Governance and Structure
Overview
The core governance arrangements for the Ministry conform to the pattern for all departments as set out in legislation. Annually, the arrangements centre on the Estimates approved by Parliament, on output agreements between the Chief Executive and the relevant Minister (for the outputs to be supplied, and the standards to be met for each Vote the Ministry administers) and on the Ministry's Statement of Intent.
Alignment with the Government's objectives is achieved by use of the Government's broad goals as the principal drivers of the Ministry's outcome framework and supporting goals. These goals and the key deliverables that contribute to them in turn become the central features of the output agreements.
The governance arrangements also provide for monthly reporting on financial performance to the Treasury; six-monthly and annual reporting on performance to Ministers; and Select Committee examination following presentation of the Ministry's Statement of Intent and Annual Report to Parliament. Audit New Zealand audits the annual report and related material, on behalf of the Controller and Auditor General.
Ministers and Votes
The Minister for Economic Development is the Responsible Minister for the Ministry. The Responsible Minister oversees the Government's ownership interest in the Ministry, which encompasses its strategy, capability, integrity and financial performance.
As at 30 June 2002, the Chief Executive reported to the following nine portfolio Ministers on the discharge of his responsibilities for seven Votes.
| Minister | Vote |
|---|
| Minister for Economic Development | Economic Development |
| Minister of Commerce | Commerce |
| Minister of Communications | Communications |
| Minister of Consumer Affairs | Consumer Affairs |
| Minister of Energy | Energy |
| Minister for Industry and Regional Development | Industry and Regional Development |
| Minister for Information Technology | ------- |
| Minister for Small Business | ------- |
| Minister of Tourism | Tourism |
Under the GSF Amendment Act 2001 there was a change in governance for the Government Superannuation Fund, and on 2 October 2001 responsibility for the GSF moved from the Ministry of Economic Development to a new Crown entity, the GSF Authority.
The Ministry of Tourism was established on 1 January 2002, replacing the Office of Tourism and Sport, which was also located within the Ministry of Economic Development. A new Crown entity for sports and recreation has been formed, and responsibility for monitoring it transferred from the Ministry of Economic Development to the Ministry for Culture and Heritage on 1 January 2002.
Management Structure
The Ministry has five branches, each headed by a deputy secretary. The Ministry of Consumer Affairs and the Ministry of Tourism are semi-autonomous units within the wider Ministry. The five deputy secretaries and the general manager of the Ministry of Consumer Affairs all report to the Chief Executive. The general manager of the Ministry of Tourism reports to the deputy secretary responsible for the Industry and Regional Development branch. The alignment of functions within the branches is set out in the Organisational Chart.
Crown Entities
The following Crown entities were administered through Votes administered by the Ministry of Economic Development during the year:
- Accounting Standards Review Board
- Commerce Commission
- Industry NZ
- New Zealand Tourism Board
- Securities Commission
- Takeovers Panel
While the Ministry administers the non-departmental appropriations to the Crown entities, they are directly accountable to Ministers for their performance in supplying agreed output classes.
The Ministry is the Government's "purchase advisor" in relation to these Crown entities. This is a significant responsibility for the Ministry, covering advice on appointments, role and functions, and the overall contribution of each Crown entity to the Government's policy objectives. Management of the relationships with Industry NZ and the Commerce Commission has been particularly important, given the major contribution each makes to advancing economic development.
The Ministry of Economic Development also advises Ministers on ownership interests relating to the following Crown entities:
- New Zealand Business Development Board
- Standards Council
- Testing Laboratory Registration Council (TELARC)
Other Entities
The Ministry also advises Ministers on ownership interests related to the Copyright Tribunal and the Joint Accreditation System of Australia-New Zealand (JASANZ).
Legal Responsibilities
The Ministry has approximately 1000 legal obligations in a wide range of Acts and regulations. These are listed as at 30 June 2002 in Appendix 1.
The identified obligations have been placed on an electronic database designed to ensure that the list of legal responsibilities and the arrangements for ensuring compliance are kept up to date. The system also records the point of responsibility within the Ministry.
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