Vote: Commerce
Output Class D1 - Policy Advice - Business and Competition
Description
This output class provides advice on the regulation of economic activity that is effective and low cost. It includes strategic and technical policy advice on the creation and maintenance of a regulatory environment that provides greater certainty for, and positively encourages, business innovation and growth.
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
International and Trans-Tasman Regulatory Co-ordination
Undertake development with Australia of a framework to review the Trans-Tasman Mutual Recognition Agreement (TTMRA) to be reported to the Minister of Commerce, by 31 March 2003.
The framework for the review of the TTMRA was completed and provided to the Minister in March 2003. It provided the basis for the Terms of Reference for the Australian Productivity Commission to undertake a review study of the TTMRA commissioned by Heads of Governments. The Ministry co-ordinated the New Zealand Government submission to the Productivity Commission. This was approved by Cabinet on 19 May 2003. The Productivity Commission issued its initial draft finding to governments of participating jurisdictions on 27 June 2003.
Implement with Australia a work programme agreed under the Memorandum of Understanding on Business Law Co-ordination and report progress to the Minister of Commerce, by 31 March 2003.
Progress was made in two of the three priority areas for Business Law Co-ordination with Australia with respect to trans-Tasman mutual recognition schemes for:
- securities offerings;
- insolvencies; and
- company registrations.
Officials prepared a draft paper on mutual recognition of securities offerings. Australian officials’ preliminary comments were supportive and the core principles and basic structure have been agreed.
The Australian Treasury issued a discussion document on “Cross Border Insolvency” which includes a non-country specific proposal to introduce a mutual recognition regime that is wholly consistent with the proposals Australian and New Zealand officials discussed in August 2002. Submissions closed on 31 December 2002.
The company registrations proposal, already specified in some detail, is awaiting the implementation of mutual recognition of securities offerings.
Broad agreement had been reached between New Zealand and Australian officials on the details of the securities offerings and insolvency mutual recognition regimes.
Complete a study of the inter-dependence of the New Zealand and Australian business sectors, by 31 March 2003.
The study was delayed due to the need to reach agreement with other government departments on the terms of reference. This research is designed to inform understanding of the depth and scope of New Zealand’s economic integration with Australia in order to enhance the quality of our policy advice. Key research institutions/consultants on both sides of the Tasman were asked to submit a proposal to undertake the study by 30 May 2003. A contract for the study was awarded to LECG Limited Wellington and ACIL Tasman Propriety Ltd, Australia. The study is expected to be completed in September 2003.
Implementation of the Government’s Compliance cost Reduction Programme
Report back to the Government on the implementation of its response to the Ministerial Panel on Business Compliance Costs, by 30 June 2003.
The report-back on the implementation of the Government’s response to the Panel was considered by Cabinet on 30 June 2003 and publicly announced on 1 July 2003. A document containing comments on each of the Panel’s 162 recommendations was posted on the Ministry website on 2 July 2003. Of the 131 recommendations that were either agreed, agreed in part or agreed in principle in Striking the Balance, 36% have been implemented, implementation is in progress on 45% and 19% will not be implemented.
Undertake a perceptions survey of business, focusing in particular on the impacts of regulation on innovation, by 30 June 2003.
A commissioned survey was completed by the New Zealand Centre for Small and Medium Enterprise Research, Massey University, and submitted to the Ministry in late June 2003. At 30 June 2003, the Ministry had begun work with officials across government departments and agencies in analysing the survey, identifying key messages and drawing out the linkages with other public sector research on the interaction between regulation and business performance.
Ongoing review of Regulatory Impact Statements/Business Compliance Cost Statements and delivery of an education programme for departments.
The Ministry continued to provide one-on-one training with authors of Regulatory Impact Statements in government departments. In addition, generic training courses for government departments were held in November 2002 and June 2003. The Australian Office of Regulation Review worked with the Ministry in providing this training. The courses were well attended by a cross-section of government departments. The Ministry also provided targeted training for a number of departments.
Business Law Reform
Support the enactment of the Securities Markets and Institutions Bill, which strengthens the enforcement of securities law and establishes a co-regulatory regime for capital markets, by 30 September 2002.
