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Vote: Economic, Industry and Regional Development


This Document is Archived


Statement of Intent 2002-2005

[ Last Updated 24 January 2006 ]


Output Class D1- Policy Advice: Economic, Industry and Regional Development

Description

This output class provides policy advice encompassing the development, evaluation and overview of economic, industry and regional development policies and initiatives to promote sustainable economic development. This includes implementation of the Government's growth and innovation framework, and factors influencing the capability and performance of firms, sectors and regions, and the monitoring of Industry New Zealand. Outputs in this output class include:

  • policy advice on the implementation of the Government's growth and innovation framework, particularly the focal areas of biotechnology, Information Communications and Technology (ICT) and creative industries, and the development and implementation of other sector strategies in industries with high growth potential;
  • providing advice and assistance to Ministers in determining the application of the Government's sustainable development strategy to industry and regional development;
  • policy advice, research and the dissemination of best practice information on environments that encourage the development of innovation and enterprise;
  • in conjunction with Industry New Zealand, facilitating the development of public-private partnerships, good governance frameworks, and leadership capability in support of industry and regional development;
  • promoting the development of ideas, innovation and entrepreneurship through the active support of national and regional events;
  • the development of economic, industry and regional development policy frameworks and advice on the design, development, co-ordination, implementation and review of industry and regional development programmes;
  • building partnerships with regional, sectoral and cultural groups to ensure the processes used in the development of economic, industry and regional development policy advice include broader community and sectoral perspectives; and
  • providing second opinion policy advice from an economic, industry and regional development perspective.

Contribution to the Ministry's Outcomes

This output class primarily contributes to the growth outcome. The contribution of the respective outputs is described in italics below.

The Industry and Regional Development Branch is the principal provider 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.

Policy advice provided will focus on real assistance to industry and regions and will ensure that programmes associated with the government's initiatives for industry and regional development are well developed and established within agreed timeframes. Measures include:

  • the Minister is satisfied that appropriate and timely consultation is undertaken with Industry New Zealand, other departments and Ministers as required; and
  • policy advice will include appropriate identification and co-ordination of government policies, policy-related issues and initiatives related to sustainable economic development.

The Minister's feedback will be within the range (3) "met my expectations" to (5) "greatly exceeded my expectations" in the quarterly review of the Ministry's performance.10

Key Deliverables in the Work Programme for 2002/2003

  • Provide quarterly reports to the Minister on the implementation of the Government's growth and innovation framework, including advice on the means to further enhance alignment and co-ordination of public sector policy. Reports will be provided by 30 September 2002, 31 December 2002, 31 March 2003 and 30 June 2003.

The quarterly reports allow Ministers to effectively monitor how the growth and innovation framework is being implemented across government and to assess whether the various policies are effective. By this means, new policies and approaches can be developed to implement the growth and innovation framework as effectively as possible.

  • Review and report on Industry New Zealand industry development programmes to ensure they are delivering efficiently and effectively against the Government's objectives. These programmes include the:
    • Strategic Sector Implementation Initiative, report to Cabinet by 31 December 2002;
    • Strategic Investment Fund, report to Cabinet by 31 December 2002;
    • Fast Forward Pilot Programme, report to Joint Ministers by 31 December 2002; and
    • Business Clusters Pilot Programme, report to Joint Ministers by 31 December 2002.

Each of these programmes contributes to achieving sustained economic growth at either the firm, cluster or sector level by targeting a range of different objectives or enablers. The review process will provide an assessment of the difficulties the firm/cluster/sector faces and the extent to which grant assistance effectively addresses these issues.

  • Provide quarterly reports to the Minister (commencing from the second quarter) that analyse the overall state, key trends and emerging issues associated with industry sectors within the New Zealand economy. Reports will be provided by 31 December 2002, 31 March 2003 and 30 June 2003.

The reports will add key information that will improve Ministers' decision-making on such matters as selection of sectors for more intensive focus of public/private task forces, the effectiveness of existing policies, or opportunities to improve existing public sector interventions or processes.

  • Undertake work with Industry New Zealand and other relevant agencies to ensure the successful operation of the ICT, Biotech, and Creative Task Forces and engage in policy dialogue where appropriate.

These task forces have the objective of identifying means by which these key sectors can enjoy improved sustained economic growth. They also provide a means for the development of strong public/private networks that will ensure quality decision-making on matters that impact on these industries.

  • Work with Industry New Zealand to bring to a successful conclusion the Government's formal engagement with the wood processing sector, and provide advice to ensure that structures and processes are in place to ensure the continuation of priority work in partnership with the sector. Report to the Minister by 31 December 2002.

While many of the benefits of the Wood Processing Sector engagement have been realised, it is important that the much improved processes and relationships are maintained so that ongoing benefit and growth can be achieved in the sector.

  • Facilitating a Budget Round process that enables Ministers to prioritise expenditure across government agencies involved in economic development, by 31 March 2003.

The Budget Round process provides a means for government to identify important gaps in policy or operational areas, to better align and co-ordinate policy, and to reprioritise away from other areas. This ensures expenditure is directed to achieving the identified outcomes as effectively as possible.

  • Update for the Minister on the report on regional development priorities, and implications for policies and programmes, by 31 March 2003.
  • Report to the Minister on the review of the design and implementation of the Regional Partnerships Programme and recommend improvements accordingly, by 30 June 2003.
  • Report to the Minister on enterprise culture in regions and innovation systems/learning regions, and implications for policies and programmes, by 30 June 2003.
  • Report to the Minister on business opportunities associated with efficient and environmentally sustainable use of resources, and implications for policies and programmes, by 31 December 2002.

These regional development activities seek to ensure that policy responses and operational programmes maximise the regional contribution to New Zealand's sustainable economic development.

Regional development policies and programmes contribute to national economic development, including by:

  • greater economic participation at a regional and community level, such as through the formation of regional partnerships; and
  • a culture of enterprise and innovation at a regional level, including through increased marketing of new and improved products and services based on territorial comparative advantage; and
  • national and regional infrastructure, including physical infrastructure and broader human capital infrastructure, such as education and training.

Costs: Vote Economic, Industry and Regional Development, Output Class D1

 Forecast
2002/2003
Supplementary
Estimates
2001/2002
Estimated
Actual
2001/2002
 $000$000$000
Revenue Crown7,2497,5997,599
Third Party Revenue-2525
Expenses7,2497,6247,624
Surplus/(Deficit)---

10The range is (1) was not satisfactory, (2) fell short of my expectations in some respects, (3) met my expectations, (4) met and sometimes exceeded my expectations, (5) greatly exceeded my expectations.



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