This output class provides advice on the regulation of economic activity that is effective and low cost. 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 reduction of costs to business of compliance with laws and regulations;
corporate and commercial law, including the competition, capital markets and insolvency;
intellectual property laws;
competition policy and law;
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, and the Government's broadband strategy;
the development of international and regulatory frameworks that support the interests of New Zealand exporters and recognise the needs of domestic businesses;
the impact of local government policies on business;
multilateral environmental agreements that impact directly on New Zealand businesses, with a particular focus on the Montreal, Basle, Waigani, Stockholm and Rotterdam Conventions;
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
from an economic development perspective, environmental and conservation measures, with a particular focus on the Resource Management and Hazardous Substances and New Organisms Acts and Government programmes such as the waste strategy.

The output class also includes monitoring and reporting to the Minister on the financial and non-financial performance of the following Crown entities and other statutory bodies.

Crown entities:

Accounting Standards Review Board
Testing Laboratory Registration Council
Commerce Commission
Standards Council
Takeovers Panel
Securities Commission.

Other statutory bodies:

Joint Accreditation System - Australia New Zealand
Engineers' Registration Board
Engineering Associates Registration Board.

Contribution to the Ministry's Outcomes

This output class contributes to the foundation and growth outcomes. The contribution of the respective outputs is described in italics below.

The Regulatory and Competition Policy (eg business law reform, competition policy, compliance cost reduction programme, international and Trans-Tasman regulatory co-ordination), Resources and Networks (environmental) and the Industry and Regional Development (information technology) Branches are the main providers of these outputs.

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

2002/2003 Performance Measures and Standards

Policy Advice

Policy advice will be delivered in accordance with the terms of the work programme agreed with the Minister.

Key Deliverables in the Work Programme for 2002/2003

Business Law Reform

Support the enactment of the Securities Markets and Institutions Bill, which strengthens the enforcement of securities law and establishes a co-regulatory regime for capital markets, by 30 September 2002.
Provide advice on the drafting of a new Patents Bill based on stages I and II of the review of the Patents Act, incorporating Stage III if work can be completed, by 30 November 2002.
Provide policy advice on a review of digital copyright legislation, by 30 September 2002.
Provide policy proposals to Government on a review of securities trading law, by 31 March 2003.
Provide policy advice on the drafting of amendments to the Insurance Companies (Ratings and Inspections) Act 1994 and Insurance Companies Deposits Act 1953, by 30 September 2002.
Provide policy advice to the Government on the regulation of life insurance markets, by 30 June 2003.

Post 2005 Tariff Regime

Provide policy advice, by 31 March 2003, on options for the post 2005 tariff regime which is consistent with the Government's broader economic objectives and which will provide certainty for the business community.

Implementation of the Government's Compliance Cost Reduction Programme

Report back to the Government on the implementation of its response to the Ministerial Panel on Business Compliance Costs, by 30 June 2003.
Undertake a perceptions survey of business, focusing in particular on the impacts of regulation on innovation, by 30 June 2003.
Ongoing review of Regulatory Impact Statements/Business Compliance Cost Statements and delivery of an education programme for departments.

Competition Policy

Provide policy advice following completion of the Commerce Commission report on price control of airfield activity, by 31 August 2002.
In conjunction with the Ministry of Transport, complete a review of any anti-competitive practices by port companies, by 30 September 2002.

International and Trans-Tasman Regulatory Co-Ordination

Undertake development with Australia of a framework to review the Trans-Tasman Mutual Recognition Agreement (TTMRA) to be reported to the Minister of Commerce, by 31 March 2003.
Implement with Australia a work programme agreed under the Memorandum of Understanding on Business Law Co-ordination and report progress to the Minister of Commerce, by 31 March 2003.
Complete a study of the inter-dependence of the New Zealand and Australian business sectors, by 31 March 2003.

