This output class provides policy advice in respect of telecommunications, postal services, broadcasting, information technology and the management of the radio spectrum.

Outputs in this class are:

policy advice on the regulation, operation, development and effectiveness of these sectors;
representation of New Zealand's international interests in these sectors;
advice on the operations of the Broadcasting Commission (known as NZ On Air), the Broadcasting Standards Authority (BSA), and Te Reo Whakapuaki Irirangi (known as Te Mangai Paho);
advice on the exercise of ministerial statutory powers; and
monitoring and enforcement of compliance with telecommunications, broadcasting and postal services legislation, and the establishment of tradeable radio spectrum rights.

A special focus for the year is to develop and implement policies aimed at improving the regulatory regimes for the provision of telecommunications, electricity and gas specifically as outlined in the performance measures.

Quantity, Quality, Timeliness and Cost

Performance Measures	Performance Standards	Actual
Quantity
Ministerial Correspondence	550-650 (estimated)	359
Parliamentary Questions	90-110 (estimated)	93
Work programme
Policy advice will be delivered in accordance with the prioritised requirements of a work programme negotiated annually with the Minister.	Delivery of policy advice projects in accordance with the terms of the work programme agreed with the Minister.	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 will include:
monitoring and reviewing evidence of the state of competition in the New Zealand telecommunications sector and advising on any policy implications;	By 31 March 2000	A briefing paper was produced on 9 December 1999 for the incoming Minister on the regulatory environment for telecommunications in New Zealand, assessing the current state of competition, and identifying the processes and principles applying to interconnection as the critical area to be addressed in telecommunications regulation. In addition, the Ministry reported on the results of a consultancy project by NZIER which assessed the best practice methodology for international benchmarking of telecommunications services prices in order to compare the performance of different regulatory regimes. That study illustrated the problems involved in current methodologies for drawing conclusions about New Zealand's performance relative to other countries.
co-ordinating the development of electronic commerce policy across the government agencies to ensure that regulation of electronic commerce facilitates its growth and does not create new barriers and costs to business;	By 30 June 2000	The development of an Electronic Transactions Bill was agreed by Cabinet with the intent of enacting the Bill if possible in 2000. A discussion document seeking wider departmental and private sector comment on a broad based facilitative Act was published. The Officials' Electronic Commerce Steering Committee, chaired by the Ministry of Economic Development, oversaw the development of sector wide initiatives such as the Electronic Transactions Bill and the Electronic Commerce Web Site and co-ordinated various policy activities such as policy development on the Digital Divide issue throughout government departments.
monitoring and reviewing the effectiveness of the information disclosure regime for telecommunications, with suggestions for change as necessary; and	By 30 June 2000	The Acting Minister of Communications agreed to rescind this milestone. Following Cabinet approval of amendments to the information disclosure regime, new regulations were developed by the Ministry and came into effect on 1 January 2000. Consequently, the first set of financial statements for telecommunications companies will not now be available by 30 June 2000
monitoring, reviewing and reporting on the effectiveness of the new industry numbering agreement with advice on the policy implications, and recommendations for any action required.	By 30 June 2000	The Acting Minister of Communications agreed to amend this milestone to require that an update be provided on the Numbering Deed's implementation. During the year the Ministry provided two updates to the Minister on progress on the Deed's implementation, the first at the end of December 1999 and the second at the end of June 2000.
Projects not included in the Departmental Forecast Report
Telecommunications Inquiry	Ministerial Inquiry initiated following Election.	The Ministry provided advice to the Minister on possible processes for conducting the Telecommunications Inquiry, assisted in the development of the terms of reference and the identification of potential members of the Inquiry, and drafted Cabinet papers for the Acting Minister of Communications to establish the Inquiry.
Provide for market access to spectrum around 2GHz. Complete the auction of the spectrum around 2GHz subject to outcome of the Waitangi Tribunal hearing and subsequent Government decisions.		Advice was provided on auctioning 3G radio spectrum (2GHz) including: establishment of competition rules; completion of auction lot design and associated engineering criteria; and preparation of auction catalogue and call for bidder registration. The offer of 15MHz of 3G spectrum to the Maori Spectrum Charitable Trust and policy related to that offer is designed to increase the participation of Maori in the knowledge economy, in particular, the information and telecommunication sectors in New Zealand.
Provide advice on and administer the Government's policies with respect to Maori television and radio.		The Ministry provided policy advice to the Minister of Broadcasting on the Crown's legal and Treaty obligations to promote Maori language and culture through broadcasting, financial and governance issues relating to Maori television, and processes for giving further consideration as to how the Government's priorities for Maori broadcasting could be implemented. The Ministry has also provided policy advice on institutional arrangements for the future delivery of Maori broadcasting, in the wider context of the Maori Language Strategy.
