Cabinet papers seeking business case approvals

As noted in the Cabinet Manual, proposals that affect the government's financial position, or important financial commitments, including proposals seeking additional financial resources, must be submitted to Cabinet [paragraph 5.12, Cabinet Manual].

The Treasury guidance, Cabinet paper guidance for business case approvals, outlines the requirements that must be included in Cabinet papers seeking approval of a business case.

When drafting the paper, the Cabinet policy paper template should be used. The Treasury guidance outlines additional information that must be included in those sections. This includes:

• Proposal. As well as the purpose statement, include a brief explanation of the current business case stage (e.g., this paper seeks your approval of an indicative business case for [Project X] and to proceed to the detailed business case planning stage). If the nature of the investment is not self-explanatory from its name, provide a one-sentence explanation.
• Relation to government priorities. Explain whether, and if so how, the proposed investment contributes to the core operating manifestos of the Government (i.e., coalition agreements and quarterly plans). Some investments won't relate to a specific Government priority. If this is the case, then state it (e.g. "This is a new proposed investment, which requires Cabinet approval").
• Background. Outline the strategic case for the investment (clearly and succinctly make the case for change). It may include context for the decision being sought, past work that has been done related to the proposed investment, and previous related decision(s) by Cabinet.
• Analysis. Outline the economic case, including high-level detail on the options considered, value for money, and any risks and trade-offs that Ministers need to be aware of.
• Financial implications. Outline the funding requirements (capex and opex) and funding sources of the proposed investment. The requirements differ depending on the stage of business case being submitted for consideration.
• Implementation. As above, the requirements differ depending on the stage of the business case being submitted for consideration. This section should contain details on the viability and achievability of the proposed investment. For Public Private Partnerships, please refer to the guidance developed by the New Zealand Infrastructure Commission.
• Investment assurance. This is a new section that must be included in Cabinet papers seeking business case approval. This section should briefly summarise any internal investment quality assurance or independent peer reviews undertaken, and its outcome. All investment proposals that are determined high-risk by the Treasury Risk Profile assessment (RPA) process must complete the appropriate Gateway review prior to Cabinet considering the business case for approval. The agency must briefly describe the outcome of the most recent Gateway review and agency response to recommendations.
• Appendices. Two appendices are required: the outcome of the Gateway review and a copy of the business case.

See the Treasury guidance for the full outline of additional requirements for each section. Make sure to involve the Treasury early in the development of papers seeking business case approvals.