Recommendations
71. It is recommended that the Committee:
1. Agree that this Cabinet Paper constitutes the government's response to Manufacturing +, A Vision for World Leading New Zealand Manufacturers (the Manufacturing Plus Report);
2. Agree to endorse the Manufacturing Plus Report's vision for the future of New Zealand manufacturing:
"Manufacturing is recognised as a high performing sector, and a major and growing contributor to the New Zealand economy"
and the Manufacturing Plus Report's Value Creation Model, which is built around the following twelve underlying principles:
- Creating, maintaining and evolving innovative business models;
- Building sustainable and ethical values into our brand position and business operations;
- Leveraging partnerships, franchises, joint ventures and alliances;
- Innovating and co-creating solutions;
- Creating relationships with a human face;
- Creating world leading brands and designs;
- Leveraging the global value chains by knowing how we can best fit;
- Connecting with global networks and information access;
- Understanding and using the unique qualities of the New Zealand business reputation and branding;
- Integrating manufactured goods with service offerings – manufacturing plus add-on features, like service, support or training;
- Demanding and delivering high standards of operational excellence in the design, the production and the management capabilities of our companies; and
- Incorporating the smart use of skilled labour with capital intensive manufacturing;
3. Agree that an important element of the Manufacturing Plus report is to enable an understanding by the sector of the rapidly evolving global competitive environment and encourage those manufacturing activities that can be successfully anchored in New Zealand;
4. Note the summary of existing government initiatives and their application to the manufacturing sector, set out in this paper;
5. Agree that firms benefiting from the one-off Export Year funding boost to MDAS be eligible for the grant for up to five years based on existing criteria, rather than one year as implemented;
6. Note that this change will ensure that firms benefiting from the MDAS funding boost for Export Year will be treated in the same way as firms that receive support from ongoing annual MDAS funding;
7. Note that MED will work with NZTE, Business New Zealand and the CTU to convene a ‘Manufacturing Action Group', to oversee the ongoing implementation of the recommendations of the Manufacturing Plus report, and will develop detailed terms of reference, key tasks, deliverables and reporting requirements; and
8. Note that the ‘Manufacturing Action Group' agenda may include issues such as;
8.1 the coordination of the implementation of the Manufacturing Plus report across industry and government;
8.2 providing advice on major issues that influence the manufacturing sector;
8.3 providing linkages with and informing the government's policy development process from a manufacturing perspective;
8.4 the extent to which the sector is aware and making best use of the support currently available from government, and whether government initiatives are configured to best meet the needs of the sector going forward;
8.5 how the manufacturing sector can adopt sustainable business practises to improve overall sustainability in the economy and capture significant commercial opportunities; and
8.6 how to promote greater awareness of the successes and potential of the New Zealand manufacturing sector;
9. Note that the Minister for Industry and Regional Development indicates that the government caucuses will be consulted, and that consultation is not required with other parties represented in Parliament.
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