Vote: Commerce
Key
Departmental Output Classes
D1 Policy Advice: Business and Competition
D2 Administration of Part II Tariff Concessions
D3 Policy Advice and Administration of Trade Remedies
D4 Registration and Granting of Intellectual Property Rights
D5 Administration of Insolvencies
D6 Registration and Provision of Statutory Information
Non-Departmental Activities
Output Class O1 - Approval and Review of Financial Reporting Standards
Output Class O2 - Performance of Securities Market Functions
Output Class O3 - Commerce Act and Fair Trading Act Enforcement and Adjudication
Output Class O4 - Formulation and Administration of the Takeovers Code
Output Class O5 - Enforcement of Dairy Sector Regulation
Other Expense - Settlement Expenses
Other Expense - Contribution to International Organisations
Other Expense - Risk Capital Fund Directors' fees
Output Class D1 - Policy Advice - Business and Competition
Description
This output class provides strategic and technical policy advice on the creation and maintenance of a regulatory environment that provides greater certainty for business and positively encourages innovation and growth. Outputs within this class are policy advice on:
- the costs to business of compliance with laws and regulations;
- corporate and commercial law, including competition, capital markets, insolvency and intellectual property laws;
- the impact of environmental and conservation policies on business;
- the impact of local government policies on business;
- tariff and other border policies;
- government purchasing policy;
- the standards, accreditation and certification infrastructure;
- information technology and electronic commerce, including international technical developments and regulatory frameworks relevant to electronic commerce;
- international and regulation frameworks that support the interests of New Zealand exporters and recognise the needs of domestic businesses;
- other issues affecting the environment for business; and
- operation of Crown entities:
- Commerce Commission
- Securities Commission
- Takeovers Panel
- Accounting Standards Review Board
- Testing Laboratory Registration Council (TELARC), and
- Standards Council.
Quantity, Quality, Timeliness and Cost
Details of performance against the generic standards and measures for policy advice provided by the Ministry of Economic Development for this Vote (Quantity, Quality and Timeliness) can be found in the section Policy Advice and Ministerial Servicing.
Specific deliverables relating to the agreed work programme are outlined below.
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 the year included:
Provide policy advice to the Government on the regulation of offer documents under the Securities Regulations by 30 June 2002.
This work is being progressed in two stages.
Stage I involves dealing with technical changes to reduce compliance costs and other improvements to the existing regulations. Recommendations have been referred to the Securities Commission which has the exclusive authority to instigate changes to the Regulations. Before doing so it must consult with the public. That process has yet to be completed.
Stage II will involve looking more fundamentally at the way securities offerings are made in New Zealand. The Minister agreed to delay this work until 2002/2003 in order to progress higher priority work in the area of capital markets. At 30 June 2002 it was expected that the substantive work under Stage II would be incorporated into a wider review of the Securities Act 1978. This will be discussed with the new Minister.
Complete fundamental review of insider trading laws (including criminal penalties and market manipulation) and provide policy advice to the Government by 30 September 2001.
In accordance with the timetable agreed by Cabinet, three discussion documents were released on 30 May 2002 with a closing date for submissions on 30 August 2002. Work has commenced on a fourth discussion document relating to substantial security holders with a view to co-ordinating policy development on the same timeline as the fundamental review. A revised reporting deadline will be agreed with the new Minister.
Provide policy advice to the Government on a comprehensive insolvency review by 31 October 2001.
With the agreement of the Minister and Cabinet, the deadline was put back to May 2002. A discussion document on business rehabilitation was released in May 2002 and the deadline for submissions was 19 July 2002. Design work on a no-asset procedure has been completed. A reporting deadline will be agreed with the new Minister on bankruptcy (including a "no asset" procedure), business rehabilitation (including statutory management), phoenix companies and cross-border insolvency implementation.
Provide policy advice to the Government on the implementation of its Compliance Cost reduction and monitoring programme by 30 June 2002.
An interim response to the Ministerial Business Compliance Cost Panel's report was released in early September 2001. The final response to each of the 162 recommendations of the Panel was considered by Cabinet in early November 2001 and publicly released on 18 December 2001.
