This document has been proactively released. Redactions made to the document have been made consistent with provisions of the Official Information Act 1982.
ECONOMIC DEVELOPMENT BRIEFING FOR THE INCOMING MINISTER
8 October 2014
Purpose The purpose of this initial briefing is to give the Incoming Minister sufficient information to meet their initial requirement. It is not intended to be a detailed analysis of the portfolio or of policy issues. The briefing is part of a wider process. Ministers will be able to call for a fuller briefing on issues of interest and importance to them during that process. This allows the initial briefing to be wide ranging, enabling the Minister to see the breadth of the portfolio, while still being concise.
Contents 1. Portfolio overview ................................................................................................................... 3 2. Portfolio responsibilities .......................................................................................................... 5 Portfolio functions and responsibilities ........................................................................................... 5 Appropriations ................................................................................................................................. 5 Legislative responsibilities ................................................................................................................ 6 Crown entities .................................................................................................................................. 6 Statutory or advisory bodies ............................................................................................................ 6 3. Focus for the first 100 days/current policy issues ..................................................................... 9 4. Ownership of MBIE interests ................................................................................................ 11 5. Key MBIE officials .................................................................................................................. 15 Annex 1: Funds and appropriations ............................................................................................... 18 Annex 2: Relevant legislation and regulations ............................................................................... 20 Annex 3: Crown entities and statutory bodies ............................................................................... 22 Annex 4: Key advisory boards ....................................................................................................... 25 Annex 5: Key stakeholders ............................................................................................................ 29
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1. Portfolio overview As Minister for Economic Development you have responsibility for portfolio areas that can have a significant impact on New Zealand’s long term economic performance. We would welcome a discussion with you to identify how we can assist your Government in achieving its economic development priorities. The Economic Development portfolio is wide ranging. Key areas of activity fall into the following areas:
Coordinating efforts across Government and across Ministerial portfolios to support the Business Growth Agenda As Minister for Economic Development and as ownership Minister for the Ministry of Business, Innovation and Employment (MBIE) we can support you to make the most of the opportunity that MBIE affords. That is – having a number of policy and delivery groups all working together to support growth for all New Zealanders. You have identified the 10 highest priorities for the Business Growth Agenda over the next three years. MBIE is well positioned to lead or support the achievement of these initiatives. MBIE and Treasury will work to support and coordinate the delivery of the full package of Business Growth Agenda initiatives.
Economic development policy MBIE provides advice on economic development strategy and enterprise support policy, including policy advice on the functions of New Zealand Trade and Enterprise (NZTE) and New Zealand Venture Investment Fund (NZVIF). We provide you with advice on the impact of programmes and areas for further exploration, and work with NZTE and NZVIF to help them implement programmes in a way that will achieve the intended results. We monitor both agencies on your behalf, and provide you with advice on their core accountability documents. MBIE is also an advisor to the Callaghan Innovation Board, which helps to reinforce strong linkages across enterprise, science and innovation activities. More broadly, we cover a range of policy areas including regional and sectoral policy and undertake major projects of importance to the Government, for example managing the Government’s interests in the New Zealand International Convention Centre. We also support Māori economic development including your initiatives to expand Māori and Pasifika Trades Training, lift innovation and exports through the new $8 million MBIE Māori Innovation Fund and the new $30 million Māori ICT Development Fund. Your portfolio includes responsibility for Information and Communications Technology (ICT). ICT leads to significant and sometimes fundamental changes to most sectors of the economy. There are opportunities to grow the IT and technology sectors and address some specific challenges the sector faces. The inter‐related nature of ICT issues lends itself to a cross‐portfolio approach to realise the productivity gains and economic opportunities. We would welcome a discussion on the development of a cross‐portfolio approach to ICT and how it fits with the Government’s economic development and broader priorities. 3
New Zealand is a member of the Small Advanced Economies Initiative, which it initiated. The other members are Denmark, Finland, Ireland, Israel and Singapore. One of the initiative’s three streams covers economic policy. The initiative provides an opportunity to share insights about what does and doesn’t work in economic development policy across countries that, to some extent, face similar challenges. The other two streams in the initiative are science and innovation, and foreign affairs. MBIE leads the economic and science and innovation streams – and coordinates this across government agencies.
Government procurement MBIE provides you advice on government procurement policy. In 2012 the Government invested in building procurement capability across government by launching the Procurement Functional Leadership (PFL) programme. MBIE’s chief executive is the functional lead for government procurement with three objectives:
to lift performance, add value and maximise results
to create an environment where New Zealand businesses can succeed
to unlock cost savings.
Major events MBIE provides you with policy advice on government investment in major events. MBIE manages the Major Events Development Fund (MEDF), which has three investment rounds per year. The MEDF has a total appropriation of $10 million per annum. A Ministerial committee makes final decisions after receiving advice from the Major Events Investment Panel, which is made up of private and public sector chief executives. MBIE also manages the Government’s involvement in the America’s Cup through the Major Events team.
