Introduction

Welcome to your Sport and Recreation portfolio.

The Ministry for Culture and Heritage (the Ministry) helps all our Ministers to lead the cultural system, comprising arts, heritage, media and sport.

As Responsible Minister for Sport and Recreation, you are responsible for the oversight and management of the Crown’s interest in, and relationship with, statutory Crown entities within the Sport and Recreation portfolio. These entities include Sport and Recreation New Zealand (Sport NZ) and the Integrity Sport and Recreation Commission (the Commission). The Ministry supports you in achieving this as your monitoring agent and, in doing so, has prepared this briefing, which is in five parts:

• Part one summarises the Sport and Recreation portfolio
• Part two outlines your role as a Responsible Minister under the Crown Entities Act 2004
• Part three outlines the monitoring role of the Ministry for Culture and Heritage
• Part four outlines the opportunities for the Ministry to deliver the Government’s priorities for the Sport and Recreation sector
• Part five outlines decisions that will come to you in your first 100 days

We are looking forward to understanding your priorities for the sport and recreation sectors and supporting you with your Crown entities in your new role.

Part one: the Sport and Recreation portfolio

The combined value of sport and active recreation in Aotearoa New Zealand.

Social value:

• $9.02 billion Physical health
• $3.09 billion Volunteering
• $1.13 billion Social capital (social trust, belonging and community engagement)
• $3.32 billion Subjective wellbeing (individual life satisfaction)
• $0.889 billion Income, consumption and wealth (individual development)
• –$0.602 billion Individual safety (injuries and accidents)

Economic value:

• $3.96 billion Sport and active recreation related economic activity

Total value: $20.8 billlion.

As Minister, you are responsible for:

• Vote Sport and Recreation, which for 2024/25 is approximately $122 million. This includes funding for Sport and Recreation Programmes ($32.1 million), High Performance Sport ($74.2 million), Prime Minister’s Scholarships ($4.3 million), Services from the Integrity Sport and Recreation Commission ($10.6 million), an appropriation for services from the Ministry for Culture and Heritage ($0.470 million), and miscellaneous grants ($0.044 million).  [Redacted: confidentiality of advice to Ministers]
• Two Crown-funded agencies including Sport and Recreation New Zealand (a Crown agent), Integrity Sport and Recreation Commission (an independent Crown entity) and two non-Crown entity boards (Sports Tribunal of New Zealand and the Eden Park Trust Board), with responsibilities ranging from monitoring and board appointments.  [Redacted: confidentiality of advice to Ministers]

Portfolio overview

The Ministry administers appropriations under the Vote, is the Crown monitor for the Sport and Recreation Crown entities, provides advice on performance and accountability processes, and supports you in making appointments to Sport and Recreation portfolio boards.

While the Ministry administers the appropriations, Sport New Zealand (Sport NZ) is the primary Sport and Recreation adviser to the Minister. Sport NZ also administers the three Sport and Recreation related Acts of Parliament: Integrity Sport and Recreation Act 2023, Sport and Recreation New Zealand Act 2002, and the Sports Anti-Doping Act 2006.

Priority work for the Ministry has been the recent Independent Rapid Review of Sport NZ, commissioned by Hon Chris Bishop in October 2024. The Ministry was also involved in the work to disestablish Drug Free Sport New Zealand and establish the new Integrity Sport and Recreation Commission, which commenced on 1 July 2024, and is now responsible for monitoring the Commission.

Sport NZ

Sport NZ’s purpose is to contribute to the wellbeing of everybody in New Zealand by leading an enriching and inspiring play, active recreation, and sport system.

Sport NZ’s broader vision of ‘Every Body Active’ focuses on increasing physical activity rates through Play, Active Recreation and Sport. Strengthening inclusivity, accessibility and collaboration across the system are also key enabling factors for Sport NZ’s vision to be achieved.

