Cabinet has approved a state owned enterprise policy which sets the framework for the government’s crown entities, according to a press release yesterday afternoon.
The government’s State Owned Enterprise policy sets standards by which Crown Entities are managed in the best interests of the Niue public, taxpayers and donors.
BCN news obtained a copy of the policy which states its purpose is to guide the establishment and the management of State-Owned Enterprises (SOEs) and Crown owned entities (CEs) formed as Private Companies or Private Contractors, and to outline the level of expectations and standards by which SOEs be managed in the best interest of the public, taxpayers and donors.
Premier and Minister of Commercial Entities Hon Dalton Tagelagi says the number of SOEs and CEs with various establishment structures has seen the need to create a governance framework.
Hon. Dalton Tagelagi noted that “the policy is designed to codify the establishment and management of these entities and outline the level of expectations and standards they manage in the best interest of the Niue public, taxpayers and donors.”
Minister of Finance Hon. Crossley Tatui says there two key objectives “one is to ensure there is a clear seperation between the Government’s non-commercial roles (policy, regulatory and social functions etc.) and its commercial role in delivering products and services to paying customers to minimise conflicting objectives. The second is to allow the Government’s commercial activities to be in a position analogous to that of the private sector while retaining public ownership to maximise the economy, efficiency, effectiveness and financial viabilitiy of these commercial activities.”
The objective of the policy aims to achieve five specific outcomes:
- Robust Governance, Performance and Compliance
- Quality Sustainable Service
- Serving and enhancing the Public Interest
- Meeting our legal Obligations to the Employees and Government
- To achieve Profitability or Break Even
According to the press release, Hon. Dalton Tagelagi says that the “government is reviewing its SOE structures, business standards, investment diversification and business portfolio decisions to ensure the government receive benefits from its sovereign assets.”
The policy is expected to come into effect from the first day of the new financial year, July 1st this year pending the passing of legislation.