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• Governance and Structure

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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 the output plan between the Chief Executive and the relevant Ministers (for the outputs to be supplied, and the standards to be met for each Vote the Ministry administers) and on the Ministry's Statement of Intent.

The governance arrangements also provide for monthly reporting on financial performance to the Treasury, six-monthly and annual reporting on financial performance to Ministers, and Select Committee examination following presentation of the Ministry's Statement of Intent and Annual Report to Parliament. 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.

As at 30 June 2006, the Chief Executive reported to the portfolio Ministers listed below on the discharge of his responsibilities for six Votes.

Strategic Leadership Team

The Ministry's Strategic Leadership Team (SLT) advises the Chief Executive on the organisation's strategic direction and corporate action. SLT is made up of the chief executive, the deputy secretaries and the group manager of the Medium Term Strategy Group. SLT meets weekly to discuss and advise on issues related to strategic management and capability. The deputy secretaries are also responsible for the effective management of their branches and delivery of outputs agreed with Ministers.

Strategic Leadership Team
Left to right: David Smol. Mark Steel, Roger Procter, Liz MacPherson, Lewis Holden, Neville Harris, Geoff Dangerfield, Sue Gordon

Management structure as at 30 June 2006

The Ministry has six branches, each headed by a deputy secretary. The Ministry of Consumer Affairs and the Ministry of Tourism are semi-autonomous units within the wider Ministry. The six deputy secretaries and the group manager of the Medium Term Strategy Group all report to the chief executive. The general manager of the Ministry of Tourism reports to the deputy secretary responsible for the Industry and Regional Development branch. The director of the Government Urban and Economic Development Office reports to the deputy secretary responsible for the Regulatory and Competition Policy branch.

Our major work units are:

Industry and Regional Development branch, which has the principal responsibility for advancing the Government's economic, regional and industry development objectives. The Ministry of Tourism, which advises the Government on tourism issues, is part of this branch.

Business Services branch, which runs the Ministry's business and operational services, including the Companies Office and other business registries, the Radio Spectrum Management group and the Crown Minerals group.

Regulatory and Competition Policy branch, which provides policy advice on the legal, regulatory and competition frameworks for business and on the scope for regulatory coordination with other jurisdictions.

Resources and Networks branch, which provides policy advice on the regulatory environment for the telecommunications, energy, postal and broadcasting sectors, and on radio spectrum, natural resource and environmental issues.

Consumer Affairs branch, which incorporates the Ministry of Consumer Affairs, provides advice and programmes on consumer safety, rights and information and is responsible for the electricity and gas safety regimes.

Organisational Development and Support branch, which provides specialist advice on organisational development, legal, finance and facilities management, communications, risk management, information technology and knowledge management issues.

Government Urban and Economic Development Office (GUEDO), which is a cross-government initiative to improve the focus on Auckland-related policy development. Four government agencies - Ministry of Economic Development, Ministry for the Environment, Department of Labour and Ministry of Transport - have established this shared policy office in Auckland.

Medium Term Strategy group, which advises branches and the chief executive on longer-range economic development issues.

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
• Electricity Commission
• New Zealand Tourism Board
• New Zealand Trade and Enterprise
• Securities Commission
• Takeovers Panel

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 expenses.

The Ministry is the Government's "purchase advisor" in relation to these Crown entities. This is a significant responsibility, 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 New Zealand Trade and Enterprise (a role undertaken jointly with the Ministry of Foreign Affairs and Trade), and the Commerce Commission has been particularly important, given the major contribution each makes to advancing economic development.

During the year, the Ministry also advised Ministers on ownership interests relating to the following Crown entities:

• Standards Council
• Testing Laboratory Registration Council (TELARC)

Other Entities

The Ministry also advises Ministers on ownership interests related to the Copyright Tribunal and the Joint Accreditation System of Australia-New Zealand (JASANZ).

The Ministry is also the Government's "purchase advisor" in relation to the New Zealand Venture Investment Fund Limited, and administers the non-departmental appropriations relating to this entity.

Legal Responsibilities

The Ministry has approximately 1000 legal obligations in a wide range of Acts and regulations.

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.

Environmental Report

The Ministry of Economic Development has signed up to the Ministry for the Environment lead Govt3 initiative. During 2005/06, the Ministry developed a Sustainable Practice Action Plan. The Action Plan signals the Ministry's approach to meeting its sustainability actions.

The 2005/06 financial year is the first year the Ministry has reported under its Sustainable Practice Action Plan and forms the basis of benchmarks for reporting in future years. The following reports on progress against key sustainable practice indicators committed to as part of the Ministry's Sustainable Practice Action Plan.

• Following the establishment of a recycling scheme in the Head Office during 2005/06, the Ministry has reduced landfill waste from 69.59 kgs per person to 26.29 kgs per person over a six-month period. This represents a reduction 62.22%.
• Waste that is recycled includes paper, cardboard, cans, plastic, food waste, toner cartridges, computers, printers, furniture and cabling.
• A comprehensive audit of energy usage in four of our large premises has been completed. In these sites, we are able to track and evaluate usage and cost of energy.
• Additionally, as part of the Head Office refurbishment programme undertaken over the past three years, a number of energy savings initiatives were incorporated into the fitout, including energy efficient light fittings and multiple zone sensors to ensure lighting is only on in occupied areas - ensuring lights are not left on during the night or weekends. These have already reduced the Ministry's Head Office power usage by 7.5%, where an energy density of 112 kWh/m2 is being achieved. This is better than average for buildings in Wellington.
• The Ministry's purchasing initiatives includes 21% of its stationery and general office products being classified environmentally friendly supplies.
• The Ministry operates a fleet of 49 vehicles - comprising of 12 diesel and 37 petrol vehicles. During 2005/06, a total distance of 606,486 kilometres was travelled. During the course of travel, 54,310 litres of fuel was used. This equates to 9 litres per 100 kilometres.

Equal Opportunity Employer

The Ministry continues to comply with the principles of being a good employer; examples of this include the provision of good and safe working conditions, impartial recruitment and selection processes and recognition of the need for greater involvement of Māori people in the economic transformation process.

Reducing Inequalities

The Ministry's primary focus is to ensure that the business environment promotes productivity growth.

So while reducing inequalities is not a core business function of the Ministry, we can have some impact if we achieve our primary goal of enhancing the environment for business productivity. The detailed report on the Ministry's Service Performance found in Part C of this report spells out areas of activity which will have had a general impact on reducing inequalities.

Statement of Resources as at 30 June 2006

Ministry Staff (Expressed as Full-Time Equivalents)

Male/Female Staff Numbers

Ministry Staff (Expressed as Full-Time Equivalents)