With the recent release of the 2024-2028 Strategic Plan, Sport NZ has entered the second phase of its ‘Towards 2032 Strategic Direction’, which has three strategic focus areas:
 

• Maintaining and growing the physical activity levels of tamariki.
• Reducing the decline in physical activity levels for rangatahi.
• Improving equity for tamariki and rangatahi who are less active.

Sport NZ has established four strategic priorities through to 30 June 2028:

• Support and enable partner organisations who make the biggest impact to the sector to develop their leadership capabilities.
• Support the sector to develop quality opportunities and experiences for tamariki and rangatahi that meet their needs, wants and aspirations.
• Support an aligned national, regional, and local approach that improves access to play, active recreation and sport in local communities and hapori where the greatest barriers to participation exist.
• Support schools and kura to provide quality play, active recreation and sport opportunities.

Sport NZ Group’s core funding is primarily from Crown and Lottery Grants Board profits. For the 2024/25 financial year, the Group’s funding totals approximately $194 million (excluding residual COVID-19 Recovery funding).

Sport NZ (along with other statutory bodies) receive funding from Lottery Grants Board profits each year to support community initiatives. Lottery Grants Board profits fluctuate each year and, until recently, Sport NZ has been required plan for its investments in previous years with a level of uncertainty over its funding outlook. The Lottery Grants Board recently agreed its future operational policy for allocations over the next four years, with Sport NZ receiving guaranteed funding of $73 million per annum, noting that $2.5m of this funding is tagged for Sport NZ’s partnership with Water Safety NZ.

Sport NZ currently has cash reserves (approximately $17.7 million) comprising residual COVID-19 recovery funding, tagged Lotto reserves, a cash reserve pool for Lottery proceeds timing arrears and an operating reserve in the event of disruption. Under the 2024-28 strategy and financial reset it is planned that reserves will deplete over the next four years as Sport NZ delivers remaining commitments under the recovery programme and the current 2024-2028 strategy (as outlined below).[Redacted: confidentiality of advice to Ministers]

As at 30 June 2024, Sport NZ recorded a surplus of $4.793 million, ahead of its budget $30.3 million deficit. This was largely due to lower expenditure in in grants and funding, professional and technical services, and expenditure into infrastructure and other investments. Sport NZ’s equity position as at June 2024 was $159.665 million ($51.457 million higher than budgeted).

Total employee FTE for Sport NZ and High Performance Sport NZ as at 31 October 2024 is 298, with a ratio of the split between front and back office staff to be approximately 76% front office and 24% back office.

Integrity Sport and Recreation Commission

The Integrity Sport and Recreation Commission (the Commission) was established on 1 July 2024, following the disestablishment of its predecessor Drug Free Sport New Zealand. The Commission is responsible for enhancing integrity within sport and physical recreation to protect and promote the safety and well-being of participants and the fairness of competition and keeping New Zealand sport clean and free from doping.

The Commission’s functions involve promoting, advising, and leading integrity in sport and recreation. The Commission is also required to develop a national code for sporting integrity, provide mechanisms for complaints and disclosures relating to integrity in the sport and recreation sector, investigate integrity issues, provide dispute resolution mechanisms, and, if needed, a disciplinary process.

The Commission receives appropriation funding from Vote Sport and Recreation. From 2024/25, the Commission’s baseline includes funding previously allocated to Drug Free Sport New Zealand and the Integrity Transition Programme to establish the Commission.

The Commission’s total revenue of $17.005m in the 2024/25 financial year is comprised of $10.628m of Crown funding, $0.396m of user-pays revenue, $0.086 of interest revenue and $5.895m of funding transferred from Sport NZ. Delays in the Commission’s establishment resulted in only $1.819m of funding, appropriated to Sport NZ to support establishment activity, being spent in 2023/24. The remainder is being used on further establishment activities in 2024/25. The Commission has budgeted a total operating expenditure of $13.985 for 2024/25.

