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• 2004-2007
• Vote: Commerce

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• Statement of Intent

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• 2007-2010
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• 2005-2008
• 2004-2007
• 2003-2006
• 2002-2005
• 2008-2011
• Departmental Forecast Report
• Strategic Business Plan

• Output Class - Policy Advice - Business and Competition
• Output Class - Administration of Part II Tariff Concessions
• Output Class - Administration of Trade Remedies
• Output Class - Registration and Granting of Intellectual Property Rights
• Output Class - Administration of Insolvencies
• Output Class - Registration and Provision of Statutory Information
• Output Class - Administration of Licensed Building Practitioners

Output Class - Policy Advice - Business and Competition

This output class provides advice on the effective and low-cost regulation of economic activity. 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. The following outputs are included in this output class for 2004/2005.

Business Environment, Business Law and Competition Policy

This output provides policy advice on corporate and commercial law, including capital markets, insolvency, intellectual property law and competition law and policy. In particular:

• Business Law - policy advice on business law reform which aims to enhance opportunities for business to innovate and grow, allow investors to make choices with confidence, and reduce the costs of doing business, including:
  • supporting the Insolvency Law Reform Bill and the Securities Trading Law Reform Bill through the parliamentary process;
  • finalising an Australia-New Zealand Mutual Recognition Treaty relating to securities offerings; and
  • assisting in the adoption of International Accounting Standards through a review of the Financial Reporting Act.
• Competition Policy - advice on the Commerce Act and competition policy implications of sector-specific regulatory and facilitation initiatives including:
  • developing with the Australian Treasury, the framework for a study on trans-Tasman coordination of competition and consumer policy enforcement and adjudication;
  • recommending amendments to the Commerce Act 1986; and
  • policy recommendations following reviews of the Commerce Commission's ownership and purchasing arrangements.
• Intellectual Property - progress a suite of legislative reviews relating to the protection of intellectual property, including:
  • supporting the Copyright (Digital Technology and Performers' Rights) Amendment Bill and the Patents and Plant Variety Rights Amendment Bill through the parliamentary process; and
  • progressing the Geographical Indications (Amendment) Bill and Regulations.

Business Facilitation Policy

This output provides policy advice on enhancing the effectiveness of, and reducing the costs to business from compliance with laws and regulations, and standards and conformance issues.

• Regulatory Policy - improve the quality of regulation across government to achieve regulatory outcomes that are effective and efficient and do not impose undue costs on business through:
  • continuing to review Regulatory Impact Statements and Business Compliance Cost Statements completed by government departments and providing training to departments on Regulatory Impact Analysis;
  • sharing the knowledge about regulatory design gained through our role in Regulatory Impact Analysis, international forums, and consultation with other departments to create a web-based knowledge portal of information intended to build capability and improve the design, implementation and review of regulation; and
  • undertaking work to better understand the impact of regulation on business, minimise the costs imposed on business in achieving regulatory outcomes, and to make business compliance with regulation easier.
• Standards and Conformance - enhance the effectiveness of New Zealand's standards and conformance structure to facilitate trade and economic development, in particular:
  • working with Australian officials to progress the outcomes of the Australian Productivity Commission's review of the trans-Tasman Mutual Recognition Arrangement (TTMRA).

Trade Policy and Rules

This output provides policy advice on New Zealand's tariff, trade remedies, and government procurement positions to support industry competitiveness. The output also includes policy advice on international regulatory frameworks that support the interests of New Zealand exporters and reduce costs to firms.

• Multilateral, Regional, Bilateral Trade Agreements - provide improved access for New Zealand firms to overseas markets and an environment that encourages innovation and internationally competitive behaviour. In particular:
  • provide technical and policy expertise on tariffs, trade remedies, rules of origin and government procurement to assist New Zealand's negotiations in the World Trade Organisation;
  • undertake research and participate in negotiations relating to the proposed Free Trade Agreements with Chile, Singapore and Thailand;
  • undertake research to identify significant technical barriers to trade, particularly in relation to China;
  • advance the reform of CER Rules of Origin with Australia; and
  • provide policy advice and monitor access for New Zealand suppliers into the Australian government procurement markets.

