Vote Crown Research Institutes
Crown Company Monitoring Advice to the Minister for Crown Research Institutes and Minister of Research, Science and Technology
This class of outputs involves the provision of policy and ownership monitoring advice on nine CRIs, the New Zealand Venture Investment Fund Limited (NZVIF[1]) and the Advanced Network Co Ltd (ANCO[2]), and the provision of advice on the performance of the CRI Capability Fund, and includes:
- advising the Minister for CRIs and the Minister of Research, Science and Technology (RS&T) on the strategic direction of CRIs, NZVIF and ANCO respectively, and the commercial and fiscal risks associated with Crown ownership
- providing advice which assists the Minister for CRIs and the Minister of RS&T to set ownership objectives and targets for CRIs, NZVIF and ANCO
- monitoring and advising the Minister for CRIs and the Minister of RS&T of CRIs’, NZVIF’s and ANCO’s performance against these objectives and targets
- providing policy advice on, and managing issues arising out of, the ownership of CRIs, NZVIF and ANCO, including residual implementation issues
- managing, on behalf of the responsible Ministers, the appointment of CRI, NZVIF and ANCO directors and monitoring the performance of those directors and boards
- assisting the responsible Ministers in the formulation of shareholders’ expectations in relation to the governance practices and structures companies adopt.
Maintaining and enhancing the Crown’s ownership interest in these entities contribute to the efficient management of the Crown’s assets and liabilities. CRIs, NZVIF and ANCO have an important role to play in the New Zealand innovation system, thereby contributing to improving New Zealand’s overall economic performance.
Significant work completed during the year
- Completed the 2005/06 CRI strategic planning round, which includes analysing and reporting on each company’s draft SCI and strategic plan so that shareholding Ministers are able to provide informed feedback to boards. The 2006/07 CRI business planning round was also substantially completed by 30 June 2006.
- Completed a Briefing to the Incoming Minister for CRIs.
- Completed Crown Company Quarterly Performance reports for the June, September, December and March quarters, which were presented to Cabinet.
- Contributed to the 2006 Operating Framework for CRIs.
- Led a cross-departmental initiative to develop policy options relating to CRI technology transfer and commercialisation activities. This resulted in a policy framework being approved by Cabinet and included in the 2006 Operating Framework for CRIs.
- Managed a number of company issues, and provided advice to Ministers on them, including:
- the sale of Agvax Developments Ltd by AgResearch Ltd (AgResearch)
- AgResearch’s purchase of intellectual property and shares in new entities arising from the restructure of the Ovita sheep research consortium
- a risk analysis of IRL based on its financial position in late 2005
- the sale of IRL’s Auckland property
- a request from NZVIF to exceed the 15% portfolio limit imposed by Cabinet on the VIF programme
- an application from New Zealand Institute for Crop & Food Research Ltd for $3.0 million EIF monies.
- Completed a working paper on a target cost of equity for CRIs.
- Facilitated the establishment of the Seed Co-investment Fund and the resulting adjustments to NZVIF expectations and reporting requirements.
- Worked alongside MoRST and the Treasury to establish and incorporate REANNZ, and worked with REANNZ to ensure that its inaugural public accountability documents were acceptable.
- Completed a set of CRI-specific research application indicators, for implementation from 1 July 2007.
- Completed a review of EIF guidelines, as part of the EIF Steering Group.
- Completed a review of the consent and notification levels and information guidelines for significant transactions by CRIs.
- Took a “lead agency” role in the establishment of an international best-practice sharing network of organisations with a similar role to that of CCMAU.
- Provided advice to Ministers on a number of appointments and governance issues, including:
- completion of the appointment process for the new REANNZ board
- completion of the 2006/07 CRI appointment round
- completion of a directors’ fees review for 2006/07
- continuing active participation in the wider governance officials’ forum
- hosting two prospective directors’ seminars
- hosting a one-day induction seminar for new CRI directors
- hosting a number of networking functions for serving directors to share issues of common interest
- managing expressions of interest from candidates wishing to be considered for Crown governance roles
- continuing to provide assistance to other agencies regarding nominations.
Service performance
| Performance Dimensions | Achieved? |
|---|---|
QualityThe Minister for CRIs or the Minister of RS&T will expect advice to demonstrate a sound knowledge of the business, the environment within which the organisation operates and the consequences of shareholder or CRI or fund actions. All reports will comply with the generic quality standards for analysis and advice outlined on page 138. Output quality will be assessed as follows:
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Quantity
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CoverageA comprehensive range of services will be provided as agreed with the Minister for CRIs. These will include the capacity to react quickly and provide support for the Minister in Cabinet committees, including relevant briefings on significant issues and regular evaluation of the impacts of shareholder decisions and company actions on the Government’s desired outcomes. |
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Cost-effectivenessAnalysis and advice will be delivered within the cost parameters agreed with the Minister for CRIs (or as subsequently modified by agreement). |
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TimelinessTimeframes will be agreed between the Minister and the Executive Director of CCMAU for the financial year.
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| 2005/06 | PQs | MCs | OIAs |
|---|---|---|---|
| Estimated | 20-40 | 30-50 | 4-8 |
| Actual draft replies | 43 | 38 | 3 |
| % answered by due date | 100 | 100 | 100 |
| 2005/06 Actual | 970 |
|---|---|
| Supp. Est. – Voted | 981 |
| Main Est. | 1,068 |
| 2004/05 Actual | 957 |
Actual 2005/06 output class expenditure was $11,000 or 1% under Supplementary Estimates budgets.
The appropriation for this output class was decreased by $87,000 in the Supplementary Estimates owing to a fiscally neutral transfer to Vote SOEs reflecting the actual allocation of overhead costs between the two Votes that fund CCMAU, offset by an increase to cover the costs of the State Sector Retirement Savings Scheme.
