21. Performance agreement---(1) Not later than one month before the
 commencement of each financial year, the Authority shall give to the
 Minister a draft performance agreement setting out in respect of that
 year---
   (a) The proposed statement of objectives for that year prepared by the
         Authority under section 41D (1) (a) of the Public Finance Act
         1989; and
   (b) The methods (including financial and non-financial performance
         measures) by which the Authority intends to assess the extent to
         which it in fact meets those objectives during that year; and
   (c) How the Authority intends to report on the extent to which it met
         or is meeting those objectives for that year and the dates by
         which interim reports, if any, will be given to the Minister;
         and
   (d) Any new borrowings or financial leases, or similar liabilities the
         Authority intends to incur during that year; and
   (e) Financial forecasts for the 2 years following the year to which
         the performance agreement relates.

   (2) Every draft performance agreement shall be accompanied by a
 statement of the Authority's best estimate of---
   (a) Both---
           (i) The various impacts the outputs described in the statement
         of objectives will have for; and
           (ii) The consequences of those outputs for,---
         a safe land transport system in New Zealand during the year to
         which the draft performance agreement relates; and
   (b) The impacts of those outputs on, and consequences of those outputs
         for, a safe land transport system in New Zealand for later
         years.

   (3) After receiving a draft performance agreement from the Authority
 under subsection (1) of this section or an amended version of it under
 subsection (5) of this section (whether for the first time or any later
 time), the Minister shall---
   (a) Subject to subsection (4) of this section, approve it; or
   (b) Refuse to approve it and return it to the Authority with
         directions that the Authority amend it.

   (4) No provision specifying any liabilities the Authority intends to
 incur shall be included in a performance agreement under this section
 without the concurrence of the Minister of Finance.

   (5) Where a draft performance agreement is returned to the Authority
 under subsection (3) (b) of this section, the Authority shall amend it
 according to the directions given by the Minister and return it to the
 Minister.

   (6) The draft performance agreement approved for any year by the
 Minister under subsection (3) (a) of this section shall constitute the
 performance agreement between the Minister and the Authority for that
 year.

   (7) Where the Authority fails to comply with subsection (1) of this
 section, then, subject to subsection (4) of this section, the draft
 performance agreement shall be prepared by the Minister and that
 agreement shall constitute the performance agreement between the
 Minister and the Authority for that year.

   (8) Where the Authority fails within a reasonable time to comply to
 the satisfaction of the Minister with subsection (5) of this section,
 the Minister shall determine the amendment and approve the agreement so
 amended.

   (9) Subject to subsection (4) of this section, at any time during a
 financial year, the Minister and the Authority may in writing agree to
 amend the performance agreement for that year.

   (10) Subject to subsection (4) of this section, at any time during a
 financial year, the Minister may direct the Authority to amend any
 provision of the performance agreement in respect of that year, and the
 Authority shall amend the performance agreement according to the
 directions given by the Minister.