Pacific region. |
|
Television New Zealand Ltd (TVNZ) |
TVNZ's main functions include the provision of television content via two of New Zealand's five main free-to-air television channels, web-based services and satellite services. TVNZ was formerly a state-owned enterprise but became a Crown-owned company in 2004 when the TVNZ Group's transmission business, Transmission Holdings Ltd, was separated. |
|
Transmission Holdings Ltd (THL) |
THL is a trans-Tasman communications network group made up of two operating companies: THL Australia Pty Ltd (THL Australia) and Broadcast Communications Ltd (BCL). THL was created on 1 January 2004 from the separation of the transmission and telecommunications business from Television New Zealand Ltd. BCL and THL Australia operate and maintain a range of television, radio, wireless broadband and telecommunications services at more than 1,000 transmission sites across New Zealand and Australia. BCL and THL Australia also operate and maintain microwave radio, cellular, trunked, mobile, maritime, emergency service and utility communications. Internationally, the companies have experience providing wireless engineering consultancy and services in more than 20 countries across the Asia-Pacific region. |
|
Energy, Land & Environment |
|
|
AgriQuality Ltd (AgriQuality) |
AgriQuality's core business is the provision of quality assurance and biosecurity services for the food and agricultural industries. |
|
Animal Control Products Ltd (ACP) |
ACP's core business is the manufacture and sale of pest management products largely, though not exclusively, for New Zealand application. ACP was established as a Crown-owned company in 1991 but became a state-owned enterprise in January 2005. |
|
Asure New Zealand Ltd (Asure) |
Asure's core business is the supply of ante- and post-mortem meat inspection services and related products and services to the meat industry. The company currently has a monopoly in this field. |
|
Electricity Corporation of New Zealand Ltd (ECNZ) |
ECNZ is a residual entity. Its operating assets were transferred to the three new generator state-owned enterprises (Mighty River Power Ltd, Meridian Energy Ltd and Genesis Power Ltd) on 1 April 1999. Its primary objective is to manage down its remaining activities, assets, and liabilities, with a view to eventual wind-up. ECNZ has surplus cash on its balance sheet. The interest from this is its primary source of revenue. |
|
Genesis Power Ltd (Genesis) |
Genesis is a generator, wholesaler and retailer of energy. Its main assets are the Huntly power station (New Zealand's largest) and the Tongariro and Waikaremoana power schemes. Genesis is one of New Zealand's largest electricity and gas retailers. |
|
Landcorp Farming Ltd (Landcorp) |
Landcorp has existed since 1987 when it was created out of the Department of Lands and Survey. Landcorp's core business is pastoral farming including dairy, sheep, beef, deer, goat and some associated forestry. Landcorp operates 110 farming units totalling 369,000 hectares. Its subsidiary, Landcorp Estates Ltd, develops and sells premium land that is deemed to have a higher value in non-agricultural use. |
|
Meridian Energy Ltd ( Meridian) |
Meridian is a generator, wholesaler and retailer of electricity. Its core assets are the hydroelectric generation assets at Manapouri and on the Waitaki River. It generates about 25% of New Zealand's electricity and has around 65% of New Zealand's total hydro storage. Meridian supplies power to the Bluff aluminium smelter. |
|
Meteorological Service of New Zealand Ltd (MetService) |
MetService provides weather information and presentation services in the form of forecasts, warnings, advice and graphical representation of data. |
|
Mighty River Power Ltd (Mighty River Power) |
Mighty River Power was formed in 1999 following the break-up of Electricity Corporation of New Zealand Ltd. It is New Zealand's third-largest generator, in terms of value of total assets, with a capacity to supply 15% of New Zealand's annual load requirements and, over short periods, 20% of peak demand. Its retail brand, Mercury Energy, supplies 300,000 retail customers, making it the third-largest electricity retailer. |
|
Quotable Value Ltd (Quotable Value) |
Quotable Value provides valuation and other property-related information-based services. Quotable Value was established as a Crown-owned company in 1998 but became a state-owned enterprise in January 2005. |
|
Solid Energy New Zealand Ltd (Solid Energy) |
Solid Energy is involved in various mining ventures. These include mining hard coking coal primarily for export from Stockton on the West Coast, and mining thermal coal for use at the Huntly power station and for sale to a number of domestic industrial customers. Key uses for coal in New Zealand include cement, steel production, electricity and heating. Solid Energy also owns subsidiary Nature's Flame, which produces and sells alternative heating fuels to households. |
|
Timberlands West Coast Ltd (Timberlands) |
