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• Governance and Structure

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• 2000/2001
• 1999/2000

• Overview
• Ministers and Votes
• Management Structure
• Crown Entities
• Legal Responsibilities
• Organisational Chart

Overview

The core governance arrangements for the Ministry conform to the pattern for all departments as set out in legislation. Annually, the arrangements centre on the Estimates approved by Parliament, on purchase agreements between the Chief Executive and the relevant Minister (for the outputs to be supplied, and the standards to be met for each Vote the Ministry administers) and on an overall performance agreement between the Chief Executive and the Responsible Minister - the Minister for Economic Development (covering both Ministry-wide and personal performance).

Alignment with the Government's objectives is achieved by use of the Government's Key Goals as the principal drivers of the Minister's key priorities. These in turn become the central features of the purchase and performance agreements.

The governance arrangements also provide for monthly reporting on financial performance to the Treasury; quarterly and annual reporting on performance to Ministers; six-monthly and year-end reporting to the State Services Commission, and its annual appraisal of performance; and the Departmental Forecast Report and Annual Report to Parliament, which are followed by Select Committee examination. Audit New Zealand audits the Annual Report and related material, on behalf of the Controller and Auditor General.

Ministers and Votes

The Minister for Economic Development is the Responsible Minister for the Ministry. The Responsible Minister oversees the Government's ownership interest in the Ministry, which encompasses its strategy, capability, integrity and financial performance. The Minister exercises oversight through the performance agreement with the Ministry's Chief Executive.

As at 30 June 2001, the Chief Executive reported to the following 12 portfolio Ministers on the discharge of his responsibilities for nine Votes:

Management Structure

The Ministry has five branches, each headed by a deputy secretary. The Ministry of Consumer Affairs and the Office of Tourism and Sport are semi-autonomous units within the Ministry. The five deputy secretaries and the general manager of the Ministry of Consumer Affairs all report to the Chief Executive. The alignment of functions within the branches is set out in the Organisational Chart.

Crown Entities

The following Crown entities were administered through Votes administered by the Ministry of Economic Development during the year:

• Accounting Standards Review Board
• Commerce Commission
• Takeovers Panel
• Securities Commission
• Industry NZ
• Hillary Commission for Sport, Fitness and Leisure
• New Zealand Sports Drug Agency
• New Zealand Tourism Board

While the Ministry administers the non-departmental appropriations to the Crown entities, they are directly accountable to Ministers for their performance in supplying agreed output classes.

The Ministry is the Government's "purchase advisor" in relation to these Crown entities. This is a significant responsibility for the Ministry, covering advice on appointments, role and functions, and the overall contribution of each Crown entity to the Government's policy objectives. Management of the relationships with Industry NZ in its set-up phase and the Commerce Commission (which is undergoing a significant expansion of its role and functions) have been particularly important.

The Ministry of Economic Development also advises Ministers on ownership interests relating to the following Crown entities:

• Standards Council
• Testing Laboratory Registration Council (TELARC)
• New Zealand Business Development Board

Responsibility for providing purchase advice in relation to the Broadcasting Standards Authority has been transferred to the Ministry for Culture and Heritage. This now brings two of the Crown's three broadcasting entities back together in one agency (responsibility for the third, Te Mangai Paho, was transferred to Te Puni Kōkiri on 1 July 2000). Responsibility for the Government Superannuation Fund will shift to a new Crown entity during 2001/2002.

Legal Responsibilities

The Ministry has approximately 1000 legal obligations in a wide range of Acts and regulations that are listed as at 30 June 2001 in Appendix 1.

The identified obligations have been placed on an electronic database designed to ensure that the list of legal responsibilities and the arrangements for ensuring compliance are kept up to date. The system also records the point of responsibility within the Ministry.

Organisational Chart