Output Class O2 - Delivery of Business Development Programmes
Output Class O4 - Advice and Information for Business
Output Class O4 - Advice and Information for Business
Output Class O5 - Advice and Support for Regions
Output Class O6 - Administration and Monitoring of Payments for Business and Regional Development Services
Output Class O9 - Delivery of Business Success and Outreach Programmes
Other Expense - Incubator Awards
Other Expense - Industry NZ Enterprise Awards Scheme
Other Expense - Industry Specialist and Feasibility Grants
Other Expense - Interim Industry and Regional Initiatives Fund
Other Expense - Regional Development Programme
Other Expense - Regional Initiatives Fund
Other Expense - Sector Initiatives Fund
Capital Contribution - Establishment of Industry NZ

Output Class D1 - Policy Advice: Industry and Regional Development

This output class provides policy advice on issues related to industry and regional development policies and programmes, and on factors influencing the capability and performance of Small and Medium Enterprises (SMEs).

This output class also involves the establishment of Industry NZ, monitoring of Industry NZ and evaluating industry and regional development policies and programmes. Specific issues include:

the passage of the Industry NZ legislation;
developing a governance and monitoring regime for Industry NZ;
advising on the design and development of new industry and regional development programmes;
a stocktake of industry assistance measures;
an evaluation of the BIZ programme; and
advising on the design, development, coordination and implementation of targeted regional development initiatives.

Quantity, Quality, Timeliness and Cost

Details of performance relating to performance measures for generic standards and measures for policy advice provided by the Ministry of Economic Development for this Vote (Quantity, Quality and Timeliness) can be found in the Statement of Objectives and Statement of Service Performance.

Specific deliverables relating to the agreed work programme are as follows:

Work Programme

All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister.

Key deliverables in the work programme for the year included:

Establish Industry NZ as an operational Crown entity one month after legislation is passed, in accordance with the transition plan developed by the Industry NZ Establishment team.

The legislation to establish Industry NZ was passed on 5 September 2000. Industry NZ was formally established on 6 October 2000. This included the successful transition of the Ministry's Business Development Unit and the Industrial Supplies Office to the new Crown entity.

Industry NZ was established in accordance with the transition plan developed by the Industry NZ Establishment team.

Complete a stocktake of Government industry development initiatives by 1 October 2000.

A stocktake of government industry development initiatives, which was jointly led by the Ministry and the Treasury, reviewed the effectiveness of existing industry development programmes and considered how closely the objectives of the programmes accord with the Government objectives for industry development. The stocktake was completed by 1 October 2000.

Advise on and contribute to the establishment and implementation of Industry and Regional Development Initiatives.

The Minister gave the Ministry a rating of 4 for policy advice services provided in the second quarter. No other quarterly assessments have been received.

Complete an evaluation of the BIZ programme by 31 July 2000.

Completed by 31 July 2000. Ongoing evaluation is being implemented through the general evaluation framework.

Establish industry and regional development programmes to be delivered by Industry NZ and other providers by 30 June 2001.

A range of industry and regional development programmes was launched on 4 July 2000. Additional programmes, including support for business incubators, were added during the period to 30 June 2001. In regional development, more focussed efforts were made by the Ministry on areas with particularly acute problems, in particular Tairawhiti, Northland and Eastern Bay of Plenty.

The Ministry also developed a framework for central government engagement with acute regions, including principles for engagement and response. This was approved by Cabinet in March 2001.

Develop an ongoing evaluation strategy for the Government's industry and regional development initiatives by 30 June 2001.

An evaluation strategy for government economic development initiatives and programmes has been established, with a pilot analysis of Industry NZ against expected impacts completed in June 2001.

Projects Not Included in the 2000/2001 Departmental Forecast Report

Provide ongoing advice on issues related to the design and implementation of policies and programmes of industry development including their evaluation.

Policy advice was provided on the design and implementation of industry assistance programmes, including a review of the Enterprise Awards Scheme, Incubators and community finance. Significant progress was made on a national Wood Processing Strategy with groups working on key areas such as transport, skills and labour, the Resource Management Act and markets. At 30 June 2001 biotechnology and creative industries strategies were under development, along with initial contacts with industry and unions on potential strategies in manufacturing and textiles, clothing and footwear. A highlight of the year was the role played by the Ministry in facilitating the sale of part of the Hobsonville Base to Sovereign Yachts.

Advise on the format and substance of a Purchase Agreement, Memorandum of Understanding, and Statement of Intent to govern the Crown's relationship to Industry NZ, by 30 September 2000.

Completed by 30 September 2000.

Monitor, evaluate and advise on the performance of Industry NZ and the programmes it administers against the requirements of the purchase agreement; this will be ongoing with quarterly reports from 31 December 2000.

An output agreement for 2000/2001 was completed and signed. A Statement of Intent and Strategic Business Plan were also developed during the year.

Quarterly reports against deliverables specified under the Output Agreement were provided by Industry NZ in February 2001 (6 October 2000 - 31 December 2001), 26 April 2001 (1 January 2001 - 31 March 2001), 9 August 2001 (1 April 2001 - 30 June 2001).

Timeliness

100% (100%) of reports to the Minister on the performance of programme delivery organisations were provided within 20 working days of receipt of the entity's report to the Minister.