Provide ongoing strategic policy advice on improving the policy and regulatory environment for telecommunications and postal services.		The Ministry has advised on a wide range of strategic policy issues over the year. In particular, it advised on 0867 Kiwi Share issue in conjunction with The Treasury.
Support for legislative amendments to the Radiocommunications Act and Regulations (according to legislative priorities) by 30 June 2000, with the Radiocommunications Amendment Bill to be passed by April 2000.		The Radiocommunications Amendment Bill received Third Reading on 4 April and Royal Assent on 7 April. The Radiocommunications Amendment Act 2000 will come into force on a date to be fixed by the Governor General by Order in Council (expected to be February 2001). Work has continued on proposed amendments to Radiocommunications Regulations (including forms and fees).
Work in relation to the 2000 review of the International Radio Regulations at the World Radio Conference (WRC 2000), by 30 June 2000.		WRC 2000 (Istanbul - May) was attended by Ministry and industry representatives. Outcomes of complex radio spectrum engineering negotiations and decisions were judged to be very satisfactory from the New Zealand viewpoint.
Development of policies for licensing of digital terrestrial television (DTT) broadcasting, by 30 June 2000.		As part of the work of being undertaken by the Officials' Committee on Broadcasting Issues (led by the Department of the Prime Minister and Cabinet), work is being undertaken on digital transmission issues. The Ministry assisted with the development of a paper on platform and technology issues. The Cabinet Policy Committee considered this paper on 27 June 2000. Amongst other things, this paper discussed changes that digital technology will bring to New Zealand's broadcasting environment. This paper noted that further work is required on regulatory issues relating to digital transmission, and in particular, issues relating to the allocation of spectrum for digital television, including competition issues, and consumer access to broadcasting services. This will not be considered, however, before the outcome of the Telecommunications Inquiry is known.
Development of policies for the reallocation of the band 88-108 MHz.		As part of the work of being undertaken by the Officials' Committee on Broadcasting Issues (led by the Department of the Prime Minister and Cabinet), work is being undertaken on the reservation of spectrum for non-commercial purposes. The Ministry of Economic Development has been assisting the Ministry for Culture and Heritage to analyse issues and availability of spectrum for non-commercial radio and television (including provision for Youth Radio FM network and National Radio FM network).
Coverage
Provision of a comprehensive service which has the capacity: to reach urgently; to offer timely and relevant briefings on significant issues; and to give ministerial services and support as required.	The Minister's feedback is within the range (4) "met expectations" to (5) "fully met expectations" in the quarterly review of the Ministry's performance.¹⁴	The Ministers gave the Ministry ratings of (4) for policy services provided in the first and third quarters, and a rating of (3) for the policy services provided in the fourth quarter. No response was provided for the second quarter.
Quality
The Ministry's Policy Framework provides that advice has the quality characteristics above.	The Minister's feedback is within the range (4) "met expectations" to (5) "fully met expectations" in the quarterly review of the Ministry's performance.¹⁵	The Ministers gave the Ministry ratings of (4) for policy services provided in the first and third quarters, and a rating of (3) for the policy services provided in the fourth quarter. No response was provided for the second quarter.
Ministerial servicing in the form of letters and parliamentary questions is undertaken as required by the Minister.	An acceptance rate of 100% is achieved in respect of first drafts.	Discussion/negotiation with the Minister's office achieved an agreed final version.
Timeliness
Reports and oral advice to the Minister are delivered within the timeframes required by, and agreed with, the Minister.	100%	100%
Draft ministerial correspondence is submitted to the Minister within 10 working days of receipt in the Ministry.	100%	94%
Where only an interim reply is possible a final reply shall be provided within the following timeframes.	90% within 20 working days of the original receipt in the Ministry; and 100% within 30 days of receipt in the Ministry.	Not applicable.
Advice to the Minister on statutory appointments to Crown entity boards as positions for renewal or appointment fall due.	100% within agreed timelines.	Achieved.
Monitoring and providing advice to the Minister on the financial and non-financial performance of Crown entities as reflected through:	Within agreed timelines.	Achieved The following Crown entities were monitored and reported on: Broadcasting Standards Authority Te Mangai Paho NZ On Air (until 30 August 1999)..
the Statement of Intent;	Annually
the Memorandum of Understanding;	Annually
the Purchase Agreement;	Annually
management reports to the Minister; and	Quarterly
the Annual Report.	Annually
		During 1999/2000, NZ On Air moved to Culture and Heritage following the Culture and Heritage review. Responsibility for Te Mangai Paho transferred to Te Puni Kokiri from 1 July 2000. The Ministry has been heavily involved in ensuring seamless transitions. The Ministry assisted the Minister of Broadcasting in managing the appointment of the Chair of the Broadcasting Standards Authority.