A compliance costs funding package was considered by Ministers in February 2002 and decisions were announced as part of the Budget in May 2002. Funding was allocated to reduce compliance costs in the resource management area and to fund a business portal to provide information to small business through the E-Government portal and BizInfo.
Provide policy advice to the Government on the Business Law Reform Bill 2001 by 30 September 2001.
Policy advice on the Business Law Reform Bill was provided to the Minister on 14 September 2001. The House Business Committee approved the Bill for introduction as an omnibus bill in May 2002. Further policy decisions were sought in the June quarter and Cabinet agreed to new proposals and minor amendments to existing provisions in June 2002. Detailed drafting by the Parliamentary Counsel Office is under way.
Provide policy advice on the Global Dairy Company merger proposal and associated competition policy, corporate governance and intellectual property issues. Support development and passage of dairy industry restructuring legislation by 30 November 2001.
The Ministry contributed to the passage of the dairy industry restructuring legislation, providing advice in all the areas identified. In addition, the Ministry contributed significantly to policy work on enforcement, on the Livestock Improvement Corporation and on regulations (including information disclosure by the new co-operative). The Bill was given Royal Assent on 26 September 2001 and the merger took effect on 16 October 2001.
Support the passage through the House of a new Trade Marks Act by 30 November 2001.
The Commerce Committee reported the Bill back to Parliament on 1 March 2002 and it is now awaiting its second reading. The Ministry provided ongoing briefings and advice to the Committee. Following the Select Committee process, a Supplementary Order Paper was introduced to cover a range of substantive and technical issues.
Provide policy advice on the drafting of a new Patents Bill based on stages I and II of the review of the Patents Act, and incorporating Stage III if agreement can be reached by 31 March 2002.
Policy advice on Stages I and II of the Patents Bill was provided and agreed to by Cabinet. Drafting instructions relating to Stages I and II are being progressed. On 18 March 2002, Cabinet approved a discussion paper on Stage III for release to the public. It agreed that the time for submissions should be extended with a view to making policy decisions by November 2002.
A draft discussion document on a review of the Plant Variety Rights Act was also approved for release with submissions due by the end of July 2002. There were synergies in releasing this discussion document alongside the document on Stage III of the Patents Review, as the issues overlap. Both discussion documents were posted on the Ministry of Economic Development website on 3 April 2002.
Provide policy advice on the shape of the post-2005 tariff regime by 1 December 2001.
In early December 2001 Cabinet agreed to draft terms of reference, an analytical framework and a timeframe for undertaking a review of the post-2005 tariff regime. Terms of reference were released and the review formally commenced on 28 February 2002.
Activity completed by 30 June 2002 included the establishment of a web page for receipt of submissions and posting progress reports; a major mail-out to key business organisations and individual firms to encourage participation; the commencement of economic research; meetings with key business organisations including unions, Māori, Pacific peoples' and women's business groups; receipt, acknowledgment and analysis of around 45 submissions; completion of around 20 case studies and wide circulation of a postal survey. Officials worked closely with the Textile, Clothing, Footwear and Carpet Sector Strategy Group, chaired by the Ministers of Commerce and Economic Development, throughout the year.
Co-ordinate the implementation of the Government's E-commerce Strategy including
- Supporting the enactment of the Electronic Transactions Bill by 1 July 2001
Passage of the legislation was delayed by other government priorities. The Bill was reported back from the Select Committee in June 2001 and received its second reading in late 2001. It is still awaiting the Committee of the House stages. Work has commenced on drafting regulations to give effect to the Bill. The regulations will be finalised on passage of the Bill. - A series of regional e-commerce events (up to 6 in 2001/2002) by 30 June 2002;
Seven successful e-commerce events were held, in Hamilton, Masterton, Napier, New Plymouth, Palmerston North, Invercargill and Greymouth. The events were promoted through the E-commerce Action Team (ECAT) and designed to help small and medium enterprises learn about e-commerce from one another. In addition, a successful sector leaders' forum was held in May 2002 to extend the e-commerce programme into additional sectors. It attracted over 100 industry association representatives.
Co-ordinate the implementation of the Government's 6 quarter action plan - ongoing to 30 June 2002;
Individual sectoral action plans were finalised and published. A consolidated ECAT plan was published on the ECAT website. Work commenced with ECAT members to implement their plans.