Result 9 As Minister for Economic Development you are responsible for the Result 9: Better Public Services for Business programme. Result 9 seeks to reduce the costs to businesses of interacting with government by 25% and improve service performance to that of private sector firms by 2017. Result 9 is a collaborative programme led by MBIE and includes eight partner agencies. Result 9’s focus on integrated service delivery and shared accountability has the potential to transform the public service through:
taking a more “joined up” approach across government agencies
working with businesses to identify and design services that best meet their needs
raising the bar for business customer service throughout the public sector.
A separate, fuller briefing on Result 9 will be provided to you shortly.
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2. Portfolio responsibilities In this section, we provide an overview of your responsibilities as Minister for Economic Development and Minister responsible for MBIE, as well as an overview of MBIE’s functions and roles.
Portfolio functions and responsibilities Vote Economic Development and Employment includes appropriations that the Minister for Economic Development, the Minister for Tertiary Education, Skills and Employment, and the Minister for Small Business are individually responsible for. The key functions within the Economic Development portfolio are: economic development policy advice (including business and enterprise support, regional and sector development, Māori economic development), major events strategy and funding, government procurement, Result 9, and monitoring and evaluation. Three entities carry out the functions within the portfolio: MBIE and two Crown Entities ‐ New Zealand Trade and Enterprise (NZTE), and the New Zealand Venture Investment Fund Limited (NZVIF).Detail on Ministerial responsibilities in relation to NZTE and NZVIF is set out in Annex 3. The employment portfolio provides employment information, facilitation and matching services, and analysis of the functioning of the labour market and the economic performance of sectors and regions. Further information on this portfolio is outlined in the briefing for the incoming Minister for Tertiary Education, Skills and Employment. The small business portfolio provides policy advice on lifting the capability and performance of small and medium sized enterprises (SMEs) and supports the Small Business Development Group. Further information on this portfolio is in the briefing for the incoming Minister for Small Business.
Ownership interests and role As the Minister responsible for MBIE, you are responsible to Parliament for the financial performance of MBIE and for protecting the Crown’s interest in MBIE. You are also responsible for the Crown’s interest in the Crown Entities within the Economic Development portfolio. Further information on ownership interests is provided in Section 4.
Appropriations The appropriations within Vote Economic Development and Employment that the Minister for Economic Development is responsible for in 2014/15 cover the following activities:
$24.239m for economic development policy advice and issues related to small and medium sized enterprises
$17.517m for implementation of improvements in public sector procurement and services to businesses
$2.557m for Canterbury recovery
$186.175m for purchasing outputs for services from NZTE, including $29.712m for NZTE’s International Growth Fund 5
$2.330m for purchasing outputs for services from NZVIF
Major grants programmes administered by MBIE include $10.000m for Major Events Development and $57.650m for the New Zealand Screen Production Grant
$15.628m in capital investments through NZVIF’s Venture Investment Fund and Seed Co‐ Investment Fund (SCIF) through their respective $160.000m and $40.000m capital allocations.
$92.817m for the Ministry’s capital expenditure ‐ this includes a $49.045m capital injection authorisation for 2014/15.
Further information on Vote Economic Development and Employment is provided in a summary in Annex 1.
Legislative responsibilities As Minister for Economic Development you are responsible for the following Acts:
New Zealand Trade and Enterprise Act 2003
Major Events Management Act 2007
New Zealand International Convention Centre Act 2013
More detail on the legislation can be found in Annex 2.
Crown entities As Minister for Economic Development you are responsible for monitoring the following Crown Entities:
New Zealand Trade and Enterprise
The New Zealand Venture Investment Fund Limited
Further information on these Crown entities is attached as Annex 3.
Statutory or advisory bodies As Minister for Economic Development you are responsible for the following statutory and advisory bodies:
New Zealand Trade and Enterprise Board
The New Zealand Venture Investment Fund Board (co‐monitored with Treasury)
Major Events Investment Panel
Māori Economic Development Advisory Board (joint with the Minister of Māori Development)
Screen Advisory Board (joint with the Minister of Culture and Heritage)
New Zealand Story Advisory Board.
More information on these statutory and advisory boards can be found in Annex 4.
The advice and support we provide you MBIE provides you with advice and support across your portfolio, including advice on: 6
economic development policy
Vote Economic Development and Employment advice, including planning and prioritisation processes and allocation
Crown entity monitoring, including commenting on draft statutory planning documents, developing and communicating the Government’s ownership priorities and objectives to NZTE and NZVIF and monitoring their performance
managing investment and grant processes, including the Major Events Development Fund and the New Zealand Screen Production Grant
managing and leading major projects, including the New Zealand International Convention Centre and Result 9.
Key contacts across MBIE can be found in Section 5.
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3. Focus for the first 100 days Issue
Description
Timing
Policy decisions Evaluations of enterprise MBIE will report to you on the outcomes of these evaluations. development programmes, including the Seed Co‐Investment Fund, the Venture Investment Fund, the International Growth Fund, and the Regional Business Partners Programme
By the end of 2014.
Upcoming appointments to NZTE, The terms of a number of Board members of NZTE, NZVIF and the New Zealand Story Board NZVIF, and the New Zealand expire in the next 12 months. Story Board
Discuss the appointment options with you from December 2014.