Cost

(Figures are GST exclusive)

	2000 Main Estimates	2000 Supple- mentary Estimates	2000 Actual	1999 Actual
	$000	$000	$000	$000
Revenue:
Crown	3,003	3,547	3,088	2,746
Other	156	41	43	245
Total Revenue	3,159	3,588	3,131	2,991
Expenses:
Annual appropriations	3,159	3,588	3,131	3,015
Other appropriations	-	-	-	-
Total Expenses	3,159	3,588	3,131	3,015
Net Surplus/(Deficit)	-	-	-	(24)

Major Budget Variances

The Supplementary Estimates adjustment provides for:

increase to meet the cost of the Telecommunications sector inquiry ($572,000);
increase for input to the INCIS inquiry ($30,000);
reduction for transfer of outputs to the Ministry of Culture and Heritage (-$58,000); and
reduction associated with repeal of section 5B of the Telecommunications Act 1987 (-$115,000). This change had a corresponding impact on Revenue Other.

The variance between Actual and Supplementary Estimates for Crown Revenue and expenses mainly relate to the timing of costs for the Telecommunications sector inquiry. Agreement in principle has been reached for an expense transfer to the next financial year.

Output Class D2 - Management and Enforcement of the Radiocommunications Act 1989

Description

This output class provides radio frequency spectrum management services.

These services include:

registration of radio frequencies;
radio spectrum band planning;
radio Spectrum conversion
management of Crown-owned management rights;
radio interference monitoring and resolution; and
regulatory compliance.

Outputs in this class are:

licensing and enforcement of radio frequencies;
planning of radio frequency utilisation;
licence rights; and
maintenance of registry and radio frequencies.

