Independent review of Departmental Host Agreement

Cabinet agreed to establish a new departmental agency within a host department and a governance group was set up to oversee the process. The host department prepared a draft Department Host Agreement and we were asked to provide an independent review of the agreement.

We identified that the draft agreement was likely to make the Departmental/Host arrangement difficult to manage. We suggested six relationship principles that recognised the clear and separate accountabilities of the Department and Agency, and that the parties were responsible to different Ministers. We also suggested there was insufficient transparency in terms of what corporate services would be provided and how they will be charged.