The overriding contribution that the above group of outputs makes to government outcomes is to develop and maintain a high quality framework of rules that support efficient business organisation and activity in an open and competitive domestic and international economy. This framework of rules includes robust disciplines to ensure that there is effective competition; obligations on firms and managers to act in a manner which creates wealth for shareholders; obligations on market participants to disclose information with a view to creating confidence in markets, ensuring that participants are in a position to make good investment decisions, and minimising undesirable conduct such as fraud; and strong property rights to encourage innovation and investment. This framework of rules must also achieve its objectives at least cost to business, as must other rules that impact on business. A further contribution is to develop and maintain a compliance cost reduction regime applicable to all government regulation that impacts on business.

Information Technology (including Broadband Policy) and Electronic Commerce

Co-ordinate the implementation of the Government's e-commerce strategy including:

support the enactment of the Electronic Transactions Bill in accordance with the Government's legislative timetable;
co-ordinate with other Government digital initiatives including the e-government strategy and digital divide strategy, ongoing;
maintain the E-Commerce Action Team (ECAT) and promote the establishment of regional and industry-based ECATs; and
in conjunction with Industry New Zealand, maintaining and enhancing an e-commerce network and increased business use of e-commerce based upon an interactive web site, ongoing to June 2003.

E-commerce opens up vast new opportunities to develop new products and services, exploit new markets, create new networks and relationships and reduce the cost of doing business. Businesses should give urgent priority to understanding how to exploit the full potential of e-commerce. This strategy is the beginning of a process of partnership between government, business and the broader community to ensure that all New Zealanders are able to benefit and participate in a rapidly growing e-commerce environment.

Develop and implement a strategy to support the Government's goal of high speed (broadband) internet access being available in all New Zealand communities, including:

co-ordinate regional pilot schemes, by 31 December 2002;
co-ordinate with e-government, digital initiatives, growth and innovation framework and other Government strategies associated with the Information Communications and Technology (ICT) sector; and
jointly with the Ministry of Education provide broadband access to most schools and communities, by 31 December 2003, and the remaining (more remote) locations by 31 December 2004, with contracts with suppliers completed and implementation commenced by, 31 December 2002.

Access to broadband communications infrastructure and services is an important enabler of innovation, business growth and economic participation. Work on the broadband strategy will identify and implement measures that will contribute in a co-ordinated way to the development of broadband infrastructure throughout New Zealand, particularly in regional and rural areas, including through harnessing the potential for public and private sector collaboration.

Environmental and Conservation Measures

In conjunction with other officials, report to Ministers on options to reduce delays and improve the operation of the Environment Court, by 30 June 2003.
In conjunction with other officials, report to Ministers on the operation of the Environmental Risk Management Authority, by 30 June 2003.
In conjunction with other officials, report to Ministers on the impact of the Hazardous Substances and New Organisms Act on innovation in selected sectors, by 30 June 2003.

These outputs promote effective regulatory institutions and reduce uncertainty and compliance costs by:

that unnecessary regulation is avoided, i.e. regulation is well targeted, designed and administered; and
decision-makers to follow best practice guidelines.

Multilateral Environment Agreements

Prepare an annual report to Parliament on the operation of the Ozone Layer Protection Act, by 31 December 2002.
Issue annual entitlements to import ozone-depleting substances, by 31 March 2003.
Complete the Ministry's functions as "competent authority" in accordance with the requirements of the Basle Convention.
Subject to Government decisions, prepare amendments to the Import Control Act to implement new requirements under the Stockholm and Rotterdam Conventions, by 30 September 2002.
Subject to Government decisions, invoke regulations to implement export controls for chemicals, by 30 June 2003.
Represent New Zealand's economic development interests in international forums on the Basle, Waigani, Stockholm and Rotterdam Conventions, and the Montreal Protocol.

These outputs seek to implement New Zealand's international environmental obligations using appropriate domestic regulation that minimises transactions costs for business, including by:

efficiently and transparently restrictions on the importing and use of ozone-depleting substances and the export of hazardous wastes;
market-based systems to allocate allowable quota where possible; and
that synergies with other import/export controls are exploited.