The E-Commerce Strategy released in November 2000 contained some 60 actions and commitments for which a number of government departments were responsible. An audit of progress on these was carried out in September 2001 and the results were published in the document E-Commerce: Building the Strategy for New Zealand: Progress Report, One Year On. This document was launched by the Minister at the Greymouth regional event in November 2001.
Co-ordination with other government digital initiatives including the e-government strategy and digital divide strategy - ongoing to 30 June 2002;
The Ministry of Economic Development and Ministry of Education prepared a business case and project methodology for a joint project to roll out broadband to schools and communities. Project directors were appointed in May 2002 and by 30 June 2002 a project steering committee had been set up to oversee the project and report to Ministers. The project is now under way under the name Project Probe.
Establish the E-Commerce Action Team (ECAT) and promote the establishment of regional and industry based ECATs - ongoing to June 2002;
The ECAT Network was launched in June 2001 with 20 members. In the April-June 2002 quarter membership grew to 164 members, and over 900 people are now subscribers to the e-commerce contacts mailing list. As a result of the e-commerce events, a Waikato ECAT (WECAT) and an education ECAT (EDUCAT) have been set up. In addition, the Broadband Forum was set up and an e-commerce research symposium has been held with participation from academics, private researchers and public sector representatives.
Developing an e-commerce network based upon an interactive website by August 2001;
The ECAT website was established in March 2001. The ECAT Network was launched in June 2001. Both of these initiatives were run in-house by the Ministry of Economic Development. On the recommendation of ECAT it was decided to outsource management of the website and network. To this end a new website (www.nzecommerce.co.nz), supported by 0800 and email inquiry services, was launched in May 2002. As well as providing support for the ECAT Network, the new site provides a comprehensive e-commerce business information service and information to encourage regions and individual businesses to find ways to grow their own e-commerce capability.
Advance the research programme into electronic commerce by 30 June 2002.
An e-business survey was commissioned as a follow-up to an August 2000 survey and key results were made public in May 2002. A publication containing more comprehensive results and analysis will be produced in 2002/2003.
A one-day research symposium was held in May 2002 in conjunction with Waikato University and with co-operation from ECAT members.
Projects Not Included in the 2001/2002 Departmental Forecast Report
Development of a framework to facilitate the delivery of broadband access to all New Zealanders.
A Cabinet paper setting out the Government's broader strategy on the facilitation of investment in regional broadband was approved on 5 September 2001. Five regional pilot schemes were contracted in December 2001 and all were completed by 30 June 2002. Several regional broadband forums were held to assist the five regions over the year.
Provide ongoing advice on the economic impact of current and proposed environmental issues, and related international agreements, with particular attention to the Resource Management Act and the Hazardous Substances and New Organisms Act.
The Ministry provided advice from an economic perspective on environmental measures during the course of the year. Advice and inputs were provided on the Resource Management Amendment Bill, the Waste Minimisation Strategy (released in December 2001), the review of the decision-making methodology and the development of regulations under the Hazardous Substances and New Organisms Act (in May 2002), and trade and environment issues.
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 2001/2002 a total of 18 appointments were made to the following Crown entity boards: Accounting Standards Review Board; Commerce Commission; Securities Commission; 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 - Annually
- the Memorandum of Understanding - Annually
- the Purchase Agreement - Annually
- management reports (for reference as appropriate to Ministers) - Quarterly
- the Annual Report - Annually
The following Crown entities were monitored and reported on:
- Commerce Commission
- Securities Commission
- Takeovers Panel
- Accounting Standards Review Board
- TELARC, and
- Standards Council.
Cost
| | 2002
Main
Estimates | 2002
Supple-
mentary
Estimates | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 7,612 | 7,612 | 7,593 | 7,564 |
| Other | 68 | 246 | 215 | 543 |
| Total Revenue | 7,680 | 7,858 | 7,808 | 8,107 |
| Expenses: | | | | |
| Annual appropriations | 7,680 | 7,858 | 7,808 | 8,107 |
| Other appropriations | - | - | - | - |
| Total Expenses | 7,680 | 7,858 | 7,808 | 8,107 |
| Net Surplus/(Deficit) | - | - | - | - |
Sources of Revenue Other
| | 2002 | 2001 |
|---|
| $000 | $000 |
| E-summit sponsorship | - | 157 |
| Seminar fees | - | 269 |
| Miscellaneous | 215 | 117 |
| Total Revenue Other | 215 | 543 |
Major Budget Variances
The Supplementary Estimates change consisted of a fiscally neutral adjustment recognising 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.