Support was provided for the passage of the Securities Markets and Institutions Bill which was enacted in late November 2002.
Provide advice on the drafting of a new Patents Bill based on stages I and II of
the review of the Patents Act, incorporating Stage III if work can be completed,
by 30 November 2002.
A discussion document had been released on “Stage III Patents Review Issues” in April 2002. On 16 December 2002, however, Cabinet agreed that more time was needed for consultations with Māori. Consultation hui were conducted in Auckland and Wellington in December 2002, a larger hui with Wai 262 claimants in May 2003 and a separate hui with Ngati Porou in June 2003. Following this further consultation, final policy papers were submitted to the Associate Minister of Commerce in June 2003.
Cabinet also instructed that the issue of the duration of patent term for pharmaceuticals should be considered as a further issue under Stage III of the Patents Review.
Provide policy advice on a review of digital copyright legislation, by 30 September 2002.
Ministerial approval was obtained for an extension of time to 31 March 2003.
A Ministry position paper was prepared and approved by Cabinet for release on 9 December 2002 and submissions were called for. The Associate Minister submitted final policy recommendations to Cabinet in June 2003.
Provide policy proposals to Government on a review of securities trading law, by 31 March 2003.
The changed timeline approved by the Minister, from 31 March to 30 June 2003, for report back to Cabinet on all securities trading law issues has been met.
Submissions were received from the public on three discussion documents that considered:
- a first principles review of insider trading law;
- whether more comprehensive market manipulation law should be introduced in New Zealand; and
- what improvements could be made to the penalties and remedies for breaches of the law and how securities trading law applies to entities and financial products.
Another discussion document on possible improvements to the Substantial Security Holder regime was released in November 2002, and advice was provided to the Government at the same time as for the securities trading law.
Officials also considered the Securities Commission’s recommendations to change the law relating to investment advisor disclosure and provided advice to Government on the proposals on 6 November 2002.
Provide policy advice on the drafting of amendments to the Insurance Companies (Ratings and Inspections) Act 1994 and Insurance Companies Deposits Act 1953, by 30 September 2002.
The policy advice recommendations had been agreed by Cabinet in June 2002. However, the drafting of the legislation has not progressed due to higher priority work being undertaken by the Parliamentary Counsel Office and by the Ministry.
Provide policy advice to the Government on the regulation of life insurance markets, by 30 June 2003.
Scoping work for a review was carried out prior to Christmas 2002. On 3 March 2003 the Minister of Commerce wrote to the Minister for the Law Commission asking that the Commission review the Life Insurance Act 1908. This proposal was accepted on 3 April 2003. The Ministry is liaising closely with the Law Commission during the course of its work.
Information technology (including broadband) policy and electronic commerce
Co-ordinate the implementation of the Government’s e-commerce strategy including:
- support the enactment of the Electronic Transactions Bill in accordance with the Government’s legislative timetable
- The Electronic Transactions Bill was enacted on 10 October 2002. Work on regulations has continued and a discussion paper was published in February 2003. Ongoing discussions with the Inland Revenue Department and a number of health information issues delayed the Act coming into force. These were resolved in July 2003;
- co-ordinate with other Government digital initiatives including the e-government strategy and digital divide strategy, ongoing
- The Ministry contributed to the e-Government strategy (including membership of the e-Government Board) and participated in other government digital initiatives largely through the GIF process;
- maintain the E-Commerce Action Team (ECAT) and promote the establishment of regional and industry-based ECATs
- Two meetings of ECAT were held, one in October 2002 and one in December 2002. ECAT was formally wound up in June 2003. ECAT published a final report outlining its achievements over the previous two and a half years;
- in conjunction with Industry New Zealand maintain and enhance an e-commerce network and increased business use of e-commerce based upon an interactive web site, ongoing to June 2003
- The Ministry, in conjunction with Industry New Zealand, maintained an e-commerce network based on an interactive website throughout the year. The website has now been incorporated into the NZTE Business Portal.