Building Industry Regulatory Policy

This output provides policy advice on the regulatory framework for the building industry including:

• facilitating the enactment of the Building Bill and the Architects Bill in 2004/2005;
• contributing to the development of an alternative dispute resolution mechanism in the building area; and
• reviewing the Unit Titles Act 1972.

Environmental Policy

This output provides policy advice on the impact of environmental and conservation measures on economic development with a particular focus on the Resource Management Act (RMA) and the Hazardous Substances and New Organisms Act (HSNO), climate change, and multilateral environmental agreements that impact directly on New Zealand businesses. In particular:

• providing advice (in conjunction with the Ministry for the Environment and other interested parties) on a strategy to improve the RMA, particularly proposals to improve consent decision-making, ensuring that economic development aspects are represented along with other interests; and
• providing advice (in conjunction with the Ministry for the Environment and other interested parties) on measures to improve the operation of the HSNO for business.

Service Performance

Policy advice will be delivered as agreed with the Minister and as detailed in the Ministry of Economic Development Output Plan.

Generic quantity, quality and timeliness performance measures for all policy advice, Ministerial services and briefings supplied by the Ministry of Economic Development are detailed in Quality Standards for Policy Advice and Ministerial Servicing.

Costs: Output Class - Policy Advice - Business and Competition

Output Class - Administration of Part II Tariff Concessions

This output class provides for the administration of tariff concessions, as required under section 8 of the Tariff Act 1988, through the timely assessment of applications by importers for exemption from import duties as defined by the tariff concessions policy.

Service Performance

Where appropriate, comparative figures for the previous year are shown in parentheses.

Quantity

Action an estimated 485 (500) applications lodged by importers.

Quality

Processes will comply with the standards contained in current Ministerial delegations and the policies contained in the Tariff Concessions Guidance Manual with no more than 3% (3%) of review decisions reversed on appeal.

Timeliness

90% (90%) of initial decisions to advertise or decline an application will be made within five working days of receipt.

90% (90%) of final decisions on applications will be made within 10 working days of the end of the advertising period.

Costs: Output Class - Administration of Part II Tariff Concessions

Output Class - Administration of Trade Remedies

This output class provides investigative services to establish whether New Zealand industries require remedies to prevent injury caused by dumped or subsided imports or sudden import surges.

The investigative 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.

Service Performance

Where appropriate, comparative figures for the previous year are shown in parentheses.

Quantity

An estimated 10 (10) product-by-country investigations, reviews and reassessments resulting from applications from New Zealand industries will be under action during 2004/2005.

Quality

Investigations and reporting will:

• be recognised by the parties involved as consistent with the requirements of either the Dumping and Countervailing Duties Act 1988 or the Temporary Safeguard Authorities Act 1987; and
• provide no grounds for successful court challenges during that period; and
• provide no grounds for successful World Trade Organisation dispute settlement action against New Zealand.

Timeliness

All (100%) interested parties will be advised of essential facts and conclusions on which a final determination will be based, no later than 150 days from initiation.

All (100%) reports will be made in sufficient time to allow the Minister of Commerce to make final determinations no later than 180 days from initiation of an investigation.

Costs: Output Class - Administration of Trade Remedies

Output Class - Registration and Granting of Intellectual Property Rights

This output class provides services relating to the administration of legislation providing for the protection of intellectual property rights in New Zealand by granting patents under the Patents Act 1953; registering trade marks under the Trade Marks Acts 1953 and 2002; registering designs under the Designs Act 1953; granting plant variety rights under the Plant Variety Rights Act 1987; providing registers of information relating to intellectual property; conducting hearings; and acting as a Receiving Office for the World Intellectual Property Organisation.

Service Performance

Where appropriate, comparative figures for the previous year are shown in parentheses.

Quantity

Action estimated numbers of:

New Applications

• 5,300 (6,630) patents;
• 23,200 (21,000) trade marks;
• 1,200 (930) designs; and
• 155 (160) plant variety rights.

Renewals

• 9,300 (8,600) patents;
• 10,700 (9,310) trade marks;
• 730 (600) designs; and
• 940 plant variety rights.

Quality

All decisions to grant or register intellectual property rights will be published in the Patent Office Journal and will be available for public scrutiny. No more than 2% of intellectual property rights published will require subsequent republication due to an error in the original notice.¹⁴

Timeliness

98% (98%) of completed applications¹⁵ will be receipted, acknowledged and a filing date confirmed within one clear business day of receipt.