It is also important to seek to protect New Zealand's interests in this area of regulation by participating in international negotiations and ensuring that these take account of New Zealand business interests to the maximum possible extent.

Costs: Vote Commerce, Output Class D1

	Forecast 2002/2003	Supplementary Estimates 2001/2002	Estimated Actual 2001/2002
	$000	$000	$000
Revenue Crown	7,348	7,612	7,612
Third Party Revenue	68	246	246
Expenses	7,416	7,858	7,858
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.

Contribution to the Ministry's Outcomes

This output class primarily contributes to the foundation outcome.

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 which are not made locally.

The Tariff Concessions Group of Regulatory and Competition Policy Branch is the principal provider of these outputs.

Service Performance Objectives - Output Class Specific

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

2002/2003 Performance Measures and Standards

Quantity

It is estimated that 580 (690) applications will be 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% 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

	Forecast 2002/2003	Supplementary Estimates 2001/2002	Estimated Actual 2001/2002
	$000	$000	$000
Revenue Crown	-	-	-
Third Party Revenue	361	361	201
Expenses	352	352	293
Surplus/(Deficit)	9	9	(92)

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 the carrying out of investigation of applications relating to imports and the making of 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 in this class are:

policy advice;
consideration of dumping and countervailing applications;
investigation of dumping and countervailing cases; and
investigation of trade remedies applications.

Contribution to the Ministry's Outcomes

This output class primarily contributes to the foundation outcome.

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. Outputs in this class also ensure that New Zealand's views are placed before other World Trade Organisation (WTO) Members and reflected in the negotiated WTO Trade Remedy Agreements and the relevant WTO Committees.

The Trade Remedies Group of the Regulatory and Competition Policy Branch is the principal provider of these outputs.

Service Performance Objectives - Output Class Specific

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

2002/2003 Performance Measures and Standards

Policy Advice

Policy advice will be delivered in accordance with the terms of the work programme agreed with the Minister.

Application of Trade Remedies

Quantity

8-12 (24) product-by-country investigations, reviews and reassessments.

Quality

Investigations and reporting are to:

be recognised by the parties involved as consistent with the requirements of either the Temporary Safeguard Authorities Act 1987 or the Dumping and Countervailing Duties Act 1988 with no successful court challenges during the period; and
provide no grounds for review under judicial review proceedings with no successful court challenges during that period.

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%) final determinations will be made no later than 180 days from initiation of an investigation.

Costs: Vote Commerce, Output Class D3

	Forecast 2002/2003	Supplementary Estimates 2001/2002	Estimated Actual 2001/2002
	$000	$000	$000
Revenue Crown	1,440	1,440	1,360
Third Party Revenue	-	-	-
Expenses	1,440	1,440	1,360
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 by:

granting patents under the Patent Act 1953;
registering trade marks and designs under the Trade Marks Act 1953 and the Designs Act 1953; and
granting plant variety rights under the Plant Variety Rights Act 1987.

Contribution to the Ministry's Outcomes

This output class primarily contributes to the foundation outcome.

This output class aims to provide equitable and cost effective registration of intellectual property rights and interests in New Zealand, by:

processing applications rapidly so as to minimise the potential time to market for products resulting from innovation and entrepreneurial activity; and
ensuring the rights allocation methodology is appropriate to give assurance to the business community on the validity of intellectual property rights and interests.

The Intellectual Property Office and the Plant Variety Rights Office of the Operations Branch are the principal providers of these outputs.

Service Performance Objectives - Output Class Specific

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

2002/2003 Performance Measures and Standards

Quantity

Expected numbers of new applications:

7,388 (6,700) - patents;
20,128 (25,000) - trade marks;
995 (1,150) - designs; and
160 (160) - plant variety rights.

Quality

All decisions to grant/register intellectual property rights are published in the Patent Office Journal in CD-ROM format on a monthly basis, and are available for public scrutiny.

