Vote: Commerce
Output Class D1 - Policy Advice - Business and Competition
Description
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.
Outputs within this output class include policy advice on:
- the multilateral and bilateral trade agenda including the Doha Round, and New Zealand's economic relationship with Australia;
- corporate and commercial law, including capital markets, insolvency, and intellectual property law including the administration of 45 statutes;
- competition policy and law, including advice on the competition policy implications of sector specific regulatory and facilitation initiatives;
- improvement of the overall quality of government regulation through maintenance and development of the system of Regulatory Impact and Business Compliance Cost Statements, and support for building departmental capability in regulatory impact analysis;
- trade rules, especially trade remedies and tariff policy;
- the standards accreditation and certification infrastructure, both domestic and international;
- government procurement policy, both domestic and international;
- information technology and electronic commerce, including international technical developments and regulatory frameworks relevant to electronic commerce, and the Government's broadband and industry development strategies;
- the impact of environmental and conservation measures on economic development with a particular focus on the Resource Management and Hazardous Substances and New Organisms Acts, and climate change;
- multilateral environmental agreements that impact directly on New Zealand businesses, and the administration of domestic requirements pursuant to the Montreal and Basle Conventions with respect to the import and use of ozone-depleting substances and the import and export of hazardous wastes respectively; and
- the regulatory framework for the building industry.
An important component of the output class is purchase advice in relation to Crown entities that maintain part of the regulatory framework for business.
Service Performance Objectives - Output Class Specific
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.
Where appropriate, comparative figures for the previous year are shown in parentheses.
2003/2004 Performance Measures and Standards
Policy Advice
Policy advice will be delivered as agreed with the Minister and as detailed in the Ministry of Economic Development Output Plan.
Key Deliverables in the Work Programme for 2003/2004
Business Law Reform
- obtain Cabinet approval for a Securities Trading Law Reform Bill relating to insider trading, market manipulation offences, the scope of securities trading law and related matters, by 30 June 2004.
This review is considering whether the key elements of New Zealand securities trading law promote investor confidence.
- obtain Cabinet approval for a Financial Reporting Amendment Bill relating to the financial reporting requirements for the full range of business entities and the role of New Zealand in the international accounting standard setting process, by 31 March 2004.
There is a global trend towards convergence in accounting standards. If New Zealand were to ignore this trend this would have an adverse impact on investment in the economy with a consequential adverse impact on growth. This review will create the legislative environment that best supports the move to international standards.
Intellectual Property Law Reform
This work is designed to support the priority outcome increased innovation and entrepreneurial performance in New Zealand. . A specific supporting goal is that intellectual property rights support investment in innovation and the dissemination of new ideas. It has been recognised for many years that the market alone will in some instances not provide for sufficient levels of innovation without the presence of intellectual property rights. Current legislation is being reviewed to ensure that it reflects appropriately New Zealand's interest in growing our innovation capability while recognising that New Zealand is a large capital and technology importer. These reviews will ensure that our regulatory regimes for patents and copyright are up to date and account for new technology.
- provide advice and support to the Minister of Commerce to facilitate the passage of the Patents and Plant Variety Rights Bill through the House of Representatives; and
- provide advice and support to the Minister of Commerce to facilitate the passage of the Copyright (New Technologies and Performers Rights) Bill through the House of Representatives.
Government's Regulatory Impact Analysis and Compliance Cost Reduction Programme
- provide ongoing education and training courses to departments on Regulatory Impact Statement (RIS) and Business Compliance Costs Statement (BCCS) analysis. This will be completed through both individual and small group training and the provision of general training courses for departments.
Rigorous analysis of regulatory proposals is fundamental to achieving economic regulation that is effective and efficient, and does not impose undue costs on business. Through investing in building capability across government for undertaking rigorous policy analysis through the RIS/BCCS process, the implications of regulatory proposals for the economy, industry and business are more clearly identified and the costs associated with regulation are better recognised. Further, through better disclosure of the impacts, Ministers are better equipped to make informed decisions on regulatory proposals. This, in turn, results in more effective and efficient regulation of economic activity.
