Property Management Centre of Expertise Whole of Government

Property Management Centre of Expertise Whole of Government Direction Consultation engagement with Crown entity monitoring departments

Functional Leadership for Property in a nutshell PMCo. E 1. Set Government National Property Strategy (GNPS) 2. Set standards & guidelines and create tools and processes 3. All-of-government procurement for property-related goods and services 4. Implement central database for government property information plus tenure approval, brokerage, seismic support, research, projects and general support. Entities 1. Comply with GNPS and standards set 2. Approval from PMCo. E for any change in lease tenure (acquisition & disposal) 3. Maintain strategic property plans 4. Take up all-of-government contracts for property-related goods and services 5. Adopt the Government Property Portal

Functional Leadership for Property Current scope Public Service departments Yellow Mandated Non-Public Service departments Blue Expected Balance of entities Out of scope Crown agents Except DHB’s

Functional Leadership for Property Wo. G Direction What? Extend the mandate as it applies to the departments, to the Crown agents currently expected to comply. When? Effective 1 July 2014. Why? The savings targets for the functional leadership currently include those from Crown agents. Processes may differ between ministerial and board expectations relating to functional leadership initiatives and Crown entity board planning, decision making and approval processes. These differences may put ministerial savings expectations at risk. Extending the mandate to Crown agents, while ensuring functional leadership and board processes are aligned, will mitigate this risk.

Functional Leadership for Property Impact on staff This direction will not have any impact on staff numbers. Crown agents will have the same requirement for property management capability internally. Crown agents will have the option of commissioning the PMCo. E to carry out their property management. Impact on planning The majority of Crown agents already act in accordance with the PMCo. E and complete property plans. Strategic property plans are good practice and should be undertaken by Crown agents by default. The consultation will gather information on planning, decision making and approval processes that the Crown agents consider are important to align. Impact on funding and costs Crown agents will not lose property-related appropriation. Crown agents are already incorporated in the PCMo. E’s cost recovery programme. PMCo. E can only recover fees from the Crown agents to the maximum value of 5% of the savings that Crown agent realises. The remaining 95% of savings realised must stay with the Crown agent.