Download MBIE briefing for incoming Ministers

The Ministry of Business, Innovation and Employment
BRIEFING FOR
INCOMING MINISTERS
→ October 2014
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
BRIEFING FOR INCOMING MINISTERS
OCTOBER 2014
1. Role and Purpose of MBIE
INTRODUCTION
This document is the Ministry of Business, Innovation & Employment’s
(MBIE’s) overarching Briefing to Incoming Ministers (BIM). It sets
out MBIE’s role and purpose, as well as outlining MBIE’s organisational
structure.
Accompanying this document are the Portfolio specific BIMs relevant
to your responsibilities. These BIMs capture key information relevant
to each Portfolio, key responsibilities, areas that will require your
attention in the first 100 days and key cross-Portfolio linkages.
The Minister for Economic Development is the ownership Minister for
MBIE. The MBIE ownership responsibilities are set out in the Economic
Development Portfolio BIM.
HELPING YOU DELIVER YOUR PRIORITIES
As an MBIE Minister, you are able to use the full range and scope of MBIE resources to support
achievement of your key priorities.
MBIE has responsibility for extensive policy and service delivery that impact on the business
environment. This includes responsibility for key legislative and regulatory frameworks (MBIE is
responsible for 144 Acts and other pieces of legislation); management of key public services for
business both on and offshore (such as the Companies Office and Immigration New Zealand);
management of the Crown’s interest in some economically important natural resources and
oversight of ownership interests in a number of business critical Crown agencies (discussed in more
detail in Annex B to this document).
The MBIE Snapshot on page 3 captures some critical information about the size, structure and
reach of the organisation. Figure 1 (over the page) outlines MBIE’s portfolio responsibilities. MBIE’s
organisational structure, Vote information and senior leadership contacts are set out in the Annex A
to this document (pages 8-10).
MBIE was formed to provide more coordinated and higher-quality advice, regulation and services. Its
establishment as an integrated business-facing department signalled a desire to:
›› significantly reduce the complexity of developing and integrating advice across a number of areas;
›› create a more consistent and effective regulatory environment for, and service delivery to,
business;
›› realise efficiencies through increased synergies and scale; and
›› reduce duplication and fragmentation.
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MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
BRIEFING FOR INCOMING MINISTERS
OCTOBER 2014
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MBIE Ministers can draw on this extensive range of policy and service delivery responsibilities;
the deep understanding of the challenges and opportunities businesses face given our role as
government’s leading business-facing agency; and the opportunity to better integrate advice across
a number of areas to achieve portfolio objectives.
Figure 1: MBIE portfolio responsibilities
›› ACC
›› Immigration
›› Building and Housing
›› Science and Innovation
›› Commerce and Consumer Affairs
›› Skills and Employment
›› Communications
›› Small Business
›› Economic Development
›› Tourism
›› Energy and Resources
›› Workplace Relations and Safety
Figure 2: MBIE’s key functions
MBIE brings together a broad range of government activity.
Key functions include:
›› co-lead with the Treasury, Government’s Business Growth Agenda and partner
with other agencies to support Canterbury’s rebuild and economic rejuvenation
›› co-lead with Te Puni KŌkiri the Government’s response to He Kai Kei Aku Ringa,
the Crown-Māori Economic Growth Partnership
›› advise on business development policy and programmes, tourism and invest in
world-class major events
›› building procurement capability across government
›› develop and implement the labour market’s core regulatory systems
›› advise on regulation of the commercial and consumer environment to ensure
well-functioning markets
›› regulate the supply and use of radio spectrum, electricity and gas; and provide
supporting advice on the wider use of natural resources
›› lead work on housing affordability, the built environment including regulations,
and residential tenancy and weathertightness
›› deliver immigration services and immigration policy
›› lead the Government’s health and safety reform programme
›› roll out high-speed broadband nationwide
›› invest in science and innovation and help build the skills New Zealand needs to
support business growth
›› provide business services relating to company registration, intellectual
property and insolvency
›› provide employment relations advice and support, and enforce minimum
employment standards
›› protect consumers from unsafe products and enforce standards for weights
and measures.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
BRIEFING FOR INCOMING MINISTERS
OCTOBER 2014
Figure 3: MBIE snapshot
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MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
BRIEFING FOR INCOMING MINISTERS
OCTOBER 2014
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2. MBIE’S APPROACH TO SUPPORTING YOU
In order to help you deliver the Government’s ambitions for a higher performing economy, MBIE has
developed the purpose Grow New Zealand for all and an outcomes framework that reflects a shared
community desire for a sustained and substantial improvement in economic performance.
