Vote: Economic, Industry and Regional Development
Output Class D1 - 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, and factors influencing the capability and performance of firms, sectors and regions, and the monitoring of Industry New Zealand.
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. Delays and changes to deadlines were negotiated with the Minister.
Key Deliverables in the Work Programme for 2002/2003
Growth and Innovation Framework
Provide quarterly reports to the Minister on the implementation of the Government’s Growth and Innovation Framework (GIF), including advice on the means to further enhance alignment and co-ordination of public sector policy. Reports will be provided by 30 September 2002, 31 December 2002, 31 March 2003 and 30 June 2003.
Subsequent to the preparation of the Statement of Intent the Ministry agreed to provide weekly (rather than quarterly) reports to the Minister on the implementation of GIF. The Minister found that weekly reports were a useful means of keeping his colleagues up to date with GIF implementation. These reports were provided throughout the year.
Preparation of the reports was a collective effort across the public sector with input from a wide range of government departments and agencies. The Ministry used the process of drafting the reports to promote growth and innovation policy. This reinforced the direction that the Government had established through GIF. In addition, the Ministry prepared GIF indicators and progress reports by 30 June 2003. These were released on 7 August 2003.
Facilitate a Budget Round process that enables Ministers to prioritise expenditure across government agencies involved in economic development by 31 March 2003.
The Ministry facilitated a process that focused on identifying broad GIF-related policy priorities, ensuring a strong link between the 2003 Budget and the integration of Industry New Zealand and Trade New Zealand (with their respective services), and working closely with the Treasury, Department of Prime Minister and Cabinet (DPMC), MoRST and the delivery agencies to ensure an early start on the development of policy initiatives for the 2003 Budget. The Ministry also sought to reinforce the need for significant action on GIF over the next three years rather than a focus on a single Budget.
The Ministry of Economic Development worked actively with the Treasury and other departments to develop the $100 million Growth and Innovation package.
Research, Evaluation and Monitoring
Review and report on Industry New Zealand industry development programmes to ensure they are delivering efficiently and effectively against the Government’s objectives, including the:
- Strategic Sector Implementation Initiative (SSII) report to Cabinet by
- 31 December 2002
- The report-back was delayed until March 2003 when officials advised the Ministers of Finance and Economic Development that a review at this early stage would not produce useful results in terms of the SSII’s efficiency and effectiveness and that a review in June 2006 would be more appropriate;
- Strategic Investment Fund, report to Cabinet by 31 December 2002
- This report was deferred due to the integration of Trade New Zealand and Industry New Zealand. Cabinet noted that a full evaluation of the effectiveness of investment promotion and facilitation by October 2003 would not produce useful results given the short time since implementation. Specifically, the Ministries of Economic Development and Foreign Affairs and Trade have now been asked to report, in consultation with New Zealand Trade and Enterprise (NZTE), to Ministers by 30 November 2003 on:
- the evaluation of the implementation of Investment New Zealand promotion and facilitation support; and
- the longer-term strategic direction of Investment New Zealand within NZTE.
- A more comprehensive evaluation of Investment New Zealand has been deferred to December 2006;
- Fast Forward Pilot Programme, report to Joint Ministers by 31 December 2002
- A report reviewing the implementation of the Fast Forward New Zealand programme was provided to Joint Ministers on 19 March 2003. Submission of this report was postponed for 10 weeks to allow account to be taken of work on growth services;
- Business Clusters Pilot Programme, report to Joint Ministers by 31 December 2002
- An implementation review report on the pilot Business Clusters Programme was provided to Joint Ministers on 19 March 2003. Submission of this report was postponed for 10 weeks to allow account to be taken of work on growth services.
Industry Development
Provide quarterly reports to the Minister (commencing from the second quarter) that analyse the overall state, key trends and emerging issues associated with industry sectors within the New Zealand economy. Reports will be provided by 31 December 2002, 31 March 2003 and 30 June 2003.
This information was incorporated into weekly reports on the implementation of GIF that were provided to the Minister throughout the year.
Undertake ongoing work with Industry New Zealand and other relevant agencies to ensure the successful operation of the ICT, Biotechnology, and Creative Task Forces and engage in policy dialogue where appropriate.
The Ministry led the policy report-back process on GIF Taskforce reports, working closely with a wide range of government agencies. In particular, the Ministry led the compilation of two overview papers dealing with financial, communications and generic issues, responses to the Screen Production, ICT and Design Taskforce reports and provided significant input into the Biotechnology Taskforce report, which was led by the Ministry of Research, Science and Technology (MoRST).
Work with Industry New Zealand to bring to a successful conclusion the Government’s formal engagement with the wood processing sector, and provide advice to ensure that structures and processes are in place to ensure the continuation of priority work in partnership with the sector. Report to the Minister by 31 December 2002.
An interim report was provided to the Minister on 13 September 2002 on bringing the engagement with the wood processing sector to a successful conclusion. The report was part of a Ministerial briefing for a meeting with the New Zealand Forest Industries Council. A further update was provided on 6 March 2003. Both reports were prepared by Industry New Zealand who led the wood processing strategy project from May 2002 with Ministry of Economic Development input.
Regional Development
Update for the Minister of the report on regional development priorities, and implications for policies and programmes, by 31 March 2003.
A report entitled Regional Partnership Review – Interim Report on Key Findings incorporating the update was provided to the Minister on 2 April 2003.
Report to the Minister on the review of the design and implementation of the Regional Partnerships Programme and recommend improvements accordingly, by 30 June 2003.
