State-Owned Enterprises of New Zealand
Encyclopedia
State-owned enterprises in New Zealand
are registered companies
listed under Schedules 1 and 2 of the State-Owned Enterprises Act 1986. Most SOEs are former government departments or agencies
that were corporatised
.
Many other government-owned companies and statutory trading organisations are referred to informally as "state-owned enterprises" although they are not SOEs in the strictest sense. These are also listed here.
. The section of the Act defining this is usually interpreted as meaning that SOEs are expected to ready themselves for privatisation, though this is not always the case.
Two Ministers of the Crown act as the shareholding ministers in the company. In the case of SOEs these are usually the Minister of State-Owned Enterprises and the Minister responsible for the particular company.
(COMU - pronounced "com-U") in The Treasury.
, and those removed and privatised. Well-known SOEs that became Crown entity companies include broadcasting companies Television New Zealand Limited
(TVNZ) and Radio New Zealand Limited
(RNZ).
state-owned enterprises include:
Source: The New Zealand Treasury
(CRIs), the broadcasting companies Television New Zealand Limited
(TVNZ) and Radio New Zealand Limited
(RNZ), and the New Zealand Venture Investment Fund Limited.
The Crown also has a majority stake in Air New Zealand Limited
.
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
are registered companies
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
listed under Schedules 1 and 2 of the State-Owned Enterprises Act 1986. Most SOEs are former government departments or agencies
State sector organisations in New Zealand
Public sector organisations in New Zealand include the State sector plus the organisations of local government.Within the State sector lies the State services, and within this, lies the core Public service....
that were corporatised
Corporatization
Corporatization refers to the transformation of state assets or agencies into state-owned corporations in order to introduce corporate management techniques to their administration...
.
Many other government-owned companies and statutory trading organisations are referred to informally as "state-owned enterprises" although they are not SOEs in the strictest sense. These are also listed here.
Function
The function of SOEs is to operate successfully as a business, as profitable as those not owned by the CrownThe Crown
The Crown is a corporation sole that in the Commonwealth realms and any provincial or state sub-divisions thereof represents the legal embodiment of governance, whether executive, legislative, or judicial...
. The section of the Act defining this is usually interpreted as meaning that SOEs are expected to ready themselves for privatisation, though this is not always the case.
Two Ministers of the Crown act as the shareholding ministers in the company. In the case of SOEs these are usually the Minister of State-Owned Enterprises and the Minister responsible for the particular company.
Crown Company Monitoring Advisory Unit
The Crown is assisted in the running of SOEs and other Crown-owned companies by the Crown Ownership Monitoring UnitNew Zealand Treasury
The New Zealand Treasury is a public sector organisation and the Government’s lead advisor on economic and financial policy. Its role is to help the Government improve economic performance and manage scarce resources...
(COMU - pronounced "com-U") in The Treasury.
List of current state-owned enterprises
Current state-owned enterprises include:- New Zealand Post LimitedNew Zealand PostNew Zealand Post, commonly referred by its acronym, NZPost is a State owned enterprise responsible for providing postal service in New Zealand.-History:...
- KiwibankKiwibankKiwibank Limited is a wholly owned subsidiary of the state-owned enterprise New Zealand Post Limited. Through Kiwibank, New Zealand Post provides banking services through its PostShops and joint venture Books & More and Papermate outlets throughout New Zealand.The bank was initiated as part of Jim...
- Kiwibank
- Meteorological Service of New Zealand LimitedMeteorological Service of New Zealand LimitedMeteorological Service of New Zealand Limited was established as a State-Owned Enterprise in 1992. It employs about 215 staff and its headquarters are in Wellington, New Zealand...
(MetService) - Airways New ZealandAirways New ZealandAirways New Zealand is the sole Air Traffic Service provider in New Zealand.The company was created 1987 as a State-Owned Enterprise having formerly being a division of the Ministry of Transport, a government department. This followed the recommendations of the 1986 Mason-Morris Review...
(air traffic control and air navigation providers) - Transpower New Zealand LimitedTranspower New Zealand LimitedTranspower New Zealand Limited is the state-owned enterprise responsible for electric power transmission in New Zealand. Transpower performs two major functions in the New Zealand Electricity Market...
