Bank director and power executive on 'community' adviser board to Treasury

Treasury Secretary John Whitehead. Photo / Sarah Ivey

Three non-executive directors have been appointed to the Treasury's board, but Labour is continuing to question the reason for the board's existence.

Treasury Secretary John Whitehead, who announced the governance board last month, said it would include private and community representatives to provide advice.

Mr Whitehead would be able to veto the board's advice.

He said he would continue to answer to the State Services Commission and Finance Minister.

The three non-executive board members announced yesterday were former Fairfax NZ chief executive, chairwoman of Mighty River Power and deputy chairwoman of Television New Zealand Joan Withers, BNZ director Susan Macken and New Zealand School of Music and Institute of Economic Research board member Paul Baines.

The Treasury's deputy chief executives Andrew Kibblewhite and Gabriel Makhlouf would also be on the board.

Labour's state services spokesman Grant Robertson said the board challenged the neutrality of the public service and public service bosses' responsibility to ministers.

With various working groups, purchase advisers, a review of public sector advice and now a board for the Treasury, the Government was fundamentally changing the nature of the public sector, he said.

"This board looks designed to lock in place the economic thinking of the current Government.

"Mr Whitehead has said the people appointed would be representative of the community, so where are the representatives of the community sector?"

Mr Whitehead said yesterday that the three private board members had a great deal of governance and commercial wisdom.

The board would hold its first monthly meeting in October and would meet Finance Minister Bill English periodically.

"I am on record as making a lot of noise about public sector performance and innovation. With an expanded Treasury board we are 'walking the talk' and trying something new," Mr Whitehead said.

- NZPA