- Develop and implement a strategy to support the Government’s goal of high speed (broadband) internet access being available in all New Zealand communities by 2003 including:
- co-ordinate regional pilot schemes by 31 December 2002
- Regional pilot schemes were in place by 31 December 2002. Ongoing support was provided to regions throughout the year, particularly Southland, Wairarapa and Northland, in relation to their tenders for broadband services. The Government agreed in principle to support the Southland proposal for a Vodafone/Walker Wireless service with funding from the Probe project;
- co-ordinate with e-government, digital initiatives, Growth and Innovation Framework (GIF) and other Government strategies associated with the Information Communications and Technology (ICT) sector
- The Ministry developed an agreed framework for responding to all four Growth and Innovation Framework (GIF) Taskforces. Funding to implement Taskforce recommendations was included in the 2003 Budget. The Ministry completed work on the Government’s response to the ICT Taskforce recommendations, including allocation of additional funding from the GIF Taskforce contingency fund;
- jointly with the Ministry of Education provide broadband access to most schools and communities, by 31 December 2003, and the remaining (more remote) locations, by 31 December 2004, with contracts with suppliers completed and implementation commenced, by 31 December 2002
A Request for Information tender document was issued to suppliers and evaluated, and a paper submitted to Cabinet seeking additional contingency funding for the project and release of the Request for Proposal (RFP). The results of the RFP were evaluated against criteria agreed with the relevant Ministers: Information Technology, Education, and Economic Development. Extensive consultation took place with 11 regional liaison groups. A Cabinet paper discussing the outcome and recommending a way forward had been prepared at 30 June 2003.
The Ministry of Economic Development led the policy development aspects of the Probe project including management of ongoing relationships with regions and suppliers and preparation of Ministerial and Cabinet papers and input into the Budget round.
Post 2005 Tariff Regime
Provide policy advice, by 31 March 2003, on options for the post 2005 tariff regime which is consistent with the Government’s broader economic objectives and which will provide certainty for the business community.
The final date for submissions to the Tariff Review was extended from 30 April 2002 to 31 October 2002 to provide the textile/footwear/clothing and carpet industries with the opportunity to consider the outcome of the Textiles, Clothing, Footwear and Carpet Strategy work.
Independent economic research, commissioned from Infometrics Consulting, on the effects of previous tariff reduction and likely effects of further reduction was completed. The Infometrics report, including case study research, was completed by 31 December 2002. It was released on 19 March 2003 and the overall deadline for public submissions was extended to give stakeholders the opportunity to respond to the consultant’s report. Around 170 written and oral submissions to the Tariff Review were received.
Competition Policy
Provide policy advice following completion of the Commerce Commission report on price control of airfield activity, by 31 August 2002.
The Commerce Commission report on airfield activity was delivered on 1 August 2002, several months later than expected, which delayed the commencement of this work. The Commerce Commission recommended control should be imposed on airfield activities for Auckland International Airport. The Minister of Commerce released the report for consultation. After consideration of the submissions and analysis of further price increases by Wellington International Airport, the Ministry provided final advice in May 2003. On 23 May 2003, the Minister of Commerce made a decision not to impose control on airfield activities at Auckland and Wellington airports.
In conjunction with the Ministry of Transport complete a review of any anti-competitive practices by port companies by 30 September 2002.
This work was delayed to allow for consideration of the Commerce Commission’s final report on airfield activities and to assess whether it had implications for the review of anti-competitive practices by port companies.
On 16 November 2001, the Ministers of Commerce and Transport announced their decision to commission a study of the market power of New Zealand’s seaports. The purpose of the study was to provide the Government with an overview of competition issues for seaports and the information necessary to make an informed decision about the merits of a Commerce Commission inquiry or other possible courses of action. The respective ministries considered a consultant’s report and submissions on seaport companies’ market power. In addition, account was taken of the Commerce Commission’s report on airfield activity. Final advice was submitted to the Ministers of Transport and Commerce on 5 November 2002. Ministers agreed that no intervention was required to address market power in the seaport sector.
Environmental and Conservation Measures
In conjunction with other officials, report to Ministers on options to reduce delays and improve the operation of the Environment Court by 30 June 2003.
In December 2002, the Ministry provided briefings to the Associate Minister of Commerce and other Economic Development Ministers on a Ministry of Justice progress report on reducing delays in the Environment Court. In conjunction with other officials, the Ministry also provided briefings to Economic Development Ministers on proposals to improve the Resource Management Act (RMA) process and reduce delays for major projects.