Timberlands manages approximately 51,000 hectares of plantation forest on the west coast of the South Island. Of this land, about 47,000 hectares is owned by Ngai Tahu and leased to the company under a forestry right. |
|
Transpower New Zealand Ltd (Transpower) |
Transpower owns and operates the national grid for transmission of electricity from producers to distributors and some customers. Transpower has several subsidiary and associate companies, including Risk Reinsurance Ltd, which provides in-house insurance. |
Science & Innovation |
|
|
AgResearch Ltd (AgResearch) |
AgResearch Ltd is the largest CRI with a strength in biological sciences and almost 1,000 staff members. AgResearch seeks to engage actively with New Zealand's pastoral sector to facilitate transformation from reliance on commodities to value-added products and services. |
|
Industrial Research Ltd (IRL) |
IRL is an innovative business with an emphasis on commercialising its technology. IRL's research and development is structured around ten technology platforms, ranging from high-temperature superconductivity to pharmaceutical drug discovery and manufacture. New science and business ideas are taken through a structured selection and development process, from commitment of early-stage funding to the eventual creation of spin-off companies. |
|
Institute of Environmental Science & Research Ltd (ESR) |
ESR provides science solutions in public health, environmental health and forensic services. It delivers forensic, consulting and research services to public and private sectors, both in New Zealand and the Asia-Pacific region. Its major New Zealand clients are the Ministry of Health and the New Zealand Police. |
|
Institute of Geological & Nuclear Sciences Ltd (GNS) |
GNS is New Zealand's largest provider of geoscience and isotope science research and consultancy. The company has three separate business groups: Natural Resources, Natural Hazards, and the National Isotope Centre. Although over 50% of GNS's revenues are from central government, GNS is increasingly partnering with private sector clients to grow commercial revenues. |
|
Landcare Research New Zealand Ltd (Landcare Research) |
Landcare Research specialises in the sustainable management of resources for production, conservation, business and the community. The vast majority of the company's revenues are from central and local government; approximately 10% of its revenue base is private sector. Landcare Research is currently undertaking a strategic exercise that will see its focus shift more towards urban sustainability. |
|
National Institute of Water & Atmospheric Research Ltd (NIWA) |
NIWA is New Zealand's principal provider of environmental research and consultancy services in atmosphere and climate, coast and oceans, freshwater, fisheries, and aquaculture. NIWA's principal clients are central and local government agencies, although it is increasing its private sector revenues through the commercialisation of new products and the provision of operational forecasting services. |
|
Scion |
Scion has embraced a plant-based biomaterials strategy and is rapidly evolving into a group of three related divisions. Its new biomaterials science and consumer solutions divisions will continue to develop within Scion and will target strategic partnering to increase their market access. The majority of the company's traditional forestry sector research is delivered through an unincorporated joint venture with Australia's CSIRO Forestry and Forest Products. |
|
New Zealand Institute for Crop & Food Research Ltd (Crop & Food Research) |
Crop & Food Research's science activities are focused on the arable foods, vegetable foods, seafood, ornamentals, animal feed and plant product sectors. The company sees its science teams as world-class intellectual property (IP) generators for its effective IP commercialisation capability. Crop & Food Research has equity participation in a growing group of subsidiary companies and ventures. |
|
New Zealand Venture Investment Fund Ltd (NZVIF) |
NZVIF is a Crown-owned venture capital ‘fund of funds' that is tasked with investing $100 million, alongside private sector co-investors, in a series of privately managed venture capital investment funds. The goals of the VIF programme are to:
|
|
The Horticulture and Food Research Institute of New Zealand Ltd (HortResearch) |
HortResearch aims to develop advanced technology clusters around core sectors in the fruit and food industries to enable a shift from commodity to premium-earning products, and from traditional to sustainable production. The company's vision is to create new markets around human health and performance and biomanufacturing systems. |
|
Research and Education Advanced Network New Zealand Ltd (REANNZ) |
REANNZ's core business is to establish and operate an effective advanced network (AN) for use by New Zealand researchers and educationalists. The AN will consist of a high-speed telecommunications network between national and international research and education institutes. The AN is designed to:
|
For more information see the CCMAU website: CCMAU.