Next Steps
68. Implementation of recommendations from the GIF sector taskforces represents most of government's existing stock of high-level engagements. Using the sector selection and prioritisation criteria, MED has carried out some preliminary work with NZTE, FRST, TEC and MAF, with input from the Treasury and other agencies, to identify other sectors for possible high-level engagement. The initial list, based on contribution to GDP, potential to grow and likely spillover effects, included food and beverage, wholesale and retail, business services, construction, tourism, transport, electricity, gas and water supply, machinery and equipment manufacturing, metal product manufacturing, agri-tech, international education, medical technologies and environmental technologies/renewable energy.
69. After taking into account the ability of the government to add value and the need to prioritise, the sector with the strongest case for the next high-level engagement appears to be the food and beverage sector, although this does not preclude concurrent issue-focused engagement with the other sectors (for example, strategies have already been developed for tourism and international education, so engagement will be on specific issues and through delivery agencies; similarly, the government is already engaging with the transport and energy sectors on specific issues). Consistent with the rolling nature of engagement, other identified sectors can be engaged with on strategy development over time. Further work is required to develop the proposal for the food and beverage sector, including discussion with the sector to assess its willingness and commitment to engage.
70. If the sector is ready and willing to engage, MED, MAF and NZTE will report to the Ministers of Economic Development and Agriculture by the end of August 2004 with a fully developed proposal for such an engagement. Cabinet approval for high-level engagement would then be sought.
71. Food and beverage is a large sector, accounting for approximately ten percent of GDP. As discussion with the sector proceeds, it will become clearer how the sector might be disaggregated into more cohesive and compact sub-sectors for engagement. This process may also identify a few key issues that limit sector growth, which might be best addressed through more immediate lower tier, issue specific, engagement.
72. Given the size of the food and beverage sector, if this is to be engaged, officials propose that this should be the only new high-level engagement in 2004. MED, in conjunction with the delivery agencies and in consultation with other agencies, would report to Economic Development Ministers on further sectors for potential high-level engagement by December 2004.
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