The Integrated Service Range
30. Full descriptions of each service range and proposed developments are provided in the three companion papers. The key elements and proposed changes are summarised below.
Enabling Services (Paper 2)
31. Enabling services involve government working in partnership with key stakeholders (e.g. sectors, regions, collectives, clusters) to identify opportunities for, and constraints to, growth. No significant changes are proposed to the existing enabling service range, as many of the initiatives have been inherited from Industry New Zealand and have been operating for a relatively short-period. In addition, most of the initiatives are already subject to evaluation and review.
32. For 2003/2004, the enabling service range represents 45% ($75 million, GST inclusive where applicable) of NZTE's funding for both services and grants. It is proposed that the following groups of initiatives comprise NZTE's enabling service range:
- Sector Facilitation - this includes the engagement and strategy development associated with the GIF taskforces and other sector groups, sector specialists offshore, beachheads and international networks. 2003/2004 will see an increased emphasis on implementation of the taskforces' strategies and recommendations. Budget bids have been submitted as part of the GIF package to increase the number of offshore sector specialists and beachheads from 2003/2004.
- Regional Facilitation - this service area includes the Regional Partnership Programme (RPP), Cluster Development Programme, Incubator Support Programme and Regional Polytechnic Programme. The RPP is under review, which is scheduled to be completed in July 2003. The review is considering linkages and alignment of the RPP with other regional facilitation initiatives. A budget bid has been submitted as part of the GIF package to expand the Incubator Support Programme. The Polytechnic Regional Development Programme and Cluster Development Programme have only recently been established and no changes are currently proposed.
- Marketing and Promotion Initiatives - This service area includes Brand New Zealand, the Business and Enterprise Culture Programme, major events support, as well as a range of export promotion activities (e.g. export awards, conferences, publications). The majority of these initiatives have only been recently established and no changes are currently proposed.
- Investment New Zealand - Investment New Zealand was the first step in the integration process, being formed by the merger of the Investment New Zealand team from Trade New Zealand and the Major Investment Service of Industry New Zealand in 2002. Investment New Zealand will work within NZTE in a seamless way and is increasingly focusing on investment opportunities associated with the sectoral and regional strategies facilitated by NZTE.
33. The key benefits arising from the integration of initiatives within this service range will be a consistent focus and approach to services that support sectoral and/or regional strategies. NZTE will progressively ensure that support for clusters and export networks are closely aligned, and that support for regional initiatives such as incubators and clusters is aligned with regional strategies supported through the RPP.
Business Services - Foundation Services (Paper 3)
34. Foundation services primarily aim to support general capability development in entrepreneurs and small businesses, particularly start-ups, early stage ventures and new exporters, through the provision of information, training and limited finance. The major changes proposed to the current initiatives provided within this service range are a redesign of the Enterprise Awards Scheme, due to concerns about a lack of flexibility and bureaucratic processes, and improved targeting of BIZ Training.
35. For 2003/2004, foundation services represent 17% ($28 million, GST inclusive where applicable) of NZTE's funding for services and grants. The following initiatives will comprise NZTE's foundation service range:
- Appraisal - entrepreneurs and businesses approaching NZTE for assistance will be provided with an initial, simple, standardised capability assessment to ensure that appropriate assistance is provided or facilitated. It is anticipated that the assessment will be offered through NZTE's contact centre, client managers, contracted providers, and on-line.
- Information and Referral - NZTE will provide generic business assistance and market intelligence information (e.g. how-to-guides, country briefs, checklists) through an integrated front-end client interface, including website, 0800 contact centre and regional offices.
- BIZ Training - It is proposed that BIZ Training be enhanced to provide better quality training and greater alignment with NZTE's objective of internationalisation. This would include delivering a proportion of BIZ Training to cluster and sector groups of clients (based on regional and sectoral strategies) to supplement the current open access delivery. It will also include administering and delivering basic investment ready and exporting workshops via the BIZ model of an open and contestable approach utilising regional providers. This will improve recognition and coverage and provide consistency in terms of delivery. These changes will be in place for delivery from 1 July 2003.
- Enterprise Development Grants scheme - It is proposed that the Enterprise Awards Scheme be redesigned into a more flexible and user-friendly grants scheme, amalgamating the awards scheme with Export Network funding and World Class New Zealanders support. Funding would be available for 50% of total costs to a maximum of $20,000 per annum for businesses and entrepreneurs to engage the services of a business mentor for a period of time, undertake advanced management training, employ specific external advice and expertise, and for market development activities and business exchanges. Grant assessments would be devolved from the current centralised panel to NZTE's client managers and potentially regional economic development organisations and BIZ lead providers. The new grants scheme can be in place for delivery from 1 July 2003.
36. The main benefits to come from the integration of initiatives at this level are the development of the single customer interface, a greater focus to foundation services in support of internationalisation, and increased flexibility and reduced compliance costs in the administration and delivery of the proposed Enterprise Development Grants scheme.
Business Services - Growth Services (Paper 4)
37. Growth Services provide customised business and international market development assistance to firms and groups of firms that have clear growth potential and are committed to growth, through:
- client managers
- specialist in-house and contracted market development and investment readiness services
- a growth services fund.
38. For 2003/2004, the growth services range represents 36% ($61 million, GST inclusive where applicable) of NZTE's funding for both services and grants:
- Client management - it is envisaged that NZTE would operate a single new client management approach to growth services to cover all aspects of the service range from capability building to internationalisation. Client managers would undertake an appraisal of clients' needs and determine the appropriate mix of capability and international market development services that NZTE or other agencies could provide, provide appropriate mentoring or commercial counselling (not strategic business advice), and facilitate referrals to specialist services and other assistance. The single client management system will be implemented progressively over 2003/2004.
- Specialist Services - NZTE will continue to deliver a range of specialist information and advisory services to support international market development, as currently delivered through Trade NZ. These services include market evaluation and selection, buyer/partner identification, market visits and market monitoring. The services will be delivered in-house, drawing on market development specialists both on-shore and offshore and through the ebusiness portal. Part of the costs of this service will be recovered through user charges, which will vary depending on the costs of different markets and the precise services provided.
- Growth Services Fund - it is proposed that NZTE will offer funding assistance for more substantive growth projects through a Growth Services Fund, enhancing the existing Business Growth Fund delivered by Industry NZ. Funding would be available to both firms and groups of firms, based on in-depth appraisal, to access specialist skills and expertise and for international market development activities. It is proposed that the Fund will be highly flexible in terms of the level of funding provided, although normally in the range of $50,000 to $500,000, for up to 50% of the costs of projects. The revised fund can be in place for delivery from 1 July 2003.
39. As noted in paragraph 22 above, all of the foundation services will also be available to NZTE's growth service clients, including the Enterprise Development Grants scheme. Client managers will determine which funding option, if any, is appropriate on a case-by-case basis.
40. The main benefits that will arise from integration of initiatives within this service range are the single client management approach which will be more effective and reduce transaction costs for businesses, and the bringing together of market development and management capability support which will facilitate the internationalisation of businesses.
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