Timeliness

Intellectual Property Office of New Zealand

95% (95%) of applicants will be issued with the results of an initial examination within five clear business days of the application¹¹ being eligible for examination.¹²

Plant Variety Rights Office

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

	Forecast 2002/2003	Supplementary Estimates 2001/2002	Estimated Actual 2001/2002
	$000	$000	$000
Revenue Crown	85	85	85
Third Party Revenue	9,801	9,797	9,797
Expenses	8,835	8,835	8,835
Surplus/(Deficit)	1,051	1,047	1,047

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.

Contribution to the Ministry's Outcomes

This output class primarily contributes to the foundation outcome.

These outputs support processes which promote accountability and responsibility in business practice by:

ensuring equitable management of business and personal insolvencies in order to ensure the fullest recovery possible for creditors;
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.

The Insolvency and Trustee Service of the Operations Branch is the principal provider of these outputs.

Service Performance Objectives - Output Class Specific

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

2002/2003 Performance Measures and Standards

Quantity

Expected numbers administered:

3,200 (2,700) bankruptcies;
230 (330) liquidations; and
8 (12) 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.

Timeliness

Bankruptcies

The percentage of bankruptcy files remaining open that are:

six months to one year old - 20% (20%) or less to remain open;
one to two years old - 10% (10%) or less to remain open; and
two to three years old - 5% (5%) or less to remain open.

Liquidations

The percentage of liquidation files remaining open that are:

six months to one year old - 40% (40%) or less to remain open;
one to two years old - 15% (15%) or less to remain open; and
two to three years old - 5% (5%) or less to remain open.

Costs: Vote Commerce, Output Class D5

	Forecast 2002/2003	Supplementary Estimates 2001/2002	Estimated Actual 2001/2002
	$000	$000	$000
Revenue Crown	8,148	8,193	8,193
Third Party Revenue	1,608	1,608	1,608
Expenses	9,040	9,085	9,085
Surplus/(Deficit)	716	716	716

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.

Outputs in this class are:

Companies Office services;
Insurance and Superannuation Unit services; and
Personal Property Securities Register services.

Contribution to Ministry's Outcomes

This output class primarily contributes to the foundation outcome.

This activity will enable the Ministry to minimise transaction costs for consumers and business and ensure that business and consumers have access to information that enables them to conduct business effectively, by:

processing applications rapidly 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;
ensuring the registers meet the requirements of various Acts thereby providing business and consumers with assurance as to the legitimacy of corporate entities, superannuation and insurance funds and securities over personal property; and
completing online accessibility to all services provided by all the business registries.

The Companies Office and the Insurance and Superannuation Unit of the Operations Branch are the main providers of these outputs.

Service Performance Objectives - Output Class Specific

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

2002/2003 Performance Measures and Standards

Quantity

Expected numbers:

Companies Office

Material documents filed:

38,000 (36,000) company incorporations;
70,000 (70,000) name approvals;
1,600 (1,600) prospectuses; and
221,000 (203,000) annual returns.

Other services:

300,000 (280,000) electronic company searches; and
17,000 (17,000) company dissolutions.

Personal Property Securities Register

444,000 security interest registrations; and
448,400 electronic inquiries.

Insurance and Superannuation Unit

840 (900) Trustee Annual Reports filed.

Quality

Companies Office

99% (99%) of documents entered into the database will be free of material errors.
99% (99%) of images entered into the database will be to the required standard.

Timeliness

99% (99%) of material documents will be processed within one clear business day of receipt.

Costs: Vote Commerce, Output Class D6

	Forecast 2002/2003	Supplementary Estimates 2001/2002	Estimated Actual 2001/2002
	$000	$000	$000
Revenue Crown	149	149	149
Third Party Revenue	12,561	16,005	16,005
Expenses	13,550	14,393	14,393
Surplus/(Deficit)	(840)	1,761	1,761

¹¹Application: All applications, except Patent Co-operation Treaty applications entering national phase.

¹²Eligible for examination: The application has been received and all information required by the relevant statutes is provided and all necessary fees have been paid.

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Printed: 26/11/2009