The Review of Regional Partnerships Programme was completed by 30 June 2003. It included:
- a programme evaluation;
- a review of New Zealand-specific partnership development policy objectives and research projects; and
- a final report to the Minister that outlined potential policy and programme changes, as well as formulating key recommendations and detailing consultation with stakeholders and departments.
Report to the Minister on enterprise culture in regions and innovation systems/learning regions, and implications for policies and programmes, by 30 June 2003.
Research on enterprise culture and its evolution commenced during the final quarter of the year, with completion now scheduled for the first quarter of 2003/2004. Two complementary reports Enterprising Intellectual Property and Promotion of Enterprise Culture were published on 26 June 2003 and 30 June 2003 respectively.
Sustainable Development
Report to the Minister on business opportunities associated with efficient and environmentally sustainable use of resources, and implications for policies and programmes, by 31 December 2002.
The following were completed and reported to the Minister:
- An analysis and recommendations on business opportunities associated with climate change was completed and the outcome included in a series of climate change policy papers agreed to by Government on 7 October 2002;
- Projects aimed at maximising business opportunities on waste minimisation and environmental technologies were initiated in co-operation with other agencies and industry (e.g. URS New Zealand – New Zealand Institute of Economic Research (NZIER) report, analysis of the potential for regional waste recovery sectors, specific packaging, tyre and oil management issues);
- Scoping work for a possible Sustainable Business Framework was concluded and a work programme agreed to by the Minister on 16 January 2003.
Project not Included in the 2002-2005 Statement of Intent
Integration of Industry New Zealand and Trade New Zealand
During the third quarter of the year a Ministry of Economic Development (MED)/Ministry of Foreign Affairs and Trade (MFAT) integration team completed the core policy phase of the process for integration of Industry New Zealand and Trade New Zealand. Cabinet considered and approved a suite of six papers spanning the detailed services to be provided by New Zealand Trade and Enterprise (NZTE), accountability and governance arrangements, transition costs and an overview paper picking up longer-term themes and setting in place a series of major policy reviews. Officials also managed the enabling legislation for the new entity. During the final quarter the work of the MED/MFAT integration team focused on the negotiation of key accountability documents while assisting NZTE with more detailed work on the implementation of the Growth Fund and the Enterprise Development Fund and preparing the ground for the first policy reviews.
Cost
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | $000 | $000 |
| | | | |
| Revenue: | | | | |
| Crown | 7,249 | 7,117 | 7,038 | 7,399 |
| Other | -- | -- | -- | 10 |
| Total Revenue | 7,249 | 7,117 | 7,038 | 7,409 |
| Expenses: | | | | |
| Annual appropriations | 7,249 | 7,117 | 7,038 | 7,409 |
| Other appropriations | -- | -- | -- | -- |
| Total Expenses | 7,249 | 7,117 | 7,038 | 7,409 |
| Net Surplus/(Deficit) | -- | -- | -- | -- |
| Sources of Revenue Other | $000 | $000 |
| Cost recovery | -- | 8 |
| Miscellaneous | -- | 2 |
| Total Revenue Other | -- | 10 |
Major Budget Variances
The Supplementary Estimates change reflects a transfer of funding to D2 Policy Advice - Small Business for the funding of initiatives to enhance policy advice on small and medium enterprises (SMEs) (-$310,000), partially offset by a transfer of funding from O2 Advice and Information for Business and O5 Co-ordination and Facilitation of Sector Strategies to meet the transition costs of the integration of Industry New Zealand and Trade New Zealand ($178,000).
The variance between 2002/2003 and 2001/2002 actual expenses reflects the transfer of policy advice on SMEs to Output Class D2 to fund a work programme to enhance Government efforts for small and medium enterprises. Additionally one-off funding was received in 2001/2002 to run the Innovate Roadshows.
Output Class D2 - Policy Advice - Small Business
Description
This output class provides policy advice on issues relating to lifting the capability and performance of Small and Medium Enterprises (SMEs). This includes the development, co-ordination and implementation of policy advice concerning SMEs.
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 2002/2003
In January 2003 a Small Business Directorate was established in the Ministry of Economic Development.
The Ministry of Economic Development serviced three meetings of the Ministerial Group on Small Business from December 2002 to June 2003.
Comments from a SME perspective were provided on a number of Cabinet papers authored by both the Ministry of Economic Development and other government departments.
An interdepartmental officials’ group was convened and an interim Small Business Advisory Group had its first meeting on 26 March 2003. A public process for appointing a private sector Small Business Advisory Group was initiated in March 2003.
Preparations for a SME Summit in 2004 were under way at 30 June 2003.
Cost
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | | |
| | | | |
| Revenue: | | | | |
| Crown | -- | 584 | 394 | -- |
| Other | -- | 42 | 18 | -- |
| Total Revenue | -- | 626 | 412 | -- |
| Expenses: | | | | |
| Annual appropriations | -- | 626 | 412 | -- |
| Other appropriations | -- | -- | -- | -- |
| Total Expenses | -- | 626 | 412 | -- |
| Net Surplus/(Deficit) | -- | -- | -- | -- |
Major Budget Variances
The Supplementary Estimates change refers to provision of policy advice on SMEs, met from new Crown funding ($141,000), a transfer from D1 Policy Advice – Industry and Regional Development ($310,000), and a transfer from O2 Advice and Information on Business ($133,000). The increase also reflects costs of a Policy Forum to be met from participant fees ($42,000).
The variance between the Supplementary Estimates and actual expenditure refers to the delay in setting up the Small Business Advisory Group in 2002/2003. While the policy forum was held and fees were collected sponsorships from other agencies were lower than anticipated.
Back to Top