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Reducing Inequalities


This Document is Archived


Report of the Ministry of Economic Development for the Year Ended 30 June 2003

[ Last Updated 5 January 2006 ]


The Government wants to create a growing, inclusive and innovative economy for the benefit of all. This vision is a key driver for the Ministry’s activities. The Government aims to reduce the inequalities that currently divide our society and offer a good future for all through better co-ordination of strategies across sectors, and by supporting and strengthening the capacity of Māori and Pacific island communities. The Government seeks a whole of government approach to the creation of greater opportunities for Māori and Pacific communities, and the Ministry has worked with other departments and agencies on this.

In its Statement of Intent, the Ministry set out a goal of increased Māori and Pacific Island participation in New Zealand’s economy. This is important for New Zealand’s overall economic performance. During 2002/2003 the Ministry incorporated consideration of how this can be achieved in its policy development and operational work.

Broad Activities/Strategies

The Ministry is working across a range of activities to encourage Māori and Pacific economic development. In 2002/2003 the Ministry worked to:

  • address the specific economic development needs of Māori and Pacific groups. For example, funding assistance for collectively based Māori business projects was developed through the Te Kapainga partnership programme;
  • recognise the policy linkages relating to business support, economic and regional development work between the Ministry, the Ministry of Pacific Island Affairs and Te Puni Kokiri;
  • improve partnerships between iwi, Pacific peoples, local government and businesses through the Regional Partnerships Programme, by encouraging participation of those groups in regional development work;
  • ensure that law reform processes take into account the Māori dimension. For example, through work on intellectual property/traditional knowledge and flora and fauna issues;
  • address trading practices that impact detrimentally on low income groups;
  • provide targeted information for Māori, Pacific Island and low income consumers; and
  • address opportunities and remove barriers in the tourism industry for Māori.

The Ministry’s review of the Regional Partnerships Programme identified problems with gaining sufficient iwi involvement, and we are working with Te Puni Kokiri to address this.

Other key initiatives included the passage, in December 2002, of the Trade Marks Act, which contains provisions to address the registration of Māori words and symbols as trade marks.

The Ministry commissioned NZIER to carry out a scoping study on the economic status of Pacific peoples resident in New Zealand. This work, which is due to be completed in September 2003, will form the basis of further work with the Ministry of Pacific Island Affairs and key agencies on economic development priorities.

Project Probe

A key initiative for the Ministry over 2002/2003 has been the policy development and implementation of Project Probe. The project, which is managed jointly with the Ministry of Education, underwrites the provision of broadband communications in areas telecommunications suppliers currently find uneconomic to supply. Broadband capability is high speed Internet which is “always-on” and has two way transmission capacity. It allows for enhanced Internet connection but may also be used for other communications applications such as video on demand, two way (or more) video conferencing or voice over Internet.

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 also 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. A regional tender process was used to facilitate regional participation in the project.

Additionally, the Ministry and Industry New Zealand contributed to the Pacific capacity building work led by the Ministry of Pacific Island Affairs, by working and reporting against milestones set by Pacific communities in the series of community fono held in 2000.

Specific Programmes Undertaken by Vote During 2002/2003

Vote Economic, Industry and Regional Development

The Ministry’s policy advice recognises the economic development needs of both Māori and Pacific peoples in New Zealand; particularly in relation to skill development and training. The Ministry also advises on infrastructure development for regions. Our policy staff have provided input to policy work of the Ministry of Pacific Island Affairs and Te Puni Kokiri on employment and other issues related to economic development.

The Ministry’s Regional Initiatives Fund has supported projects which address the needs of some Māori and Pacific groups. For example, youth employment pilot projects in Waitakere ($140,625) and Porirua ($104,500) directed at the transition out of school for at-risk young people. The Ministry contributed funding of $50,000 and expertise to the work of “Mayors for Jobs” some of whose projects directly targeted Māori youth. The fund also enabled Ngati Porou to review the operation and effectiveness of its mana loans business support programme ($60,000).

In addition, the Northland Major Regional Initiative (MRI) acknowledged the special needs of Māori and is designed to boost economic development in the acute area of Northland. A series of Māori economic development sectoral hui were held in Northland aimed at stimulating Māori economic development activities ($3,000). Topics included tourism, agriculture and forestry.

The Ministry was also involved in the Te Kapainga initiative (a team of senior officials formed to help overcome obstacles to progressing Māori economic development projects) and contributed $200,000 from the Regional Initiatives Fund to two projects – the Te Pa sound and light show at Bastion Point and Te Uri o Hau capacity building.

