1Cabinet recently agreed to a revised Fees Framework for determining or reassessing the fees paid to members of statutory and other bodies in which the Crown has an interest [APH-22-MIN-0195].
2This circular and the attached Framework replaces Cabinet Office Circular CO (19)1.
3The revised Framework covers all statutory bodies, non-statutory bodies and committees in which the Crown has an interest, that are outside the Remuneration Authority’s or other fee-setting bodies’ jurisdiction. The Framework therefore covers most Crown entities (including Crown Agents, Autonomous Crown Entities (ACEs) and tertiary education institutions), trust boards, advisory bodies and committees, Royal Commissions, Public Inquiries, Government Inquiries and Ministerial Inquiries, statutory tribunals, individuals appointed as statutory bodies that are not covered by the Remuneration Authority and some subsidiary bodies.
4The Framework provides guidance on the classification and remuneration of statutory and other Crown bodies. Since the Framework covers a varied array of bodies, it is not intended to be prescriptive, and judgement will be required to determine best fit.
5The purpose of the Framework is to provide a basis for judgement in setting fees that will:
- ensure a consistent approach to remuneration across all statutory and other Crown bodies;
- contain expenditure of public funds within reasonable limits;
- provide flexibility within clear criteria.
6The main changes to the previous Framework are:
6.1an increase of ten percent to the fee ranges for Groups 2, 3 and 4 bodies;
6.2independent members who chair sub committees will receive the same fee as a member of the parent body who chairs a sub committee;
6.3if no legislative impediment exists, co-chairs may be appointed. Applicable chair rates will apply to both;
6.4all members of a body receive the same member rate when a body is appointed without a chair;
6.5deputy chairs or members acting as chair receive the rate for the chair role;
6.6Health Responsible Authorities are specifically excluded from the Framework;
6.7greater clarity is to be provided about situations where an organisation might have more than one prime function;
6.8allowing the Minister for the Public Service to approve technical or minor exceptions to standing exceptions without Cabinet consideration;
6.9clarifying that joint members of a parent board and its advisory committee are not paid twice for attendance at the same meeting;
6.10updates to the tax guidance section in the Framework;
6.11other minor administrative changes, such as updating links and references to current legislation and fixing minor omissions and errors.
7Ministers and chief executives should ensure that all staff involved in appointments to bodies covered by the Framework are familiar with the requirements of this circular.
8For advice on the application and interpretation of the Fees Framework, contact the Public Service Commission, email: email@example.com or phone (04) 495 6600.
9For advice on taxation on fees, contact Denise Birdling, Team Lead, Significant Enterprises, email: Denise.Birdling@ird.govt.nz or phone (04) 890 6295.
Acting Secretary of the Cabinet