CCMAU executive summary
Executive Director – Murray Wright
CCMAU’s aim is to be the Government’s ownership advisor of choice in the provision of commercial and wider ownership advice. This year, CCMAU has continued to assist Ministers to clarify their ownership expectations to enhance the performance of the companies and commercial entities in its portfolio[1].
During 2005/06, CCMAU has made good progress towards putting in place the foundations of its strategic plan. We are well placed to build on our capability to take advantage of opportunities that may arise in the years ahead. We have taken a leadership role in the development of an international network of CCMAU-like agencies and in a monitoring departments group established to share best practice across the public sector.
We continued our focus on implementing the Government’s long-term ownership policy for SOEs – owners’ reviews have now been completed for seven SOEs and work is well underway on another four SOEs. Also, a shareholders’ expectations document was developed for Television New Zealand Ltd (TVNZ) and the CRI Operating Framework was reviewed to provide greater clarity on financial and non-financial expectations of the CRIs. Our Appointments and Governance team provided advice on a significant number of director appointments and reappointments this year, including a number of new Chair appointments.
We have continued our focus on making CCMAU a great place to work. In April we returned to refurbished, open plan offices which provide an excellent environment for effective and open interactions among staff. CCMAU staff are skilled individuals fully committed to exceeding Ministers’ future expectations.
Science and innovation sector
Manager – Adrian Wimmers
The Crown-owned science and innovation (S&I) companies (nine CRIs, the New Zealand Venture Investment Fund Ltd (NZVIF) and Research and Education Advanced Network New Zealand Ltd (REANNZ)) continue to make significant contributions to the Government’s economic transformation strategy.
Through this strategy, the Government aims to move New Zealand towards an economy based on sustainable innovation. Scientific research, the sharing of new knowledge and research data, and the transfer of technologies developed through such research, have a pivotal and increasing role in achieving this goal.
During 2005/06, CCMAU broadened its contribution to the S&I sector through a number of initiatives. We worked with the Minister for CRIs, and in consultation with the Ministry of Research, Science and Technology (MoRST) and the Treasury, to reframe the CRI Operating Framework and provide greater clarity on financial and non-financial expectations of the CRIs. We led cross-departmental policy development work on expectations to guide CRIs in all technology transfer and commercialisation activities, and developed new guidance for CRIs regarding shareholder consent thresholds for such transactions. We continued our engagement with other cross-departmental groups such as the Innovation Working Group and the Ocean Survey 20/20 group. In consultation with MoRST, the Foundation for Research, Science and Technology (FRST), the Treasury and the CRIs, we also developed a new set of research application indicators for CRIs. These indicators will measure CRIs’ engagement with industry, and the ways in which they transfer their research findings and new technologies, and provide insights into the impact these are having on New Zealand’s economy, environment and society.
CCMAU also became responsible for administering the CRI Capability Fund, which is managed by MoRST. The purpose of the Fund is to assist CRIs to retain and develop strategic research, science and technology capabilities for New Zealand’s benefit. We are currently working with MoRST and the CRIs to share best practice in the ways in which the CRIs report their plans for, and use of, CRI Capability Fund monies.
CCMAU supported the Treasury and MoRST in completing the incorporation and establishment of REANNZ. We also worked closely with REANNZ as it developed its inaugural accountability and planning documents and, following its appointment of a Chief Executive Officer and senior staff, we have now moved into a more stable monitoring phase with the company.
NZVIF progressed well during the year, and is performing in line with expectations. During 2005/06, CCMAU assisted with the transition of shareholder responsibility to the Minister for Economic Development and the establishment of the Seed Co-Investment Fund, for which NZVIF was made responsible.
Our role in the Equity Investment Fund (EIF) continued, notably through our work in the due diligence process for a $3 million investment into one CRI. We also worked with MoRST and the Treasury to review and amend the assessment criteria under which the EIF Steering Group makes investment recommendations to Ministers. We expect demand for EIF funds to increase in coming years, as CRI commercialisation activities lead to capital constraints.
