E-Government Issues in New Zealand Eric Deakins Alison Caves Stuart M. Dillon Department of Management Systems Waikato Management School University of Waikato Hamilton, New Zealand. Email: [email protected] Abstract In New Zealand there are plans to create an e-government that will automate government-to-government, government to business, and government-to-citizen interactions and allow anyone anywhere to go online anytime to obtain information, to complete transactions, and to communicate with their elected representatives, cheaply, quickly and efficiently. To aid the development of e-government policies that suit the New Zealand environment, sixteen key issues that various authors argue must be included in US e-government policy are defined and evaluated, together with several other issues that are specific to the NZ scene.

Keywords: Governmental Issues, E-Government

INTRODUCTION The New Zealand (NZ) government is determined not to let NZ fall too far behind the global leaders in ecommerce application, especially with regard to e-government (Barton et al. 2000, NZ E-Commerce Strategy 2000, Story 2000). It plans to create an e-government that will automate government-to-government, government to business, and government-to-citizen interactions and allow anyone anywhere to go online anytime to obtain information, to complete transactions, and to communicate with their elected representatives, cheaply, quickly and efficiently (Bingham and Thomas 1998, Gostyla 2000, NZ E-Commerce Strategy 2000, Verton 2000, Wood-Lewis 1998). With a NZ population of 3.8 million the average number of active (home) connections to the Internet routinely exceeds one million each month (http://www.nielsennetratings.com/hot_off_the_net.jsp). This level of activity offers the NZ government the opportunity to communicate and transact online with many of its citizens.

REVIEW OF THE NEW ZEALAND E-GOVERNMENT SCENE A review of the New Zealand e-government scene was undertaken to allow comparison with results obtained from an earlier (Deakins et al. 2001) study of the US e-government scene. While acknowledging that other countries also have an immense amount of e-government literature and resources, e.g. the Australian National Office for the Information Economy (NOIE) (http://www.noie.gov.au), the earlier study was undertaken using the US as its focus because of the advanced nature of e-government in that country and its dominance of the egovernment literature. This section reviews the New Zealand e-government scene by discussing: the December 2000 status of NZ government websites, the NZ government’s e-commerce and e-government policies, and the issues surrounding the development of an e-government in NZ. It concludes with a comparison of e-government progress in NZ and the US. NZ Government Websites Like the US scene on a somewhat smaller scale, the NZ-government website scene is fragmented and information regarding local, regional, and national governments is presented in numerous websites. Similar to the US, the NZ government has developed a portal called NZ Government Online (NZGO) (http://www.nzgo.govt.nz) that provides links to a vast amount of government-related information. For example, from the NZGO site citizens are directed to central government websites (e.g., the legislative-, executive-, and judiciary-branch websites), regional and local government websites, and various government departments. However, a typical NZ regional government website is not as well developed as some in the US. For example, many US citizens can go online to file taxes, pay fines, renew driver’s licences, and register vehicles (Tillett 2000, Verton 2000); in NZ, electronic government services such as these are not yet available (Story 2000).

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Although New Zealanders can go online to obtain government-related information, it will be 2004 before even central NZ government develops online services to a point where “we’ll be paying taxes and fines; registering births, deaths, and cars; and generally interacting online.” (Story 2000, p.16) Notwithstanding this, some local NZ government initiatives have received international recognition. For example, in 1993 the Christchurch City Council (http://www.ccc.govt.nz) was awarded the prestigious Carl Bertelsmann Prize for excellence as a local government (Jones and Hampton 1995). This award, which recognised NZ “as an international leader in the field of local government reform”, shows that NZ is capable of restructuring its governments to successfully and effectively meet the needs of its citizens (Jones and Hampton 1995, p.22). Similarly, the Bay of Plenty Regional Council (BOPRC) website (http://envbop.govt.nz), the Canterbury Regional Council (CRC) website (http://www.ecan.govt.nz), and the Hawke’s Bay Regional Council (HBRC) website (http://www.bhrc.govt.nz), have been dubbed “good example sites”, by the Oultwood Local Government Web Site Index (http://www.oultwood.com/ localgov/goodpractice.htm). They have been praised for having some ideal features such as Council’s Responsibilities (BOPRC), GIS mapping (CRC), and Press Releases (HBRC) (Oultwood 2000). NZ Government e-Commerce and e-Government Policies According to Story (2000, p.16), “New Zealand is lagging behind its trading partners, and other governments in e-government.” However, the NZ government is determined not to let NZ fall too far behind the rest of the digital economy; therefore, “over the next four years, it has budgeted NZ$15million to embrace the world of egovernment.” (Story 2000, p.16) It has plans to develop e-government websites that “deliver better quality, cheaper, and faster services to its customers through the introduction of online services…and e-procurement.” (NZ E-Commerce Strategy 2000, p.11) Indeed, the recently released e-commerce strategy and vision for the future forecasts New Zealand will be world-class in embracing e-commerce for competitive advantage (Barton et al. 2000, NZ E-Commerce Strategy 2000). This broad-based e-commerce strategy has four main goals: 1. 2. 3. 4.