- Kordia (formerly Broadcast Communications Limited or BCL)
- Orcon Internet LimitedOrcon Internet LimitedOrcon Internet Limited , is a state-owned New Zealand telecommunications company. It is currently New Zealand's fourth largest ISP.-History:...
- Orcon Internet Limited
- Mighty River Power
- Meridian EnergyMeridian EnergyMeridian Energy Limited is a New Zealand state-owned electricity generator and retailer. The company generates the largest proportion of New Zealand's electricity, generating 32 percent of the country's electricity in the year ending 31 December 2009, and is the fourth-equal largest retailer, with...
- PowershopPowershopPowershop is a New Zealand state-owned online electricity retailer. Powershop claims to be the first electricity company in the world where consumers can choose between different brands of electrical power listed on the website and switch between them with the click of a button. Different brands of...
- Powershop
- Genesis Power
- LandcorpLandcorpLandcorp Farming Limited is a state-owned enterprise of the New Zealand government. Its core business is pastoral farming including dairy, sheep, beef and deer...
- Learning Media Limited
- New Zealand Railways CorporationNew Zealand Railways CorporationKiwiRail Network, formerly ONTRACK , is the infrastructure arm of KiwiRail. The ONTRACK trading name was introduced in 2004 after the government repurchased all of New Zealand's rail infrastructure from Toll NZ. It does not operate revenue rolling stock...
- ONTRACKOnTrackOnTrack was a regional rail line that operated in Syracuse, New York from 1994 to 2007. During its operation, Syracuse was the smallest city in the United States to have regional train service. The line ran from Colvin Street on the city's south side via Syracuse University and Armory Square to the...
- KiwiRailKiwiRailKiwiRail Holdings Limited is the rail operations subsidiary of the New Zealand Railways Corporation, which trades as KiwiRail. Headquartered in Wellington, New Zealand, KiwiRail is the largest rail transport operator in New Zealand. Since July 2010 John Spencer has been the Chairman...
- ONTRACK
- Solid EnergySolid EnergySolid Energy is the largest coal mining company in New Zealand and is a state owned enterprise of the New Zealand Government.The company was formed from the former government department State Coal Mines. It was then established as a state owned enterprise called Coal Corporation in 1987, and...
- Crown Fibre HoldingsCrown Fibre HoldingsCrown Fibre Holdings is a New Zealand state-owned company building a fibre to the home network by means of a public-private partnership. It aims to spend NZ$1.5b and connect 75% of New Zealand's population...
Former state-owned enterprises
Former state-owned enterprises come in three forms - those removed from the Schedules of the Act and made Crown entities, those removed and not privatisedPrivatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
, and those removed and privatised. Well-known SOEs that became Crown entity companies include broadcasting companies Television New Zealand Limited
Television New Zealand
Television New Zealand, more commonly referred to, and stylized as TVNZ, is a government-owned corporation television network broadcasting in New Zealand and parts of the Pacific. It operates TV1, TV2, TVNZ7, TVNZ Heartland, TVNZ U and new media services....
(TVNZ) and Radio New Zealand Limited
Radio New Zealand
Radio New Zealand is a New Zealand public service radio broadcaster and Crown entity formed by the Radio New Zealand Act 1995. It operates news, current affairs and arts network Radio New Zealand National and classical music and jazz network Radio New Zealand Concert with full government funding...
(RNZ).
Privatised state-owned enterprises
PrivatisedPrivatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
state-owned enterprises include:
- Telecom Corporation of New Zealand LimitedTelecom New ZealandTelecom New Zealand is a New Zealand-wide communications service provider , providing fixed line telephone services, a mobile network, an internet service provider , a major ICT provider to NZ businesses , and a wholesale network infrastructure provider to other NZ CSPs...
- later unbundledLocal loop unbundlingLocal loop unbundling is the regulatory process of allowing multiple telecommunications operators to use connections from the telephone exchange to the customer's premises...
between 2006–2008 - PetrocorpPetrocorpPetrocorp, formally the Petroleum Corporation of New Zealand Limited, is a former New Zealand State-Owned Enterprise that was formed in 1978...
- sold to Fletcher Energy (now part of Royal Dutch ShellRoyal Dutch ShellRoyal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
) - State Insurance OfficeState InsuranceState Insurance is an insurance company based in New Zealand. "State" serves as a brand of IAG New Zealand Limited, a subsidiary of Insurance Australia Group.-History:State Insurance was formerly known as the State Insurance Office...
