Work Programme and Intended Results
This section sets out our work programme, the results we will seek to deliver, and the ways we will measure our progress.
Enterprising and innovative businesses
What we are seeking to achieve
Our overall aim in this area is to help develop enterprising and innovative businesses that will prosper, raise their productivity, and support the New Zealand economy's recovery from the global downturn. This will involve us working closely with New Zealand Trade
and Enterprise.
We will therefore work towards:
- well-managed and competitive New Zealand businesses that have the capability to survive the economic downturn and take advantage of the economic recovery
- businesses that are better able to become global leaders in New Zealand's areas of competitive strength, particularly in pastoral, food, tourism, and niche manufacturing.
What we will do to achieve this
We will work to support New Zealand firms through the downturn…
We will work with all stakeholders to implement the agreed actions arising from the February Jobs Summit and the Assistance for Small Business package.
To make the maximum impact with increasingly constrained resources, we will focus on helping make the government's business support programmes as effective and well-targeted as possible. In the short term, this includes a focus on supporting firms through the economic downturn. We will also continue to review these programmes regularly to identify what works – and what doesn't and should therefore be discontinued.
… focus resources on New Zealand's areas of competitive strength…
We will work internally, and with other agencies and firms, to consolidate and target government resources on New Zealand's areas of competitive strength and help ensure public research and science institutions better support business opportunities in these areas.
… strengthen links between research providers and business…
We will work with the Ministry of Research, Science and Technology and other agencies to identify how government might be able to facilitate more effective collaboration between research providers (particularly Crown Research Institutes and universities) and industry. The focus of this work will be on increasing the ability of innovative firms to access and translate research and technology into commercial products.
… improve firm management capability and access to finance…
We will improve management-focused business capability programmes and partner with the private sector to address key management challenges for New Zealand firms.
We will also work with the private sector on measures that will help well managed and innovative New Zealand firms to obtain the finance they require to survive the economic crisis and be well placed to take advantage of an eventual upturn.
… and help firms profit from better environmental practices
We will work with business stakeholders to support uptake of good environmental management practices and identify corresponding commercial opportunities, particularly in sectors such as tourism, where environmental performance is directly linked to international competitiveness.
How we will measure progress
We will know New Zealand businesses have become more enterprising and innovative if there is a lift in New Zealand's productivity relative to other countries.
More specifically, we will know we are achieving our intended results when:
- there is increasing investment in productive capability of businesses, as evidenced
by increasing levels of research and development expenditure and capital investment
- there is improved access to finance for growth, as evidenced by Business Operations Survey data
- New Zealand firms' strategic and management capabilities are improved, as evidenced by Business Operations Survey data
- New Zealand's competitive strengths (particularly food, pastoral, tourism, and niche manufacturing) make an increasing contribution to the New Zealand economy.
International linkages
What we are seeking to achieve
Our overall aim in this area is to advance economic productivity and international competitiveness through New Zealand's international connections. This is a shared outcome with New Zealand Trade and Enterprise and the Ministry of Foreign Affairs and Trade and will involve us working closely with these agencies.
Strong international linkages will help competitive New Zealand businesses to maintain their international presence in the face of the current global downturn and to grow. They will allow businesses to benefit from trade and global flows of investment, skills, and technology – and hence become more productive. New Zealand may also have to confront the challenge of increasing protectionist pressures in our key trading partners.
We will therefore work towards:
- maintenance and, if possible, enhancement of New Zealand businesses' position in global markets
- reduced trade, investment, and regulatory barriers between New Zealand and its key trading partners, particularly Australia
- New Zealand's maintained or increased competitiveness as an international tourism destination
- a 2011 Rugby World Cup that creates lasting benefits for New Zealand.
What we will do to achieve this
We will improve government support to firms operating internationally…
We will consolidate and better target government support to firms that seek to or already operate internationally, to ensure greater value for money.
… work to accelerate progress towards a Single Economic Market…
We will contribute to the deepening of the trans-Tasman economic relationship committed to by the New Zealand and Australian Prime Ministers.
To do this, we will reduce regulatory costs for firms operating in both markets through the New Zealand and Australian regulatory reform programmes. We will cooperate with Australia to influence global policy settings that impact on the performance of New Zealand and Australian firms and sectors – for instance, through our work on international financial reporting standards. We will also work to enhance trans-Tasman cross--border insolvency arrangements, so that insolvency processes can be dealt with more effectively for companies under financial distress that have interests on both sides of the Tasman.
… support advancement of other international economic linkages…
We will continue to support New Zealand trade-negotiating efforts, with particular emphasis on taking forward the Trans-Pacific Partnership Agreement.
… improve tourism marketing, infrastructure, and practices…
We will work with Tourism New Zealand to increase and better target tourism marketing in key high-value markets and market segments. We will also work with Tourism New Zealand and other agencies to improve tourism yield by helping the industry to upgrade tourism quality standards and practices.
… strengthen New Zealand's brand through major events…
We will work with other key government agencies to develop a common branding to promote New Zealand offshore – including capitalising on international exposure activities such as the Rugby World Cup 2011.