To capitalise fully on our competitive advantages in a networked world To support enterprise by providing an environment that rewards innovation and entrepreneurship To foster the highest quality e-commerce skills to build innovation, technical, and management capability To provide an environment that supports ICT (Information Communication Technology) infrastructure development, business performance, and increased economic well being for individuals. (NZ E-Commerce Strategy 2000)

Furthermore, the strategy projects three general goals: 1. 2. 3.

To make all New Zealanders capable of using telephones, PCs, and the Internet to access government information To reduce the cost of corporate compliance; and To give people a say in policy.

The NZ government continues to submit e-commerce and e-government strategies to the public for debate. For example, a document entitled “Guidelines for the Use, Management, and Design of New Zealand Public Sector Websites” (Guidelines 2000) has been released and the first “E-Commerce Summit” was held in Auckland. The government hopes these initiatives will stimulate dialogue and discussion with regard to the development of ecommerce and e-government in NZ that will help to develop widely accepted standards, practices, and legislation, e.g. Guidelines (2000). Thus far, such initiatives have received mixed feedback in the media: • • •

“If the Government is to succeed, it will have to set not just goals, but a timetable for their achievement” (Bingham et al. 2000, p.1) They need to create “ a sense of urgency” (Bingham et al. 2000, p.1) They need “more aggression in setting and achieving measurable e-commerce goals.” (Foreman et al. 2000, p.1)

Nevertheless, Barton et al. (2000) report some specifics and deadlines that suggest the government is paying attention to some of the feedback it is receiving and is adjusting its strategies accordingly. Issues Surrounding the Development of e-Government in NZ The main purpose of the present research was to aid the development of NZ e-government policies via identification of key e-government issues. Given the lack of a theoretical framework, the first step involved

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identification of issues that various authors argue must be included in US e-government policy, Deakins et al. (2001). In Figure 1, sixteen key issues are grouped into 6 interrelated areas: Worth, Access, Relationships , Regulation, Protection, and Societal (WARRPS). It was initially assumed that, while NZ has a smaller economy and population and a different governing system to the US, the same issues-set would apply in general to the NZ situation. Those identified from the US scene considered to apply directly to the NZ e-government scene (judged by a lack of contrary evidence) were issues of: Worth (Efficiency, E-procurement), Relationships (E-tailing), Protection (Security, Privacy), and Societal (Cultural Obstacles, Social Effects). These are fully described in Deakins et al. (2001). Further investigation revealed that several of the issues required modification for the NZ environment: Access (Accessibility, Digital Divide, Indigenous Peoples), Relationships (Consumer Confidence, Private Sector, Trust), Regulation (Taxation, Legislation), and Societal (The IT Workforce). These issues are now discussed.

Societal Cultural Obstacles

Relationships

Regulation

The IT Work Force

E-tailing

Social Effects Taxation

Consumer Confidence

Access

Private Sector

Accessibility

Trust

Digital Divide

Legislation

Indigenous Peoples

Worth

Efficiency

Security

E-procurement

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Protection

Figure 1: Key issues for the creation of e-government in the US (Deakins et al. 2001) Access - Accessibility and the Digital Divide The US is not the only country trying to “close the gaps” (Barton et al. 2000, Foreman et al. 2000, US ECommerce Policy 2000). New Zealand, like many other countries around the world, is experiencing an unequal distribution of access to the Internet and social services, reflecting the divisions in socio-economic welfare in the country (Foreman et al. 2000, NZ E-Commerce Strategy 2000, US E-Commerce Policy 2000). However, in NZ the digital divide not only exists between the rich and the poor but also between citizens who live in the cities and in more remote rural areas and urban communities (Barton et al. 2000, Foreman et al. 2000). In an attempt to start bridging the digital divide, the NZ government aims to provide low-cost public access to computers and the Internet at the community level, in places such as libraries and Mäori meeting places (Foreman et al. 2000, NZ E-Commerce Strategy 2000). To bridge the digital divide and alleviate social welfare problems, the NZ government has also implemented a “Closing the Gaps” policy that aims to provide lessadvantaged citizens - often Mäori citizens living in rural and low socio-economic areas having limited opportunities - with low-cost public access to social services such as health care, education, and the Internet (Bingham et al. 2000, Gregory 2000, Young and Devereux 2000). Although the NZ government has attempted to address criticisms by stating that the [Policy] “will be changed to make it clear it did not entitle Mäori to preferential treatment” (Bingham et al. 2000, p.1), many citizens both