Our principal objective is to contribute to an increase in real median household income by 40%
between 2012 and 2025. This will be supported by the objectives of doubling labour productivity
growth, increasing exports to 40% of GDP, unemployment falling sustainably below 4% and housing
costs falling as a share of income.
These are ambitious goals, and many factors impact on their ultimate achievement. Defining the
right role for government and executing that role well is a necessary condition for success. Setting
ambitious goals clearly signals that ‘business as usual’ is not sufficient. As a Ministry we are
committed to reflecting that ambition in both the advice we provide you and in the quality of our
execution of the regulatory, ownership, purchase and provision roles the Government asks us to play.
Figure 4: MBIE’s purpose and objectives
Grow NZ for all
INCREASE REAL
HOUSEHOLD
INCOME % BY 
From a median household income of
around $1300 to $1800 a week.
OBJECTIVES
MORE
COMPETITIVE
BUSINESSES
JOB
OPPORTUNITIES
FOR ALL
Double labour
productivity growth
Unemployment
under 4%
AFFORDABLE
HOUSING
Lower ratio of housing
costs to income
Increase exports/GDP ratio to 40%
TO ACHIEVE SUSTAINABLE GROWTH FOR ALL WE AIM TO DELIVER:
›
better functioning markets that are more trusted and more competitive
›
safer, healthier and more affordable homes and buildings
›
safer and more skilled workplaces
›
more productive and successful people, communities and regions
›
improved business capability and higher levels of innovation
›
improved international flows of people, ideas, investment and trade.
›
more reliable infrastructure and responsible development of
natural resources
We provide clear and compelling leadership to help the government set and implement an ambitious business growth agenda.
DOL 12372.2
More supportive
and dynamic
business
environment
An increased
number of highly
skilled people and
innovative firms
The built
environment
better supports a
well-functioning
economy
Greater value
sustainably
derived from
the natural
environment
More productive
and prosperous
sectors, regions
and industries
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
BRIEFING FOR INCOMING MINISTERS
OCTOBER 2014
Economic context and the role we can play in lifting economic performance
New Zealand’s recent economic performance and short-term prospects are sound. The challenge
is to increase productivity and ongoing output growth to sustain higher economic growth. New
Zealand’s economic history, experiences of other small, developed economies and the global
environment (including the growth of Asia) show that sustained higher growth is achievable.
The experience of others also shows New Zealand can achieve this growth while improving its
environmental performance in key areas and ensuring its population share in the benefits of that
growth.
Economic growth ultimately comes about through innovative and competitive businesses.
Government has a limited but critical part to play in helping support business growth and in
managing risks to that growth. In playing our part, MBIE has an open-minded but disciplined
approach to defining and effectively utilising our set of levers. MBIE starts from the following
propositions about the role of government:
›› Economic growth is business-led.
›› Government only does things only it can do or can do best.
›› Government is a significant and active player in the economy.
›› There is a need to make informed trade-offs.
›› New Zealand’s size, distance from markets and unique characteristics (e.g. our climate, the Treaty
relationship) may require a different role for government in selected areas.
›› All government’s work should be executed with discipline.
Delivering our goals requires MBIE to get a number of things right. We must:
›› enlist those inside and outside of MBIE for successful delivery. Drawing on the detailed knowledge
of our stakeholders is critical to ensuring our work is effective, given we cannot achieve our goals
alone;
›› have a clear sense of how we add value in our various roles; an ability to identify what will make
the greatest difference when; and then be able to develop and manage capacity and capability to
deliver those priorities;
›› demonstrate that we understand the risks associated with growth and development and that the
regulatory functions we oversee are strong enough to ensure those risks are well managed;
›› play a critical role in areas like regional and Māori and Pasifika economic development to ensure
we harness latent opportunity and that the benefits and costs of growth are fairly shared. Using
a sector, regional and industry lens to better understand and build deep knowledge of the New
Zealand economy, is an important aspect of our role. This approach helps us to understand
patterns of economic activity in a more detailed way and provide insights into where the greatest
opportunities for economic growth lie; and
›› optimally deploy all of government’s levers all of the time. The challenge is to get a lot of things
right on an ongoing basis, rather than to seek a few silver bullets or set-and-forget approaches.