The Ministry has provided funding of $2,000 and other support for the Ministry of Pacific Island Affairs youth consultation forum.

Industry New Zealand

Industry NZ, a Crown entity funded through this Vote (and part of New Zealand Trade and Enterprise since July 2003), undertook activities such as the Business Growth Service and Fund, BIZ training, BIZ Enterprise Awards, Clusters, and the Regional Partnerships Programme. These activities included purchasing services aimed specifically at assisting Māori, Pacific peoples and women.

BIZ is a general business development programme set up in 1998 to help small and medium-sized businesses to achieve growth. It includes a national business information service (BIZinfo) delivered through information centres, a free phone service and a website, as well as management capability upskilling services, aimed at the owners and operators of small to medium enterprises, based around assessment of needs and training (BIZtraining). These services are delivered regionally by contracted non-government service providers and are free to users.

Statistics for usage of the BIZinfo programme for the year ending June 2003 show that women constituted 48.76% of requesters of information, against a target of 45%. There was a target of 15% for use by Māori but only 9.5% of requests for information were identified as coming from Maori. The target of 4% for Pacific people was met, with inquiries reaching 4.75% of the overall total of requests for information. The figures, which break down the number of inquiries by mode, indicate that Māori and Pacific peoples may prefer to make face-to-face inquiries rather than seek information by phone.4

All providers of the BIZtraining programme were required to develop strategies to encourage and make it easier for Māori, Pacific Peoples and women to access the services available. Where there is demand, services aimed predominantly at these individual groups were offered and material was customised to the target audience.

If feasible, the trainers undertaking delivery of services are of the same ethnicity as the target group. Delivery to Māori improved significantly in 2002/2003 compared to the previous year, following the Government’s decision to extend eligibility for the programme to the trustees and managers of all Māori organisations managing multiple-owned assets; the subsequent introduction of a National curriculum for Māori Trustee Training Programme; and more effective promotion by lead providers.

Other Industry New Zealand Programmes

67 seminars were delivered under the Investment Ready Programme during the 2002/2003 financial year, with 1048 clients. A 20% increase in participation by Māori was influenced by a hui held during the fourth quarter.

The BIZenterprise award scheme had its final funding round in June 2003. The focus of this scheme was assisting entrepreneurs, start-ups and existing businesses with the development of well-defined business projects and concepts with commercial potential. Not all Māori business people assisted by Industry New Zealand chose to identify themselves as Māori. New Zealand Trade and Enteprise is currently developing a new programme of Enterprise Development Grants which will replace the BIZenterprise awards scheme, which is scheduled for launch by October 2003. This scheme has better data capture options to record Māori businesses and to assist with self-identification in this regard.

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 also distributed detailed information on tourism statistics and research that are of value to Māori tourism operators and representatives.

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.

As part of the Regional Tourism Operators’ New Zealand Tourism Strategy 2010 response, the Ministry assisted with the planning of a hui between Māori Regional Tourism Groups and Regional Tourism Operators. This hui was held on 8-9 May 2003 in Rotorua.

The Ministry continues to provide input into the implementation of recommendations from He Matai Tapoi Māori. The New Zealand Tourism Strategy 2010 projects, such as ‘Business Class’ and the Poutama bid, partially fulfil some He Matai Tapoi Māori recommendations.

The Ministry is also 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 Matai Tapoi Māori recommendations.

Vote Communications

The Telecommunications Service Obligation (TSO) framework of the Telecommunications Act 2001 provides a mechanism for addressing any telecommunications service inequalities. During 2002/2003 a service description specifying the functionality of a Telephone Relay Service (TRS) was drafted in consultation with representatives of disability sector groups and included initial comment from Telephone Service providers. The service will facilitate conversations between the deaf and hearing impaired, using text, and people using voice only telecommunications.

The cost of providing a telecommunications relay service is estimated at approximately $2 million in the first full year of operation. This is likely to increase over time as use of the service grows. A proposal was also developed for a text phone pool system mechanism to ensure affordable access to text phones for use with the TRS. The service will enable the deaf and hearing impaired to communicate more readily with others and will assist their ability to participate fully in New Zealand society.

