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Ministerial Directions since 1 January 1994

This briefing sets out the reason for use and effectiveness of Ministerial directions, and their relationship to the EQC legislation, as requested by the Inquiry.

Under the Crown Entities Act 2004, the Minister of Finance (or other Minister who has been conferred the Ministerial functions) can direct EQC to give effect to government policy related to EQC’s functions and objectives. The Minister can also direct EQC to carry out additional functions. Prior to the enactment of the Crown Entities Act, the Earthquake Commission Act 1993 enabled the Minister of Finance to give EQC directions. 

The briefing sets out 18 Ministerial Directions to EQC made by various Ministers since 1 January 1994. The 18 directions fall into three categories:

  • Directions that introduce new functions outside the core business of EQC.
  • Directions that extend EQC’s existing functions – these have allowed EQC to fill an unforeseen gap in residential insurance cover. EQC could then provide pay outs and repairs in scenarios that were unforeseen, but became apparent during claims processing.
  • Directions regarding investment of the Natural Disaster Fund – directions as to policies, standards and procedures for investment.