MBIE will need to work continuously to improve the effectiveness with which each of our and the
government’s levers are deployed through time – individually and in combination.
Ongoing improvement to support your objectives
Most of MBIE’s resources are devoted to carrying out the ongoing business which is integral to a
well-functioning market economy. For example, operating the immigration system, the companies
office, the intellectual property office, the labour inspectorate and maintaining capacity to monitor,
update and improve the wide range of regulatory regimes we are responsible for.
MBIE will work with you to operate this ongoing activity in a manner that constantly seeks
improvement. An important step in this direction is the operationalisation of a ‘living systems’
framework to ensure that our regulatory systems are constantly tested, including by linking policy
and operational perspectives together. Key elements of this approach are:
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MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
BRIEFING FOR INCOMING MINISTERS
OCTOBER 2014
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›› systematically and continually assessing whether each of the regulatory systems we have
stewardship responsibility for are effectively delivering their objectives;
›› trialling regulatory system charters which clearly describe the expected outcomes of regulatory
systems and how these are monitored;
›› applying lessons from the assessment of individual regulatory systems to improve the
performance of other systems; and
›› regularly progressing amendments that ensure regulatory systems are well maintained.
Our strong focus on customer surveys and stakeholder engagement will help drive ongoing
improvements in our delivery.
For those areas where potential for step change is identified, MBIE will work with you to develop
fit for-purpose responses/regimes. Some changes (e.g. overhauling a system or regulatory regime)
might take several years of policy development and then implementation. As these programmes
of work are implemented, we will keep checking that we are on track to achieve the change sought,
and that new insights and changes in the environment are taken into account. MBIE is committed
to developing robust ways of assessing relevant trends in the economy to help inform whether
the programmes need to be recalibrated. MBIE will work with you to ensure these significant
programmes of work are resourced appropriately (including through the critical implementation
period) so that we capture the gains expected.
3. DELIVERY: FRAMEWORKS AND CROSS-CUTTING ISSUES
Together with Treasury, MBIE leads advice to Ministers on key economic priorities. Associated with
this leadership role MBIE will support you to develop appropriate frameworks and mechanisms to
facilitate, coordinate, and drive cross-government work.
We will continue to support Ministers to coordinate and deliver:
›› the Business Growth Agenda (BGA);
›› the Better Public Services Result 9 programme;
›› the rebuilding of Christchurch;
›› work across government, and with regional partners, to support Māori economic development;
and
›› the Procurement Functional Leadership (PFL) programme.
Business Growth Agenda
You have identified the 10 highest priorities for the BGA 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 BGA initiatives. We look forward
to discussing with Ministers how we make best use of the BGA structure, which has provided an
effective basis for structured and meaningful engagement with stakeholders, including how we think
about areas important to a range of BGA work streams e.g. Māori economic development, regulation,
and ICT.
Better Public Services (BPS) Result 9
BPS Result 9, is a collaborative programme led by MBIE and includes eight partner agencies. Result
9 seeks to reduce the business costs from dealing with government by 25% by 2017, through a yearon-year reduction in effort required to work with agencies.
A key deliverable of Result 9 to businesses is the New Zealand Business Number (NZBN). All 1.1 million
registered companies on the Companies Office register have been allocated a NZBN. Legislation
is being proposed post-election to extend the NZBN to other kinds of businesses, such as sole
traders, partnerships, the not-for profit sector and to government agencies. The value of the NZBN
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
BRIEFING FOR INCOMING MINISTERS
OCTOBER 2014
initiative lies in the reduction of cost of effort to business and longer term in its potential for greater
integration of government services. There are opportunities to build on engagement to date with
businesses, to further improve the way that businesses engage with government. This is detailed in
the BPS Result 9 BIM.
Canterbury rebuild
MBIE plays a key role in the economic recovery of Canterbury. We also have a role as a government
regulator and contributor to social recovery in the region. MBIE supports the rebuilding and
economic recovery of Canterbury by:
›› facilitating opportunities for business sector growth;
›› supporting considerations related to CERA’s transition into a Departmental Agency within DPMC,
and more broadly, the transfer of certain recovery functions to local ownership;
›› leading work to ensure a thriving, knowledge intensive innovation ecosystem in Canterbury - to
increase productivity and competitiveness of businesses in the region;
›› supporting the ongoing recovery of the built environment, in particular the vertical/social
infrastructure including the safety of the rebuild and strengthening building performance;
›› providing procurement approaches to achieve the best outcomes for government and
for Canterbury;
›› providing advice and services to facilitate the efficient functioning of the labour market, which
includes influencing the right workforce skill mix; and
›› ensuring the mix of residential rebuild activity provides the right housing supply - including
temporary worker accommodation (and succession into housing stock), the mix of public and
private investment, and affordable housing.
