providing policy advice on the factors affecting the development of small and medium enterprises (SMEs);
providing advice on measures to raise the capability of SMEs to achieve and sustain increased efficiency and international competitiveness;
chair of the Business Development Board of New Zealand;
administering the Business Development Act 1991; and
managing contracts for the delivery of the BIZ programme.

Quantity, Quality, Timeliness and Cost

Performance Measures	Performance Standards	Actual
Quantity
Ministerial Correspondence	280-320 (estimated)	672
Parliamentary Questions	80-120 (estimated)	133
Policy Advice
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.	Policy advice was delivered in accordance with the terms of the work programme as agreed by the Minister.
Key deliverables in the work programme during 1999/2000 include:
developing a frame-work for preliminary evaluation of the effectiveness of the BIZ programme; and	By 1 October 1999	The framework was developed and discussed with the Minister and relevant government departments.
completing a first review of the BIZ programme with a view to identifying strengths and weaknesses and promoting more creative delivery and outcomes.	By 30 June 2000	The evaluation methodology and tendering process was finalised by 30 June 2000. Internal audits of contract fulfillment were underway at 30 June 2000.
Projects not included in the Departmental Forecast Report
Establishment of Industry New Zealand		The Ministry commenced work towards the establishment of Industry New Zealand in March 2000, including: forming an Industry New Zealand establishment unit and its operational capability; managing the legislation to establish Industry New Zealand; and initial work in developing a business plan to allow Industry New Zealand to be incorporated and operational by October 2000.
Building economic development and industry and regional development policy capability.		Work carried out in the period to 30 June 2000 included: building economic development operational capability in the Ministry; provision of major policy papers to Cabinet establishing the frame-work for economic, regional and industry development; and provision of strategic support to the Deputy Prime Minister.
Coverage
Provision of a comprehensive service which has the capacity: to react 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.⁷	The Minister gave the Ministry a rating of (4) for the policy services provided during the first quarter. No other quarterly assessments have been received.
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.⁸	The Minister gave the Ministry a rating of (4) for the policy services provided during the first quarter. No other quarterly assessments have been received.
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.	95%
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%	68% (Delays were due to the very large volumes of ministerial correspondence received as a result of significant changes in government policy for industry and regional development combined with the need to set up a new policy unit to carry out the Ministry's additional work.)
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	90%
	100% within 30 days of receipt in the Ministry.	100%
Provision of reports to the Minister on the performance of programme delivery organisations within 20 working days of receipt of the entity's report to the Minister.	100%	100%
Process statutory appointments to the Business Development Board of New Zealand.	90% within 20 working days of the original receipt in the Ministry; and 100% within 30 days of receipt in the Ministry. 100% within agreed timeframes.	No statutory appointments required. It is no longer relevant to reappoint with the establishment of the Industry New Zealand board.
Contract Management
Quantity
Contracts with third party providers to be managed during the period.	47	46. One contract expired during the year and was not renewed.
Quality
Client satisfaction with services delivered.	Provider feedback is within the range (3) "satisfactory" to (5) "fully met expectations" as evidenced by a client satisfaction survey.⁹	32 providers were asked to rate the BIZ Unit performance as part of a broader evaluation of the BIZ programme. All respondents rated the Unit's performance between (3) and (5).
Timeliness
Contract variations completed.	100% within 20 working days of parties agreeing to the variations.	100%

Cost

(Figures are GST exclusive)

	2000 Main Estimates	2000 Supple- mentary Estimates	2000 Actual	1999 Actual
	$000	$000	$000	$000
Revenue:
Crown	1,634	4,179	3,048	2,696
Other	50	-	53	339
Total Revenue	1,684	4,179	3,101	3,035
Expenses:
Annual appropriations	1,683	4,178	3,101	3,047
Other appropriations	-	-	-	-
Total Expenses	1,683	4,178	3,101	3,047
Net Surplus/(Deficit)	1	1	-	(12)

Major Budget Variances

The Supplementary Estimates adjustment provide for:

an increase to meet the establishment costs and interim policy advice costs associated with the new Economic Development and Industry and Regional Development portfolios ($2.445 million);
a transfer from Vote: Commerce Output Class D1 Policy Advice Business and Competition, to administer the incubator initiative ($100,000); and
the transfer of the Quality Awards programme to an outside party (-$50,000).

The variance between Actual expenditure and budgeted expenditure reflects delays related to the establishment of Industry New Zealand. Provision has been made for an expense transfer to the next financial year.

The change between actual Revenue Other between 1998/1999 and 1999/2000 reflects the receipt of sponsorship and seminar fees related to the APEC meeting on small and medium enterprises held during 1999.

While the variance between financial year expenses is not significant, different activities drive the nature of expenditure incurred. As noted above, for 1999/2000 additional funding was provided for the establishment costs and to provide interim policy advice for the new portfolios.

Whereas additional costs were incurred for transitional activities in 1998/1999 for the disestablishment of the Business Development Boards and setting up new delivery mechanisms for the BIZ programme.

The core budget between the two years had not changed significantly.

⁷The range is (1) not satisfactory, (2) fell short of expectations, (3) satisfactory, (4) met expectations, (5) fully met expectations.

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Printed: 26/11/2009