Strengthening the health sector’s governance framework

The Institute of Directors (IoD) has submitted on the Healthy Futures (Pae Ora) Amendment Bill. The Bill proposes significant changes to the governance of Health New Zealand, a Crown agent operating in one of the most complex areas of the public sector. 

Our submission focuses on key governance features that influence board effectiveness, including the board’s strategic role, the responsibilities of the chair, delegations, committee structures, Ministry attendance at board meetings and board capability.

The IoD supports greater clarity around the board’s strategic oversight role and recommends formal recognition of the chair’s leadership responsibilities, given their importance in maintaining role clarity and supporting accountability within the Crown entity model.

The submission also notes the need for clearer safeguards around board committees and Ministry attendance at internal meetings to preserve the board’s governance role and ensure alignment with public sector practice.

While recognising the flexibility in board appointments, we highlight the importance of transparent capability expectations for boards governing systems of this scale. Overall, the submission proposes targeted refinements to better align with the Bill with sound public governance principles and established Crown entity frameworks.

Read submission