Drug Free Sport New Zealand’s assets and liabilities were transferred to the Commission at their carrying value on 1 July 2024, with Drug Free Sport New Zealand’s closing equity of $0.156m becoming the Commission’s opening balance. The Commission forecast a $3.020m operating surplus for 2024/25.

As at 31 October 2024, the Commission reported a total of 30 employees split between its Auckland and Wellington offices. We expect this figure to have grown slightly in the Commission’s second quarter of operation as any remaining vacancies are filled.

The Commission’s first Statements of Intent and Performance Expectation were published in late 2024, setting out the Commission’s broader strategic priorities and performance. Given the Commission’s recent establishment, performance measures were based against Vote measures and targets. The Commission’s first year of operation should be used to set baseline targets against clear Vote performance assessment metrics while settling into an operational rhythm and clarifying its strategic outlook. The Commission is prioritising the gathering of evidence to inform performance measurement reflected in future Statements of Performance Expectations.

There is opportunity to adjust performance measures and targets when you review the Commission’s draft 2025/26 Statement of Performance Expectations in early May this year. The Ministry will work with the Commission before your review to ensure the Commission’s performance metrics are appropriate and reflect a developed understanding of its own performance.

Cross-portfolio connections 

Your sport and recreation responsibilities are likely to involve cross-portfolio work with: 

• the Minister for Arts, Culture and Heritage, who holds responsibility for the Crown entities in the Arts, Culture and Heritage portfolio (such as Creative New Zealand and the New Zealand Film Commission, which are entities that also receive Lottery Grants Board funding).
• the Ministers of Education and Health who oversee Healthy Active Learning, a joint initiative between Sport NZ, the Ministries of Health and Education, and Health New Zealand.
• the Minister for Mental Health who oversees strategic and policy matters relating to mental health.
• the Ministers of Foreign Affairs and Trade who have an interest in the sports diplomacy strategy, and provides Sport NZ funding for safety, regulatory and security support, as well as New Zealand’s interest in the Pacific region.
• the Minister for Economic Growth (Ministry of Business, Innovation and Employment) who works with Sport NZ and the Ministry in administering the Regional Events Fund and funding major events.

As a Crown entity, the operations of Sport NZ are at arms-length from the Minister. Given Sport NZ holds the sport policy function, the line of sight of policy decisions for the Minister is therefore reduced.  [Redacted: confidentiality of advice to Ministers]

Part two: responsibilities under the Crown Entities Act 2004

You are Responsible Minister for two Crown entities

As a Responsible Minister, you are responsible for the funding and monitoring of two Crown entities: Sport NZ (a Crown agent), and Integrity Sport and Recreation Commission (an independent Crown entity).  

The Ministry is your monitoring department and provides support to you in your role as Responsible Minister to fulfil your duties under the Crown Entities Act 2004, the relevant Crown entities’ enabling legislation, and other relevant legislation, by providing advice to you on the performance of the Crown entities funded through Vote Sport and Recreation. The monitoring regime should reflect your priorities as the Responsible Minister.  

The Ministry also provides advice and support to you on appointments to the Crown entity and non-Crown entity boards in your portfolio. In this role, the Ministry works closely with board Chairs to identify candidates and conduct due diligence for potential board members.

The nature of the relationship between the Crown entities and the Ministry as it relates to monitoring arrangements is well articulated in the Public Service Commission guidance The Foundations of Good Practice: Guidelines for Crown Entity Monitoring released in May 2023, which set out the foundations for good monitoring practice including principles and guidelines. 

Additionally, to support good monitoring of Crown entities, the Public Service Commission has developed It Takes Three, which outlines the roles and responsibilities of the Minister, the Crown entity, and the Ministry (as your monitoring department).  

It Takes Three: Operating Expectations Framework for Statutory Crown Entities (Public Service Commission)

Monitoring is one of your key strategic levers  

As Minister for Sport and Recreation, you have an opportunity, through monitoring and appointments, to influence the strategic direction of funded entities within your portfolio.  