96% (96%) of applicants will be notified of the decision to grant or refuse plant variety rights within four months of completion of testing.

Costs: Output Class - Registration and Granting of Intellectual Property Rights

Output Class - Administration of Insolvencies

This output class provides services relating to the administration of bankruptcies and liquidations by the Official Assignee pursuant to the Insolvency Act 1967 and the Companies Act 1993; the management or disposal of property restrained or forfeited under the Proceeds of Crime Act 1991; and provides enforcement functions under the Insolvency Act 1967.

Service Performance

Where appropriate, comparative figures for the previous year are shown in parentheses.

Quantity

Administer estimated numbers:

• 2,700 (2,700) bankruptcies;
• 180 (200) liquidations; and
• 15 (15) proceeds of crime orders.

Quality

In 90% (90%) of instances, a progress report to creditors on the financial position and likelihood of a dividend, will be provided within 25 clear business days of adjudication or date of liquidation.

All (100%) progress reports to creditors will be reviewed and signed off against the New Zealand Insolvency and Trustee Service Best Practice Standard prior to dispatch.

Timeliness

To achieve a maximum percentage of case closures as measured against total cases received in the following categories:

Bankruptcies

• 80% (80%) or more of bankruptcy cases that are between six months and one year old will be closed;
• 90% (90%) or more of bankruptcy cases that are between one and two years old will be closed; and
• 95% (95%) or more of bankruptcy cases that are between two and three years old will be closed.

Liquidations

• 60% (60%) or more of liquidation cases that are between six months and one year old will be closed;
• 85% (85%) or more of liquidation cases that are between one and two years old will be closed; and
• 95% (95%) or more of liquidation cases that are between two and three years old will be closed.

Costs: Output Class - Administration of Insolvencies

Output Class - Registration and Provision of Statutory Information

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. It also provides a prosecution and enforcement function under the Companies Act 1993, Securities Act 1978 and Corporations (Investigation and Management Act) 1989.

Service Performance

Where appropriate, comparative figures for the previous year are shown in parentheses.

Quantity

Companies Office

Expected numbers of documents filed:

• 63,100 (53,550) company incorporations of which 95% (95%) will be electronic;
• 92,000 (77,250) name approvals of which 96% (96%) will be electronic;
• 1,000 (1,000) prospectuses;
• 326,100 (282,000) annual returns of which 75% (75%) will be electronic; and
• 520,300 (535,600) personal property security interest registrations.

An estimated:

• 553,400 (569,000) electronic company searches will be conducted;
• 29,000 (29,000) company dissolutions will be actioned; and
• 1,460,800 (1,030,000) Personal Property Securities Register electronic searches will be conducted.

Insurance and Superannuation Unit

• An estimated 680 (730) Trustee Annual Reports will be filed; and
• 14 (11) new scheme registrations are expected to be actioned.

Quality

Companies Office

• 99% (99%) of documents entered into the database will be free of material errors, as defined in the Companies Office Standards¹⁶, for both electronic and manual information.
• 99% (99%) of images entered into the database will be to the required standard to ensure clarity, accuracy and completeness of the data captured.

Timeliness

• 99% (99%) of material documents¹⁷ will be processed within one clear business day of receipt for paper documents and within 45 minutes of receipt for documents filed electronically.

Costs: Output Class - Registration and Provision of Statutory Information

Output Class - Administration of Licensed Building Practitioners

This output class provides for the design, establishment and maintenance of the licensed building practitioner's regime under the proposed Building Bill.

Service Performance

This is the first year of operation for this Output Class.

Outputs will be delivered in accordance with the Ministry of Economic Development Output Plan and include:

• developing and implementing a communications strategy for builders and designers on the new licensing regime;
• developing user requirements for a national register of builders and designers;
• developing associated regulations; and
• appointment of a Building Practitioners Licensing Board.

Costs: Output Class - Administration of Licensed Building Practitioners¹⁸

¹⁴Excludes amendments made at a client's request where the error was not caused by IPONZ.

¹⁵A completed application is one where all information required by the relevant legislation has been provided, and the prescribed fees have been paid in full.

¹⁶Companies Office Standards dated 12 February 2003.

¹⁷Material documents are all company registration documents except for client modified Annual Returns.

¹⁸New output class in 2004/2005.