He Kai Kei Aku Ringa (HKKAR): The Crown‐ Māori Growth Partnership
The Advisory Board’s 6 monthly report will be released in late 2014, and the Board will seek to meet with you and the Minister for Māori Development.
This partnership seeks to support stronger economic outcomes for Māori by lifting the utilisation and value of the Māori asset base, increasing Māori participation in training and education, and supporting Māori businesses to develop their capability. The Māori Economic Development Advisory Board (the Advisory Board) was established in 2013 to provide advice on Māori economic development, particularly HKKAR related activities, to the Ministers for Economic Development and Māori Development and MBIE officials.
MBIE will prepare a briefing for you ahead of any meeting with the Advisory Board. Pacific Economic Development Strategy and Action Plan
The Pacific Economic Development Strategy and Action Plan is under development. We would like to discuss the next steps for this strategy and action plan with you.
November 2014.
Regional Growth Studies
MBIE and the Ministry for Primary Industries are leading work to evaluate opportunities to increase investment, employment and incomes in selected regions. Three in‐depth regional
We will report back to you on the findings and 8
Issue
Description
Timing
growth studies have been commissioned and are in various stages of development.
recommendations from the Northland Study.
Northland (June – December 2014)
Bay Of Plenty (August – February 2015)
Manawatū‐Whanganui (September – early New Year 2015)
In addition, an East Coast study was completed in May 2014. Major Events Development Fund (MEDF)investment round
The final MEDF investment round for 2014 closed on 15 September 2014. Four applications were received. The MEDF has a total appropriation of $10.000 million per annum.Commitments already stretch to 2017/18 and funds are largely allocated for the next three financial years.
The Major Events Investment Panel is scheduled to meet to discuss the proposals on 20 October 2014 to provide advice to the Major Events Ministers Group in November. It is intended that applicants will be notified of the outcome of Ministers’ decisions by 24 November 2014.
Declaration of Major Events Management Act 2007 (MEMA) clean zone and clean periods
The Cricket World Cup 2015 and the FIFA U‐20 World Cup New Zealand 2015 (FIFA 2015) have been declared ‘major events’ under the MEMA. Both events intend to declare ‘clean zones’ and ‘clean periods’.
MBIE will submit advice to you in October 2014.
America’s Cup
Team New Zealand intends to submit a business plan to Government in the last quarter of Dependent on the timing of th 2014 seeking investment in mounting a campaign for the 35 America’s Cup. The timing of this the announcement of the proposal relies on the pending announcement of the location of the regatta. This must be regatta location. made before the end of 2014 and could be announced any time from now. Once the business plan is received, MBIE will assess provide you with advice.
Convention centres across New
The Government will need to consider its contribution to the development of three of four
November 2014.
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Issue
Description
Zealand
planned convention centres prior to 2019.
Timing
In the short term, a series of decisions will be required of Ministers with respect to the NZICC. Screen Sector: Report backs on resourcing and technical changes
Result 9
There are two remaining report backs timed for October and December 2014, covering remaining technical criteria issues and resourcing of delivery institutions. However, we recommend that officials provide you with a single report back in December 2014.
We propose MBIE provides a report back to you in December 2014.
A one year review of the New Zealand Screen Production Grant is due to be completed at the end of April 2015.
The NZSPG review is due to be completed at the end of April 2014.
Cabinet agreed to extend the New Zealand Business Number (NZBN) to all business entities, including sole traders, partnerships, government and the not‐for‐profit entities by way of legislation [EGI Min (14) 110].
You will need to make decisions on the final form of the NZBN Bill for introduction to the House.
Submissions on the exposure draft of the New Zealand Business Number Bill closed at the end of September. A report will be provided on submissions seeking decisions in the form of a final bill for introduction. More information is in the Result 9 briefing for incoming Ministers. The Regulatory Systems Bill
The Regulatory Systems Bill will provide a regular vehicle for the maintenance and continuous improvement of regulatory systems administered by MBIE. As the Minister responsible for MBIE, you are responsible for the Regulatory Systems Bill. Individual portfolio Ministers retain policy responsibility for the contents of the Bill. Cabinet approved the inclusion of a range of amendments in the Workplace Relations and Safety, Commerce and Consumer Affairs, Economic Development, and Communications portfolios.
The Regulatory Systems Bill is intended for introduction by the end of 2014. We will provide you with an update on progress with the Bill in early November 2014.
Government Procurement
New Zealand has been negotiating accession to the World Trade Organisation Agreement on Government Procurement. If successful, accession will ensure New Zealand businesses have improved access to an additional 42 government procurement markets. Officials can brief you on the status of the negotiations.
Early October.
MBIE would welcome an opportunity to discuss with you to identify how best we can support you to deliver on your economic development priorities over the longer term. 10
4. Ownership of MBIE interests As the Minister responsible for MBIE, you have a broad spread of wider interests and roles beyond the core economic development policy areas.
