The Act is designed "to protect society and the individual from harm or danger arising from actions of the Crown by ensuring that there are mechanisms to hold the Crown responsible and accountable for its actions [and to] meet the principle that the Crown should in general be subject to the law and the same legal processes as anyone else.

The Act was created in response to a Commission of Inquiry into the Cave Creek disaster, headed by District Judge Graeme S. Noble.

Cave Creek is a small stream in Paparoa National Park.

The commission discovered that the cantilevered platform had been constructed by well-intentioned but unqualified volunteers without on-site plans or formal building approval.

[4] Although DOC took responsibility for the accident, there were no prosecutions due to a loophole in New Zealand law that prevented government departments from being held liable in such a situation.