The variance between 2001/2002 and 2000/2001 for Revenue Other and Expenses, mainly reflects the absence of income derived, and expenditure incurred, from sponsorship of the E-Summit in 2000/2001 and income derived, and expenditure incurred, from seminars on Information Technology policy held in 2000/2001.
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
Quantity
Applications by importers:
550 (690) applications were lodged.
Volumes are demand driven.
Quality
Processes complied with the standards contained in current Ministerial delegations and the policies contained in the Tariff Concessions Guidance Manual. No (no more than 3%) review decisions were reversed.
Timeliness
93% (90%) of initial decisions to advertise or decline an application were made within five working days of receipt.
94% (90%) of final decisions on applications were made within 10 working days of the end of the advertising period.
Cost
| | 2002
Main
Estimates | 2002
Supple-
mentary
Estimates | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | - | - | - | - |
| Other | 361 | 361 | 200 | 222 |
| Total Revenue | 361 | 361 | 200 | 222 |
| Expenses: | | | | |
| Annual appropriations | 352 | 352 | 293 | 319 |
| Other appropriations | - | - | - | - |
| Total Expenses | 352 | 352 | 293 | 319 |
| Net Surplus/(Deficit) | 9 | 9 | (93) | (97) |
Revenue Other was derived from concession application fees.
Major Budget Variances
The variance between 2001/2002 and 2000/2001 expenses reflects lower costs associated with a lower number of applications by 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 carrying out investigation of applications relating to imports and making 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.
Outputs within this class are:
- policy advice;
- consideration of dumping and countervailing applications;
- investigation of dumping and countervailing cases; and
- investigation of trade remedies applications.
Quantity, Quality, Timeliness and Cost
Details of performance against the generic standards and measures for policy advice provided by the Ministry of Economic Development for this Vote (Quantity, Quality and Timeliness) can be found in the section Policy Advice and Ministerial Servicing. (Other performance standards are in brackets where applicable.)
All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister.
Key deliverables in the work programme for the year included:
- Policy advice encompassing:
- participation in the formation of recommendations on implementation-related issues and concerns arising from the WTO Doha Ministerial Declaration;
- the provision of technical assistance to the Ministry of Foreign Affairs and Trade in relation to trade remedy actions against New Zealand industries; and
- participation in the negotiation of trade remedies aspects of proposed Closer Economic Partnerships, and
- application of trade remedies.
Quantity
There were five (24) product-by-country investigations, reviews and reassessments during the year, three of which were completed. One investigation was particularly resource-intensive due to intense legal scrutiny and lengthy submissions. Of the two investigations not completed, one is not subject to statutory deadline and the other is within the legislative timeframe and will be completed in the next annual reporting period.
The number of investigations, reviews and reassessments are driven by applications from industries. Five expected product-by-country "sunset" reviews were not requested by industry.
Quality
Investigations and reporting are to be recognised by 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
100% (100%) of interested parties were advised of essential facts and conclusions on which a final determination was based, no later than 150 days from initiation. Only one investigation during the year was required to meet the statutory requirement to advise interested parties of essential facts and conclusions, and that investigation was terminated at an early stage.
100% (100%) of final determinations were made no later than 180 days from initiation of an investigation.
Cost
| | 2002
Main
Estimates | 2002
Supple-
mentary
Estimates | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 1,440 | 1,440 | 1,357 | 1,310 |
| Other | - | - | 2 | 9 |
| Total Revenue | 1,440 | 1,440 | 1,359 | 1,319 |
| Expenses: | | | | |
| Annual appropriations | 1,440 | 1,440 | 1,359 | 1,319 |
| Other appropriations | - | - | - | - |
| Total Expenses | 1,440 | 1,440 | 1,359 | 1,319 |
| Net Surplus/(Deficit) | - | - | - | - |
Revenue Other was derived from miscellaneous income.