Trans-Tasman Regulatory and Business Law Co-ordination
- work with agencies, industry and the Productivity Commission to develop New Zealand's strategic position in relation to the review of the Trans-Tasman Mutual Recognition Arrangement (TTMRA) to be completed by 31 December 2003; and
- advance the work programme under the Memorandum of Understanding on Business Law, including capital markets.
Increased international commerce is a key determinant of increased productivity. The TTMRA and the integration of trans-Tasman business frameworks is fundamental to reducing transaction costs for New Zealand businesses dealing with Australia, making it easier for New Zealand firms to invest, export and take advantage of a trans-Tasman pool of skills.
Post-2005 Tariff Policy
- finalise policy advice to the Government on post-2005 tariff policy and implement the decisions by 31 December 2003.
The post-2005 Tariff Review is being undertaken to give businesses certainty regarding tariff policy beyond July 2005. Tariff policy has an effect on the level of competition in New Zealand, which in turn influences innovation and entrepreneurial performance. Investment and resource allocation are directly influenced by tariffs that encourage the flow of resources to certain areas of the economy.
The tariff policy options that are developed will need to provide a supportive environment in which businesses can operate efficiently and to provide them with certainty to enable them to plan and make appropriate investment decisions.
- participate, with Australia, in a fundamental review of Closer Economic Relationship (CER) Rules of Origin (ROO) to be completed by 30 June 2004.
The aim of the CER ROO review will be to develop fundamental changes to the existing ROO model and ensure that the new ROO are compatible with current manufacturing strategies based on specialisation and the ability of firms to buy inputs from the cheapest sources. This approach would reduce manufacturing costs and promote trans-Tasman competition, thereby creating new trade.
Multilateral, Regional, Bilateral Trade Agreements
- undertake research and participate in negotiations relating to the development of new Closer Economic Partnerships (CEPs) /Free Trade Agreements (FTAs), including those with Hong Kong, Chile and possibly the United States.
CEPs and FTAs provide improved access for New Zealand firms to overseas markets, and lead to increased domestic and international competition. Negotiations with bilateral trading partners will need to ensure that key issues such as tariffs, non-tariff barriers, intellectual property, competition policy, trade rules and government procurement, are dealt with in a way that is consistent with New Zealand's regulatory frameworks. If we achieve this, it will encourage innovation and internationally competitive behaviour, which are key drivers of economic growth.
- participate in the World Trade Organisation (WTO) Doha Round negotiations in relation to a wide range of issues, including tariffs, trade remedies, non-tariff barriers, government procurement, competition policy, intellectual property and services.
New Zealand's negotiating strategies are based on a clear framework of principles that emphasise consistent rules and reduced barriers to trade in goods and services. This approach promotes global welfare and assists with the achievement of the Government's Growth and Innovation Framework.
Building Industry Regulatory Policy
The development of a new regulatory regime for the building industry particularly:
- new institutional arrangements for regulating the building industry;
- obtain Cabinet approval for a Building Bill to be introduced into the House of Representatives by 31 August 2003 with the passage of the proposed Building Act in accordance with the legislative timetable; and
- obtain Cabinet approval for an Architects Bill to be introduced into the House of Representatives by 31 August 2003 with the passage of the proposed Architects Act in accordance with the legislative timetable.
Effective building regulation will ensure that buildings are safe, healthy and "fit for purpose". It will also enhance skills and standards of professionalism in the building industry. There are social and economic benefits associated with a building industry that people have confidence in, and buildings that do not fail.
Information Technology
- development of policies to support the Government's goal of high speed (broadband) internet access being available in all New Zealand communities.17
This output aims to ensure that broadband services are available at reasonable cost to as many regions and communities as possible. The ability to use broadband communication at reasonable cost will facilitate increased innovation and knowledge transfer.
Environmental Regulation
- in conjunction with the Ministry for the Environment, ERMA New Zealand and other interested parties, provide advice on measures to improve the operation of the Resource Management Act (RMA) and Hazardous Substances and New Organisms Act (HSNO) for business, by 30 June 2004.