Responsibilities of the Minister responsible for MBIE As the Minister for Economic Development you are also the Minister responsible for MBIE. Under the Public Finance Act 1989, you are responsible to Parliament for the financial performance of the Ministry and for protecting the Crown’s interest in it. Similarly, under the Crown Entities Act 2004, you are responsible for the Crown’s interest in the Crown entities within the Economic Development portfolio. As Minister responsible for MBIE you are accountable to Parliament for ensuring the Ministry carries out its functions properly and efficiently. To do this, you must consider the performance, capability, risks, assets, and liabilities of the whole organisation. In practical terms, the ownership responsibilities require you to ensure that officials, through the Chief Executive:
clearly understand what you and Vote Ministers want from MBIE
are developing the right lines of business for the challenges facing MBIE in the next few years, and that these are consistent with your Government’s policy and desired outcomes
are actively identifying and addressing risks to current functions and possible future functions through the right skills, systems, culture, and connections across MBIE and other agencies.
As Minister responsible for MBIE, you have a particular role in respect of MBIE’s accountability documents and processes. This includes approving MBIE’s Four Year Plan and Statement of Intent, as well as providing comment on its Annual Report. You are required by the Public Finance Act to table the Annual Report in the House following sign‐off by the Auditor General. You will also be asked to clear MBIE’s responses to the written questions from the Select Committee carrying out the Annual Review of MBIE. MBIE will provide advice to you on issues raised by the Auditor General as part of the annual audit process for MBIE. MBIE will work closely with you and your office to help fulfil these responsibilities.
MBIE’s role in supporting you as Minister responsible for MBIE MBIE will assist you as the Minister responsible for MBIE by keeping you informed of risks or issues arising for MBIE, and any significant internal management initiatives. This includes any significant structural changes or capacity or capability concerns. In particular, the Chief Executive is responsible to you, as Minister responsible for MBIE, for the financial management and performance of MBIE under section 34 of the Public Finance Act 1989. MBIE will also raise and discuss with you any major risks or issues that fall into the MBIE‐related portfolios of colleagues. To assist you in keeping an overview of MBIE’s performance, MBIE will also provide you with copies of its six‐monthly performance reports to its other Ministers. During the Estimates Examination process MBIE will provide you with responses to written questions sent to you by both the Finance and Expenditure Committee, and the subject committees examining Votes for which you hold responsibility. This includes questions about MBIE‐wide ownership issues and topics. MBIE will provide briefing material to support you at any hearings relating to Votes. 11
The Chief Executive will agree performance expectations with you, as Minister responsible for MBIE. These expectations are outlined in the Chief Executive’s position description and subsequent performance reviews.
12
5. Key MBIE officials Given the span of the economic development portfolio, key personnel are located in different areas of MBIE. Information withheld consistent with the Official Information Act 1982 Information withheld consistent with the Official Information Act 1982
Name
Role
Priority Area
David Smol
Chief Executive
All
Paul Stocks
Deputy Chief Executive, Science, Skills and Innovation
Science, Skills and Innovation (including enterprise policy, events, sectors and regions)
Information withheld consistent with the Official Information Act 1982
Andrew Crisp
Deputy Chief Executive, Infrastructure and Resource Markets Group
ICT
Information withheld consistent with the Official Information Act 1982
Greg Patchell
Deputy Chief Executive, Market Services
Government Procurement, Result 9
Information withheld consistent with the Official Information Act 1982
Catherine Williams
Deputy Chief Executive, Strategy and Governance
Economic Strategy, Māori Economic Development Unit
Information withheld consistent with the Official Information Act 1982
Economic Development and ICT policy Name
Role
Priority Area
Contact Details
Lisa Barrett
General Manager
Tourism, Sectors, Regions and Cities
Information withheld consistent with the Official Information Act 1982
Peter Crabtree
General Manager
People, Science and Enterprise
Information withheld consistent with the Official Information Act 1982
Michael Bird
General Manager
Institutions and System Performance
Information withheld consistent with the Official Information Act 1982
Bruce Parkes
General Manager
Resources, Energy and Information withheld consistent with the Official Information Act 1982 Communications
Roger Wigglesworth
Director
Tourism, Sectors, Regions and Cities
Siobhan Routledge
Director
Tourism, Sectors, Regions and Cities
Paul Alexander
Director
Resources, Energy and Official Information Act 1982 Communications
Information withheld consistent with the Official Information Act 1982
Information withheld consistent with the Official Information Act 1982 Information withheld consistent with the
13
Manager
Enterprise Policy
Information withheld consistent with the Official Information Act 1982
Kylie Archer
Manager
Major Events
Information withheld consistent with the Official Information Act 1982
Eileen Basher
Manager
Institutional Performance
Information withheld consistent with the Official Information Act 1982
Leo Shen
Acting Manager
Sectors
Chris Bishop
Manager
ICT Policy and Programmes
Osmond Borthwick
Manager
Communications Policy Information withheld consistent with the
Karl Woodhead [starting 13/10/2014]
Information withheld consistent with the Official Information Act 1982
Information withheld consistent with the Official Information Act 1982
Official Information Act 1982
Market Services Name
Role
Priority Area
Contact Details
John Ivil
General Manager
Government Procurement
Information withheld consistent with the Official Information Act 1982
Caleb Johnstone
