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Reducing Inequalities


This Document is Archived


Report of the Ministry of Economic Development for the Year Ended 30 June 2004

[ Last Updated 19 December 2005 ]


Highlights

The Ministry is working across a range of activities to reduce inequalities. In particular, in 2003/2004 the Ministry worked to:

  • develop and implement its Māori economic development strategy;
  • respond to Māori concerns by undertaking a work programme that examines the relationship between intellectual property and traditional knowledge;
  • start developing an economic development strategy for Pacific peoples;
  • address trading practices that impact detrimentally on low income groups;
  • provide targeted information for Māori, Pacific Island and low income consumers.

 

Māori Economic Development Strategy

All New Zealanders benefit from general improvements to the business environment. The rationale for a strategy for Māori economic development is that there may be some issues of generic policy design and implementation that do not suit the needs of Māori.

The Ministry seeks to develop a better understanding of these needs, and to strengthen its ability to engage with, and respond to, Māori in an effective manner. The Ministry's Māori economic development strategy is not a general strategy for economic development but rather a strategy for ensuring that the Ministry can add value to Māori economic development work in a positive way, based on its expertise and experience.

The strategy recognises that there are four broad areas where the Ministry needs to consider and address Māori issues. They are:

  • in specific policy areas with a direct and distinct impact on Māori (e.g. intellectual property);
  • in the generic policy development process (by identifying any Māori economic development issues);
  • through specific initiatives; and
  • through business service delivery.

In 2003/2004, work focused on:

  • working with Te Puni Kōkiri on preferred governance options for commercial Māori enterprises;
  • gathering information on the distinctive nature of Māori business;
  • developing mechanisms to support increased Māori engagement in the Regional Partnership Programme;
  • building a better understanding of issues relating to Māori traditional knowledge and the regulatory environment that provides for its protection, and where appropriate its commercial development; and
  • assessing the current framework for Māori participants in the Crown Minerals programme and developing options for enhancing Māori participation in the future.

An advisory group was established to provide independent advice at a strategic level on what contribution the Ministry can best make to Māori economic development. The group met twice in 2003/2004 and works with a team of people in the Ministry charged with leading implementation of the strategy.

 

Pacific Economic Development Strategy

In October 2003, NZIER completed a preliminary review of development issues for Pacific peoples in New Zealand, commissioned by the Ministry. Its purpose was to:

  • identify the major markets, organisations, and interactions that are important in painting an economic and social picture of Pacific peoples in New Zealand;
  • compile sufficient data, in each of the major categories, to highlight trends in social and economic performance of Pacific peoples (relative to appropriate comparators); and
  • prepare a report, which draws on existing research, to explain performance, or obstacles, particularly concentrated among Pacific peoples, including Pacific women, and identify any major gaps in understanding.

This review has been used in the ongoing development of an economic development strategy for Pacific peoples.

 

Specific Programmes Undertaken by Vote during 2003/2004

Vote Economic, Industry and Regional Development

The Ministry's Regional Initiatives Fund has supported projects which address the specific needs of some Māori and Pacific groups. The Ministry also contributed funding of $56,250 to the work of "Mayors for Jobs", some of whose projects directly targeted Māori youth. The fund also contributed $100,000 to the purchase of professional advice to Te Uri O Hau Settlement Trust on the commercial viability of developing certain parts of its settlement assets, and $100,000 to Oceania Attractions for the feasibility, planning and development of Te Pa, a major Māori cultural tourism attraction planned for Bastion Point.

The Regional Partnerships Programme aims to improve regional economic development by encouraging local business, local government, and local communities to work together to build on regional strengths to improve economic performance. Māori are a key stakeholder group in any region, and any application for funding under the Programme must demonstrate engagement and consultation with local iwi/Māori before grants are approved. The Ministry is undertaking a joint policy project with New Zealand Trade and Enterprise and Te Puni Kōkiri to enhance Māori engagement in the Regional Partnerships Programme.

New Zealand Trade and Enterprise (NZTE)

NZTE undertook activities such as the Business Growth Service and Fund, Enterprise Training Programme, Investment Ready Training, Escalator, BIZ, BIZ Enterprise Awards, Clusters, and the Regional Partnerships Programme. These activities continue to include purchasing services aimed specifically at assisting Māori, Pacific peoples and women.

The Enterprise Training Programme (ETP) is a management upskilling programme established in 1998 to improve the business capability of the owners/operators of small and medium enterprises. In addition to providing generic training in areas such as business planning, finance and marketing strategies, the programme also incorporates delivery of Māori Trustee Training to the trustees, potential trustees and managers of Māori trusts incorporated under the Te Ture Whenua Act and other similar Māori organisations managing multiple owned assets. Also included in the programme for the first time was pre-business training aimed at Pacific peoples delivered through the Pacific Business Trust.