The RMA and HSNO are significant issues for business and business performance. It is important that in meeting their objectives these measures do not impose unnecessary costs on business or unnecessarily restrict innovation.
Costs: Vote Commerce, Output Class D1
| | 2003/2004
Forecast | 2002/2003
Supple-
mentary
Estimates | 2002/2003
Estimated
Actual |
|---|
| | $000 | $000 | $000 |
| Revenue Crown | 10,281 | 8,434 | 8,434 |
| Third Party Revenue | 68 | 68 | 68 |
| Expenses | 10,349 | 8,502 | 8,502 |
| Surplus/(Deficit) | - | - | - |
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.
An efficient and responsive tariff concessions system is an important mechanism for reducing input costs for New Zealand manufacturers by removing unnecessary duty imposts on imported goods where a suitable alternative is not made locally.
Service Performance Objectives - Output Class Specific
Where appropriate, comparative figures for the previous year are shown in parentheses.
2003/2004 Performance Measures and Standards
Quantity
Action an estimated 500 (580) 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: Vote Commerce, Output Class D2
| | 2003/2004
Forecast | 2002/2003
Supple-
mentary
Estimates | 2002/2003
Estimated
Actual |
|---|
| | $000 | $000 | $000 |
| Revenue Crown | - | - | - |
| Third Party Revenue | 361 | 361 | 160 |
| Expenses | 352 | 352 | 318 |
| Surplus/(Deficit) | 9 | 9 | (158) |
Output Class D3 - Administration of Trade Remedies
Description
This output class provides investigative services to establish whether New Zealand industries require remedies to prevent injury caused by dumped or subsidised 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.
An effective trade remedies regime provides an important form of redress for New Zealand industries against injury caused by unfairly traded goods or sudden and unforeseen surges in imports.
Service Performance Objectives - Output Class Specific
Where appropriate, comparative figures for the previous year are shown in parentheses.
2003/2004 Performance Measures and Standards
Quantity
Action an estimated 10 (8-12) product-by-country investigations, reviews and reassessments resulting from applications from New Zealand industries.
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;
- provide no grounds for review under judicial review proceedings with no successful court challenges during that period; and
- provide no grounds for World Trade Organisation dispute settlement proceedings with no successful 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: Vote Commerce, Output Class D3
| | 2003/2004
Forecast | 2002/2003
Supple-
mentary
Estimates | 2002/2003
Estimated
Actual |
|---|
| | $000 | $000 | $000 |
| Revenue Crown | 1,084 | 1,369 | 1,366 |
| Third Party Revenue | - | - | - |
| Expenses | 1,084 | 1,369 | 1,366 |
| Surplus/(Deficit) | - | - | - |
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 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.
The output class aims to provide equitable and cost-effective registration of intellectual property rights and interests in New Zealand, by:
- processing applications quickly so applicants can maximise the opportunities they have to gain commercial benefit from their innovation; and
- ensuring markets, businesses and consumers have access to information held by the Ministry that enables them to conduct business effectively.
Service Performance Objectives - Output Class Specific
Where appropriate, comparative figures for the previous year are shown in parentheses.
2003/2004 Performance Measures and Standards
Quantity
Action estimated numbers of:
New Applications
- 6,630 (7,388) patents;
- 21,000 (20,128) trade marks;
- 930 (995) designs; and
- 160 (160) plant variety rights.
Renewals
- 8,600 patents;
- 9,310 trade marks; and
- 600 designs.
Quality
All decisions to grant or register intellectual property rights will be published in the Patent Office Journal monthly and will be available for public scrutiny.
98% of the advertisements18 published in the Journal will be free of error.19
Timeliness
98% of applicants will receive confirmation of the filing date20 of their application within one 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: Vote Commerce, Output Class D4
| | 2003/2004
Forecast | 2002/2003
Supple-
mentary
Estimates | 2002/2003
Estimated
Actual |
|---|
| | $000 | $000 | $000 |
| Revenue Crown | 85 | 85 | 85 |
| Third Party Revenue | 9,801 | 10,201 | 10,201 |
| Expenses | 8,835 | 9,235 | 9,235 |
| Surplus/(Deficit) | 1,051 | 1,051 | 1,051 |
Output Class D5 - Administration of Insolvencies
Description
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 these Acts.