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Mäori and non-Mäori have criticised the programme because gap closing is too slow and because of perceptions that Mäori receive preferential treatment (Bingham et al. 2000, Gregory 2000, Young and Devereux 2000). Access - Indigenous Peoples There remain many unresolved issues between the NZ government and the indigenous peoples residing in NZ, including the ongoing debates about Mäori land claims and compensation (Bingham et al. 2000, Gregory 2000, Young and Devereux 2000). While e-government is seen as one way to help “close the gaps,” NZ Mäori communities and leaders are concerned about the effect the Internet and e-government will have on Mäori culture, values, rights, privacy, and cultural and intellectual property (Forbes et al. 2000). Similar to the Native American Indian, Pacific Island and Asian cultures, Mäori culture contains unique stories, myths, and beliefs that are communicated orally from generation to generation (Forbes et al. 2000) and Mäori leaders are concerned to protect this intellectual and cultural property. Indeed, current intellectual property laws do not protect traditional, indigenous, or communal knowledge; this knowledge is rejected as unsuitable for protection (Forbes et al. 2000). Hence, Mäori are concerned their sacred knowledge will become available worldwide and will be used by others for commercial gain, or used insensitively. While some Mäori people currently have a “distrust of the Internet as a medium for sharing certain kinds of information… it is clear that Mäori are increasingly interested in the Internet” because many Maori organizations and communities are developing their own websites (Forbes et al. 2000). To ensure the sharing of common goals in regard to e-commerce and e-government, the NZ government plans to consider the cultural and intellectual property rights of NZ Mäori and those of other NZ-residing indigenous peoples, as well as the inclusion of Te Reo Mäori (Mäori language) on government websites, e.g. (Guidelines 2000). Relationships - Private Sector As is the case in the US, the NZ government has much to gain from obtaining the support and feedback of the private sector before e-government services are implemented. Indeed, the NZ government already relies on a partnership with the private sector to implement and foster its e-commerce strategy (NZ E-Commerce Strategy 2000). The private sector, in turn, relies on the government to support e-commerce growth for businesses; “if we want an e-commerce-ready private sector we need an e-government-enabled private sector.” (Story 2000, p.17) However, some commentators are critical of the government’s e-commerce implementation as demonstrated todate. For example, Barton et al. (2000, p. D4) state: “efforts to inject some ‘e’ into government have had varying success” and reports that the NZGO portal, which aims to link citizens to a vast amount of government-related information, often displays a “service error” that suggests “notions of a 24-hour, 7-day online relationship still haven’t reached the public sector.” (Barton et al. 2000, p. D4) Barton et al. also criticise the NZ government because “some sites are technically below par, behaving as if they are still on intranets accessible to viewers with fast computers and high network bandwidth.” Relationships - Consumer Confidence and Trust In NZ, consumer confidence and trust in the Internet as well as e-commerce and e-government is relatively low because many NZ citizens continue to be concerned with privacy and security issues. This is an important issue given that “New Zealand’s uptake of EFTPOS and ATM technologies is the highest in the world,” which suggests New Zealanders have a “strong level of comfort with performing electronic transactions they trust.” (Barton et al. 2000, p. D2) Given New Zealand’s geographic location and small marketplace, it is probably even more important than in the US that the NZ government, as a key part of its e-government and e-commerce strategies, is able to instil in all of its citizens, communities, and private and public sector organisations, consumer confidence and trust in the global Internet and in the government itself (Barton et al. 2000, NZ E-Commerce Strategy 2000). Regulation - Legislation In contrast to the US, that has recently introduced the “Electronic Signatures in Global and National Commerce Act” intended to provide legal protections online that are equivalent to those in the offline world (US ECommerce Policy 2000), the NZ government has not yet passed legislation governing online contracts and taxation of electronic transactions (Holland 1998, Morrison 1999, NZ E-Commerce Strategy 2000, Scott et al., 2000).

