The State Services Commissioner will have to approve the pay of crown entity chief executives under new Government legislation to provide stronger oversight of their pay and the conduct of crown entity board members.
Prime Minister Jacinda Ardern says the Government is particularly committed to raising pay levels for those on low and middle incomes but there's high public concern that the levels of pay for the highest paid chief executives is excessive.
And she says in some cases crown entity boards have not met either the State Services Commissioner's or the minister's guidance.
"These changes will address those cases in particular by giving the remuneration system more teeth," Ms Ardern told media this afternoon.
"Our view is that the public expects this level of accountability and transparency and these requirements don't apply to crown entities in the same way they do to other parts of the state sector," she said.
The changes mean boards of statutory crown entities will need to obtain the State Services Commissioner's written consent for the terms and conditions of employment for a chief executive.
State Services Minister Chris Hipkins says some crown entities such as universities and district health boards already require the consent of the State Services Commissioner but others don't.
"So that will change and the State Services Commissioner will now have greater jurisdiction," he said.
Mr Hipkins said the Bill also brings the chief executive terms and conditions into line with those within the broader public services, making them five-year appointments which they are not at the moment.
He said the Bill also brings the State Services Commissioner's powers of inquiry into line with the Inquiries Act, so the commissioner won't have to ask the ministers for the power for every individual investigation the commissioner may wish to undertake.
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