The outputs provided support processes that promote accountability and responsibility in business practice by:
- ensuring equitable management of business and personal insolvencies;
- investigating breaches by business or delinquent debtors of the Companies and Insolvency Acts and, where appropriate, pursuing prosecutions or disqualification orders; and
- ensuring that the business community and debtor interests are aware of the range of remedies and redress available within the insolvency regime.
Service Performance Objectives - Output Class Specific
Where appropriate, comparative figures for the previous year are shown in parentheses.
2003/2004 Performance Measures and Standards
Quantity
Administer estimated numbers:
- 2,700 (3,200) bankruptcies;
- 200 (230) liquidations; and
- 15 (8) 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 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
Bankruptcies
- 80% (80%) or more of bankruptcy files will be closed within one year;
- 90% (90%) or more of bankruptcy files will be closed within two years; and
- 95% (95%) or more of bankruptcy files will be closed within three years.
Liquidations
- 60% (60%) or more of liquidation files will be closed within one year;
- 85% (85%) or more of liquidation files will be closed within two years; and
- 95% (95%) or more of liquidation files will be closed within three years.
Costs: Vote Commerce, Output Class D5
| | 2003/2004
Forecast | 2002/2003
Supple-
mentary
Estimates | 2002/2003
Estimated
Actual |
|---|
| | $000 | $000 | $000 |
| Revenue Crown | 8,148 | 8,148 | 8,148 |
| Third Party Revenue | 1,608 | 1,608 | 774 |
| Expenses | 9,040 | 9,040 | 9,040 |
| Surplus/(Deficit) | 716 | 716 | (118) |
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. It also provides a prosecution and enforcement function under the Companies Act 1993, Securities Act 1978 and Corporations (Investigation and Management Act) 1989.
The Ministry will minimise transaction costs for consumers and business and ensure that consumers and business have access to information that enables them to conduct business effectively, by:
- accurately and promptly processing applications so as to maximise the potential time for business to initiate and promote entrepreneurial activity and investment decisions;
- providing registers of information and efficient low-cost means of access to assist business and consumers in making informed investment decisions; and
- ensuring the registers meet the requirements of various Acts thereby providing business and consumers assurance of legitimacy of corporate entities, superannuation and insurance funds, and securities over personal property.
Service Performance Objectives - Output Class Specific
Where appropriate, comparative figures for the previous year are shown in parentheses.
2003/2004 Performance Measures and Standards
Quality
Companies Office
Expected numbers of documents filed:
- 53,550 (38,000) company incorporations of which 95% will be electronic;
- 77,250 (70,000) name approvals of which 96% will be electronic;
- 1,000 (1,600) prospectuses;
- 282,000 (221,000) annual returns of which 75% will be electronic; and
- 535,600 (444,000) personal property security interest registrations.
An estimated:
- 569,000 (300,000) electronic company searches will be conducted;
- 29,000 (17,000) company dissolutions will be actioned; and
- 1,030,000 (448,400) Personal Property Securities Register electronic searches will be conducted.
Insurance and Superannuation Unit
- an estimated 730 (840) Trustee Annual Reports will be filed; and
- 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 Standards,21 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 documents22 will be processed within one clear business day of receipt for paper documents and within 45 minutes of receipt for documents filed electronically.
Costs: Vote Commerce, Output Class D6
| | 2003/2004
Forecast | 2002/2003
Supple-
mentary
Estimates | 2002/2003
Estimated
Actual |
|---|
| | $000 | $000 | $000 |
| Revenue Crown | 149 | 149 | 149 |
| Third Party Revenue | 9,126 | 15,861 | 15,861 |
| Expenses | 13,852 | 14,385 | 14,385 |
| Surplus/(Deficit) | (4,577) | 1,625 | 1,625 |
Back to Top