The life of the Mental Health Commission will be extended to 2015.
The commission, which is tasked with promoting mental health awareness and advocating for the needs of the mentally ill, was set to finish next year.
It was originally set up in 1996 in response to the Mason Inquiry into Mental Health Services and helped develop a blueprint for improved services, which the Government has been trying to meet.
Health Minister Pete Hodgson said since its establishment there had been significant gains in the recognition and treatment of mental illness.
But he said there was still work to be done especially for Maori, Pacific Island and young people who suffered in disproportionately high numbers than other groups.
"The Mental Health Commission can play an important role in efforts to address this."
Some of the commission's functions could be revised to assist this.
The commission also could play a role supporting the mental health sector through the implementation of the 2005-2015 mental health strategy.
Mr Hodgson said legislation would be introduced to extend the commission's life.
Commission chairwoman Ruth Harrison welcomed the extension.
She also welcomed Mr Hodgson's appointment of former Ngai Tahu Development Corporation chief executive Ray Watson as a commission member.
Maori Party co-leader Tariana Turia said she was pleased the commission had been given a reprieve.
"They have a unique ability to stand outside and give us the objective report card we need on mental health and well-being."
- NZPA
Monitor for mentally ill to stay on
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