In the radio spectrum area, the Ministry has provided advice on radio spectrum issues related to the establishment of the Māori Television Service. It has also provided advice on the allocation of licences in the upper FM band for the establishment of Pacific Island Radio, Māori broadcasting, Youth Radio and Access Radio networks. The Ministry submitted a draft Cabinet paper to Ministers for consideration on revised procedures for consulting with Māori on the suitability of using specific spectrum for Māori language and culture. The Ministry has made the radio spectrum resource more accessible to all users after carrying out a review of radio licence fees, which resulted in many of the fees being significantly reduced.

Vote Consumer Affairs

The Ministry of Consumer Affairs has a Māori Responsiveness Manual and has committed to managing significant issues through a consultative process with its Māori Staff Reference Group, Te RØopu Tohutoru Māori.

Consumer Law

The Consumer Credit Bill, developed by the Ministry, aims to strengthen credit law, in order to eliminate trade practices in credit markets that impact detrimentally on low-income groups, particularly Pacific Island communities. As at 30 June 2003, the Bill was being considered by the Commerce Committee. The Fair Trading Amendment Act 2003 strengthens provisions against the operation of pyramid selling schemes, including a much tougher fining regime. These schemes impact disproportionately on low-income, Māori and Pacific peoples.

Information Programmes

Programmes initiated by the Ministry of Consumer Affairs were targeted at Māori, Pacific Island and low-income consumers, who often include consumers with disabilities. The effectiveness of these projects in achieving their objectives is assessed through needs analyses and post-project assessments. Feedback is also sought from targeted stakeholders and/or communities on a regular basis. Feedback for the year ended 30 June 2003 rated the information programmes as satisfactory and very satisfactory.

The Consumer Issues Awareness Project involved providing information to Māori consumers on their rights and obligations under consumer law, and promoting their rights to safe products and their safe use. This was part of a programme jointly undertaken with the Māori Women’s Welfare League (MWWL) to provide information to Māori consumers concerning gas and electricity safety under Vote Energy. The project involved:

  • providing training and support to MWWL members, including consumer manuals and a hotline to the Consumer Information Service;
  • providing important consumer messages to Māori using media, for example, through Mana Magazine;
  • input into promotion plans for Powerswitch to ensure that Māori electricity consumers receive information in a relevant manner; and
  • including the MWWL in the Ministry of Consumer Affairs’ consultation on consumer representation.

The promotion contract for 2002/2003 between the Ministry and the MWWL required the latter to deliver eight regional training workshops, eight regional meetings, and 80 promotions to whanau by 30 June 2003 (at a cost of $61,031, covering activities under both Vote Consumer Affairs and Vote Energy). The MWWL met its contractual obligations for the year.

The Ministry of Consumer Affairs operates a Protocol Agreement with the Ministry of Pacific Island Affairs. This promotes co-operation between the two ministries to ensure the wellbeing and development of Pacific Island individuals, families and communities. The Ministry of Consumer Affairs aims to build the capacity of Pacific people as confident consumers through effective and appropriate consumer information programmes.

In 2002/2003 the Ministry of Consumer Affairs continued its provision of information to Pacific consumers on their rights and obligations under consumer law. This involved:

  • broadcasting key consumer messages on Pacific radio stations nationally both in English and in Pacific languages and, in June 2003, running a weekly segment providing consumer information on nationwide Pacific radio (ongoing) ($11,123);
  • publishing consumer columns in selected Pacific newspapers ($2,126);
  • providing consumer information workshops at PACIFICA conferences throughout New Zealand;
  • disseminating information and presenting consumer seminars to Pacific social service trusts, Pacific health service providers, Pacific tertiary providers, and Pacific churches in Auckland, Wellington and Christchurch;
  • establishing a Pacific Islands Reference Group to add value to our work in targeting Pacific communities and to assist with consumer representation work;
  • training and evaluation with the Otara Pacific Islands Presbyterian Church on the consumer education package; and
  • establishing a hotline service for Pacific consumers answered by Pacific staff in the Auckland office.

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.

The Electricity Complaints Commission, one of the Government’s policy initiatives in the October 2000 Power Package of reforms, has completed its first year of business. The Commission investigates and resolves consumer complaints about their electricity company. It is particularly useful to lower income consumers who run into difficulties with their electricity supplier and may have difficulty resolving problems using their own resources.

Energy Safety Service

The Energy Safety Service (ESS) of the Ministry of Consumer Affairs operates to achieve “safe energy – safe people”. It works to the Consumer Affairs Māori Responsiveness Manual (described under Vote Consumer Affairs).

