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Budget 2016 Home Page The Supplementary Estimates of Appropriations and Supporting Information 2015/16

Support the Growth and Development of New Zealand Firms, Sectors and Regions (M25)

Overarching Purpose Statement

The single overarching purpose of this appropriation is to provide support for the growth and development of New Zealand firms, sectors and regions to maximise international business opportunities.

Scope of Appropriation

Non-Departmental Output Expenses

Collaborative Activity and Special Events
This category is limited to activities where NZTE collaborates with other New Zealand Agency partners to leverage New Zealand's profile and diaspora in international markets, and secure and capitalise on special events or opportunities that support New Zealand's export growth.
International Business Growth Services
This category is limited to helping individual or group of firms internationalise by improving their capability and readiness; identifying and exploiting market opportunities; overcoming internationalisation barriers; providing customised advice and support; enabling access to international business networks; and matching capital with opportunities that support New Zealand's economic growth.
Services to Support the Growth and Development of New Zealand Businesses
This category is limited to building and enhancing business and management capability through providing access to effective assessment, advice, training, mentoring and information.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve significant economic benefits for New Zealand through increasing levels of firm internationalisation.

How Performance will be Assessed for this Appropriation

The performance for this appropriation will be assessed by the total value of deals affected with New Zealand Trade and Enterprise's involvement meeting or exceeding the 2014/15 result.

What is Intended to be Achieved with each Category and How Performance will be Assessed

2015/16
Assessment of Performance Estimates
Standard
Supplementary Estimates
Standard
Total
Standard

Non-Departmental Output Expenses

Collaborative Activity and Special Events

This category is intended to achieve economic benefits through key sector initiatives and special events.

Net promoter score for the New Zealand Story

Baseline 2015/16RemovedRemoved

International Business Growth Services

This category is intended to achieve increased internationalisation for New Zealand businesses and matching of capital with investment opportunities.

Percentage of intensively account managed (F700) customers that agree or strongly agree that NZTE has added value to their business

Meets or exceeds 2014/15 resultRemovedRemoved

Percentage of NZTE customers that agree or strongly agree that NZTE has added value to their business (excluding those intensively account managed)

60%RemovedRemoved

Total value of deals effected with NZTE involvement

Deleted Meets or exceeds 2014/15 resultRemovedRemoved

Annual growth in international revenue for NZTE's intensively account managed customers with annual export revenue under $500m

3% points higher than NZ's overall export growthRemovedRemoved

Total potential Direct Economic Impact (DEI) from Foreign Direct Investment (FDI) deals

New measureEstablish baselineEstablish baseline

Potential direct economic impact ratio for approved International Growth Fund grants

4:1RemovedRemoved

Number of Coalitions under active management

25 (demand driven)RemovedRemoved

Percentage of coalition objectives met

60%RemovedRemoved

Per cent ratio of potential Direct Economic Impact to capital deployed for investment deals

Baseline 2015/16RemovedRemoved

Net promoter score for NZTE services

45RemovedRemoved

Services to Support the Growth and Development of New Zealand Businesses

This category is intended to achieve increased business and management capability that improves individual firm and wider business performance.

Number of businesses receiving business development services through the Regional Partner Network

2,500 (demand driven)RemovedRemoved

Total net promoter score for the Regional Partner Network.

Baseline to be established in 2014/155050

Note New Zealand Trade and Enterprise's annual report contains the full suite of performance measures as listed in its statement of performance expectations for the financial year.

Reasons for Change in Appropriation

This appropriation increased by $5.693 million to $168.481 million in 2015/16 due to:

  • a $2.680 million transfer from 2014/15 to reflect the delays in confirming the abattoir design and build relating to the Saudi Arabia-New Zealand Agribusiness Hub project
  • a $2.564 million increase as a result of NZTE being required to adjust their baseline on an annual basis to reflect the movements in foreign exchange rates and local inflation in offshore locations
  • a $536,000 adjustment to allow NZTE to meet their fiscal requirement for the capital charge regime, and
  • a $383,000 contribution from Te Puni Kokiri to NZTE for the New Zealand Story project.

These increases are partially offset by a $470,000 transfer to 2016/17 to reflect timing in the delivery of a solution for development of a new business model for the Saudi Arabia-New Zealand Business Hub project.

This appropriation had a fiscally neutral adjustment of $30.169 million for the 2015/16 year from the Collaborative Activity and Special Events category, to the International Business Growth Services category within this MCA. This transfer reflects the changes to the integrated nature of New Zealand Trade and Enterprise's (NZTE) International Business Growth Services being delivered to firms either individually or as a group.

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