SOE Model Should Be “Revamped”
December 10th, 2008
Treasury is calling for a revamp of the State-Owned Enterprise model used to run some of the country’s biggest businesses. It says the SOE model has eroded over time, and needs to be “reinvigorated.” In briefing papers for the incoming Govt, Treasury accepts there is broad political support for retaining state control and ownership of commercial assets. “While we think the best way to reinvigorate the model is to move towards greater private sector involvement in the enterprises, there is range of other options for achieving this, including addressing the weaknesses in the objectives, governance, transparency and monitoring of wholly Crown-owned commercial enterprises to ensure sound commercial decision-making within the enterprises.”
Treasury argues there is a range of policy options to improve the public institutions which directly impact on the business environment, including (1) getting clearer strategic policy advice within the environment and natural resources sector (2) developing mechanisms which would provide for better decisions on the relative quality of investment across the Govt’s infrastructure priorities and (3) resolving the issues around fragmentation of policy and implementation within the innovation system.
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