In conjunction with other officials, report to Ministers on the operation of the Environmental Risk Management Authority by 30 June 2003.
The Ministry contributed to Ministry for the Environment reports on the Environmental Risk Management Authority, including a new cost recovery policy, during the year ended 30 June 2003.
In conjunction with other officials, report to Ministers on the impact of the Hazardous Substances and New Organisms Act on innovation in selected sectors by 30 June 2003.
The Ministry commissioned a study by NZIER HSNO Act: Impacts on Costs and Innovation which was reported to Ministers and approved for release in June 2003. The Ministry also provided substantial input to the Hazardous Substances Strategy released at the same time.
Multilateral Environment Agreements
Prepare an annual report to Parliament on the operation of the Ozone Layer Protection Act by 31 December 2002.
The Annual Report on the operation of the Ozone Layer Protection Act was submitted to Parliament in December 2002.
Issue annual entitlements to import ozone-depleting substances, by 31 March 2003.
Over 90% of the annual entitlements to import ozone-depleting substances had been issued by December 2002, and all applications for entitlement received by 31 December 2002 were processed and issued by 31 March 2003.
Complete the Ministry’s functions as “competent authority” in accordance with the requirements of the Basle Convention.
The “competent authority” functions were administered as required under the Basle Convention with the Ministry contributing to New Zealand’s annual report to the Basle Convention Secretariat on 9 June 2003. The Ministry provided a submission to Environment Australia in relation to the export of used lead acid batteries to Exide New Zealand.
Subject to Government decisions, prepare amendments to the Import Control Act to implement new requirements under the Stockholm and Rotterdam Conventions, by 30 September 2002.
Amendments to the Import Control Act to implement new requirements under the Stockholm and Rotterdam Conventions were introduced in May 2002 and enacted on 3 July 2003.
Subject to Government decisions, invoke regulations to implement export controls for chemicals, by 30 June 2003.
Regulations to implement export controls for chemicals were delayed by late passage of the empowering provisions. Government decisions are now expected by 30 September 2003.
Represent New Zealand’s economic development interests in international forums on the Basle, Waigani, Stockholm and Rotterdam Conventions, and the Montreal Protocol.
The Ministry represented New Zealand’s interests at international meetings on the Basle Convention in November/December 2002 and May 2003. Input was provided to New Zealand’s position for the Montreal Protocol meetings in November 2002.
Projects not Included in the 2002-2005 Statement of Intent
Building Policy Review and Building Industry Authority (BIA) Monitoring
The Ministry assumed responsibility for building regulatory policy from 1 January 2003. Over the second half of the year, the Ministry reviewed the Building Act and Architects Act, and Cabinet decisions were taken on a new regulatory framework in both areas. Drafting instructions were completed and drafting is under way. The Ministry assumed responsibility for monitoring the BIA over this period and at year-end this was being undertaken in close co-operation with the Acting Chief Executive of the BIA as the organisation adjusted to becoming a more active regulator. Extensive work was undertaken on the best institutional structure for the building regulator which Cabinet has agreed should be a departmental structure. Officials’ recommendations on the departmental location of the regulator were expected to be submitted to Cabinet in the first quarter of 2003/2004.
Adoption of International Financial Reporting Standards
In October 2002 the Accounting Standards Review Board announced they would recommend, in principle, to the Government the adoption of international financial reporting standards by 2007 for listed issuers with an option to adopt earlier, that is by 2005. The decision was precipitated by the announcement that Australia would be adopting international standards by 2005. Officials carried out work on the trans-Tasman implications of the convergence and how New Zealand and Australia could jointly promote the development and adoption of international accounting standards. At 30 June 2003 a discussion document on how New Zealand should amend the Financial Reporting Act to reflect New Zealand’s revised role of being a standards influencer and taker rather than a standards setter was being prepared by the Ministry.
Crown Entity Monitoring
Advice was provided to the Minister on statutory appointments to Crown entity boards, as positions for renewal or appointment fell due, within agreed timelines.
In 2002/2003 a total of 18 appointments were made to the Accounting Standards Review Board, Commerce Commission, Securities Commission, Standards Council, and the Takeovers Panel.