BIZ Programme

Contract Management

Quantity

45 (46) BIZ contracts with third party providers were managed during the first quarter of 2000/2001. One contract was terminated.

Ongoing responsibility for management of BIZ contracts transferred to Industry NZ from 6 October 2000.

Quality

BIZ client satisfaction with services delivered to be measured by provider feedback being within the range of (4) "met expectations" to (5) "fully met expectations" as advised by an annual survey.¹⁸

Responsibility for BIZ was transferred to Industry NZ in October. Industry NZ has undertaken a client satisfaction survey for the period 1 July 2000 - 30 June 2001, which will be included in their annual report.

Timeliness

100% (100%) of BIZ contract variations were completed within 20 working days of the parties agreeing to the variations.

Cost

(Figures are GST exclusive)

	2001 Main Estimates	2001 Supple- mentary Estimates	2001 Actual	2000 Actual¹⁹
	$000	$000	$000	$000
Revenue:
Crown	1,794	6,024	5,986	3,048
Other	-	57	58	53
Total Revenue	1,794	6,081	6,044	3,101
Expenses:
Annual appropriations	1,794	6,081	6,044	3,101
Other appropriations	-	-	-	-
Total Expenses	1,794	6,081	6,044	3,101
Net Surplus/(Deficit)	-	-	-	-

Revenue Other is derived from miscellaneous.

Major Budget Variances

The Supplementary Estimates adjustments included an expense transfer of funding from 1999/2000 to 2000/2001 in order for the Ministry of Economic Development to complete the establishment work of Industry NZ ($1,077,000); a transfer from non-departmental output class 01 - Delivery of Industry and Regional Development Programmes for establishing roles and responsibilities within the Ministry of Economic Development and Industry NZ ($3,253,000); a fiscally neutral adjustment recognising revenue and corresponding expenditure from Te Puni Kōkiri for Tairawhiti Development Taskforce (TDTF) project in relation to recycling and transport of computer workstations ($44,000) and a transfer of funding to Vote: Economic Development to better reflect where services are provided within portfolios for the Business Practices and Performance Survey ($100,000).

This was the first year the Ministry provided outputs within this output class.

Output Class D2 - Industrial Supplies Office

Description

This output class involves utilising the Industrial Supplies Office (ISO) and facilitating purchases by New Zealand government agencies of domestic (New Zealand and Australian) products. This is achieved by utilising links with Australian ISOs to enhance opportunities for potential New Zealand suppliers to compete for Australian state and federal government business, to establish an information base, continue linkages with Australian ISOs and exchange information on Trans-Tasman opportunities.

The output in this class is the promotion of Government's purchasing policy aimed at encouraging purchases by government agencies of domestic (New Zealand and Australian) products.

Quantity, Quality, Timeliness and Cost

Quantity

Number of inquiries handled:

68 (350) inquiries were received from potential purchasers of goods and services in the first quarter of 2000/2001 (prior to ISO transferring to Industry NZ).

Quality

The following services were to be provided to the satisfaction of the Minister as evidenced by an annual survey (the Minister's feedback for services provided is within the range (4) "met expectations" to (5) "fully met expectations".²⁰

No assessment was received for the first quarter. Ongoing responsibility for this output transferred to Industry NZ from 6 October 2000.

Services provided:

Maintenance of an up to date database of New Zealand suppliers of goods and services.

The database was regularly updated in the first quarter of 2000/2001.

Identification of major Australian projects for New Zealand manufacturers to supply goods and services through association with ISONET and the Australian ISO Network and other professional bodies.

During the first quarter ISO assisted New Zealand manufacturers to work on the Port Waratah coal project in New South Wales.

Facilitation of a matching of suppliers and purchasers, and dissemination of Government procurement opportunities to local industry through the Government Electronic Tenders Services (GETS) via the Internet.

640 inquiries were processed through GETS during the first quarter.

Dissemination of information and giving seminars and presentations on purchasing policies and the activities of the Industrial Supplies Office.

Ten seminars were given to government agencies and local manufacturers during the first quarter.

Under Closer Economic Relations (CER) identify and exchange opportunities on Australian and New Zealand Government procurement.

ISO undertook a weekly exchange of opportunities with Australian ISO offices throughout the first quarter.

Ongoing responsibility for this output transferred to Industry NZ from 6 October 2000.

Timeliness

85% (85%) of initial responses to inquiries from potential purchasers were provided within 15 working days.

Cost

(Figures are GST exclusive)

	2001 Main Estimates	2001 Supple- mentary Estimates	2001 Actual	2000 Actual²¹
	$000	$000	$000	$000
Revenue:
Crown	382	102	102	406
Other	-	-	-	-
Total Revenue	382	102	102	406
Expenses:
Annual appropriations	382	102	102	406
Other appropriations	-	-	-	-
Total Expenses	382	102	102	406
Net Surplus/(Deficit)	-	-	-	-

Major Budget Variances

These activities were transferred to Industry NZ from October 2000.

¹⁸The range is (1) not satisfactory, (2) fell short of expectations, (3) satisfactory, (4) met expectations, (5) fully met expectations.

¹⁹The 2000 Actual Values are originally from Vote: Business Development.

²⁰The range is (1) not satisfactory, (2) fell short of expectations, (3) satisfactory, (4) met expectations, (5) fully met expectations

²¹The 2000 Actual Values are originally from Vote: Commerce.

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Printed: 25/11/2009