Māori Economic Development
There are considerable opportunities to harness the talents, resources and potential of the Māori
economy and MBIE is committed to working across government and with other partners to support
Māori-led efforts to improve economic outcomes for Māori.
With Te Puni KŌkiri MBIE co-leads the response to He Kai Kei Aku Ringa (HKKAR), the Crown-Māori
Economic Growth Partnership, and so is well placed to help coordinate work across government and
provide momentum to efforts which will deliver tangible economic development benefits.
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 to the Ministers of Economic Development and Māori Development and officials on
Māori economic development - particularly HKKAR related activities.
Government Procurement
MBIE plays a key role in building procurement capability across government, leading the
Government’s Procurement Functional Leadership (PFL) programme. In this role, MBIE works across
government to ensure public sector procurement be aligned to:
›› lift performance, add value and maximise results;
›› create an environment where New Zealand businesses can succeed; and
›› unlock cost savings. 7
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
BRIEFING FOR INCOMING MINISTERS
OCTOBER 2014
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MBIE BRIEFING TO INCOMING MINISTERS: ANNEX A
MBIE Structure and Senior Leadership Team
The MBIE Senior Leadership Team (SLT) includes the Chief Executive and seven Deputy Chief
Executives responsible for each of the MBIE business groups.
David Smol
Chief Executive
Catherine Williams
DCE Strategy and
Governance
The Strategy and
Governance group
supports the
leadership of MBIE
to set and guide
strategic direction and
governance.
Peter Thomas
DCE Corporate
Services
Paul Stocks
DCE Science, Skills
and Innovation
Andrew Crisp
DCE Infrastructure and
Resource Markets
The Corporate Services
group provides internal
services for finance,
ICT, legal, information
management, internal
procurement, property
and fleet management.
The Science Skills
and Innovation group
works to develop the
skills, science and
innovation systems,
and international
connections to
enhance New Zealand's
prosperity and
wellbeing.
The Infrastructure
and Resource Markets
group works to ensure
efficient management
of infrastructure
and resources as
part of a productive,
internationally competitive business
environment, and
stewardship and
management of
Crown-owned
resources.
Cath Atkins
Acting DCE Labour and
Commercial Environment
The Labour and
Commercial
Environment group
provides policy
advice on ensuring
a productive, safe
and fair business
environment
that supports
internationally
competitive
businesses.
Nigel Bickle
DCE Immigration
New Zealand
Greg Patchell
DCE Market Services
The Immigration
New Zealand group
is responsible for
bringing the best
people to New Zealand
to enhance our
social and economic
outcomes.
The Market Services
group provides
information, advice
and resolution services
to businesses, workers
and the public to
enable people to
participate with
confidence in markets.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
BRIEFING FOR INCOMING MINISTERS
OCTOBER 2014
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MBIE Staff
MBIE has around 3300 staff: around 2900 based in New Zealand and 400 offshore (information
accurate as at August 2014).