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, designs and geographical indications under the Trade Marks Act 1953, the Designs Act 1953 and the Geographical Indications Act 1994; and
- granting plant variety rights under the Plant Variety Rights Act 1987.
Outputs within this class are:
- granting of patents and registering of trade marks, designs and geographical indicators by the Intellectual Property Office of New Zealand; and
- granting of plant variety rights by the Plant Variety Rights Office.
Quantity, Quality, Timeliness and Cost
Quantity
Numbers of new applications:
- 6,718 (6,700) patents;
- 19,173 (25,000) trade marks;
- 937 (1,150) designs;
- 165 (160) plant variety rights.
Volumes are demand driven.
Quality
The Patent Office Journal publication schedule was published monthly.
Timeliness
Intellectual Property Office of New Zealand (IPONZ)
IPONZ notified applicants with the results of an initial examination within five clear business days of the application7 being eligible for examination,8 99.8% (95%) of the time.
Plant Variety Rights Office (PVRO)
PVRO notified applicants of the decision to grant or refuse plant variety rights within four months of "completion of testing", 100% (96%) of the time.
Cost
| | 2002
Main
Estimates | 2002
Supple-
mentary
Estimates | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 85 | 85 | 85 | 85 |
| Other | 9,393 | 9,797 | 10,067 | 9,897 |
| Total Revenue | 9,478 | 9,882 | 10,152 | 9,982 |
| Expenses: | | | | |
| Annual appropriations | 8,435 | 8,835 | 8,761 | 8,375 |
| Other appropriations | - | - | - | - |
| Total Expenses | 8,435 | 8,835 | 8,761 | 8,375 |
| Net Surplus/(Deficit) | 1,043 | 1,047 | 1,391 | 1,607 |
Sources of Revenue Other
| 2002 | 2001 |
|---|
| | $000 | $000 |
| Trademark applications | 1,916 | 2,267 |
| Trademark renewals | 2,492 | 2,045 |
| Patent applications | 1,763 | 1,750 |
| Patent renewals | 3,022 | 2,938 |
| Other fees | 793 | 767 |
| Total fees and fines | 9,986 | 9,767 |
| Miscellaneous | 81 | 130 |
| Total Revenue Other | 10,067 | 9,897 |
Major Budget Variances
The Supplementary Estimates increase reflected the increase in revenue and costs associated with processing increased trademark and patent renewal and assignment activity.
The variance between the Supplementary Estimates and 2001/2002 actual for Revenue Other reflects an increase in the volume of trademark applications in April 2002 and patent renewals in June 2002.
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.
Outputs in this class are:
- administration of bankruptcies and liquidations; and
- administration of proceeds of crime orders.
Quantity, Quality, Timeliness and Cost
Quantity
Numbers administered:
- 2,818 (2,700) bankruptcies;
- 234 (330) liquidations;
- 15 (12) proceeds of crime orders.
Volumes are demand driven.
Quality
Performance in this output class is measured by the timely completion of the administration of insolvencies as measured by the percentage of insolvency files open against total files received during a specified period. (See Timeliness below.)
Timeliness
96% (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.
Bankruptcies
The percentage of bankruptcy files that remained open were:
- six months to one year old, 11% (20%) or less remained open;
- one to two years old, 4% (10%) or less remained open;
- two 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, 33% (40%) or less remained open;
- one to two years old, 11% (15%) or less remained open;
- two to three years old, 3% (5%) or less remained open.
Cost
| | 2002
Main
Estimates | 2002
Supple-
mentary
Estimates | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 8,193 | 8,193 | 8,193 | 8,191 |
| Other | 1,608 | 1,608 | 732 | 1,024 |
| Total Revenue | 9,801 | 9,801 | 8,925 | 9,215 |
| Expenses: | | | | |
| Annual appropriations | 9,085 | 9,085 | 9,173 | 9,088 |
| Other appropriations | - | - | - | - |
| Total Expenses | 9,085 | 9,085 | 9,173 | 9,088 |
| Net Surplus/(Deficit) | 716 | 716 | (248) | 127 |
Sources of Revenue Other
| 2002 | 2001 |
| | $000 | $000 |
| Fees and fines | 675 | 903 |
| Interdepartmental revenue | 34 | 45 |
| Cost recovery | 19 | 48 |
| Miscellaneous | 4 | 28 |
| Total Revenue Other | 732 | 1,024 |
Major Budget Variances
The reduced Revenue Other reflects the reduced number of estates assigned by the Courts to the Official Assignee. This has reduced the commission income available from those estates.