… and maximise the benefits to New Zealand from the Rugby World Cup
We will work with Rugby World Cup stakeholders in the public and private sectors to ensure a lasting positive impact and legacy for New Zealand from hosting this major event.
How we will measure progress
We will know there have been improvements in the international linkages that allow New Zealand firms to increase their productivity if, over the long term, we maintain and, if possible, grow the value of New Zealand exports and outward investment as a percentage of GDP, along with New Zealand's share of world trade.
More specifically, we will know we are achieving our intended results when:
- firms accessing relevant business support achieve higher levels of business growth, productivity, and value added than would otherwise have been the case
- trade and investment flows increase within the Trans-Tasman Single Economic Market and with other countries with which we have negotiated trade agreements
- New Zealand improves its ranking against selected criteria from international tourism competitiveness measures such as the World Economic Forum's Travel and Tourism Competitiveness Report
- a 2011 Rugby World Cup post-project review indicates that the Rugby World Cup will have a lasting economic benefit to New Zealand.
Dynamic and trusted markets
What we are seeking to achieve
Our overall aim in this area is to help develop markets that drive economic productivity and growth through the provision of finance, efficient and effective encouragement of competition, and fostering of creativity and innovation. Restoring investor confidence will be particularly critical given the recent performance of the financial sector both domestically and internationally.
We will therefore work towards:
- restored and increased confidence in the financial market
- well informed and adequately protected consumers
- effective competition and incentives that encourage business investment
- easier access to capital for New Zealand businesses.
What we will do to achieve this
We will work to improve financial and consumer regulation…
We will implement an effective regime for the regulation of financial service providers. We will also review the effectiveness of the Securities Act and the financial reporting framework.
We will review consumer legislation with the aim of achieving principle-based legislation covering all trading transactions, a consolidation and simplification of existing legislation, and an improvement in the operation of consumer credit markets. We will work to achieve ‘One Door' for information, complaints, and disputes.
… strengthen competition and investment incentives…
We will work closely with the Commerce Commission to ensure it is well placed to promote effective competition and complete implementation of the new regime for the regulation of natural monopolies to provide incentives for long-term investment.
… and facilitate the development of financial markets…
We will support and work actively with the Capital Markets Development Task Force to identify and pursue measures to allow firms to raise capital more easily and to improve financial market regulation and infrastructure.
… and carbon markets
We will support the development of policy in response to climate change. Our focus will be on emissions trading and associated measures and the impacts on firms in general, and on the energy and tourism sectors in particular.
How we will measure progress
We will know that New Zealand markets are becoming more dynamic and trusted if, over the long term, we see improvements in New Zealand's position on the OECD's product market regulation and competition index and in the overall development of New Zealand's financial markets.
More specifically, we will know we are achieving our intended results when:
- surveys of financial sector customers show an improvement in confidence in financial markets
- surveys of consumers and traders show an increasing knowledge of and compliance with consumer law
- there is increased investment in industries covered by the implementation of the new regime for the regulation of natural monopolies
- New Zealand's ranking increases on the Milken Institute's Capital Access Index.
Ease of doing business
What we are seeking to achieve
Our overall aim in this area is to ensure business has high-quality interactions with public agencies, which minimise compliance costs and enhance firm productivity. This is particularly important for small businesses, on which these costs fall disproportionately.
We will therefore work towards:
- an efficient regulatory environment that does not unnecessarily impose burdens on business
- more streamlined business-government interactions that allow businesses to transact with government quickly, cheaply, and effectively.
What we will do to achieve this
We will work to review, simplify and improve regulation…
We will work in partnership with the Treasury to develop and implement a regulatory review programme and provide the Government with advice on general and specific improvements to the regulation-making system (including advice on international best practice).
We will intensify our focus on reviewing and commenting on the business compliance costs of new regulatory proposals, including ensuring that the full impact on small businesses is taken into account.
We will provide training to government agencies in the use of the Business Cost Calculator. We will use data generated by the calculator to give Ministers a clearer idea of the annual compliance impact of new regulations.
We will work with business and across government agencies to identify inefficient, ineffective, and superfluous regulations. We will also coordinate the development of an annual Regulatory Reform Bill as a key vehicle for removing or amending these regulations.
… provide a business perspective into major government decisions…
We will help the Government to ensure that the development and implementation of Government policies take account of the impact of these policies on business, particularly small business. This will include assessing the impact of environmental regulation with a view to minimising costs and maximising business opportunities.
… simplify government-business interactions…
We will coordinate cross-agency efforts to simplify transactions between government and business, including advancing initiatives aimed at reducing the reporting obligations of business. The business portal will be developed as the principal information and transactional gateway for business dealings with government.
We will also continue to lead work to improve public sector procurement across government with the aim of increasing value for money and ensuring that domestic suppliers – including small New Zealand firms – are not disadvantaged.
… and continue to improve the Ministry's own services to business
We will achieve ISO accreditation for all the Ministry's service delivery units by 2011 and make all the Ministry's primary business services available electronically by 2010.