Programme Director
Government Procurement
Information withheld consistent with the Official Information Act 1982
Liz Innes
Manager
Procurement Capability and Practice
Information withheld consistent with the Official Information Act 1982
Grant Lyons
Manager
Collaborative Procurement
Information withheld consistent with the Official Information Act 1982
Shayne Gray
Manager
Commercial Pool
Information withheld consistent with the Official Information Act 1982
Andrew Bardsley
General Manager
Better Public Services for Business
Information withheld consistent with the Official Information Act 1982
Brian Davies
IPO and Programme Manager
Better Public Services for Business
Information withheld consistent with the Official Information Act 1982
Strategy and Governance Contact
Role
Priority Area
Contact details
14
Bryan Chapple
General Manager
Economic Strategy
Reece Moors
Te Tumu Whakarae
Māori Economic Development
Information withheld consistent with the Official Information Act 1982 Information withheld consistent with the Official Information Act 1982
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ANNEX 1: FUNDS AND APPROPRIATIONS Vote Economic Development and Employment as at Budget 2014
Ministry of Business, Innovation and Employment
2013/14 $000
2014/15 $000
2015/16 $000
2016/17 $000
2017/18 $000
Departmental Output Expenses Enhancing Small Business Capability and Performance
221
-
-
-
-
3,190
-
-
-
-
18,446
-
-
-
-
Policy Advice - Small Business
1,425
-
-
-
-
Policy Advice and Related Outputs - Labour Markets
5,838
-
-
-
-
19,160
-
-
-
-
-
-
Labour market Information and Facilitation Services Policy Advice - Sectoral Leadership and Development, Firm Capability, and Regional Development
Sectoral Leadership, Firm Capability, and Regional Development Operational Policy, Ministerial Servicing and Crown Entity Monitoring Canterbury Recovery
-
2,557
2,557
Employment Sector Analysis and Facilitation
-
2,894
2,897
2,952
2,952
Implementation of Improvements in Public Sector Procurement and Services to business
-
17,517
7,410
6,725
6,725
Ministerial Services – Employment
-
1,504
1,504
1,504
1,504
Ministerial Services - Small Business
-
217
217
217
217
Ministerial Services & Crown Entity Monitoring - Economic Development
-
5,135
4,625
4,040
3,940
Policy Advice - Economic Development
-
10,448
16,448
16,448
16,448
Policy Advice – Employment
-
5,701
4,157
4,193
4,193
Policy Advice - Small Business
-
1,234
1,234
1,234
1,234
Total Multi Category Appropriation
-
24,239
28,185
27,636
27,536
47,207
41,049
37,313
37,213
Multi-Category Expenses - Policy Advice and Related Outputs
Total Departmental
48,280
Non-Departmental Other Expenses Establishment and operation of the Food Innovation Network New Zealand (FINNZ)
1,506
Film New Zealand
1,300
1,300
1,300
300
300
Major Events Development Fund
13,983
10,000
10,000
10,000
10,000
Management Development Fund
756
756
756
756
756
Promotion of NZ Associated with the America's Cup
5,000
Regional and Industry Development Fund (funding to KEA)
1,300
Square Kilometre Array
1,352
-
-
400
-
-
-
-
-
-
-
-
-
-
-
-
Depreciation - Auckland's Queens Wharf
2,000
Regional Partnerships and Facilitation
4,556
-
2,000 -
2,000 -
2,000 -
2,000
Large Budget Screen Production Grant
50,556
-
-
-
-
Non-Departmental Other Expenses – Multiyear New Zealand Screen Production – International
-
57,650
86,800
50,556
57,774
-
2,319
2,319
2,319
1,985
13,444
13,181
13,181
13,181
13,181
104,630
111,006
112,613
112,613
112,613
Non-Departmental Output Expenses Māori and Pasifika Trades Training Consortia
Support the Growth and Development of New Zealand Firms, Sectors and Regions (NZTE opex appropriations) Services to Support the Growth and Development of New Zealand Businesses (OC1) International Business Growth Services (OC2)
16
Services to Support Sector Development and Special Events (OC3)
31,867
31,072
32,472
32,472
31,072
15,727
29,712
29,327
30,027
30,027
1,204
1,204
1,204
1,204
1,204
Support new market opportunities for High Growth New Zealand Firms and Sectors (NZTE grants) International Growth Fund Sector Strategies and Facilitation Non-Departmental Capital Expenditure Seed Co-investment Fund (Annual Appropriation) (NZVIF Capex) Venture Investment Fund (Multiyear) (NZVIF Capex)
7,250
5,250
15,000
10,378
10,518
8,278
8,279
2,330
2,330
2,330
2,330
2,330
67,743
43,772
34,111
34,111
34,111
Non-departmental Output Expenses Investment Fund Management (NZVIF Opex) Capital expenses Ministry of Business Innovation & Employment - Capital Expenditure PLA
Totals
2013/14
2014/15
2015/16
2016/17
2017/18
Ministry of Business Innovation & Employment (includes capital)
198,332
165,404
178,335
137,355
144,139
New Zealand Trade and Enterprise (includes capital)
166,872
186,175
188,797
189,497
188,097
24,580
17,958
12,848
10,608
10,609
389,784
369,537
379,980
337,460
342,845
NZVIF (includes capital) GRAND TOTAL
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ANNEX 2: RELEVANT LEGISLATION AND REGULATIONS New Zealand Trade and Enterprise Act 2003 The New Zealand Trade and Enterprise Act 2003, which established New Zealand Trade and Enterprise, states the purpose and functions of the organisation. Although the Minister for Economic Development has no statutory obligation under this Act, as the Minister responsible for NZTE, you have responsibilities under the Crown Entities Act 2004. Under the Crown Entities Act 2004, the functions and powers of responsible Ministers include: the appointment, removal and remuneration of board members where necessary, directing NZTE to give effect to government policy participating in the process of setting and monitoring NZTE's strategic direction and targets reviewing NZTE’s operations and performance and requesting associated information. As your agent MBIE (and the Ministry of Foreign Affairs and Trade for the Minister of Trade) provides advice to you on policies and strategies for achieving industry and regional development goals and supports you in carrying out your responsibilities under the Act. The Act also provides that the Minister may appoint the Secretary of Foreign Affairs and Trade and the Chief Executive of the Ministry for Economic Development as special advisors to assist the NZTE Board in aligning its strategy and activities with government policy. The two chief executives currently attend board meetings in this role.
