Vote: Economic, Industry and Regional Development
Output Class - Policy Advice - Economic, Industry and Regional Development
Description
This output class provides policy advice encompassing the development, evaluation and overview of economic, industry and regional development policies and initiatives to promote sustainable economic development.
This includes implementation of the Government's Growth and Innovation Framework, the researching and analysis of factors influencing the capability and performance of firms, sectors and regions, a stock-take of infrastructure and infrastructure policy within New Zealand, and the monitoring of New Zealand Trade and Enterprise.3
Quantity, Quality, Timeliness and Cost
Work Programme
All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister. Changes to deadlines were negotiated with the Minister.
Key Deliverables in the Work Programme for 2003/2004
Sustainable Economic Growth and Innovation
Continued development of the Growth and Innovation Framework (GIF) and its implementation across the public sector. This includes weekly reports on progress, work on linkages with the annual Budget cycle and a report against key GIF indicators, by 30 June 2004.
The Ministry led development of the growth and innovation (GIF) component of Budget 2004, resulting in a $500 million package, with a particular focus on initiatives to further New Zealand's international connections.
Continued development and implementation of GIF in 2003/2004 also included:
- the development and launch of the Growth and Innovation website which draws together and explains the inter-agency work programme and key achievements; and
- a study of export strategies and programmes in four benchmark countries to inform GIF policy development in the area of international connections.
Weekly reporting on GIF implementation was provided throughout the year.
A report on the key GIF indicators was completed by 30 June 2004.
Advice on the Sustainable Development Programme of Action (SDPA) and in particular, joint leadership with the Ministry for the Environment of the Sustainable Cities Programme, by 30 June 2004.
The Ministry is leading the Sustainable Cities component of the SDPA in conjunction with the Ministry for the Environment and the Department of Prime Minister and Cabinet. The Ministry has focused on the regional programme being piloted in Auckland. A meeting between Ministers and Auckland's regional forum in October 2003 reached agreement on seven areas for further action. By 30 June 2004, joint work programmes had been developed to progress these areas and to link the initiatives to other government programmes in Auckland and to national strategies.
The Ministry is also a member of:
- the inter-departmental team established to resolve water quality issues arising from the SDPA water work stream; and
- the steering group for the child and youth development project with a focus on ensuring that the outputs from this component of the SDPA are consistent with the Government's overall economic objectives.
Industry Sectors and Regional Development
Development of industry sector policy to reflect government priorities for sustainable development and growth and innovation, ongoing. In particular, coordination of a whole-of-government response to GIF task force recommendations by 31 August 2003.
The whole-of-government response to GIF task force recommendations, led by the Ministry, was completed by 31 August 2003. Cabinet approved a range of initiatives on 7 November 2003, including the establishment of industry sector bodies to help drive these initiatives.
A policy and operational framework for selecting and prioritising whole-of-government engagement with industry sectors was finalised in 2003/2004.
The Ministry participated in the GIF Innovation Working Group and played a lead role in drafting the Group's report on the drivers of and barriers to innovation in New Zealand. The Ministry also submitted a suite of innovation papers to GIF Ministers in May 2004 on the drivers of firm-level innovation and entrepreneurship.
The Ministry also monitored and evaluated the implementation of GIF within NZTE firm-focused programmes (both growth and foundation).
Policy advice on industry and regional development initiatives and monitoring and evaluation of New Zealand Trade and Enterprise programmes following the integration of Industry New Zealand and Trade New Zealand.
The Regional Integration Project was completed and findings reported. The findings provide a better understanding of the alignment and integration of NZTE-administered regional development programmes with other programmes, including those of economic development agencies and local government. Resultant programme and policy changes are mainly focused on the cluster development programme and will be addressed in the 2004/2005 work programme.
Implementation of the revised Regional Partnership Programme, in conjunction with New Zealand Trade and Enterprise (NZTE), by 31 December 2003.
Implementation of the revised Regional Partnerships Programme (RPP) was completed by 31 December 2003. Cabinet approval was obtained for the necessary programme changes on 12 December 2003 and the Ministry assisted NZTE with implementation of the programme changes.
