New Zealand Treasury

History

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.

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 (dubbed "Rogernomics" and "Ruthanasia"). 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.

As of 30 June 2025, the Treasury employs 600 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.

Role

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.

Statutory reporting

In addition to regular reporting obligations as part of the annual financial cycle, the Treasury is required to produce several other documents under the Public Finance Act 1989 including the:

• Statement on long-term fiscal position
• Wellbeing report
• Investment statement
• Pre-election economic and fiscal update
• Half-year economic and fiscal update

These documents must be accompanied by statement of responsibility signed by the Secretary to the Treasury.

Ministers

The Treasury serves 12 portfolios and 8 ministers.

List of secretaries to the Treasury

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.

Structure

Senior leadership

• 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

Units within the Treasury

Debt Management Office

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.

Central Agencies Shared Services

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. Aside from providing these services, the goal of CASS is to set an example for other state sector organisations in sharing service delivery functions.

Crown company monitoring

The Crown owns many companies, including state-owned enterprises, Crown entities, and Crown Research Institutes. The Treasury's Commercial Performance and Governance directorate assists the Crown in the running of these. This directorate includes what was the Crown Ownership Monitoring Unit (COMU, pronounced "co-moo") from November 2009 to February 2014, and before that the Crown Company Monitoring and Advisory Unit.

Controversies

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, regulatory capture and political partisanism, and accepting corporate gifts from the financial industry.

References

References

1. "Summary Tables for the Estimates of Appropriations 2025/26". The Treasury.
2. "Ministerial List". [[Department of the Prime Minister and Cabinet (New Zealand).
3. (10 October 2014). "History of the Treasury". The Treasury.
4. (September 2011). "The Treasury: Implementing and managing the Crown Retail Deposit Guarantee Scheme". New Zealand Government.
5. (2025-09-30). "Annual Report of the Treasury for the Year Ended 30 June 2025 {{!}} The Treasury New Zealand".
6. (2023). "prefu-befu and what it means for your interest rates". Stuff/Fairfax.
7. "Public Finance Act 1989 No 44 (as at 01 July 2025), Public Act Contents – New Zealand Legislation".
8. "Our Ministers". The Treasury.
9. (26 October 1872). "Parliament". New Zealand Mail.
10. "Treasury Organisation Structure – The Treasury – New Zealand".
11. "Welcome to the New Zealand Debt Management Office (NZDMO)". New Zealand Debt Management Office.
12. (18 September 2014). "Central Agencies Shared Services (CASS)". The Treasury.
13. (June 2014). "Setting up Central Agencies Shared Services". Controller and Auditor-General of New Zealand.
14. (19 December 2013). "Treasury completes review of commercial operations". Treasury.
15. (18 March 2025). "Briefing to the Incoming Minister for State Owned Enterprises [2025]". The Treasury.
16. Bernard Hickey. (15 May 2011). "Take forecasts with grain of salt". The New Zealand Herald.
17. (29 February 2012). "Treasury defends accounting practice of not booking potential SOE dividend losses from SOE sell-down until after election". Interest.co.nz.
18. John Hartevelt. (21 March 2012). "Stick to knitting, teachers tell Treasury". Dominion Post.
19. John Armstrong. (7 April 2012). "Commission fiddles while its cred burns". The New Zealand Herald.
20. Paul McBeth. (24 January 2012). "Treasury stuck in its ways – stakeholders". The New Zealand Herald.
21. John Hartevelt. (23 July 2011). "Treasury gift investigation considered". Dominion Post.
22. John Hartevelt. (22 July 2011). "Greens demand audit over corporate gifts". Dominion Post.