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 motor vehicles and the provision of information services related to the same.
Outputs within this class are:
- Companies Office services;
- Motor Vehicles Securities Register services (until the implementation of the Personal Property Securities Register in May 2002);
- Insurance and Superannuation Unit services; and
- Personal Property Securities Register services.
Quantity, Quality, Timeliness and Cost
Quantity
Companies Office
Numbers of material documents filed:
- 41,196 (36,000) company incorporations; (Demand driven - increase due in part to a reduction in the fee for incorporating a company from January 2002, and to extensive marketing of registry services.)
- 69,645 (70,000) name approvals;
- 1,555 (1,600) prospectuses;
- 225,558 (203,000) annual returns. (Increased numbers result from the introduction of a more rigorous compliance programme.)
Other services:
- 16,293 (28,000) manual file searches;
- 356,982 (280,000) electronic company searches;
(The Companies Office continued to encourage clients to use Internet search services in 2001/2002. The success of this programme is reflected in higher-than-expected numbers of electronic searches and a drop in numbers of manual searches.) - 15,259 (17,000) dissolutions of companies.
Motor Vehicle Securities Register
Numbers of registrations and inquiries:
- 261,867 (208,000) Security Interest Registrations;
- 584,699 (550,000) electronic inquiries as to the state of register.
(Actual numbers reported include motor vehicle searches through the Personal Property Securities Register for May/June 2002 of 109,808.)
Volumes are demand driven.
Insurance and Superannuation Unit
- 860 (900) Trustee Annual Reports filed.
Volumes are demand driven.
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.
Projects Not Included in the 2001/2002 Departmental Forecast Report
Implementation of Personal Property Securities Register
The Personal Property Securities Register was successfully launched on 1 May 2002. There has been a very high user acceptance rate of the system and a high level of activity. Clients were offered the opportunity to pre-load existing registrations from 8-26 April 2002. 200,268 financial statements were registered during that period.
Cost
| | 2002
Main
Estimates | 2002
Supple-
mentary
Estimates | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 149 | 149 | 149 | 380 |
| Other | 13,626 | 16,005 | 16,487 | 17,936 |
| Total Revenue | 13,775 | 16,154 | 16,636 | 18,316 |
| Expenses: | | | | |
| Annual appropriations | 14,393 | 14,393 | 14,270 | 13,794 |
| Other appropriations | - | - | - | - |
| Total Expenses | 14,393 | 14,393 | 14,270 | 13,794 |
| Net Surplus/(Deficit) | (618) | 1,761 | 2,366 | 4,522 |
Sources of Revenue Other
| 2002 | 2001 |
|---|
| | $000 | $000 |
| Annual return fees | 4,825 | 5,436 |
| Incorporation of companies | 2,486 | 2,474 |
| Name approval | 762 | 829 |
| Financial reporting fees | 982 | 1,151 |
| Late filing fees | 659 | 731 |
| Charges | 897 | 1,419 |
| MVSR registration | 1,246 | 2,039 |
| MVSR certificate sales | 1,299 | 874 |
| Internet searching fees | 1,783 | 1,324 |
| Other fees | 1,517 | 1,510 |
| Total fees and fines | 16,456 | 17,787 |
| Interdepartmental revenue | - | 10 |
| Cost recovery | - | 36 |
| Miscellaneous | 31 | 103 |
| Total Revenue Other | 16,487 | 17,936 |
Major Budget Variances
The Supplementary Estimates increase reflected the GST impact on a forecast additional Revenue Other related to company registration activities; motor vehicle security interests registered via the internet due to the expected impact of the implementation of the Personal Property Securities Register, and late filing fees collected ($2,200,000); and the GST impact on additional revenue resulting from a review of fees for the Motor Vehicle Securities Register, the Companies Office, the Insurance and Superannuation Unit, the Intellectual Property Office of New Zealand and the Plant Variety Rights Office ($179,000).
The variance between 2001/2002 and 2000/2001 for Revenue Other reflects the introduction of a new fees schedule in 2001/2002.
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