MBIE Business Group
Headcount
Corporate Services
324
Immigration
1440
Infrastructure & Resource Markets
249
Labour & Commercial Environment
169
Market Services
755
Science Skills & Innovation
184
Strategy & Governance
170
MBIE Budget
Appropriation by Vote
Vote: ACC
MBIE Departmental
Appropriation: 2014
Budget ($000s)
MBIE NonDepartmental
Appropriation: 2014
Budget ($000s)
2,621
960,502
Vote: Commerce and Consumer Affairs
73,070
77,247
Vote: Communications
13,885
268,252
Vote: Economic Development and Employment
90,979
278,558
Vote: Energy
27,598
155,362
Vote: Housing
90,050
315,933
Vote: Immigration
239,159
0
45,965
92,820
Vote: Science and Innovation
27,154
939,441
Vote: Tourism
7,300
123,689
617,781
3,211,804
Vote: Labour
TOTAL
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
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OCTOBER 2014
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Ministry Vote responsibilities
Vote
Responsible Minister
Ministry Responsibility
Vote ACC
Minister for ACC
Regulatory support of accident
compensation scheme
Vote Commerce and Consumer
Affairs
Minister of Commerce and
Consumer Affairs
Foster business growth and improve
businesses’ global competitiveness;
provide consumer information and
protection
Minister for Communications
Oversee the telecommunications
regulatory framework and the
effective deployment and use of
high quality broadband and mobile
communications
Minister for Economic
Development
Provide policy and advice to support
an improvement in New Zealand’s
global competitiveness
Minister for Small Business
Ensuring all of government
understands the issues faced by
New Zealand’s small businesses
Minister for Tertiary Education,
Skills and Employment
Provide a regulatory framework that
fosters an increase in skilled workers
within safe working environments
Vote Energy
Minister of Energy and
Resources
Support responsible development
of petroleum and mineral resources
and provide regulatory frameworks
and programmes to support well
functioning energy markets,
development of renewables and
energy efficiency improvements
Vote Housing
Minister for Building and
Housing
Provide housing policy and advice
and a regulatory framework that
promotes safer, healthier and more
affordable homes and buildings
Vote Immigration
Minister of Immigration
Provision of efficient and effective
immigration services
Vote Labour
Minister of Workplace
Relations and Safety
Provide a regulatory framework to
support well-functioning workplaces
Vote Science and Innovation
Minister of Science and
Innovation
Support a regulatory framework
that fosters growth in New
Zealand’s science and innovative
capability
Vote Tourism
Minister of Tourism
Provide advice and develop policy
to increase the contribution to New
Zealand’s economy from tourism
Vote Communications
Vote Economic Development
and Employment
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
BRIEFING FOR INCOMING MINISTERS
OCTOBER 2014
MBIE BRIEFING TO INCOMING MINISTERS: ANNEX B
Crown entity stewardship
MBIE supports Ministers with direct monitoring responsibilities for 23 Crown entities and Schedule
4A companies. We also work with the Treasury and Ministry of Education to monitor a further 5
entities. In addition, MBIE supports Ministers with appointments and has oversight over a further
36 statutory entities and advisory bodies.
By focusing and improving our monitoring work we aim to help Ministers to maximise the
contribution, and improve the performance, of the entities within their Portfolio. The table below
contains a list of MBIE’s statutory entities:
Name of entity
Type of entity
The Accident Compensation Corporation *
Crown Agent
Callaghan Innovation
Crown Agent
Education New Zealand **
Crown Agent
Energy Efficiency & Conservation Authority
Crown Agent
Housing New Zealand Corporation *
Crown Agent
New Zealand Trade & Enterprise
Crown Agent
Tertiary Education Commission **
Crown Agent
Tourism New Zealand
Crown Agent
WorkSafe New Zealand
Crown Agent
Retirement Commissioner
Autonomous Crown Entity
Testing Laboratory Registration Council of New Zealand
Autonomous Crown Entity
Standards Council
Autonomous Crown Entity
Commerce Commission
Independent Crown Entity
Electricity Authority
Independent Crown Entity
External Reporting Board
Independent Crown Entity
Financial Markets Authority
Independent Crown Entity
Takeovers Panel
Independent Crown Entity
Crown Fibre Holdings Limited *
Crown Entity Company
Fairway Resolution Limited
Crown Entity Company
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MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
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OCTOBER 2014
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Research and Education Advanced Network New Zealand Limited
Crown Entity Company
Tamaki Redevelopment Company Limited *
Crown Entity Company
AgResearch Limited
Crown Research Institute
Institute of Environmental Science and Research Limited (ESR)
Crown Research Institute
Institute of Geological and Nuclear Sciences Limited (GNS Science)
Crown Research Institute
Landcare Research New Zealand Limited
Crown Research Institute
National Institute of Water and Atmospheric Research Limited (NIWA)
Crown Research Institute
New Zealand Forest Research Institute Limited (Scion)
Crown Research Institute
The New Zealand Institute for Plant and Food Research Limited
Crown Research Institute
The New Zealand Venture Investment Fund Limited ***
Other Crown Entity Company
(listed underSchedule 2 of the
Crown Entities Act)
*
The Treasury monitors and appoints to this entity
**
Joint monitor with the Ministry of Education
*** Joint monitor and appointer with the Treasury