Quantity, Quality, Timeliness and Cost

Performance Measures	Performance Standards	Actual
Quantity
Ministerial Correspondence	40-60 (estimated)	15
Parliamentary Questions	5-10 (estimated)	1
Licensing and Compliance Management of Radio Frequency Spectrum
Numbers issued/handled assignment-based:
Radio licences (previously noted as radiocommunications and other).	5,000	4,077 (Demand driven.)
Spectrum licences (previously noted as broadcasting).	400	461 (Includes 200 digital television licences awaiting allocation by auction.)
Declarations of Conformity.	1,000	1,684 (Demand driven.)
Interference resolution following complaint.	Up to 2,000	2,783 (Demand driven.)
Spectrum monitoring.	Up to 200	411 (Demand driven.)
Compliance and enforcement actions.	Up to 1,000	695 (Demand driven.)
Quality
Ministerial servicing in the form of letters and parliamentary questions is undertaken as required by the Minister.	An acceptance rate of 100% is achieved in respect of first drafts.	100%
Licences issued conform to engineering standards as specified by the International Telecommunications Union-Radio (ITU-R).	Independent external audit by a recognised member of the Institution of Professional Engineers of New Zealand confirms licences conform.	Audit scheduled by second quarter of 2001 financial year to ensure full coverage of licences granted during 2000 financial year. No audit was carried out in respect of the 1999 financial year.
Declarations of Conformity conform to technical standards as specified by the International Special Committee on Radio Interference (CISPR).	Independent external audit by a recognised member of the Institution of Professional Engineers of New Zealand confirms Declarations of Conformity conform.	Audit scheduled by second quarter of 2001 financial year to ensure full coverage of licences granted during 2000 financial year. No audit was carried out in respect of the 1999 financial year.
Interference investigations are completed.	The cause of interference is identified in 90% of the investigations completed.	77% where cause identified; remaining 23% of interferences ceased prior to being traced.
Timeliness
Draft ministerial correspondence is submitted to the Minister within 10 working days of receipt in the Ministry.	100%	90%
Where only an interim reply is possible a final reply shall be provided within the following timeframes.	90% within 20 working days of the original receipt in the Ministry; and	100%
	100% within 30 days of receipt in the Ministry.	100%
All correctly completed licence applications received will be processed within timeframes specified in the letter of acknowledgement. (The time estimated is dependent on a range of factors including engineering complexity and policy development associated with an application.)	90% of applications received are completed within the specified timeframe. (Previously the figure has been 90% within a range of 20 to 30 working days depending on the application type.)	71% between December and June. (No statistics were available between July and November due to the changeover to the new database. Delays in processing applications were due to the changeover to a new licensing database.)
Declarations of Conformity processed.	90% within two working days of receipt.	49% (Delays in processing were due to the change-over to a new licensing database and to considerably larger numbers of declarations than predicted because of delay in implementing the new Australian/New Zealand harmonisation regime; there were legislative and Australian delays.)
Interference complaints will be responded to and remedial action proposed for:
safety services;	90% within two hours of being lodged.	100%
radiocommunications;	90% within one working day of being lodged.	98%
broadcasting; and	90% within two working days of being lodged.	98%
interference investigations completed.	90% within 30 working days of being lodged.	61% (Variance due to a heavy interference workload, some very complex interference cases, and some cases of intermittent interference not being resolved.)
Provision of New Technologies and Services
Quantity, Quality and Timeliness
Spectrum allocation plans for new technologies and their completion dates:
Digital terrestrial television.	August 1999	Initial plan completed August 1999. (Allocation delayed pending Government policy decisions.)
Emergency services at 400MHz.	September 1999	Draft plan completed March 2000. (Currently in consultation with affected parties.)
Fixed services at 4GHz.	June 2000	Plan completed December 1999.
FM broadcast band extension.	June 2000	Plan delayed pending Government policy decisions.
Registration of Radio Spectrum Rights
Quantity
Estimated transactions for the Register of Radio Frequencies are:
instruments registered; and	Up to 3,000	753 (Forecast total included 2,000 2GHz licences that will now fall into the 2001 financial year due to auction delay.)
file searches.	900	500 (Forecast estimated - all requests received were actioned.)
Quality
Compliance with statutory requirements.	Audit confirms full compliance with statutory requirements.	Audit to be conducted in 2000/2001 to capture all instruments registered and file searches since last audit in March 1999. No audit was carried out in respect of the 1999 financial year.
Information requests meet applicants' requirements.	Applicants confirm all requirements have been met.	No unfavourable feedback received throughout the year.
Timeliness
Instruments processed.	80% within five working days of receipt.	80% between July and February. No statistics were available between March and June as a change in computer system made it difficult to register Instruments on time.
File search completed.	90% within five working days of receipt.	No statistics collected. However, an independent assessment indicated a view that the performance standard would have been met.

Cost

(Figures are GST exclusive)

	2000 Main Estimates	2000 Supple- mentary Estimates	2000 Actual	1999 Actual
	$000	$000	$000	$000
Revenue:
Crown	-	-	-	-
Other	12,625	12,625	11,546	12,022
Total Revenue	12,625	12,625	11,546	12,022
Expenses:
Annual appropriations	11,473	11,473	11,384	12,205
Other appropriations	-	-	-	-
Total Expenses	11,473	11,473	11,384	12,205
Net Surplus/(Deficit)	1,152	1,152	162	(183)

Sources of Revenue Other

	$000
Fees	10,909
Interdepartmental Revenue	597
Net gain on sale of fixed assets	14
Miscellaneous	26
	11,546

Major Budget Variances

The variance between Actual and Supplementary Estimates for Revenue Other relates to the reduction in radio licence annual fees, due to a change in accounting policy. Previously, annual licence fees due on the last working day of a month were allocated across the 12 months starting in the month the invoice was due. Now this income is allocated across the 12 months starting from the month after the invoice due date to more accurately align revenue with the term of the licence.