Major Events Management Act 2007 The purpose of the Major Events Management Act 2007 is to provide certain protections for events that are declared to be “major events” under the Act in order to:
obtain maximum benefits from the major event for New Zealanders prevent unauthorised commercial exploitation at the expense of either a major event organiser or a major event sponsor ensure the smooth running of the event.
More specifically, the Act provides protections against ambush marketing by association, ambush marketing by intrusion, ticket scalping protections, and pitch invasion. Under the Act the functions and powers of the Minister for Economic Development include: recommending to the Governor General that an event be declared a “major event” recommending to the Governor General that major event words and emblems be declared declaration of clean zones, clean transport routes and clean periods by notice in the Gazette. Before making such recommendations, the Minister is required to consult with the Minister of Commerce and "persons the Minister considers are likely to be substantially affected by the recommendation".
18
New Zealand International Convention Centre Act 2013 The New Zealand International Convention Centre Act 2013 gives effect to elements of the New Zealand International Convention Centre (NZICC) and Licensing Agreement (the Agreement) entered into between the Crown and SkyCity Entertainment Group Ltd. In particular it enables the agreed gaming concessions granted to SkyCity in return for designing, constructing and operating the NZICC, to be given force. The Act confirms that SkyCity has agreed to adopt certain additional harm minimisation and anti‐money laundering mechanisms. Also it provides for the protection, and control over the use, of the names ‘New Zealand International Convention Centre’ and ‘NZICC’. Under the Act the powers of the responsible Minister are to:
enforce the Agreement (and Act) in accordance with its terms, including the financial and non‐financial remedies provided for in the Agreement
approve (and remove approval for) the use of the words ‘New Zealand International Convention Centre’ or ‘NZICC’ by anyone other than the Crown or SkyCity.
19
ANNEX 3: CROWN ENTITIES AND STATUTORY BODIES New Zealand Trade and Enterprise (NZTE) – Crown Entity NZTE was formally established as a Crown Entity by the NZTE Act 2003 which integrated the services previously provided by Industry New Zealand and Trade New Zealand. NZTE is the government's international business development agency supporting companies to grow internationally for the benefit of New Zealand. NZTE increases New Zealand companies’ international success by helping them boost their global reach and build capability. This includes:
using connections and government influence on behalf of businesses, and applying local knowledge – from the NZTE team and a network of private sector experts – to help companies enter and grow in international markets linking businesses with services designed to improve efficiency and operations, spark innovation, refine strategy, enhance leadership, and access capital – thereby enabling them to build the capability they need to be successful.
NZTE’s budget for 2014/15 comprises $155.3 million for operating expenses and $30.92 million for grants. Budget 2014 included an increase to NZTE funding of $69 million over four years to increase NZTE’s international footprint in growth markets ($25 million), lift the number of companies NZTE works with intensively from 500 to 700 over a two‐year period ($25 million), allow on‐going investment into business‐led coalitions ($15 million) and support the Government‐to‐Government commercialisation office ($4 million). The Chair is Andrew Ferrier and the Chief Executive is Peter Chrisp. NZTE is governed by a board of seven appointed by the joint responsible Ministers. The NZTE Act allows responsible Ministers to appoint two further members if required. The second terms of several members end in 2015. We will, therefore, need to initiate an appointment/reappointment process with you. MBIE, through the Science, Skills and Innovation Group, in consultation with the Ministry of Foreign Affairs and Trade (MFAT), works closely with NZTE in developing and delivering economic development policy.MBIE and MFAT also provide monitoring advice to the responsible Ministers under the Crown Entities Act. In addition MBIE has the responsibilities of a Vote‐managing department, andevaluates the impact of programmes delivered by NZTE on a periodic basis. Two Ministers have delegated, joint responsibility for NZTE – the Minister for Economic Development and the Minister of Trade. Jointly, they are responsible for:
ensuring that an effective board is in place to govern NZTE
participating in setting the direction of NZTE
monitoring and reviewing NZTE operations and performance
managing risks on behalf of the Crown.