How we will measure progress
We will know that New Zealand has an increasingly business-friendly environment if, over the long term, we maintain and, if possible, improve our overall position in the World Bank ease of doing business survey.
More specifically, we will know we are achieving our intended results when:
- we at least maintain and, if possible, improve our position in relation to the opening and closing a business indicators in the World Bank survey
- the Ministry's service delivery units maintain or improve their position in the annual Business New Zealand/KPMG compliance cost survey.
Efficient, reliable, and responsive infrastructure services
What we are seeking to achieve
We will support the Government's goal of achieving a step up in infrastructure investment to support increased productivity and economic growth.
We will therefore work towards:
- a more competitive communications market
- an ultra-fast broadband network covering 75 percent of the population
- competitive and secure energy supplies
- improved energy and health outcomes through increased energy efficiency
- increased contribution of New Zealand's mineral and petroleum resources to economic development.
What we will do to achieve this
We will work to facilitate the rollout of ultra-fast broadband…
We will advise on implementation of an ultra-fast broadband network. We will also support Ministers in using government investment and policy settings to secure increased private sector investment in such broadband networks.
We will review telecommunications regulation to identify any necessary regulatory changes to facilitate the rollout of the ultra-fast broadband network, while maintaining regulatory stability to minimise uncertainty for investors.
We will work with the Ministries of Education and Health to coordinate ICT-related investment across the education and health sectors and look at how the government can use the ultra-fast broadband network to deliver services more productively. We will also work with the Ministry of Education and other agencies to increase digital literacy.
… enhance security of energy supply and competitive energy markets…
We will assist with a review of electricity market performance to increase the contribution of the electricity sector to economic growth by providing security of supply and efficient prices. This review will also consider regulatory and governance arrangements in the electricity sector to remove any unnecessary duplication, minimise the costs of regulation, and improve the investment environment for new electricity transmission and generation.
We will update the New Zealand Energy Strategy so that it better aligns with the Government's security of supply, economic growth, and affordable electricity priorities, while maintaining a focus on energy efficiency, the development of renewables, and the impact of the energy sector on the environment.
… deliver the benefits of energy efficiency to more New Zealanders…
We will advise on ways to help industry, small business, and New Zealanders be more energy efficient. In particular, we will work with the Energy Efficiency and Conservation Authority and the private sector to insulate more New Zealand houses.
… promote development of New Zealand's mineral and petroleum resources…
We will fund seismic and technical work to improve understanding of the New Zealand minerals estate and use this work to promote further private sector investment. We will also review how we can provide greater access to the estate without compromising other land values.
We will review our domestic petroleum policy, licensing, and fiscal regimes to ensure they reflect best international practice.
… and contribute to other work to raise the quality of our infrastructure
We will support wider efforts to raise the quality of our infrastructure and reduce business costs. This will include contributing to reform of the Resource Management Act and to the development of a National Infrastructure Plan.
How we will measure progress
We will know New Zealand has more efficient, reliable, and responsive infrastructure services when there is an increase in the perceived quality of New Zealand's infrastructure as assessed in World Economic Forum Global Competitiveness reports.
More specifically, we will know we are achieving our intended results when:
- an ultra-fast broadband network is available to a substantial proportion of priority users – businesses, schools, and health services – by 2015 and to 75 percent of the population by 2019, at internationally competitive prices
- electricity system interruption indices continue to reduce at the current rate and New Zealand's position in the OECD league table for electricity prices remains the same or improves
- New Zealand generates more value per unit of energy consumed, measured on a sector-by-sector basis
- there is an increase in New Zealand petroleum and mineral exploration, appraisal, production, and associated government revenues.
Auckland – productive and competitive
What we are seeking to achieve
Our overall aim in this area is that Auckland becomes a more productive and competitive city, driving wider national economic development.
We will therefore work towards:
- more efficient and productive Auckland infrastructure
- improved Auckland governance that leads to more effective decision-making.
What we will do to achieve this
We will help the Government lift the performance of Auckland's infrastructure…
We will help the Government identify ways to increase Auckland's contribution to economic growth, by focusing on the development and use of Auckland's infrastructure.
This includes helping to strengthen links between Auckland infrastructure and national infrastructure, accelerate the development of Auckland's waterfront, progress tourism infrastructure opportunities in the region, and ensure Auckland is well prepared to host the Rugby World Cup and to secure lasting benefits from it.
… and improve its governance
We will help the Government develop its response to the economic development aspects of the Royal Commission's report on Auckland. Our focus will be on how improved governance can assist Auckland's – and therefore New Zealand's – economic development.
How we will measure progress
We will know Auckland has become a more productive and competitive city if, in the long term, it improves its ranking relative to comparable international cities on quality of living, average income, labour productivity, and employment in medium- and high-tech manufacturing and knowledge-intensive services.
More specifically, we will know we are achieving our intended results when:
- the quality of Auckland's infrastructure improves relative to other major international cities
- key business stakeholders think that Auckland's governance has improved and that this improvement is leading to more timely and effective decision-making.
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