Monitoring and reporting to the Minister on the financial and non-financial performance of Crown entities was provided. As appropriate to each
Crown entity these were reflected through:
- the Statement of Intent
- the Memorandum of Understanding
- the Purchase/Output Agreement
- management reports (for reference as appropriate to the Minister)
- the Annual Report
The following Crown entities were monitored and reported on:
- Accounting Standards Review Board
- Building Industry Authority
- Commerce Commission
- Securities Commission
- Standards Council
- Takeovers Panel
- Testing Laboratory Registration Council.
Cost
(Figures are GST exclusive)
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | | |
| Revenue: | | | | |
| Crown | 7,348 | 8,434 | 8,276 | 7,593 |
| Other | 68 | 68 | 61 | 215 |
| Total Revenue | 7,416 | 8,502 | 8,337 | 7,808 |
| Expenses: | | | | |
| Annual appropriations | 7,416 | 8,502 | 8,337 | 7,808 |
| Other appropriations | -- | -- | -- | -- |
| Total Expenses | 7,416 | 8,502 | 8,337 | 7,808 |
| Net Surplus/(Deficit) | -- | -- | -- | -- |
Revenue Other was derived from miscellaneous income.
Major Budget Variances
The Supplementary Estimates change consisted of funding from Vote: Internal Affairs to meet costs relating to the transfer of responsibility for building industry policy to the Ministry of Economic Development ($812,000); from Non-Departmental Other Expense Contributions to International Organisations to fund the increased workload in reviewing regulatory impact statements and business compliance cost statements ($102,000); and from D3 Policy Advice and Administration of Trade Remedies to meet residual cost pressures ($25,000). New funding of $147,000 reflects policy formulation, consultation and the initial phases of the establishment of the Charities Commission.
The variance between the Supplementary Estimates and actual expenditure reflects: a delay in filling personnel vacancies for regulatory impact statement and Business Compliance Cost Statements reviews; and policy issues around the set up of a Charities Commission register delaying the terms of reference for the Charities Commission Establishment Group.
The variance between 2002/2003 and 2001/2002 for expenses mainly reflects additional policy work on the transfer of the Building Industry Authority from Vote: Internal Affairs, partly offset by one-off costs relating to advice to the Minister of Commerce on approval of the Stock Exchange rules as required under the New Zealand Stock Exchange Restructuring Bill, and E-Commerce initiative funding reducing from 2001/2002.
Output Class D2 - Administration of Part II Tariff Concessions
Description
This output class provides administration of tariff concessions through timely assessment of applications by importers for exemption from import duties as defined by the tariff concessions policy.
Quantity, Quality, Timeliness and Cost
(Performance standards are in brackets where applicable.)
Quantity
Applications by Importers:
- 485 (580) applications were lodged.
In the year 2000 the Government decided to freeze all tariffs at their 1999 levels until at least 2005. The Ministry expected that this would lead to a gradual decrease in the number of tariff concession applications lodged. In fact, applications have decreased at a faster rate than expected.
Quality
Processes complied with the standards contained in current Ministerial delegations and the policies contained in the Tariff Concessions Guidance Manual.
Timeliness
91% (90%) of initial decisions to advertise or decline an application were made within five working days of receipt.
91% (90%) of final decisions on applications were made within 10 working days of the end of the advertising period.
Cost
(Figures are GST exclusive)
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | | |
| Revenue: | | | | |
| Crown | -- | -- | -- | -- |
| Other | 361 | 361 | 170 | 200 |
| Total Revenue | 361 | 361 | 170 | 200 |
| Expenses: | | | | |
| Annual appropriations | 352 | 352 | 315 | 293 |
| Other appropriations | -- | -- | -- | -- |
| Total Expenses | 352 | 352 | 315 | 293 |
| Net Surplus/(Deficit) | 9 | 9 | (145) | (93 |
Revenue Other was derived from concession administration fees.
Major Budget Variances
The variance between the Supplementary Estimates and actual revenue and associated expenses reflects lower than expected concession application fees from importers for exemption from import duty.
Output Class D3 - Policy Advice and Administration of Trade Remedies
Description
This output class provides policy advice in relation to trade remedies, including policy advice relating to international issues and agreements.