Monitoring and appointments are important levers available to you to influence the strategic direction of the sector. This could be through altering how entities are monitored and evaluated, to assess their delivery towards your specific strategic priorities. 

There are four key ways to influence the strategic direction of a Crown entity: 

• The letter of expectations with the key areas you wish to see the entity focus on within its legislative purpose, objectives, and functions
• Regular meetings with the Chair of the entity to discuss your expectations
• Appointing skilled and effective board members to ensure Crown entities are fit for purpose and capable of performing their critical role; and
• Provide feedback on the Statement of Intent and Statement of Performance Expectations to reinforce your expectations.  

Letters of Expectations provide board members with clarity on how their entity can contribute towards the Government’s priorities. Crown entities play a key role in ensuring that the benefits of Government investment are fully realised. Annual letters of expectations provide you with an opportunity to communicate your priorities for the portfolio with entity boards and provide board members with clarity on how you expect their entity to contribute towards achieving the Government’s broader priorities. The Ministry will engage with you soon on your letter of expectations to ensure your portfolio priorities and strategic direction are articulated to your board Chairs.

Regular meetings with board Chairs are recommended – the Board is the primary monitor of the organisation, and one of the principles of It Takes Three is trusted engagement. The Ministry recommends regular meetings (typically quarterly) with the entity Chairs you are responsible for and will brief you on key issues to support these meetings. The Chair is normally supported by their chief executive. You may like to have a short Chair-only time in these meetings to discuss board appointments or other sensitive matters. The Ministry would only attend this part of the meeting at your specific request.  

The Ministry is the department responsible for supporting you with board appointments for those boards within your portfolio. An overview of the 2025 appointments programme for the Sport and Recreation portfolio is provided at Appendix 1, and specific advice will be provided on each appointment. The appointments process is an opportunity for you to ensure the board has skilled and effective board members to support Crown entities with performing their role and delivery on your expectations.

You have the opportunity annually (through the Statement of Performance Expectations) and more longer-term (through the Statement of Intent) to provide feedback to inform the strategic direction on an entity’s strategy and delivery focus. Draft advice on Crown entities Statement of Performance Expectations will be provided in April 2025 for your consideration. The Ministry will engage with entities on the development of draft documents, and ensure your feedback is provided to entities as these are finalised. 

Crown entities can play a role in achieving the Government’s priorities 

Opportunities exist to deliver on the Government’s priorities through the Sports and Recreation portfolio. Sport NZ delivers a range of programmes in partnership with other government agencies to improve, for example, physical and mental health outcomes for New Zealanders, school attendance and engagement rates, and the uptake of active transport in schools and communities. The Ministry works closely with Crown entities to address cross-government challenges and to realise opportunities to contribute to the Government’s broader priorities, including:

• In partnership with the Ministries of Health and Education and Health NZ, Sport NZ leads the delivery of Healthy Active Learning, which represents Sport NZ’s most significant cross-agency collaboration and is underpinned by New Zealand’s Child Youth and Wellbeing Strategy. Healthy Active Learning supports schools and kura to improve the wellbeing of tamariki and rangatahi through healthy eating and drinking and quality physical activity. Healthy Active Learning has supported approximately 900 primary and intermediate schools and kura to improve physical activity and nutrition outcomes.
• Other recent examples include a funding partnership to support Water Safety NZ; a pilot project with Oranga Tamariki to use sport to improve outcomes for children in state care, and working with New Zealand Police to support connections between the Police and Regional Sports Trusts for the Resilience against Organised Crime project.
• In collaboration with the Ministries of Foreign Affairs and Trade, Business, Innovation and Employment, and Tourism New Zealand and New Zealand Trade and Enterprise, Sport NZ has developed a draft Sport Diplomacy Strategy. This strategy seeks to enhance New Zealand’s global connections and reputation, grow New Zealand’s economy, improve outcomes for Pacific communities and showcase New Zealand’s talent and culture on the world stage.