The Programme is delivered through third party contracts and all service providers were required to develop strategies to encourage and make it easier for Māori, Pacific peoples and women to access the services available. Where there was demand, services aimed predominantly at these target groups were offered and material was customised accordingly. If feasible, the trainers undertaking delivery of services are of the same ethnicity as the target group. A total of 52,529 services were delivered to clients. Of this number 9,758 (18.57%) were to Māori, 1,764 (3.35%) to Pacific peoples and 28,187 (53.65%) to women.

BIZ (previously BIZinfo) is a business information and referral service aimed at existing businesses and those wishing to establish a business. The service is accessed by clients through a toll-free 0800 number and a network of 29 walk-in resource centres located in the main cities and towns of New Zealand.

Statistics for usage of the BIZ programme for the year ending June 2004 show that women constituted 48.53% of requesters of information, against a target of 45%. For Māori, 14.81% of inquires came from this ethnic group against a target of 15%. The target of 4% for Pacific peoples was met, with inquiries reaching 4.475% of the overall total of requests for information.

Other New Zealand Trade and Enterprise Programmes

Investment Ready Training is delivered by specialist training providers nationwide. Delivery content was updated and improved to provide flexibility to tailor workshop topics to the needs of clients, and the expansion of content to include debt as well as equity raising. Clients who show strong potential to attract investment or strategic partnerships are then directed to the Escalator Service (deal evaluation and broking) where they are stepped through a process which will improve their investment readiness. Prior to the change in programme structure, 16 Introductory Investment Ready Workshops were delivered to 264 participants. Under the Enterprise Training Programme, 51 entry level Investment Ready workshops were delivered nationwide to 562 participants.

While the Entry Level Investment Ready workshops are now delivered under the Enterprise Training Programme, the Escalator Service delivers High Level Investment workshops (Levels Two and Three). During the 2003/2004 year, 19 High Level workshops were delivered to 237 participants.

A research project is underway aimed at understanding barriers to and increasing access to grant programmes for Māori, Pacific and women-owned businesses. The research is being structured in conjunction with key stakeholders and other government agencies, namely Te Puni Kōkiri, Poutama Māori Business Trust, Pacific Business Trust and the Ministry of Women's Affairs. Preliminary findings are due in early October and will feed into the delivery model for the Enterprise Development Grants Scheme.

 

Vote Commerce

A new Trade Marks Act came into force in August 2003, providing the Commissioner of Trade Marks with the power to refuse to register a trade mark where its use or registration would be likely to offend a significant section of the community, including Māori. The Act also provides that persons who are culturally aggrieved as well as those aggrieved in a business sense can apply to have a registered trade mark declared invalid. A Māori Advisory Committee was established to advise the Commissioner on whether a proposed use or registration of a trade mark derived from a Māori text or image is, or is likely to be, offensive to Māori. The Advisory Committee comprises five members who each have an understanding of Te Ao and Tikanga Māori and combined expertise in business, Mātauranga Māori (Māori knowledge), Māori imagery and iconography, legal expertise, Te Reo Māori (Māori language), and governance. Approximately $15,100 was spent over the 2003/2004 period on running costs for the Advisory Committee .

Proposed amendments to the Patents Act provide for the establishment of a Māori Consultative Committee. The aim of the committee is to advise the Commissioner of Patents on patent applications for inventions that involve the use of traditional knowledge or indigenous plants and animals. This will assist in determining whether or not such inventions meet the criteria for granting a patent, including whether the commercial exploitation of such inventions may be contrary to Māori values. The proposal to establish the committee arose out of recommendations made by the Royal Commission on Genetic Modification. A Patents Bill making these amendments is planned to be introduced to Parliament in late 2004.

Work also commenced to examine the relationship between intellectual property and traditional knowledge. The work programme is in response to concerns raised by Māori about the acquisition of intellectual property rights over traditional knowledge and also the inability to use the intellectual property regime to protect traditional knowledge. "Fact Sheets on International Fora Considering Traditional Knowledge" were developed as part of this work programme. The fact sheets are designed to provide information about the various international fora examining issues related to traditional knowledge, highlight why they are doing so, and demystify their processes.

 

Vote Communications

Project Probe, which the Ministry manages jointly with the Ministry of Education, underwrites the provision of broadband communications in areas telecommunications suppliers currently find uneconomic to supply.

The initial objective is to ensure that all schools can access broadband technologies, but the benefits will extend to many remote and rural communities. While broadband is not a panacea, it is widely perceived as a critical factor in allowing regions to develop economically. It is expected to provide particular benefits in remote regions with a high Māori population such as East Cape, contributing to enhanced delivery of education services, particularly Te Reo, via the internet.

The Telecommunications Service Obligation (TSO) framework of the Telecommunications Act 2001 provides a mechanism for addressing any telecommunications service inequalities. A Telephone Relay Service (TRS) to facilitate conversations between the deaf and hearing impaired and other telephone users was specified under the Act in 2003. A tender process which has included service testing by appointed disability groups has led to contract negotiations being completed and a successful supplier being appointed. The service is due to come into operation in November 2004. The cost of providing a telecommunications relay service is likely to be approximately $2 million in the first full year of operation. A proposal was also developed for a text phone pool system mechanism to ensure affordable access to text phones for use with the TRS.