- Health Computing Service
- Contact EnergyContact EnergyContact Energy Limited is a New Zealand electricity generator, natural gas wholesaler and electricity, natural gas, and LPG retailer.The company is the second-largest electricity generator in New Zealand , generating 24 percent of New Zealand's electricity in the year ending 31 December 2009, and...
- sold to cornerstone shareholder and sharemarket float in 1999 - DFC New Zealand Limited - went bankrupt in 1989 and later liquidated
- Post Office Bank Limited (Postbank) - sold to ANZ
- New Zealand Shipping Corporation - sold to P&OPeninsular and Oriental Steam Navigation CompanyThe Peninsular and Oriental Steam Navigation Company, which is usually known as P&O, is a British shipping and logistics company which dated from the early 19th century. Following its sale in March 2006 to Dubai Ports World for £3.9 billion, it became a subsidiary of DP World; however, the P&O...
- New Zealand SteelNew Zealand SteelNew Zealand Steel is a large steel mill located at Glenbrook, New Zealand. It uses a unique method of producing steel from ironsand, abundant on the west coast of the North Island...
Limited - purchased by BHPBHP BillitonBHP Billiton is a global mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom... - Air New Zealand LimitedAir New ZealandAir New Zealand Limited is the national airline and flag carrier of New Zealand. Based in Auckland, New Zealand, the airline operates scheduled passenger flights to 26 domestic destinations and 24 international destinations in 15 countries across Asia, Europe, North America and Oceania, and is...
(although the government later bought a controlling share in the company in 2001) - Rural Banking and Finance Corporation - purchased by the National Bank of New ZealandNational Bank of New ZealandThe National Bank of New Zealand often referred to as The National Bank is one of New Zealand's largest banks. Throughout much of its history, the National Bank has provided banking services to mainly rural, personal, and small business customers. Its owner is ANZ National Bank Limited, the New...
) - Government Printing Office - now GP Print
- National Film UnitNational Film UnitThe National Film Unit was a state-owned film production organisation in New Zealand. Founded in 1941, it mostly produced newsreels, documentaries and promotional films about New Zealand, and for many years was the only significant film production facility in the country...
- purchased by Peter JacksonPeter JacksonSir Peter Robert Jackson, KNZM is a New Zealand film director, producer, actor, and screenwriter, known for his The Lord of the Rings film trilogy , adapted from the novel by J. R. R...
and renamed Park Road PostPark Road PostPark Road Post is a 10,200 m² motion picture post production facility, located in Miramar, New Zealand, a suburb of Wellington. Formerly the state-owned National Film Unit, the new facility was renamed Park Road Post upon completion in 2005... - Tourist Hotel Corporation of New Zealand Limited
- Export Guarantee Office
- Government Supply Brokerage Corporation (NZ) Limited
- Bank of New ZealandBank of New ZealandBank of New Zealand is one of New Zealand’s largest banks and has been operating continuously in the country since the first office was opened in Auckland in October 1861 followed shortly after by the first branch in Dunedin in December 1861...
(BNZ) - New Zealand Rail LimitedTranz RailTranz Rail, formally Tranz Rail Holdings Ltd , was the main rail operator in New Zealand from 1991 until it was purchased by Toll Holdings in 2003.- Formation :...
(The rail operations of the Railways Corporation) - later renationalised as KiwiRailKiwiRailKiwiRail Holdings Limited is the rail operations subsidiary of the New Zealand Railways Corporation, which trades as KiwiRail. Headquartered in Wellington, New Zealand, KiwiRail is the largest rail transport operator in New Zealand. Since July 2010 John Spencer has been the Chairman...
. - GCS Limited - formerly Government Computing Services, purchased by EDSEDS- Education :* Educational specialist , a terminal academic degree in the U.S.* Episcopal Divinity School, an Episcopal Seminary in Cambridge, Massachusetts* Evansville Day School, an independent college-prep school in Evansville, Indiana- Politics :...
New Zealand - Terralink InternationalTerralink InternationalTerralink International is a New Zealand owned and operated provider of Geographic information systems and mapping solutions.- Overview :...