The output class also includes the carrying out of investigation of applications relating to imports and the making of recommendations on the application of trade remedies, such as the imposition of import duties. This service is conducted under the Temporary Safeguard Authorities Act 1987 and the Dumping and Countervailing Duties Act 1988 in relation to dumped and subsidised goods.
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.
Policy Advice
During the Year the Ministry:
• provided technical advice to MFAT on implementation-related issues raised in the Rules Negotiating Group concerning the World Trade Organisation (WTO) Anti-dumping Agreement and the Subsidies and Countervailing Measures Agreement;
• represented New Zealand’s position at the WTO anti-dumping, countervailing measures and safeguards committee meetings in October 2002 and May 2003 and prepared papers on a number of issues including anti-circumvention and transparency; and
• prepared a policy paper on the provision of government assistance to business and consistency with New Zealand’s international obligations under the WTO Subsidies and Countervailing Measures Agreement and Closer Economic Relationships/Closer Economic Partnerships.
Application of Trade Remedies
Quantity
Eight (8-12) product-by-country investigations, reviews and reassessments were conducted during the year, including two investigations commenced in 2001/2002. Four of these were completed. Of the four cases not completed, two reviews were completed shortly after the end of the year and within the legislative timeframe for completion, one is a reassessment that is not subject to statutory deadline and the fourth is an investigation initiated towards year-end. All four cases have been carried forward into the next annual reporting period.
Numbers of investigations, reviews and reassessments are driven by applications from industries.
Quality
Investigations and reporting are to be recognised by the parties involved as consistent with the requirements of either the Temporary Safeguard Authorities Act 1987 or the Dumping and Countervailing Duties Act 1988; and provide no grounds for review under judicial review proceedings (no successful court challenges).
No court proceedings were initiated.
Timeliness
All (all) interested parties were advised of essential facts and conclusions on which a final determination was based, no later than 150 days from initiation.
All (all) final determinations were made no later than 180 days from initiation of an investigation.
Cost
(Figures are GST exclusive)
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | | |
| Revenue: | | | | |
| Crown | 1,440 | 1,369 | 1,326 | 1,357 |
| Other | -- | -- | -- | 2 |
| Total Revenue | 1,440 | 1,369 | 1,326 | 1,359 |
| Expenses: | | | | |
| Annual appropriations | 1,440 | 1,369 | 1,326 | 1,359 |
| Other appropriations | -- | -- | -- | -- |
| Total Expenses | 1,440 | 1,369 | 1,326 | 1,359 |
| Net Surplus/(Deficit) | -- | -- | -- | -- |
Revenue Other was derived from miscellaneous income.
Major Budget Variances
The Supplementary Estimates change consisted of a transfer to D1 Policy Advice – Business and Competition (-$25,000) and a transfer to Vote Consumer Affairs (-$46,000) to mitigate identified cost pressures in 2002/2003.
The variance between the Supplementary Estimates and actual expenses reflects a scheduled Temporary Safeguard Authority inquiry that did not eventuate and a dumping investigation visit to Thailand not taking place.
Output Class D4 - Registration and Granting of Intellectual Property Rights
Description
This output class provides services relating to the administration of legislation providing for the protection of intellectual property rights by granting patents under the Patent Act 1953; registering trade marks and designs under the Trade Marks Act 1953 and the Designs Act 1953; and granting plant variety rights under the Plant Variety Rights Act 1987.
Quantity, Quality, Timeliness and Cost
(Performance standards and forecast volumes are in brackets where applicable.)
Quantity
Numbers of new applications:
- 6,632 (7,388) patents;
- 21,256 (20,128) trade marks;
- 919 (995) designs; and
- 192 (160) plant variety rights.
Volumes are demand driven.
Quality
All decisions to grant/register intellectual property rights were published in the Patent Office Journal in CD-ROM format on a monthly basis, and were available for public scrutiny.
Timeliness
Intellectual Property Office of New Zealand
99% (95%) of applicants were issued with the results of an initial examination within five clear business days of the application8 being eligible for examination.9
Plant Variety Rights Office
100% (96%) of applicants were notified of the decision to grant or refuse plant variety rights within four months of “completion of testing”.