Implementation of the Government's goal of high speed broadband internet access being available in all New Zealand communities in conjunction with the Ministry of Education, ongoing through 2003/2004.4
At 30 June 2004 this project was largely on track to achieve the Government's target of "all schools and their communities to have broadband access by 31 December 2004" (it is expected that a few schools will require until April 2005 to be completed). The interim target of substantially having this in place by 31 December 2003 was achieved with 91% of telecommunication lines having broadband availability.
Evaluation of the implementation of Investment New Zealand promotion and facilitation support and the longer-term strategic direction of Investment New Zealand within New Zealand Trade and Enterprise by 30 June 2004.
A paper recommending the adoption of a new Investment New Zealand strategic management policy framework and changes to the criteria and administration of the Strategic Investment Fund was approved by Cabinet on 21 June 2004.
Ongoing monitoring and evaluation of New Zealand Trade and Enterprise (NZTE), including an annual stock-take of the effectiveness and efficiency of industry and regional development assistance programmes by 30 June 2004.
Completion of the annual stock-take of the effectiveness and efficiency of NZTE industry and regional development assistance programmes was deferred to 30 September 2004 with Ministerial approval. At 30 June 2004 significant work on the 2003/2004 stock-take had been undertaken. Key findings and recommendations were being developed and preparation of a draft report was under way.
Infrastructure Stock-Take
Coordination of advice on the overall management and adequacy of national, regional and local infrastructure, in accordance with a work programme agreed with the Minister, and including:
- Assessment of the cost and quality of existing infrastructure;
- A high level review of various policy approaches to infrastructure and the possible development of an infrastructure policy framework; and
- Assessment of possible initiatives to address any identified problem areas.
The Ministry led the infrastructure stock-take to assess the quality of the current and planned infrastructure stock, and to reach a view on whether policy settings adequately support sustainable development objectives. The results were released on 19 May 2004. While some significant concerns were identified, no new issues came to light that might pose a serious barrier to growth and sustainable development objectives.
At its meeting on 17 May 2004 Cabinet took several decisions to strengthen infrastructure monitoring arrangements.
Projects Not Included in the 2003-2006 Statement of Intent
In addition to the outputs reported above the following significant projects were undertaken in 2003/2004:
- Development of a whole-of-government support package to assist the economic transformation of the textile, clothing, footwear and carpet (TCFC) sector;
- Leading a whole-of-government response to the "buildability" implementation constraints likely to affect the construction of infrastructure components within the Auckland integrated transport package;
- Development of a draft national strategy for major events;
- Development of policy advice on the feasibility of implementing a departure tax to recover some of the costs associated with tourism infrastructure; and
- Development of a pilot "state of the regions" report to provide regions and the government with a baseline understanding of regional economic development performance using currently available indicators.
Crown Entity Monitoring
The Ministry in conjunction with the Ministry of Foreign Affairs and Trade (MFAT) provided advice to Ministers on statutory appointments to the New Zealand Trade and Enterprise (NZTE) board, as positions for renewal or appointment fell due, within agreed timelines.
All of the nine NZTE Board members were reappointed in December 2003.
The Ministry in conjunction with MFAT reviewed and provided comment to Ministers on NZTE's quarterly reports. Advice was provided on NZTE's Statement of Intent 2004/2007 and NZTE's 2004/2005 Output Plan was negotiated and completed.
Cost
(Figures are GST exclusive)
| | 2004
Main
Estimates | 2004
Supple-
mentary
Estimates | 2004
Actual | 2003
Actual |
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 9,100 | 9,167 | 8,928 | 7,038 |
| Other | - | - | 50 | - |
| Total Revenue | 9,100 | 9,167 | 8,978 | 7,038 |
| Expenses: | | | | |
| Annual appropriations | 9,100 | 9,167 | 8,978 | 7,038 |
| Other appropriations | - | - | - | - |
| Total Expenses | 9,100 | 9,167 | 8,978 | 7,038 |
| Net Surplus/(Deficit) | - | - | - | - |
Sources of Revenue Other
| | 2004
Actual | 2003
Actual |
| | $000 | $000 |
| Cost recovery | 32 | - |
| Inter-departmental cost recovery | 13 | - |
| Miscellaneous | 5 | - |
| Total Revenue Other | 50 | - |
Major Budget Variances
The Supplementary Estimates change reflects new funding for costs associated with government urban policy capability ($67,000).