- Radio New ZealandRadio New ZealandRadio New Zealand is a New Zealand public service radio broadcaster and Crown entity formed by the Radio New Zealand Act 1995. It operates news, current affairs and arts network Radio New Zealand National and classical music and jazz network Radio New Zealand Concert with full government funding...
(Commercial Stations) - Sold to Clear ChannelClear channelA clear-channel station is an AM band Radio station in North America that has the highest protection from interference from other stations, particularly concerning night-time skywave propagation. Usually known as class A stations since 1982, they are occasionally still referred to by their former...
to form The Radio NetworkThe Radio NetworkThe Radio Network is the wholly owned New Zealand division of radio company Australian Radio Network, a partnership of Clear Channel and APN News & Media. It is the owner and operator of the Newstalk ZB News service and nationwide Newstalk ZB, Classic Hits, ZM, Coast, Hauraki, Easy Mix, Flava and...
Non-commercial stations Radio New Zealand National and Concert remain. - Vehicle Testing New Zealand, sold in 1999 to the Motor Trade Association
Source: The New Zealand Treasury
Shell state-owned enterprises
Some SOEs, such as ECNZ, are effectively small SOEs or shell companies. Companies that are still SOEs but are now shell companies, having had most of their assets privatised, include:- Electricity Corporation of New Zealand LimitedElectricity Corporation of New ZealandThe Electricity Corporation of New Zealand Ltd is a New Zealand state-owned enterprise formed on 1 April 1987, as a transition entity in the process of deregulating the New Zealand electricity market...
(ECNZ).
- Works and Development Services Corporation New Zealand Ltd which remained in state ownership after the sale of Works Civil Construction Ltd to Downer and Company Ltd.
Former, non-SOE state-owned corporations
- State Insurance Corporation
- Tourist Hotel Corporation
- Government Life Insurance Corporation - later renamed Tower Insurance
- National Airways Corporation - merged with Air New ZealandAir New ZealandAir New Zealand Limited is the national airline and flag carrier of New Zealand. Based in Auckland, New Zealand, the airline operates scheduled passenger flights to 26 domestic destinations and 24 international destinations in 15 countries across Asia, Europe, North America and Oceania, and is...
in 1980
Other Crown-owned companies
Other, non-SOE Crown-owned companies are the Crown entity companies. These are the Crown Research InstitutesCrown Research Institutes
In New Zealand, Crown Research Institutes are corporatised Crown entities charged with conducting scientific research.Crown Research Institutes date from 1992, with most formed out of the parts of the former Department of Scientific and Industrial Research and of elements of various government...
(CRIs), the broadcasting companies Television New Zealand Limited
Television New Zealand
Television New Zealand, more commonly referred to, and stylized as TVNZ, is a government-owned corporation television network broadcasting in New Zealand and parts of the Pacific. It operates TV1, TV2, TVNZ7, TVNZ Heartland, TVNZ U and new media services....
(TVNZ) and Radio New Zealand Limited
Radio New Zealand
Radio New Zealand is a New Zealand public service radio broadcaster and Crown entity formed by the Radio New Zealand Act 1995. It operates news, current affairs and arts network Radio New Zealand National and classical music and jazz network Radio New Zealand Concert with full government funding...
(RNZ), and the New Zealand Venture Investment Fund Limited.
The Crown also has a majority stake in Air New Zealand Limited
Air New Zealand
Air New Zealand Limited is the national airline and flag carrier of New Zealand. Based in Auckland, New Zealand, the airline operates scheduled passenger flights to 26 domestic destinations and 24 international destinations in 15 countries across Asia, Europe, North America and Oceania, and is...
.
See also
- State sector organisations in New ZealandState sector organisations in New ZealandPublic sector organisations in New Zealand include the State sector plus the organisations of local government.Within the State sector lies the State services, and within this, lies the core Public service....
(lists SOEs and Crown entities) - Crown entity
- Council-controlled organisation – a New Zealand local government equivalent
- Constitutional economicsConstitutional economicsConstitutional economics is a research program in economics and constitutionalism that has been described as extending beyond the definition of 'the economic analysis of constitutional law' in explaining the choice "of alternative sets of legal-institutional-constitutional rules that constrain the...
- Political economyPolitical economyPolitical economy originally was the term for studying production, buying, and selling, and their relations with law, custom, and government, as well as with the distribution of national income and wealth, including through the budget process. Political economy originated in moral philosophy...