Cost
(Figures are GST exclusive
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | | |
| Revenue: | | | | |
| Crown | 85 | 85 | 85 | 85 |
| Other | 9,801 | 10,201 | 10,526 | 10,067 |
| Total Revenue | 9,886 | 10,286 | 10,611 | 10,152 |
| Expenses: | | | | |
| Annual appropriations | 8,835 | 9,235 | 9,163 | 8,761 |
| Other appropriations | -- | -- | -- | |
| Total Expenses | 8,835 | 9,235 | 9,163 | 8,761 |
| Net Surplus/(Deficit) | 1,051 | 1,051 | 1,448 | 1,391 |
| Sources of Revenue Other | $000 | $000 |
| Trademark applications | 2,114 | 1,916 |
| Trademark renewals | 2,667 | 2,492 |
| Patent applications | 1,765 | 1,763 |
| Patent renewals | 3,043 | 3,022 |
| Other fees | 851 | 793 |
| Total fees | 10,440 | 9,986 |
| Miscellaneous | 86 | 81 |
| Total Revenue Other | 10,526 | 10,067 |
Major Budget Variances
The Supplementary Estimates change consisted of marginal cost increases associated with processing an increase in the volume of trade mark applications ($400,000).
The variance between the Supplementary Estimates and actual Revenue Other reflects increases in the volume of trade mark applications, patent renewals, and plant variety rights application fees. This also applies to the variance between 2002/2003 and 2001/2002 actual Revenue Other.
The variance between 2002/2003 and 2001/2002 actual expenses reflects additional administration, salary and system costs associated with the increase in the volume of trade mark applications, patent renewals, and plant variety rights application fees.
Output Class D5 - Administration of Insolvencies
Description
This output class involves the administration of bankruptcies and liquidations by the Official Assignee pursuant to the Insolvency Act 1967 and the Companies Act 1993, and the management or disposal of property restrained or forfeited under the Proceeds of Crime Act 1991.
Quantity, Quality, Timeliness and Cost
(Performance standards and forecast volumes are in brackets where applicable.)
Quantity
Numbers administered:
- 2,645 (3,200) bankruptcies;
- 117 (230) liquidations;
- 19 (8) proceeds of crime orders.
The bankruptcies forecast was based on historical trends and an assumption that the continued high use of credit card facilities would lead to increased numbers of bankruptcies.
Higher use of business turnaround procedures rather than the liquidation process appears to be partly responsible for the decline in liquidation statistics, and those companies that have gone into liquidation are probably reflecting failures where no alternative work-out procedures were viable.
The reason for the proceeds of crime orders variance is an increase in police activity in seeking forfeiture of property resulting from criminal activity.
Quality
99% (90%) of progress reports or summaries to creditors on the financial position and likelihood of a dividend were provided within 25 clear business days of adjudication or date of liquidation.
Timeliness
Bankruptcies
The percentage of bankruptcy files that remained open were:
- six months to one year old - 9% (20%) or less remained open;
- one to two years old - 4% (10%) or less remained open;
- wo to three years old - 1% (5%) or less remained open.
Liquidations
- The percentage of liquidation files that remained open were:
- six months to one year old - 32% (40%) or less remained open;
- one to two years old - 9% (15%) or less remained open;
- two to three years old - 2% (5%) or less remained open.
Cost
(Figures are GST exclusive)
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | | |
| Revenue: | | | | |
| Crown | 8,148 | 8,148 | 8,148 | 8,193 |
| Other | 1,608 | 1,608 | 869 | 732 |
| Total Revenue | 9,756 | 9,756 | 9,017 | 8,925 |
| Expenses: | | | | |
| Annual appropriations | 9,040 | 9,040 | 9,130 | 9,173 |
| Other appropriations | -- | -- | -- | -- |
| Total Expenses | 9,040 | 9,040 | 9,130 | 9,173 |
| Net Surplus/(Deficit) | 716 | 716 | (113) | (248) |
| Sources of Revenue Other | $000 | $000 |
| Fees and fines | 861 | 675 |
| Interdepartmental revenue | -- | 34 |
| Cost recovery | -- | 19 |
| Miscellaneous | 8 | 4 |
| Total Revenue Other | 869 | 732 |
Major Budget Variances
The variance between the Supplementary Estimates and actual Revenue Other reflects an ongoing trend of the Official Assignee managing fewer company liquidations and lower receipts from bankrupt estates. The variance between the Supplementary Estimates and actual expenses reflects costs of a review of the Insolvency Administration in November 2002.
