Output Performance CCMAU

Statement of Forecast Service Performance Section 38 Public Finance Act 1989

Vote Crown Research Institutes

Crown company monitoring advice to the Minister for Crown Research Institutes (CRIs), Minister for Economic Development and Minister of Research, Science and Technology.

This output involves the provision of policy and ownership monitoring advice on nine CRIs, NZVIF and REANNZ, and the provision of advice on the performance of the CRI Capability Fund, and includes:

• advising the Minister for CRIs, the Minister for Economic Development and the Minister of Research, Science and Technology on the strategic direction of CRIs, NZVIF and REANNZ, respectively and the commercial and fiscal risks associated with Crown ownership
• providing advice which assists the Minister for CRIs, the Minister for Economic Development and the Minister of Research, Science and Technology to set ownership objectives and targets for CRIs, NZVIF and REANNZ
• monitoring and advising the Minister for CRIs, the Minister for Economic Development and the Minister of Research, Science and Technology of CRIs’, NZVIF’s, and REANNZ’s performance against these objectives and targets
• providing policy advice on, and managing issues arising out of the ownership of CRIs, NZVIF and REANNZ, including residual implementation issues
• managing, on behalf of the responsible Ministers, the appointment of CRI, NZVIF and REANNZ 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 companies contributes to the efficient management of the Crown’s assets and liabilities. The CRIs, NZVIF and REANNZ have an important role to play in the New Zealand innovation system, thereby contributing to improving New Zealand’s overall economic performance.

Performance dimensions

Quality

The Minister for CRIs, the Minister for Economic Development or the Minister of Research, Science and Technology will expect advice to demonstrate a sound knowledge of the Crown company or fund’s business, the environment within which the company or fund operates and the consequences of shareholder or CRI/NZVIF/REANNZ or fund actions.

Timeliness

PQs, MCs and OIAs will be responded to within agreed and statutory timeframes. Based on previous years’ figures, expected quantities of PQs, MCs and OIAs will be:

Vote State-Owned Enterprises

Crown company monitoring advice to the Minister for State-Owned Enterprises and other responsible Ministers.

This output involves the provision of policy and ownership monitoring advice on SOEs, Crown entity companies and Crown entities covered by Vote SOEs (collectively referred to below as “SOEs”). This includes:

• advising the Minister for SOEs and other responsible Ministers on the strategic direction of SOEs; the commercial and fiscal risks associated with Crown ownership; proposals to establish and restructure SOEs; and the processes and outcomes of significant SOE divestments and acquisitions
• providing advice which assists Ministers to set ownership objectives and targets for SOEs
• monitoring and advising Ministers of SOEs’ performance against these objectives and targets
• providing policy advice on, and managing issues arising out of, the ownership of SOEs, including residual implementation issues
• managing, on behalf of responsible Ministers, the appointment of SOE directors and monitoring the performance of those directors and boards
• assisting 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 contributes to the efficient management of the Crown’s assets and liabilities.

Performance dimensions

Quality

The Minister for SOEs and other responsible Ministers will expect advice to demonstrate a sound knowledge of the Crown company’s business, the environment within which the company operates and the consequences of shareholder or company actions.

Timeliness

PQs, MCs and OIAs will be responded to within agreed and statutory timeframes. Based on previous years’ figures, expected quantities of PQs, MCs and OIAs will be:

Service performance standards: All CCMAU output classes

Performance dimensions

Quantity

The quantity and nature of advice and operational services will be supplied on the basis agreed between the Minister for SOEs, the Minister for CRIs and the Executive Director of CCMAU (as amended from time to time) for 2007/08. Half-yearly and end-of-year reporting will enable the Ministers to assess actual performance in output delivery against those expectations.

Quality

All reports will comply with the generic quality standards for analysis and advice outlined on page 75. Output quality will be assessed as follows:

• The Ministers will expect CCMAU to implement suitable quality control procedures to support the expectations for analysis and advice delivered under the relevant Votes.
• Managerial and peer (internal and external, where appropriate) review will be maintained to ensure that the quality standards are met.
• The Ministers will be formally requested, on a half-yearly basis, to indicate their level of satisfaction with the overall quality of the outputs produced.

Timeliness

Timeframes will be agreed between the Ministers and the Executive Director of CCMAU for the financial year.

• Advice will be delivered within the agreed and/or statutory timeframes so that Ministers have sufficient time to consider the issues and take appropriate action. Where agreed deadlines will not be met, extensions are to be formally requested.
• MCs, PQs, Cabinet agendas and OIAs will be responded to within agreed and/or statutory timeframes.
• CCMAU will respond appropriately to requests for attendance at Parliament during debates and at Cabinet and Select Committee meetings.
• Half-yearly and end-of-year reporting will enable the Ministers to assess actual performance in the timeliness of output delivery against those expectations.

Coverage

A comprehensive range of services will be provided as agreed with the Minister for CRIs and the Minister for SOEs. These will include the capacity to react quickly and provide support for Ministers 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.