New Zealand Treasury


The New Zealand Treasury is the central public service department of New Zealand charged with advising the Government on economic policy, assisting with improving the performance of New Zealand's economy, and managing financial resources. The minister responsible for the Treasury is the Minister of Finance of New Zealand; however, from 1996 to 2002, there existed a more specific position of Treasurer of New Zealand. The role was created for Winston Peters by the [Fourth National New Zealand Government|Government of New Zealand|Fourth National Government] under Jim Bolger after the 1996 election, and abolished by Helen Clark's government in 2002.
Treasury has four main functions:
  • Provide advice to improve economic and fiscal conditions for high levels of economic growth and improved living standards.
  • Monitor and manage the financial affairs of the Crown.
  • Assess and test other Government agencies’ advice and proposals that have economic and financial implications.
  • Provide leadership, with other central agencies, to develop a high-performing State sector.

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. 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, 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.
OfficeholderPortfoliosOther responsibilities
Hon Nicola WillisLead Minister
Minister of Finance
Minister for Economic Growth
Minister for Social Investment
Hon David SeymourMinister for RegulationAssociate Minister of Finance
Hon Shane JonesMinister for Regional DevelopmentAssociate Minister of Finance
Hon Chris BishopMinister of Infrastructure
Minister of Transport
Associate Minister of Finance
Hon Simeon BrownMinister of State Owned Enterprises
Minister of Health
Hon Scott SimpsonMinister for ACC
Hon Simon WattsMinister of Revenue
Rt Hon Winston PetersMinister for Rail-

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.
NamePortraitTerm of office
1Charles Thomas Batkin1873–1878
2James Clark Gavin1878–1890
3James Barnes Heywood1890–1906
4Robert Joseph Collins1906–1910
5Joseph William Poynton1910–1912
6George Frederick Colin Campbell1912–1921
7James Jacob Esson1922–1925
8Robert Edward Hayes1925–1929
9Alexander Dallas Park1930–1935
10George Charles Rodda1935–1939
11Bernard C. Ashwin1939–1955
12Ed Greensmith1955–1964
13Doug Barker1964–
14Noel Davis−1968
15Henry Lang1968–1977
16Noel Vernon Lough1977–1980
17Bernie Galvin1980–1986
18Graham Scott1986–1993
19Murray Horn1993–1998
20Alan Bollard1998 – April 2002
Mark Prebble April 2002 – 8 April 2003
21John Whitehead8 April 2003 – 1 June 2011
22Gabriel Makhlouf1 June 2011 – 27 June 2019
23Caralee McLiesh16 September 2019 – 15 September 2024
24Iain Rennie18 November 2024 – present

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 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 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 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.