Driving Implementation
83. The Taskforce suggested that the importance of the sector to the New Zealand economy is such that oversight of the development agenda's implementation should be provided at a high level by way of a peak body. The Taskforce indicated that further discussion needs to be held between government and sector leaders on the size, name and design of this peak body, but for illustrative purposes, suggested calling it the "Prime Minister's Advisory Council" to reinforce its oversight role and status.
84. This proposal has required careful consideration. MED and MAF officials are of the view that there is unlikely to be value in government establishing a new food and beverage peak body. The sector already has a large number of industry bodies, some of which are significant and influential. Experience strongly suggests that establishing a government appointed and/or supported body in an already crowded market is unlikely to obtain the necessary buy-in from industry and is likely to fail.
Challenge to Industry
85. Economic transformation requires leadership and accountability on the part of both government and industry. The need for greater collaboration within the sector was strongly emphasised by the taskforce. I propose that the public response to the taskforce include a strong challenge to the key food and beverage sector players to endorse the transformative vision for the sectors' future (described above), lift their aspirations and actively seek transformative opportunities. This challenge should include the message that, if key players in the sector agree to actively and materially support a peak industry body (or other collaborative entity with a focus on transformation) and demonstrate a commitment to establishing one, then government is willing to engage in a dialogue to identify the means by which such a body might be supported.
86. In addition, I note that the taskforce identified the Pastoral 21 initiative as a good model for identifying the research and development needs of a sector and leveraging funding from both industry and government. The public response should include an invitation for other components of the food and beverage sector to develop similar forward looking whole-of-industry research strategies.
Challenge for Government
87. Driving the taskforce's proposal for a Prime Minister's Advisory Council was the concern that there needs to be a single point of overall responsibility in government for the development initiatives arising from the taskforce process, and that the government must be seen to be taking the sector and its development seriously. This concern is underpinned by a persistent perception within the food and beverage sector that the government is more interested in ICT, film and biotechnology, and this perceived emphasis affects the sector's access to skills and investment.
88. With this in mind, I propose that MED be tasked with overseeing the implementation phase of the food and beverage engagement, as part of its overall responsibility for the Economic Transformation agenda. I propose that the Economic Transformation Agenda Update report to Cabinet, due in September, include an update on the food and beverage transformation initiatives as a separate category of work.
89. In addition, I propose that the implementation oversight role be limited to two years, with a final report to Cabinet on progress and achievements set down for June 2009.
90. [withheld under section 9(2)f(iv) of the Official Information Act].
91. [withheld under section 9(2)f(iv) of the Official Information Act].
92. It is also important to note that the response includes a number of processes which involve ongoing engagement with the sector and/or symbolically underline the sector's importance. Examples include the Skills and Training Action Group and the Primary Industries 2020 Summit.
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