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The NZ government plans to introduce legislation, such as the Electronic Transactions Bill, by the end of 2001. This Act will address a broad range of issues raised by e-commerce including privacy, equivalent legal protection for online and offline transactions, cyber-crime, using electronic communications as evidence in court, and intellectual property (Anonymous 1999, NZ E-Commerce Strategy 2000, Scott et al. 2000). Regulation - Taxation The subject of taxation of the Internet is at the forefront of international e-commerce legislation debate and the NZ government remains undecided on where to head with its own legislation; it does not want to introduce laws that are unnecessary, or restrictive to the development and growth of e-commerce (Barton et al. 2000, Holland 1998, Morrison 1999). Akin to the US and Australia, the NZ Inland Revenue Department supports global taxa tion principles proposed by the Organisation for Economic Cooperation and Development (OECD). However, when compared with the US and Australia, the NZ government appears to be taking a more passive stance in global developments, opting to consult with the private sector, contribute to international initiatives, and remain prepared to react if it becomes imperative. Nevertheless, the e-commerce taxation stance the NZ government espouses is one of “tax neutrality”, which proposes that off-line transactions be treated in the same way as online transactions (Barton et al. 2000, Holland 1998, Morrison 1999). Societal – The IT Workforce Like the US, the NZ government is concerned about the local IT workforce (Braddell 2000, NZ E-Commerce Strategy 2000). However, whereas the US government is concerned that between 60% and 70% of its 70,000 federal IT workers will become eligible for retirement by 2003 (Verton 2000), NZ is already experiencing a shortage of technical IT graduates and people with management, leadership, and entrepreneurial e-commerce skills (Braddell 2000, NZ E-Commerce Strategy 2000). In addition, many of the e-commerce-skilled workers in NZ have tended to migrate to other countries, including the US, where they receive higher rates of pay and perceive that there are better career opportunities to be had (NZ E-Commerce Strategy 2000). The NZ government recognises this problem and has dedicated resources to encouraging, supporting, educating, and training young New Zealanders in the area of e-commerce and ICT’s (NZ E-Commerce Strategy 2000). Furthermore, the NZ government is currently “reviewing its immigration policy to make it easer for new economy -skilled migrants to enter” the NZ workforce (Braddell 2000, p1). Issues Specific to the New Zealand e-commerce environment Some additional issues identified in the literature that are specific to the NZ e-government scene, or deserve special recognition, will now be discussed. These are: Available Bandwidth, New Zealand Attitudes, Weaknesses and Threats, and General Readiness (APEC 2000, Barton et al. 2000, NZ E-Commerce Strategy 2000). Available Bandwidth Telecommunications within many rural areas can be very slow and computers often crash due to the difficulty of getting information ‘down the lines’. Consequently, much of New Zealand’s vital wealth-producing agricultural sector is adversely impacted by bandwidth restrictions and is losing out on e-commerce opportunities (Barton et al. 2000, Foreman et al. 2000). More generally, citizens in relatively isolated areas of NZ, irrespective of their level of wealth, do not have access to the Internet because of bandwidth problems (Foreman et al. 2000, Guidelines 2000, Telecommunications Inquiry 2000). Consequently, the government and private sector are urging telecommunications companies to improve the bandwidth infrastructure throughout NZ (Barton et al. 2000, Foreman et al. 2000). The NZ government has recently concluded a “Ministerial Inquiry into Telecommunications”, which aims to address the bandwidth issue (Telecommunications Inquiry 2000). New Zealand Attitudes Leaders of several private sector businesses hold beliefs and attitudes that make them reluctant to jump on the ecommerce bandwagon (Barton et al. 2000). Although they can see the benefits of e-commerce and have developed websites, and use the Internet to support their traditional business operations, they believe that “local businesses have always differentiated themselves through great personalised service and should continue to do exactly that.” (Barton et al. 2000) It is possible that such patterns of behaviour will translate into a general

