Recommendations
48. We recommend that the Committee:
1 Note that NZ Trade and Enterprise's Growth Services will comprise:
1.1 Client management whereby NZ Trade and Enterprise will operate a single new client management approach to growth services to cover all aspects of the service range from capability building to internationalisation
1.2 Specialist services, including a range of specialist information and advisory services to support capability and international market development, such as investment readiness, market evaluation and selection, and market monitoring
1.3 the Growth Services Fund which will offer funding assistance for firms and groups of firms with high growth potential, based on in-depth appraisal, to access specialist skills and expertise and for international market development activities;
2 Note that access to the growth services range will be based, in the first instance, on an assessment of a firm's growth potential and also involve an assessment of a firm's commitment and capability to achieve that growth;
Client Management
3 Agree that, in configuring the growth services client management system, NZ Trade and Enterprise should give effect to the following specifications:
3.1 growth services client managers will:
- provide appropriate mentoring and commercial counselling but not strategic business advice or advice that would constitute investment advice
- facilitate referrals to specialist services and funding - both within NZ Trade and Enterprise and to other government business assistance programmes
3.2 the duration and intensity of client management service will be proportional to the client's growth potential, risk profile and level of need
3.3 growth service client managers will need to establish and maintain linkages and partnerships with a range of individuals and organisations
3.4 growth services client managers will need to be both accessible and responsive to the needs of Māori, Pacific peoples and women [CAB Min (02) 30/4 refers];
Specialist Services
4 Note that NZ Trade and Enterprise will continue to deliver a range of specialist information, advice and facilitation assistance aimed at addressing barriers to market development including:
- market evaluation and selection
- buyer/partner identification and selection
- identifying and qualifying international market opportunities
- market visits and in-market assistance
- market monitoring;
5 Note that NZ Trade and Enterprise will continue to support the deal brokering component of the Investment Ready Scheme on a contract for services basis;
Growth Services Fund
6 Agree in principle to replace Industry NZ's Business Growth Fund with the Growth Services Fund, which will offer support for high growth potential firms to purchase external advice and expertise and market intelligence and development services, subject to the report back referred to in recommendation (8);
7 Agree that, in designing the Growth Services Fund, NZ Trade and Enterprise should give effect to the following principles:
7.1 grants be for up to a maximum of 50% of the costs of the qualifying projects
7.2 it may be prudent to cap funding for certain types of activity
7.3 higher levels of accountability and sign-off should be adopted for projects of higher value and for travel costs
7.4 funding should also support the provision of market intelligence and development services by external providers
7.5 no funding should be provided for normal business expenses or activities that are supported by other government business assistance programmes;
8 Direct NZ Trade and Enterprise to report back to the Ministers of Finance, Industry and Regional Development, Trade Negotiations and Associate Foreign Affairs and Trade by 30 June 2003 on the detailed operation of the Growth Services Fund including criteria, funding caps for eligible activities and levels of delegation, approval processes, management of demand, and identifying how potential overlaps with FRST's Technology NZ programmes will be managed;
9 Note that the report back referred to in recommendation (8) will be developed in close consultation with the Ministries of Economic Development, Trade Negotiations, Pacific Island Affairs, Women's Affairs, Research, Science and Technology, Te Puni Kōkiri, the Treasury, Tertiary Education Commission, and the Foundation for Research, Science and Technology;
10 Delegate authority to the Ministers of Finance, Industry and Regional Development, Trade Negotiations and Associate Foreign Affairs and Trade to approve the Growth Services Fund, subject to the report back in recommendation (8).
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