During 2002/2003, planning began on an energy safety awareness programme that will focus on providing advice, resources, information and low cost solutions to common electrical and gas problems for the Tai Tokerau region. The aims of the programme are to increase awareness of the dangers inherent in the misuse of electrical and gas appliances and installations; to build confidence in resolving issues that may arise from unsafe electrical and gas appliances and installations; and to assist in reducing the incidence of electrical and gas accidents.

Follow-up visits to the Tairawhiti region have been undertaken to ensure self-sustaining mechanisms are still working effectively.

The ESS also participated in other Consumer Affairs programmes for Māori, disseminating safety information and improving awareness (described under Vote Consumer Affairs).

Crown Minerals Group

The Ministry’s Crown Minerals Group consults with iwi at a number of levels in relation to managing the Crown mineral estate:

  • preparation of the minerals programmes;
  • planning for petroleum blocks offers;
  • decisions in respect of applications for permits; and
  • development of iwi protocols

The Group seeks the views of iwi on the impact of any application or block offers and discusses any concerns that iwi may have in order to ensure that the Minister has regard to the principles of the Treaty of Waitangi prior to making a decision.

Vote Commerce

The outputs in Vote Commerce do not include specific initiatives to reduce inequalities. However, much of the work within the Commerce portfolio makes a general and indirect contribution to diminishing economic and social disparities for Māori and Pacific people by supporting economic growth through:

  • improved business law and capital investment frameworks;
  • improved general and indirect contribution to diminishing economic and social conditions for competition;
  • protection and use of intellectual property rights;
  • lowering business transaction and compliance costs; and
  • facilitating businesses’ access to overseas markets.

Examples of ways in which Vote Commerce work contributes more specifically to reduce inequalities include:

  • reducing barriers to trade through tariff reform, which will assist in the creation of employment opportunities for Māori and Pacific peoples;
  • contributing to a Te Puni Kokiri lead project on Māori Governance issues by providing advice on corporate governance and charities policies;
  • ensuring that Māori and Pacific people are aware of the Ministry’s services and avenues for redress; and
  • ensuring that Māori and Pacific people are aware of appointment opportunities to Crown entities and statutory boards and consulting on appointments so that, over time, more Māori and Pacific people are represented.

A new Trade Marks Act was passed in December 2002, providing for the appointment of a Māori Trade Marks Advisory Committee. The Committee’s role is to advise on whether the registration of a trade mark that is, or appears to be, derivative of Māori text or imagery, is likely to be offensive to Māori. This process was the result of recommendations made to the Government through a consultative process. Advertisements for people to sit on the Committee were published in May 2003, with interviews held in June.

Terms of Reference and a Memorandum of Understanding have been prepared for the operation of the Committee, which will probably meet bimonthly. Approximately $10,700 was spent over 2002/2003, primarily on costs associated with the establishment of the Committee. The Trade Marks Act came into force on 20 August 2003.

The Ministry’s work on Project Probe, which supports the provision of broadband communications in areas which telecommunications suppliers currently find it uneconomic to supply (see above), falls under Vote Commerce.

Evaluative Activities

The Ministry undertakes broadly-based evaluations of its policy and operational work. In particular, there is an annual stocktake report and review of all industry and regional development assistance. A major review of the Regional Partnership Programme (RPP) was completed during the year. As mentioned above, problems were identified with gaining sufficient iwi involvement and the Ministy is working to address this. The Ministry of Consumer Affairs also undertakes evaluative activities focussed particularly on the effectiveness of its information programmes.

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, particularly groups that may be disadvantaged.

The Ministry’s Treaty Issues Analysis Guide, developed in consultation with Te Puni Kokiri, 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. A review was completed in 2002/2003 to ensure that the guide references the most up-to-date legal and Waitangi Tribunal decisions.

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 $25,669 over 2002/2003) to all staff and has initiated a Māori language training programme across the Ministry (costing $13,500 over the year). The aim of the programme is to provide Ministry employees with a basic understanding of the language.

Six scholarships were awarded under the Ministry’s Equal Employment Opportunities initiatives. Four of the scholarships were awarded to Māori students, one to a Pacific Island student and one to a student with a disability. The scholarships are part of the Ministry’s long-term strategic response to building public service capability and performance.

Primarily, the scholarships are designed to attract students in their second or subsequent year of study towards a degree in subjects relevant to the Ministry. The scholarship programme encourages students in their final year of study to participate in the Ministry’s graduate recruitment programme and offers vacation work to successful applicants. The Ministry also employed three people from the Mainstream programme this year, one of whom has subsequently been appointed to the permanent staff.


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