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reluctance of NZ citizens to use online e-government initiatives, -irrespective of the benefits to citizens promoted by government. Addressing such beliefs is likely to pose quite a challenge. Weaknesses and Threats The NZ government must address a variety of weaknesses and threats that, if ignored, will create barriers to the successful implementation of e-government services. Building on the issues previously discussed, the weaknesses and threats specific to NZ’s current e-commerce environment include: 1. A shortage of management, leadership, and entrepreneurial e-commerce skills 2. Varying ICT-literacy in the community as a whole 3. A relatively low level of understanding of the opportunities afforded by e-commerce and ICT revolution 4. A relatively low appreciation of globalisation 5. An uneven distribution of infrastructure capability at reasonable cost, particularly in rural communities 6. A lack of integration or connectivity to global business networks 7. A short supply of technical graduates from tertiary institutions 8. Competition for skilled labour 9. The emigration of skilled and talented New Zealanders 10. The need to develop an innovation culture 11. A lack of good quality information to support policy formation and inform how we are portrayed in the wider world 12. An aging population 13. Policy challenges 14. Risks to incumbent firms (NZ E-Commerce Strategy 2000) General Readiness Probably the most important issues that the NZ government must address concern (general) readiness. “Readiness is the degree to which an economy or community is prepared to participate in the digital economy.” (APEC 2000, p.1) The APEC Readiness Initiative states that different economies are at different stages of development in terms of their “regulatory, social, economic, and cultural frameworks”, and “these differences mean that all economies will encounter different challenges in the development of e-commerce.” (APEC 2000, p.1) Accordingly, six broad indicators help determine an economy’s overall readiness to participate in the digital economy. These are “developed into a series of questions that provide direction as to desirable policies that will promote e-commerce and remove barriers to electronic trade.” (APEC 2000, p.1) Hence, NZ must address the following issues before it may be considered “completely ready” to successfully implement e-government services: 1.

2. 3. 4. 5. 6.

Basic infrastructure and technology: access to basic infrastructure, speed and functionality of the infrastructure, price, reliability, availability of terminal equipment, infrastructure market conditions, interconnection, and interoperability Access to necessary services: including non-IT services and distribution channels Current level and type of use of the Internet Promotion and facilitation activities Skills and human resources Positioning for the digital economy: taxation, legal framework, electronic authentication, security and encryption, copyright, liability, content, privacy, consumer confidence.

COMPARISON OF E-GOVERNMENT PROGRESS IN NZ AND THE US The US federal government believes it is important to provide e-government services to save time and money, reduce bureaucracy, make the government more responsive to the needs of citizens, and expand opportunities for participation in the digital economy (Gostyla 2000, Whitehouse 2000). The US is leading the way in Internet usage and e-commerce application and in government-related e-commerce (Barton et al. 2000). Although the NZ government has developed an e-government strategy, the NZ e-government scene is not as advanced as in the US. Both governments have recognised the “enormous potential of electronic commerce to expand business opportunities, reduce costs, increase efficiency, improve the quality of life, and facilitate the greater participation of small business in commerce” (APEC 2000, p.1) and have developed e-commerce strategies that aim to take advantage of these opportunities. US e-commerce and e-government websites are generally considered to be ideal models on which to base NZ e-commerce and e-government websites, particularly the Boston, DMV, and

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Minnesota websites, as well as the ‘Electronic Commerce Resource Centre’, ‘Access America’, ‘online grant and procurement’, and ‘cash incentives for e-government ideas’ initiatives (Deakins et al. 2001). It is recommended that NZ government bodies and other public sector organisations consult this publication before they develop their websites, in order that they might achieve a consistently high standard of design, use, and management procedures.

RECOMMENDATIONS This paper has attempted to summarise 16 key issues that the NZ government must address when developing its own e-government policies and implementation initiatives. The NZ government should consider the various key issues and ideal features discussed throughout this paper and learn from existing e-government websites in NZ and overseas. It should then seek to combine the best of all of these ideas to develop policies that suit the NZ environment. The NZ government would also be well advised to use the results of an APEC “Readiness Assessment” evaluation to help determine the economy’s general readiness to implement national e-government services and to participate successfully in the global digital economy (APEC 2000). From such considerations it is recommended that, in particular, the NZ government take responsibility for the development of e-government websites that: 1. 2. 3. 4. 5. 6.

Address privacy and security issues, to increase consumer confidence and trust Describe e-commerce legislation, including taxation and privacy legislation Are physically accessible to all NZ citizens including the potential IT workforce, indigenous peoples, and those adversely affected by the digital divide Have a multi-cultural perspective so that every New Zealand citizen can benefit to the same degree, regardless of their ethnicity Capitalise on e-procurement and e-tailing transaction efficiencies, -government-to-government, government to business, and government-to-citizen Encourage support and feedback from the private sector so as to foster new attitudes towards ecommerce and e-government.

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ACKNOWLEDGEMENTS The authors are pleased to acknowledge the generous, clear, and thoughtful suggestions made by the reviewers to improve an earlier version of this paper.

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