Output Class D3 - Year 2000 Readiness

Description

This output class was established in October 1998 following the presentation to Ministers of the Y2K Taskforce's report on 25 August 1998.

The output class provides advice on the nation's readiness on Year 2000 issues, and monitoring and promoting increased understanding of Year 2000 issues so as to minimise the potential risks arising from the Year 2000.

Outputs in this class are:

implementing the approved recommendations of the Year 2000 Taskforce;
assisting co-ordination efforts within sectors;
reporting to Ministers on progress in addressing the Year 2000 problem; and
raising the level of understanding and promoting Year 2000 activities through public information campaigns.

Quantity, Quality, Timeliness and Cost

Performance Measures	Performance Standards	Actual
Quantity and Timeliness
Work programme specific activities will include:
providing reports to Cabinet updating it on the readiness for Year 2000 of key sectors of the economy;	Meet timelines as agreed with Ministers and Cabinet.	Achieved through monthly reports.
advising the Government on priorities in key sectors or organisations that pose a high risk of failure from an overall national perspective if they remain unprepared as the new millennium approaches;	Meet timelines as agreed with Ministers and Cabinet.	Achieved through monthly reports.
liaising with civil defence agencies and monitoring their planning and contingency activities to ensure that appropriate action is taken; and	Meet timelines as agreed with Ministers and Cabinet.	Achieved. The Commission worked closely with the Ministry for Emergency Management and held practice sessions for end of year monitoring processes and procedures.
increasing the understanding of what is required to manage Year 2000 compliance through promotion to sectors (electricity, water, sewerage disposal, health services and other key infrastructural organisations, small and medium sized businesses and consumers).	Meetings will be held monthly with key sectors.	Achieved. The Y2K Readiness Commission formed a Consultative Committee in October 1998. All key sectors were represented on this Committee which met monthly.
	Access to the Year 2000 web-site and 0800 telephone number will be maintained as well as continuing information programmes for small and medium enterprises until 1 January 2000.	Achieved.
Provision of a public information programme to provide the public with sensible information on Year 2000 risks and how they might manage them.	To be implemented from July 1999.	Achieved. The public information programme achieved a balance between being prepared for possible Y2K problems (80% of households) and a high level of confidence that essential services would still be available.
Following 1 January 2000, undertake an assessment of any continuing difficulties being experienced with Year 2000 compliance and provide Ministers with a detailed analysis and recommendations for further action required as necessary.	Final report to Cabinet to be completed by 31 March 2000.	Final report submitted on 27 March 2000 detailed the success of New Zealand's Y2K efforts and the lessons learned.
Quality
Policy advice will be delivered in accordance with the quality standards specified under Output Class D1 Policy Advice Communications in the 1999/2000 Main Estimates.	Delivery of policy advice projects in accordance with the terms of the work programme agreed with the Minister.	All outputs were provided in accordance with the work programme outlined in the purchase agreement with the Minister within the timeframe specified and/or extended with the Minister's agreement.

Cost

(Figures are GST exclusive)

	2000 Main Estimates	2000 Supple- mentary Estimates	2000 Actual	1999 Actual
	$000	$000	$000	$000
Revenue
Crown	3,329	3,694	3,323	2,194
Other	-	75	75	3
Total Revenue	3,329	3,769	3,398	2,197
Expenses:
Annual appropriations	3,329	3,769	3,398	2,197
Other appropriations	-	-	-	-
Total Expenses	3,329	3,769	3,398	2,197
Net Surplus/(Deficit)	-	-	-	-

Major Budget Variances

The Supplementary Estimates adjustments reflect:

an expense transfer from the previous financial year to fund a public information programme to provide advice to manage Y2K risks ($365,000); and
a technical adjustment to recognise sponsorship (other) revenue previously offset against expenses ($75,000).

The variance between Actual and Supplementary Estimates for Revenue Crown and Expenses relate to the smooth transition to the Year 2000. As there were no significant Y2K problems, no major expenditure items occurred post 1 January 2000.

¹⁴The range is (1) not satisfactory, (2) fell short of expectations, (3) satisfactory, (4) met expectations, (5) fully met expectations.

¹⁵The range is (1) not satisfactory, (2) fell short of expectations, (3) satisfactory, (4) met expectations, (5) fully met expectations.

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Printed: 25/11/2009