In the radio spectrum area the Ministry has provided further advice on issues related to the establishment of the Māori Television Service. A new low power FM General User Radio Licence was introduced to allow community and special interest groups (e.g. schools) to carry out local FM broadcasting without incurring spectrum costs. Recent work on policy arrangements for access to the reserved spectrum 3.5GHz Wireless Local Loop spectrum is intended to allow local communities to have a greater role in the deployment of broadband infrastructure.

 

Vote Consumer Affairs

Information programmes initiated by the Ministry of Consumer Affairs were targeted at Māori, Pacific peoples and low-income consumers, who often include consumers with disabilities.

As part of its third party capability building, the Ministry developed a Pacific Island reference group and Otara Pacific Island Church Consumer Group and undertook continued liaison within the Auckland region. The Ministry continued its relationship with the Māori Women's Welfare League. All of these capability building programmes were aimed at promoting and delivering consumer and energy safety information and messages.

The Pacific Island reference group fulfilled a number of roles:

  • to promote, communicate and educate consumers about issues, rights and obligations under consumer law;
  • to provide feedback to the Ministry on emerging consumer issues in their communities; and
  • to identify suitable candidates for consumer representation positions on decision-making bodies.

The Otara Pacific Island Church Consumer Group aims to provide Pacific Island communities with a general understanding of consumer rights and remedies, access to sources of assistance, and develop skills in assertiveness.

Within the Auckland region the Ministry worked with organisations and institutions that target Pacific Island communities, e.g. providing consumer law seminars to Polytech students; liaising with the Manukau City Council Pacific Advisory Committee; where possible, working with the Otara Community Law Centre, Waiparera Trust and Manukau Urban Māori Authority to reach targeted consumers.

 

Vote Energy

The Ministry has continued implementing the Government's policy of ensuring that low fixed charge electricity tariffs are available for all households. A key aim of this policy is to provide small consumers, who are often on low incomes, with lower overall electricity bills. Most retailers and lines companies have complied voluntarily, and regulations proposed to come into force on 1 October 2004 will ensure that all comply.

The Energy Safety Service undertook a third party capability building programme in the Te Taitokerau region. This project aims to deliver electricity and gas safety messages to the community, together with practical ways to implement the messages. Messages already identified, approved and used by the Energy Safety Service were adapted and localised to meet the needs of the respective audiences in consultation with local agencies and Māori organisations. The audience ranges from school children to kaumātua.

 

Vote Tourism

The Ministry of Tourism worked with individual Māori Regional Tourism Groups to develop their understanding of the assistance that central government agencies can offer.

Work is continuing on developing and providing information for Māori tourism operators about government services that are available to them. The Ministry has produced a tourism assistance chart for Māori tourism operators, outlining which agencies provide assistance at which stage of the business development process.

The Ministry supported hui around the country initiated by the Associate Minister of Tourism to discuss future policies and direction for Māori Tourism. A strategy to enhance business skills and develop high quality Māori Tourism is expected to be implemented in 2004/2005.

The Ministry has presented workshop material at hui on business assistance programmes to aid Māori tourism operators, and also on the tourism information available on the Tourism Research Council of New Zealand website.

The Ministry continues to provide input into the implementation of recommendations from He Mātai Tāpoi Māori. The New Zealand Tourism Strategy 2010 projects, such as "Business Class" and the Poutama bid, partially fulfill some He Mātai Tāpoi Māori recommendations. The Ministry is working with Statistics New Zealand on providing better Māori tourism statistics. This work, which is funded through the Cross Departmental Research pool, is a further example of implementing He Mātai Tāpoi Māori recommendations.

 

Improving the Ministry's Capability

The Ministry uses a policy framework that ensures regulatory and economic policy advice includes assessment of impacts on key stakeholders, including groups that may be disadvantaged.

The Ministry's Treaty Issues Analysis Guide, developed in consultation with Te Puni Kōkiri, the State Services Commission, the Ministry of Justice and the Crown Law Office, provides a comprehensive approach to identifying and appropriately analysing Treaty issues. It provides guidance for policy and operations staff on where to seek relevant information and a measured approach for considering Treaty issues, and alerts them to the relevance of key processes such as consultation.

Under the Ministry's Māori Economic Development Strategy, work commenced on guidelines to help Ministry staff identify and respond to Māori economic development issues. These complement the Ministry's Treaty Issues Analysis Guide.

The Ministry's Human Resources Strategy has identified goals of reducing barriers to employing a wide range of staff with relevant skills and expertise and creating a supportive work environment, particularly for Māori. The Ministry continues to provide Treaty and Tikanga awareness training (costing $26,100 over 2003/2004). The aim of the treaty awareness training is to provide Ministry employees with an understanding of the current issues concerning the Treaty of Waitangi.

A capability programme for Ministry directors was developed and commenced in 2003/2004. The programme is aimed specifically at the Ministry's directors who have a leadership role to implement the objectives of the Māori economic development strategy.

 


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