Recommendations

1. Note that Cabinet directed MED, MAF and NZTE, in conjunction with TEC, MSD and FRST, and in consultation with the Treasury, to report to Ministers of Economic Development, Social Development and Employment/Associate Education (Tertiary Education), Agriculture and Research, Science and Technology with a proposal for engaging with the food and beverage sector by 30 August 2004, with a subsequent report to Cabinet by 30 September 2004;

2. Note that there is support among industry stakeholders for a Food and Beverage engagement, with the proviso that key sector and government leaders are involved and the full range of issues are considered;

3. Agree that the Food and Beverage engagement will extend over the full range of the value chain from pre-farm gate to consumer, including production, processing, marketing and market and product development, distribution, and consumption (including the hospitality industry);

4. Agree that the ministers responsible for the engagement will be the Minister for Economic Development and the Minister of Agriculture, and that the Food and Beverage Taskforce will report to them;

5. Agree that the Minister for Economic Development will take the role of Co-Chair; and that the Minister of Agriculture will also be a full member of the Taskforce;

6. Note that other key Ministers whose portfolios impact directly on the Food and Beverage Sector, such as (but not limited to) the Minister of Research, Science and Technology, the Minister for Food Safety, the Minister of Fisheries, and the Minister for Social Development and Employment and Associate Minister of Education (Tertiary Education) will be co-opted to participate in Taskforce meetings as required;

7. Note that as innovation will be an important theme in the Taskforce's work, GIF Ministers will be kept appraised of progress;

8. Agree to the Terms of Reference attached as Annex 1;

9. Agree that the vehicle for the engagement be a core Taskforce made up of approximately 17 members (including Ministers and the Chief Executives of the Ministry of Agriculture and Forestry, and New Zealand Trade and Enterprise) and that this group be empowered to convene Working Groups with expertise drawn from outside the core group, including relevant government officials;

10. Agree that Taskforce members, other than the Co-Chair, will not be paid, but will be reimbursed for travel and accommodation costs, and that the cost of participation by government officials, e.g. at the working group level, will be borne by their respective agencies;

11. Agree that the private sector Co-Chair be paid the equivalent of a director's fee commensurate with that paid to the Chair of the Growth and Innovation Advisory Board, subject to being consistent with the Cabinet fees framework for members of statutory and other bodies appointed by the Crown, or going through a process for granting an exception to the framework;

12. Note that a list of three options for private sector Co-Chair of the Taskforce is attached as Annex 2;

13. Note that a list of recommended candidates from which the final Taskforce members might be drawn is attached as Annex 3;

14. Agree that the final selections for Taskforce membership, including the Co-Chair, will be submitted to Cabinet by the Minister for Economic Development and the Minister of Agriculture for approval, by November 2004;

15. Agree that the recommendations of the Taskforce may be implemented as they are agreed rather than be delayed until the Taskforce is concluded;

16. Agree that NZTE and MAF will be joint lead agencies in charge of the Food and Beverage engagement process;

17 Note that oversight and monitoring of the engagement at the officials' level will be provided by an Officials Oversight Committee comprised of the engagement project manager and representatives from NZTE, MAF, NZFSA and MED and that this Committee will report to the Minister for Economic Development and the Minister of Agriculture quarterly;

18. Note that managing the issues and inter-relationships between government agencies will require close working relationships and a willingness to change the management of the process as it progresses if that is required;

19. Note that the engagement process is estimated to cost $800 000 over two years (to June 2006) and will be funded out of NZTE baselines;

20. Note that Ministers will need to consider potential fiscal implications of the current engagement process in establishing a contingency for the 2005 GIF Budget;

21. Note that officials are developing a communications strategy in consultation with Ministers' offices to be finalised by October 29, 2004.