Vote: Industry and Regional Development
Key
Departmental Output Class
D1 Policy Advice: Industry and Regional Development
Non-Departmental Activities
Output Class O1 - Administration and Monitoring of Payments for Business and Regional Development Services
Output Class O2 - Advice and Information for Business
Output Class O3 - Advice and Support for Regions
Output Class O4 - Commercialisation of Intellectual Property
Output Class O5 - Co-ordination and Facilitation of Sector Strategies
Output Class O6 - Delivery of Business Development Programmes
Output Class O7 - Delivery of Business Success and Outreach Programmes
Output Class O9 - Support for Promising Individuals
Other Expense - Major Events Support Fund
Other Expense - World Class New Zealanders Fund
Other Expense - Incubator Awards
Other Expense - Industry NZ Enterprise Awards Scheme
Other Expense - Industry Specialist and Feasibility Grants
Other Expense - Regional Development Programme
Other Expense - Regional Initiatives Fund
Other Expense - Sector Initiatives Fund
Capital Contribution - Establishment of Industry NZ
Output Class D1 - Policy Advice - Industry and Regional Development
This output class provides policy advice on issues related to industry and regional development policies and programmes including factors influencing the capability and performance of Small and Medium Enterprises (SMEs).
This output class also involves the monitoring of Industry NZ and the development and review of industry and regional development policies and programmes. Specific issues include:
- the development of industry and regional development policy frameworks and advice on the design, development, co-ordination and implementation of new industry and regional development programmes;
- the development and implementation of sector strategies in industries with high growth potential;
- regional engagement, including intensive engagement in regions with acute needs and support for the regional partnership programme;
- on-going review of existing industry and regional development programmes and measures; and
- advice on enhancing the co-ordination of government industry and regional assistance programmes and expenditure.
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.
Key deliverables in the work programme for the year included:
Detailed design of the new industry and regional development programmes to be funded through this appropriation and delivered by Industry NZ starting in 2001, approved by Cabinet by 31 August 2001.
Design of new industry and regional development programmes was deferred in August 2001 when it became apparent that a number of Industry NZ programmes would not be implemented. A paper outlining programmes and expenditure for the remainder of the 2001/2002 financial year was provided to the Minister in October 2001. Cabinet approval was obtained in December 2001. Programmes implemented included:
- World Class New Zealanders;
- Celebrating a Culture of Success;
- the Cluster Development and Fast Forward New Zealand pilots;
- Tertiary Students in Business (SNAP) programme;
- the Sector Initiatives Fund; and
- the Regional Initiatives Fund.
Work intensively with 4-5 regions with acute development needs to develop their capacity and to assist with strategic planning for regional development. Impacts of engagement required by the Minister every six months and decisions taken on whether to continue, increase, reduce or end engagement.
The Ministry worked closely with the following four regions throughout the year. Reports were provided to the Minister as required.
Tairawhiti - A Tairawhiti regional economic development strategy was completed. The Ministry regularly attended strategic development and Taskforce and Co-ordination Group meetings, and provided advice and facilitation. Major Regional Initiative focus areas were identified - Māori land development, tourism and forestry/wood processing.
In addition, further financial assistance was provided to the Ministry of Education for Project Rorohiko; a computer hub in Tuai, near Lake Waikaremoana was established; assistance was provided towards the establishment of two further hubs in Tokomaru Bay and central Gisborne (Turanga Health); and an ICT bandwidth study was completed. The latter will be used as an information source for the nation-wide broadband roll-out by the Ministries of Education and Economic Development.
Northland - The Northland Economic Development Strategy was published in December 2001. The Ministry assisted as required with the implementation of the strategy and the development and assessment of a proposal for funding a Major Regional Initiative. A broadband pilot was completed and assistance provided for planning and consultation for a proposed wharf at Pouto Point in the Kaipara District.
Eastern Bay of Plenty - A draft economic development strategy was completed. At year-end, the region was working through governance issues before finalising the strategy for implementation and adoption by regional stakeholders. Assistance was also provided to investigate options to treat industrial and residential sewage in Taneatua.
South Waikato - An Economic Development Strategy Steering Group including Ministry representatives was established. A draft economic development strategy was completed during June 2002 for council and community consideration.
A report to the Minister on further engagement with regions with acute needs was submitted on 30 May 2002.
Arrange and convene a National Conference on Regional Development by 30 November 2001.
The Regional Development Conference was held in Rotorua 27-29 November 2001. Over 500 delegates attended. A conference website containing video and other records of proceedings has been maintained since the conference.
Work with Industry NZ to develop and implement four sector strategies, that assist sectors with high growth potential or undergoing significant transition. Sector strategies developed and initiated by 30 June 2002.
Engagement took place with four sectors:
- wood processing;
- manufacturing;
- textile, clothing, footwear and carpet; and
- creative industries.
Wood Processing - The Ministry worked closely with Industry NZ on the wood processing strategy at the steering group, secretariat and working group level. By 30 June 2002, good progress had been made with four working groups covering: the Resource Management Act; transport; trade access; labour, skills and training.
