Treasury Performance Improvement Review finds ministers losing confidence, criticises ‘weak’ economic forecasting, missed cost blowouts at ACC and Health NZ

New Zealand's Treasury is facing a crisis of confidence among ministers, according to a damning performance review. The report reveals that the Treasury, a critical government department, is slowly losing the trust of ministers in its advice following a string of significant errors.

This marks the first such review in ten years and highlights serious shortcomings. The report specifically criticizes the Treasury's economic forecasting capabilities, labeling them as 'weak.' It also points to substantial cost overruns at the Accident Compensation Corporation (ACC) and Health New Zealand, issues that the Treasury was expected to manage or foresee.

Treasury Secretary Iain Rennie acknowledged the findings during a select committee hearing. The review suggests that talented individuals may be becoming less inclined to work for the Treasury, potentially exacerbating existing issues. The report underscores a need for urgent improvements to restore faith in the department's ability to provide sound economic advice and oversight.

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Treasury Performance Improvement Review finds ministers losing confidence, criticises ‘weak’ economic forecasting, missed cost blowouts at ACC and Health NZ