A clear majority of executives in this year’s Mood of the Boardroom survey support the establishment of an independent institution to oversee government expenditure and fiscal policy.
A clear majority of executives in this year’s Mood of the Boardroom survey support the establishment of an independent institution to oversee government expenditure and fiscal policy.
A clear majority of executives in this year’s Mood of the Boardroom survey – 61% – support the establishment of an independent institution such as a Parliamentary Budget Office to provide impartial oversight of government expenditure and fiscal policy. A quarter are opposed, while 14% remain unsure.
Supporters argue sucha body would strengthen transparency and accountability. Auckland Airport CEO Carrie Hurihanganui says: “Fiscal prudence is critical and an independent body, set up correctly and with the appropriate mandate, would add value.”
The New Zealand Initiative chairman Roger Partridge notes that Treasury’s fiscal updates often rely too heavily on ministerial assumptions: “That leaves voters and Parliament with projections that often look better on paper than in practice. Many OECD countries already benefit from such institutions. New Zealand should, too.”
Others believe the need arises from Treasury’s limited independence. “Treasury is not sufficiently independent enough from the Minister of Finance,” observes economist Cameron Bagrie. Deloitte chairman Thomas Pippos adds: “The more we can depoliticise the articulation of ‘facts’, the better we will be.”
“Yes – but don’t hire Elon,” jokes Cordis Auckland managing director Craig Bonnor.
But resistance remains. Critics argue it risks creating “more bureaucracy” when agencies should already be exercising discipline. “We shouldn’t need a Parliamentary Budget Office as every department should already be delivering transparency and fiscal discipline,” says one CEO. “New Zealand is simply too small to keep creating more agencies to address systemic deficiencies.”
EMA CEO John Fraser-Mackenzie worries about duplication: “On one level it sounds appealing – but where does it end – who will monitor the monitors? If the incumbent officials cannot manage their expenditure, they should be replaced with those who can. In business, your operational leaders are responsible for this with oversight from the finance function.”
Others question whether it was simply Treasury’s role to begin with: “Isn’t this what Treasury should be doing?,” asks an engineering CEO.