A review of the future of the wood processing strategy, carried out by Industry NZ, indicated that the industry would like some form of, as yet unspecified, ongoing dialogue with government, with the possibility of an "industry acceleration conference" in 2003.
Manufacturing - The Ministry worked with Industry NZ to identify and act upon barriers to growth in the manufacturing sector in New Zealand. Two manufacturing sector meetings held in 2001 did not identify any such barriers specific to manufacturers. The barriers identified were of an economy-wide or sub-sector nature and future engagement with the overall manufacturing group was discontinued as a result. The Ministry and Industry NZ continued to engage with the boat-building, castings/light alloys and aviation sectors, at a firm and industry organisation level to identify and develop solutions to particular issues in those areas.
Textile, Clothing, Footwear and Carpet - Industry NZ had the lead in work to achieve a dynamic, innovative and internationally competitive textile, clothing and footwear sector, with support from the Ministry. Three priority working groups: training and upskilling, government procurement, and marketing and market access were established. Funding was secured under the Sector Initiatives Fund to cover strategy development and a pilot cadetship programme for the yarn and carpet sector. The working groups have defined key issues, and produced a draft strategy document by 30 June 2002.
Creative Industries - A creative industries sector strategy was integrated into the Government's Growth and Innovation Framework. Five different sub-sectors have been identified for further engagement - screen production, music, interactive games, publishing and design. By 30 June 2002 taskforces had been established for screen production and design and working groups established. Progress was also being made in the music and interactive games sectors.
Pilot three community financing initiatives. Feasibility analysis completed and decision on whether or not to proceed to establish initiative by 31 December 2001.
The feasibility study did not demonstrate a need for community financing of the kind originally proposed. In December 2001, the Minister agreed to recommendations on an alternative approach to community financing.
It was agreed that all proposals for community financing initiatives would be assessed on a case-by-case basis. If successful, they would be supported through existing programmes such as the Regional Initiatives Fund (RIF). RIF funding has since been provided to:
- Palmerston Gateway to Gold to operate a banking transaction service; and
- the Nelson Loan Enterprise Trust in June 2002 to enable their business lending service to become self-supporting.
Facilitate a Budget round process that enables Ministers to prioritise expenditure across all government agencies involved in economic development by 31 March 2002.
The economic development budget process proposals were reviewed during the financial year. Initial advice was provided by the end of January 2002 on a package of measures for the 2002/2003 Budget consistent with the framework agreed in the second quarter by economic development Ministers and Cabinet. Economic development Ministers met and agreed on a comprehensive package of economic development measures during the third quarter. The Ministry also provided advice on the allocation of economic transformation resources.
Provision of reports to the Minister on the performance of Industry NZ within 15 working days of receipt of the report to the Minister.
Monitoring and reporting to the Minister on the financial and non-financial performance of Industry NZ was provided as reflected through:
- the Statement of Intent - Annually
- the Memorandum of Understanding (MoU) - Annually
- the Output Agreement - Annually
- management reports to the Minister - Quarterly
- the Annual Report - Annually
Projects Not Included in the 2001/2002 Departmental Forecast Report
Facilitate a national innovation event by 10 March 2002.
The Innovate Event was held in Christchurch from 5-7 March. Around 700 people registered as delegates but many more were able to participate through the public forum, visiting the ideas gallery, attending toolkit workshops, and watching either the televised or web-cast broadcasting of the event. There was significant media coverage.
A website (innovate.org.nz) has been established that provides access to the video material recorded during the Event. It has had over 4000 "hits" and several people have requested personal copies of video material.
In June 2002, two pilot Innovate Roadshows for businesses were held - in Tauranga and Napier. Another output was the Innovate @ Schools programme where the Minister for Industry and Regional Development was interviewed live on the web by school pupils. The material from both the Roadshows and Innovate @ Schools is also available through the Innovate website.
Cost
| | 2002
Main
Estimates | 2002
Supple-
mentary
Estimates | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 5,399 | 4,499 | 4,442 | 5,986 |
| Other | - | 25 | 8 | 58 |
| Total Revenue | 5,399 | 4,524 | 4,450 | 6,044 |
| Expenses: | | | | |
| Annual appropriations | 5,399 | 4,524 | 4,450 | 6,044 |
| Other appropriations | - | - | - | - |
| Total Expenses | 5,399 | 4,524 | 4,450 | 6,044 |
| Net Surplus/(Deficit) | - | - | - | - |
Revenue Other is derived from miscellaneous income.
Major Budget Variances
The Supplementary Estimates decrease reflects a transfer to Vote Consumer Affairs to meet funding pressures associated with work on Consumer Policy issues (-$65,000) and a transfer to the budget contingency to contribute to specific education initiatives (-$1,335,000). This was partly offset by a transfer from O8 Delivery of Industry and Regional Development Programmes in Vote Industry and Regional Development to encourage a culture of enterprise and entrepreneurship through the Innovate Event ($500,000) and a fiscally neutral adjustment that recognised the revenue and costs of a viability study for the Southerner Rail Passenger Service ($25,000).
The variance between 2001/2002 and 2000/2001 for expenses reflects the completion of the establishment of Industry NZ in 2000/2001.
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