The variance between 2002/2003 and 2001/2002 actual Revenue Other reflects an increase in revenue from bankrupt estates assigned by the courts to the Official Assignee.
Output Class D6 - Registration and Provision of Statutory Information
Description
This output class provides services relating to the registration and provision of a range of documents and information required to be filed on a public record by corporate entities, insurance and superannuation funds, issuers of securities and holders of securities over personal property interests and the provision of information services related to the same.
Quantity, Quality, Timeliness and Cost
(Performance standards and forecast volumes are in brackets where applicable.)
Quantity
Companies Office
Numbers of material documents filed:
- 54,861 (38,000) company incorporations;
- 77,979 (70,000) name approvals;
- 706 (1,600) prospectuses;
- 245,563 (221,000) annual returns.
Other services:
- 394,432 (300,000) electronic company searches;
- 24,161 (17,000) company dissolutions.
While volumes are demand driven, increased activity for searching is due to the accessibility of the Companies database, and for annual returns due to the Office’s more rigorous compliance programme. Prospectuses, however, were below numbers forecast, 706 against a target of 1,600. This is due to timing factors, specifically, there is a crossover between financial years and it is anticipated that there will be increased numbers in September 2003. In addition, in some cases, extensions on existing prospectuses were granted rather than new prospectuses being issued.
Personal Property Securities Register (PPSR)
- 490,000 (444,000) security interest registrations; and
- 1,093,919 (448,400) electronic inquiries.
Volumes are demand driven. In addition, 2002/2003 was the first full year of activity on the PPSR and volumes were difficult to forecast.
Insurance and Superannuation Unit
- 740 (840) Trustee Annual Reports were filed.
The variance was due to a higher number of schemes being wound up during the year than was anticipated.
Quality
Companies Office
- 99% (99%) of documents entered into the database were free of material errors.
- 100% (99%) of images entered into the database were to the required standard.
Timeliness
- 100% (99%) of material documents were processed within one clear business day of receipt.
Cost
(Figures are GST exclusive)
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | | |
| Revenue: | | | | |
| Crown | 149 | 149 | 149 | 149 |
| Other | 12,561 | 15,861 | 14,895 | 16,487 |
| Total Revenue | 12,710 | 16,010 | 15,044 | 16,636 |
| Expenses: | | | | |
| Annual appropriations | 13,550 | 14,385 | 14,490 | 14,270 |
| Other appropriations | -- | -- | -- | -- |
| Total Expenses | 13,550 | 14,385 | 14,490 | 14,270 |
| Net Surplus/(Deficit) | (840) | 1,625 | 554 | 2,366 |
| Sources of Revenue Other | $000 | $000 |
| Annual return fees | 3,871 | 4,825 |
| Internet searching fees | 3,937 | 1,783 |
| Incorporation of companies | 2,576 | 2,486 |
| PPSR registration | 2,182 | -- |
| Name approval | 745 | 762 |
| Financial reporting fees | 288 | 982 |
| Late filing fees | 417 | 659 |
| Charges | 1 | 897 |
| MVSR registration | -- | 1,246 |
| MVSR certificate sales | -- | 1,299 |
| Other fees | 866 | 1,517 |
| Total fees and fines | 14,883 | 16,456 |
| Miscellaneous | 12 | 31 |
| Total Revenue Other | 14,895 | 16,487 |
Major Budget Variances
The Supplementary Estimates change reflects marginal cost increases associated with late filing fees, company registrations and increased usage of the PPSR ($600,000); and operating costs relating to the upgrade of the Companies Office Electronic Register (REGIS) ($235,000).
The variance between the Supplementary Estimates and actual Revenue Other reflects lower than expected revenue from company search fees and trust deed amendments.
The variance between the 2002/2003 and 2001/2002 for Revenue Other reflects the introduction of a new fees schedule in 2002/2003. The variance between 2002/2003 and 2001/2002 for actual expenses reflects costs associated with the upgrade of REGIS.
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