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The New Zealand Venture Investment Fund Limited The New Zealand Venture Investment Fund Limited (NZVIF), a Crown‐owned company, manages two programmes aimed at accelerating the development of early‐stage capital markets. The Minister for Economic Development (the responsible Minister) and the Minister of Finance are the shareholding Ministers. NZVIF is governed by a board of private sector directors, appointed by the government. The board members, selected for their investment experience and commercial acumen, are responsible for governance and oversight of NZVIF’s operations. The current board members are: Murray Gribben (Chair)
Anne Blackburn
Roger Bridge
Calvin Smith
Richard Hughes
The Venture Investment Fund (VIF) is the vehicle through which NZVIF invests its $160 million of Government funding (along with a $100 million capital underwrite) into privately‐managed venture capital investment funds. VIF invests only in funds that successfully raise matching capital from private investors. The amount that NZVIF invests in a fund is dependent on the overall fund size as well as the investment stage and focus of the fund. The maximum amount that NZVIF is able to invest in any venture capital fund is $25 million. The private venture capital fund managers make the decisions about which companies they ultimately invest the combined government and private equity funding into. However, they must invest in New Zealand‐originated businesses that are in the seed, start‐up or expansion stages of their development. They typically invest in technology companies with potential for high growth. As at September 2014 NZVIF had committed $156 million to eight venture capital funds through VIF. In turn, these venture capital funds had invested in 66 companies. The total amount invested by NZVIF and the private sector was $411 million. NZVIF also manages the Seed Co‐investment Fund (SCIF), which is aimed at developing the angel investment segment of the early‐stage capital markets. Through SCIF, NZVIF has $40 million to invest alongside selected Seed Co‐investment Partners on a 1:1 basis into seed or start up high growth New Zealand businesses. The SCIF partners make the investment decisions. As at September 2014 SCIF had allocated all its $40 million capital to 14 partners that had invested in 116 companies. The total amount committed by NZVIF and its partners was $176 million.
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ANNEX 4: KEY ADVISORY BOARDS Māori Economic Development Advisory Board The Māori Economic Development Advisory Board (the Advisory Board) was established in 2013 to provide ongoing stewardship, monitoring and evaluation of He kai kei aku ringa: The Crown‐Māori Growth Partnership (HKKAR). HKKAR is a Māori economic development strategy and action plan that was launched in November 2012 by an independent Māori Economic Development Panel. HKKAR identifies six goals for Māori economic development:
greater education participation and performance
skilled successful workforce
increased financial literacy and savings
government enables growth
active discussions about the development of natural resources
Māori Inc. as a driver of economic growth.
The Advisory Board is jointly appointed by the Minister for Economic Development and the Minister for Māori Development, and reports to both Ministers every six months. The Advisory Board is not a statutory board and has no legal standing or specific governance duties. The current Advisory Board members are:
Ngāhiwi Tomoana (Chair)
Debbie Ngārewa‐Packer
Pania Tyson‐Nathan
Hilton Collier
Kingi Smiler
Professor Linda Tuhiwai Smith.
The current key priority area for the Advisory Board is to support accelerated action to achieve better educational, employment and income outcomes for Māori. The Board is currently translating the HKKAR actions into key outcome targets to drive achievement of the HKKAR goals. Some of these targets align with Better Public Service targets and with the Business Growth Agenda. The key activity areas for the Advisory Board are to:
engage with government agencies to support and advance progress towards achieving HKKAR 22
support inter‐agency collaboration between government agencies to progress shared goals
engage with Māori organisations to support their role in achieving HKKAR
foster and support collaboration and partnerships between Māori organisations, government agencies, and non‐government agencies.
MBIE, with support from Te Puni Kōkiri, is responsible for co‐ordinating the implementation of HKKAR and providing secretariat support to the Advisory Board. This responsibility is undertaken by the MBIE Māori Economic Development Unit.
New Zealand Story Board The New Zealand Story Advisory Board (the Advisory Board) was established on 1 November 2014 to govern the New Zealand Story Group and ensure that the objectives of the New Zealand Story Group are achieved. The objectives of the Advisory Board include:
promotion and protection of the New Zealand Story
ownership, management and protection of the New Zealand Fern Mark and brand assets.
The Advisory Board is accountable to the Minister for Economic Development and the Minister of Trade, as joint Ministers responsible for NZTE on all aspects of the New Zealand Story Project. The Advisory Group is administered from within NZTE. The Advisory Board comprises ten members, including:
one private sector Executive Chairperson (Cameron Harland)
three private sector members (Stephen Smith, Julie Christie, Karl Wixon)
six public sector members, in their capacity as Chief Executives of NZTE, Tourism New Zealand, Education New Zealand, Te Puni Kōkiri, Ministry of Foreign Affairs and Trade, and Ministry for Primary Industries (MPI).