You have a range of board appointments to make in 2025 for boards in your Sport and Recreation portfolio 

There are eight scheduled appointments to be made from terms expiring across the boards in the Sport and Recreation portfolio (Sport NZ, Eden Park Trust Board, Sports Tribunal of New Zealand and Integrity Sport and Recreation Commission). You will receive further briefings providing specific advice on these appointments through each stage of the appointments process:

Remuneration for board members is set by various mechanisms

Sport NZ is the only sports entity subject to the Cabinet Fees Framework. The Eden Park Trust Board is covered by its own legislation whilst the Remuneration Authority is responsible for the Sports Tribunal and the Integrity Sport and Recreation Commission.  

Under the Cabinet Fees Framework, as responsible Minister, you are able to approve incremental fee increases within the applicable range. There has been no fee increase for Sport NZ since 2010, but the current fees are within the appropriate range. Advice on fees will accompany briefings on Sport NZ appointments later in the year.

Board members bring critical leadership skills and experience

Ministerial appointments are merit-based; board members are selected for the skills, experience, and perspectives they bring to the Board table, to ensure that the collective membership has a balance of skills to support the strategic direction and functions of the entity. Members do not represent, or promote the views of, a particular interest group. In making appointments, Ministers must also consider the need for diversity in the board’s membership, to ensure the demographic make-up of New Zealand is represented.

The Ministry continues to work across the public sector on initiatives, such as the PSC Future Directors® Diversity Programme. These types of apprenticeship opportunities provide placements that seek to nurture the next generation of governance talent, and ensure the Government is achieving balanced representation on boards, reflective of all New Zealanders. 

Part three: role of the Ministry for Culture and Heritage

The Ministry looks to connect across the cultural system (through both Vote Arts, Culture and Heritage and Vote Sport and Recreation) to achieve greater impact for our cultural sectors, people and communities. Across Votes, this could include working across government to support cross-portfolio outcomes, such as supporting improved health outcomes, supporting social outcomes such as reduction in reoffending, or supporting opportunities for economic outcomes, business growth, career development and creation of jobs.

The Ministry’s strategic priorities link across both Votes, particularly with respect to increasing active participation and its benefits by more people, more often; strengthening the cultural system, removing barriers and developing opportunities; identifying opportunities to promote New Zealand’s talent and strengthen our international profile through national major events, for example.

The Ministry supports Ministers to perform their duties and realise their priorities for the cultural system in its broadest sense, including sport and recreation. Ministry support for the Sport and Recreation portfolio includes:

• providing free and frank advice on portfolio issues
• monitoring Crown funded agencies, including articulating Government policies and Ministerial expectations
• providing regular status reports, briefings and officials meetings on key matters and
• supporting you to work with Ministerial colleagues to build connections with other portfolios and to leverage the many wider benefits of cultural activity.

The Ministry also provides Private Secretary support for portfolio-related matters and to act as the interface between Ministerial offices and the Ministry.

Ministry leadership

Te Kāhui Mataaho is the Ministry’s leadership team. The following members are your key contacts for the Sport and Recreation portfolio:

Leauanae Laulu Mac Leauanae
Chief Executive and Secretary

• Strategic direction
• Organisational performance

Emily Fabling
Deputy Secretary Policy, Performance and Insights

• Policy, performance and insights advice
• Monitors the Government’s interest in Crown-funded cultural sector agencies and appointments – this includes sports entities
• Research and evaluation

Joe Fowler
Deputy Secretary Delivery and Investment

• Administering our legislation
• Commemorations and memorials
• Preserving communities’ stories
• Asset management, investment and Budget leadership

Part four: opportunities for the Ministry to deliver against Government priorities for the Sport and Recreation Sector

Independent Rapid Review of Sport NZ Group

[Redacted: confidentiality of advice to Ministers]

Part five: during your first 100 days

You will receive a briefing from Sport NZ and the Integrity Sport and Recreation Commission with actions required according to their specific work programmes.

