Terms of Reference
Purpose
To give SMEs a greater "voice" in policy development and advise Ministers of issues facing SMEs.
The diverse nature of SMEs means that most are unable to effectively participate and influence government policy development by traditional/normal means of consultation.
This Advisory Group will provide a means for departments and the government to take more fully into account the interests of SMEs in policy initiatives and to provide a deeper understanding of how government can work most effectively with SMEs. The Advisory Group will also provide the means for dialogue with SMEs that go beyond individual and immediate issues.
Functions
To provide on-going advice to the Ministerial Group on Small Business on any issues affecting SMEs:
- Identifying issues impacting the growth and development of SMEs
- Suggesting priorities
- Exploring solutions
To provide assistance and advice to government departments on consultation with SMEs.
To provide, for discussion with government agencies, suggestions on ways for enhancing SME and government agency performance.
Membership
Members of the Advisory Group will be drawn from the business community with experience running a SME or having worked with SMEs. The members should be able also to represent business related issues facing women, Ma-ori and Pacific SMEs and those seeking to start-up businesses.
Ministers will appoint the members of the Group for terms of at least two years. Terms may be extended by mutual agreement. The size and composition of the Group will be determined by the Cabinet following a recommendation from the Minister for Small Business.
Advisory Group members may receive fees and allowances in accordance with government guidelines provided they are not already being paid to represent the interests of SMEs or other groups. The members may be required to contribute up to four days a month of their time to their role on the Group.
Accountability and Reporting
The Group will report directly to the Minister for Small Business through:
- Face-to-face meetings quarterly
- Reports as agreed.
The Advisory Group will meet with the SME Senior Officials Group at least twice a year.
The Group will be supported by a secretariat based at the Ministry of Economic Development, with involvement from other departments as appropriate.
The Official Information Act 1982, the Privacy Act 1993, and the Ombudsman Act 1975 will apply to the operation of the Advisory Group. Information held by the Board will be deemed to be information held by the Minister for Small Business.
Means
Conduit – the Advisory Group will seek input from SMEs utilising existing stakeholder groups and their own networks. They will also provide feedback on government initiatives to these same groups.
Analysis – the Advisory Group will use their business expertise to analyse the impacts of proposals on small business and assist the government to identify areas where further work should be undertaken. They will work with relevant government departments on the issues being investigated.
Advocacy – the Advisory Group will advise the government on any matters affecting SMEs
Sounding Board – the Advisory Group may provide advice on policy issues as they develop.
Protocols
The Advisory Group will not publish the advice it gives to the government. However, the government may, from time to time, agree to publish papers produced by the Advisory Group.
Group members will need to be able to offer free and frank advice to the government while maintaining discretion about that advice in wider circles.
Advisory Group members will make public comments only after advising the Minister for Small Business of their intention to do so. This injunction will apply whether the members agree or disagree with the government's actions on which they are commenting.
The Minister for Small Business will, on behalf of the Ministerial Group on Small Business, prepare an annual expectations letter for the Group which sets out the terms of reference, the protocols, a work programme and any other relevant expectations of the Advisory Group.
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