The variance between the Supplementary Estimates and actual expenditure mainly reflects delays in research projects on innovation and management capability and lower than expected consultancy costs on the infrastructure stock-take.
The variance between 2003/2004 and 2002/2003 for expenses reflects additional funding for Ministry capability for the enhanced implementation and coordination of GIF, the sustainable cities programme, government urban policy capability and for the infrastructure stock-take.
Output Class - Policy Advice - Small Business
Description
This output class provides policy advice on issues relating to lifting the capability and performance of Small and Medium-sized Enterprises (SMEs). This includes the development, coordination and implementation of policy advice concerning SMEs. Sustained economic growth requires a pool of capable, talented, innovative SMEs with growth prospects and networks of customers, competitors and suppliers.
Quantity, Quality, Timeliness and Cost
Work Programme
All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister. Changes to deadlines were negotiated with the Minister.
Key Deliverables in the Work Programme for 2003/2004
Coordination of the work of the inter-departmental SME Senior Officials Group.
The SME Senior Officials Group met on six occasions during the year. The Ministry coordinated and chaired the meetings including preparing background material, arranging presentations and completing any required follow-up.
Advice on policy proposals that affect SMEs. Development of an SME focus in the analysis of the impact of proposed regulation.
The Ministry provided extensive advice on proposals to amend employment legislation and a variety of other issues likely to have an impact on SMEs.
In addition, the Small Business Portal biz.org.nz was launched on 8 July 2003 as a cost compliance and reduction information source for small businesses.
Assistance in building channels of communication between the Government and SMEs.
The government's Small Business Advisory Group (SBAG) was established on 13 October 2003. The nine members of the advisory group are experienced business people from several industry sectors and regions in New Zealand. SBAG has met 12 times since then and contributed advice to Ministers on priorities for SMEs such as employment legislation, taxation and assistance for SMEs.
A programme of research on SMEs approved by the Ministerial Group on Small Businesses.
A programme of research agreed on 22 December 2003 comprised three projects which have been undertaken and were in draft stage at 30 June 2004. The projects are:
- Indicators of Management Capability;
- Collaboration and Linkages between SMEs in New Zealand; and
- Study of High Growth Businesses in New Zealand.
An SME Summit in February 2004.
The proposed SME Summit was replaced by the delivery of 24 Small Business Day events. These nationwide events, which commenced in Wellington on 13 February 2004, were preceded by a series of 34 individual firm visits by Ministers and Government Members of Parliament. The events were delivered with the assistance of local development agencies and business organisations and were well supported by businesses and government agencies.
Cost
(Figures are GST exclusive)
| | 2004
Main
Estimates | 2004
Supple-
mentary
Estimates | 2004
Actual | 2003
Actual |
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 2,080 | 2,080 | 1,907 | 394 |
| Other | - | - | 15 | 18 |
| Total Revenue | 2,080 | 2,080 | 1,922 | 412 |
| Expenses: | | | | |
| Annual appropriations | 2,080 | 2,080 | 1,922 | 412 |
| Other appropriations | - | - | - | - |
| Total Expenses | 2,080 | 2,080 | 1,922 | 412 |
| Net Surplus/(Deficit) | - | - | - | - |
Sources of Revenue Other
| | 2004
Actual | 2003
Actual |
| | $000 | $000 |
| Cost recovery | 13 | 18 |
| Inter-departmental cost recovery | 1 | - |
| Miscellaneous | 1 | - |
| Total Revenue Other | 15 | 18 |
Major Budget Variances
The variance between the Supplementary Estimates and actual expenditure is mainly due to a decision not to develop and maintain the Innovate website. The intended purpose of the website was to enable communication with SMEs and, prior to the Small Business Days series of meetings held from February to May 2004, it was not clear what the information requirements of SMEs would be. A decision on whether to open a new website or extend an existing one (e.g. biz.org) will be made as part of the Government's response to the SBAG report on SMEs in 2004/2005.
The variance between 2003/2004 and 2002/2003 for expenses reflects 2002/2003 being a new output class established from 1 January 2003 with a work programme to enhance Government efforts for SMEs and provide a policy forum for SMEs. 2003/2004 represents a full year's work programme.
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