From the monitor’s perspective, actions and decisions outlined below will be required within the first few months of your appointment. The Ministry will provide you with advice to support these decisions.

Meetings with portfolio Crown entities

Ministers regularly meet with the Board Chair and Chief Executive of Crown entities within their portfolio, as well as key sector organisations. You might like to establish the first tranche of meetings once delegations have been confirmed. Officials are looking forward to supporting your engagement with the sector and can provide further information as requested.

Appendix 1: Appointments overview

Sport and Recreation New Zealand

Under the Sport and Recreation Act 2002 there are between five to nine members on the board. There are currently seven members on the board, with two terms expiring in 2025 (one of these being the Chair). Therefore, you can make up to four appointments to the board. In any case, you will need to appoint a Chair in 2025.  Reappointments can be considered.

Sport NZ is a Crown agent under the Crown Entities Act 2004. Pursuant to the Sport and Recreation Act 2002, this includes developing and implementing national policies and strategies for physical recreation and sport including anti-doping policy. Sport NZ also allocates funds to organisations and regional bodies in line with its policies and strategies.

[Redacted: confidentiality of advice to Ministers]

Reappointments are allowed for under section 32(2) of the Crown Entities Act 2004, and section 32(3) allows members to continue in office despite the expiry of their term until a new appointment or reappointment is made.

The table below contains a list of current board members and their terms.

Integrity Sport and Recreation Commission

Under the Integrity Sport and Recreation Act 2023 there are between seven to nine members on the board. There are currently nine members on the board, with one term expiring in 2025. It is expected there may be a resignation from the board soon, due to a new conflict arising. Therefore, you can consider up to two new appointments in 2025. Reappointments can be considered.

The Integrity Sport and Recreation Commission is responsible for the role previously performed by Drug Free Sport New Zealand together with enhancing integrity within sport and physical recreation to protect and promote the safety and well-being of participants and the fairness of competition.

[Redacted: confidentiality of advice to Ministers]

Reappointments are allowed for under section 32(2) of the Crown Entities Act 2004, and section 32(3) allows members to continue in office despite the expiry of their term until a new appointment or reappointment is made.

The table below contains a list of current board members and their terms.

Sports Tribunal of New Zealand

Under the Sports Tribunal Act 2006 there is now no cap on members under the Act on the Tribunal. There are currently nine members on the board, with one term expiring in 2025. Therefore, you have the option to make no appointments, or a number of new appointments.

The Sports Tribunal operates under the Sports Tribunal Act 2006, and is an independent body charged with hearing, considering, and determining sports-related and integrity matters. It also hears appeals from decisions of the Integrity Sport and Recreation Commission.

It currently has nine members, with the term of member Helen Tobin expiring on 31 December 2025. Reappointments are allowed for under section 34(2)(b) of the Sports Tribunal Act 2006, and section 34(3)(b) allows members to continue in office despite the expiry of their term until a new appointment or reappointment is made.

The table below contains a list of current board members and their terms.

Eden Park Trust Board

Under the Eden Park Trust Act 1955 there are between five to nine members on the Trust, of which five are appointed by the Crown. Of the five Crown appointments there are four terms that expire in 2025.

The Eden Park Trust Board is an entity under a private Act, the Eden Park Trust Act 1955, with up to nine members, five of whom are appointed by the Crown through the Minister for Sport and Recreation. The other four members are appointed by Auckland Rugby and Auckland Cricket (two each).

[Redacted: confidentiality of advice to Ministers]

Reappointments can be considered, under clause 20.7 of the Trust Deed, for members that have served for less than nine consecutive years. Under clause 20.8 of the Trust Deed, member terms are unable to ‘rollover’ and positions become vacant upon the term expiry of the trustee.

Advice on Eden Park Trust Board appointments will be provided in February [BR25/017 refers].

The table below contains a list of current board members and their terms.