Major Events Investment Panel The Major Events Investment Panel (the Panel) was established in June 2013 to allow both private sector and senior public sector input in investment decisions. Members of the Panel include:
Brian Roche, Independent Chair
Therese Walsh, Independent Member
chief executives of MBIE, NZTE, Tourism New Zealand, Sport New Zealand, Ministry for Culture and Heritage, Ministry of Foreign Affairs and Trade.
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The purpose of the Panel is to provide recommendations to the Major Events Ministers Group, improve the coordination of government investment in major events, and inject private sector perspectives into investment advice. The Panel is expected to:
jointly consider and make recommendations to the Government on Major Events Development Fund investment
work collaboratively to seek maximum leverage from events
share information between government agencies and with the event sector in relation to major event investment and leverage
jointly commit other government resources from agency baselines to extract greater value from events that align with government objectives.
Screen Advisory Board In December 2013, the Government announced a memorandum of understanding between the Crown, Lightstorm Entertainment Inc. and Twentieth Century Fox Film Corporation in relation to the new Avatar movies. This included a commitment by James Cameron and Jon Landau to serve as inaugural members of the Screen Advisory Board (the Board) for a period of five years. Members of the Board are: James Cameron – a Canadian film director, producer, screenwriter, and editor,best known for directing Titanic and Avatar. Jon Landau – an American film producer best known for producing Titanic and Avatar. Sir Peter Jackson ONZ KNZM – a New Zealand film director, producer and screenwriter, best known for directing and producingThe Lord of the Rings and The Hobbit trilogies. Fran Walsh MNZM – a New Zealand screenwriter, film producer and lyricist. Andrew Adamson MNZM – a New Zealand film director, producer and screenwriter mainly based in Los Angeles. Jane Campion – a New Zealand screenwriter, producer, and director based in Australia. The role of the Board is to “promote a thriving New Zealand screen sector” and in particular:
to inform Ministers on general issues of strategic importance for the screen sector in New Zealand
help New Zealand screen sector businesses create ‘local edge’ by having the skills and connections to be able to generate their own intellectual property, compete internationally and attract overseas finance
assist the New Zealand screen sector and the New Zealand Film Commission and Film New Zealand to leverage opportunities overseas.
The Board is expected to have its first meeting by the end of the 2014 calendar year. It is possible that the Board may wish to meet with you and with the Minister for Arts, Culture and Heritage as part of its first meeting. 24
Government ICT Ministerial Group The purpose of the Government ICT Ministerial Group is to focus on longer‐term issues and emerging problems and themes in government ICT. It provides input to the strategic direction for government's use of information and technology with a particular focus on the development and implementation of the four year Government ICT Strategy and Action Plan to 2017. As an expert sub‐committee of Cabinet, ministers provide Cabinet with informed advice on ICT innovation and expenditure across government. Members include the Minister of Finance (Chair), yourself and the Ministers for Communications and Information Technology, State Services, Internal Affairs and Revenue. Meetings are held monthly and include senior government officials.
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ANNEX 5: KEY STAKEHOLDERS Organisation
Contact
Role
Angel Association New Zealand
Ms Suse Reynolds
Executive Director
Auckland Council
Len Brown
Mayor
Auckland Tourism Events and Economic Development
Mr David McConnell
Chair
Business NZ
Mr Phil O'Reilly
Chief Executive
Canterbury Development Corporation
Mr Tom Hooper
Chief Executive
Canterbury Earthquake Recovery Authority
Mr Roger Sutton
Chief Executive
Canterbury Employers' Chamber of Commerce
Mr Peter Townsend
Chief Executive
Christchurch City Council
Lianne Dalziel
Mayor
Council of Trade Unions
Mr Peter Conway
Secretary
Economic Development Association of NZ (EDANZ)
Ms Samantha Seath
Chief Executive
Employers and Manufacturers Association
Mr Kim Campbell
Chief Executive
ExportNZ
Ms Catherine Beard
Executive Director
Federation of Maori Authorities
Mr Te Horipo Karaitiana
Chief Executive
Film New Zealand
Mr John McCay
Chair
Institute of IT Professionals NZ
Paul Matthews
Chief Executive
International Business Forum
Sir Graeme Harrison
Chair
Kea New Zealand
Mr Phil Veal
Chair
Local Government New Zealand
Mr Lawrence Yule
President
Major Events Investment Panel
Mr Brian Roche
Chair
Manufacturers and Exporters Association
Mr John Walley
Chief Executive
Māori Economic Development Panel
Mr Ngāhiwi Tomoana
Chair
New Zealand Trade and Enterprise
Mr Andrew Ferrier
Chair
New Zealand Venture Investment Fund
Mr Murray Gribben
Chair
New Zealand Film Commission
Dame Patsy Reddy
Chair
New Zealand Food and Grocery Council
Ms Katherine Rich
Chief Executive
New Zealand Venture Capital Association
Mr Kerry McIntosh
Chair
NZTech
Candace Kinser (outgoing)
Chief Executive
NZ Rise
Don Christie, Paul Ramsey
Co‐chairs
SkyCity Entertainment Group Ltd
Chris Moller
Chairman
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