Performance Information for Appropriations Vote Economic Development MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Economic Development (M25), Minister for Small Business (M62), Minister for the Rugby World Cup (M79) ADMINISTERING DEPARTMENT: Ministry of Economic Development MINISTER RESPONSIBLE FOR MINISTRY OF ECONOMIC DEVELOPMENT: Minister for Economic Development ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2010/11 B.5A Vol.1 107 VOTE ECONOMIC DEVELOPMENT Part 1 - Summary of the Vote Part 1.1 - Overview of the Vote The Minister for Economic Development is responsible for appropriations in the Vote for the 2010/11 financial year covering the following: • a total of just under $21 million for policy advice on economic, industry and regional development policies and initiatives to promote sustainable economic development and issues related to small and medium enterprises • a total of just under $159 million for New Zealand Trade and Enterprise operating expenses • a total of just under $33 million for New Zealand Trade and Enterprise cash grant schemes • a total of just under $92 million for other services related to firms and industry • a total of $5.400 million for capital expenditure in the Ministry of Economic Development, and • a total of just over $8 million for capital investments in the early stage equity finance markets and offshore market development assistance to business. Details of these appropriations are set out in Parts 2-6 below. Part 1.2 - High-Level Objectives of the Vote Government Priorities and Outcomes - Links to Appropriations Government Priorities Government Outcomes Appropriations Support for science, innovation and trade Enterprising and innovative businesses Policy Advice and Sector Leadership-Firm Capability, Sectoral and Regional Development Policy Advice - Small Business Analysis and Development Services for Firms Regional and Sector Development Services Standardised Training and Advisory Services International linkages Policy Advice and Sector Leadership-Firm Capability, Sectoral and Regional Development Analysis and Development Services for Firms Identification and Coordination of International Market Opportunities International Investment Facilitation Services New Zealand’s participation at Expo 2010 Shanghai, China - MYA Standardised Training and Advisory Services A productive and competitive Auckland Policy Advice and Sector Leadership-Firm Capability, Sectoral and Regional Development Regional and Sector Development Services Dynamic and trusted markets Policy Advice and Sector Leadership-Firm Capability, Sectoral and Regional Development International Investment Facilitation Services Investment Fund Management 108 ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2010/11 B.5A Vol.1 VOTE ECONOMIC DEVELOPMENT Government Priorities Government Outcomes Appropriations Better regulation Ease of doing business Policy Advice and Sector Leadership-Firm Better public services Capability, Sectoral and Regional Development Policy Advice-Small Business Objectives of the Vote The Government’s goal is to lift the long-term performance of the economy in order to make New Zealand a more prosperous country, capable of providing well-paid jobs and a better standard of living, and to provide the world-class public services needed to give opportunity and security to New Zealanders. Work under Vote Economic Development directly contributes to this goal by aiming to help develop enterprising and innovative businesses; improve international linkages; make Auckland more productive and competitive; create dynamic and trusted markets; and increase ease of doing business. The Vote provides advice on how the government can promote economic development across the economy as a whole, as well as through firms, sectors and regions. ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2010/11 B.5A Vol.1 109 VOTE ECONOMICDEVELOPMENT 110 ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2010/11 B.5A Vol.1 Part 1.3 - Trends in the Vote Summary of Financial Activity 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Non- Departmental Departmental Estimated Transactions Transactions Total Actual Actual Actual Actual Budgeted Actual Budget Budget Budget Estimated Estimated Estimated $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Appropriations Output Expenses 157,416 160,853 178,447 186,425 222,448 219,872 20,962 161,182 182,144 169,858 167,610 167,609 Benefits and Other Unrequited Expenses - - - - - - N/A - - - - - Borrowing Expenses ------ - - - - - - Other Expenses 116,398 78,071 299,348 114,413 189,179 172,940 - 122,795 122,795 101,209 87,983 85,213 Capital Expenditure 40,288 48,180 200,806 25,924 133,148 37,838 5,400 8,147 13,547 5,172 5,172 5,172 Intelligence and Security Department Expenses ------ -N/A--- - and Capital Expenditure Total Appropriations 314,102 287,104 678,601 326,762 544,775 430,650 26,362 292,124 318,486 276,239 260,765 257,994 Crown Revenue and Capital Receipts Tax Revenue ------N/A---- - Non-Tax Revenue - - - - - - N/A - - - - - Capital Receipts - - - - - - N/A - - - - - Total Crown Revenue and Capital Receipts ------N/A---- - VOTE ECONOMIC DEVELOPMENT New Policy Initiatives 2009/10 2010/11 2011/12 2012/13 2013/14 Budgeted Budget Estimated Estimated Estimated Policy Initiative Appropriation $000 $000 $000 $000 $000 Funding for the Kiwi Expats Regional and Industry - 600 400 200 - Association Development Fund Transfer of responsibility for Policy Advice and Sector 1,091 1,041 1,041 1,041 1,041 Government Procurement from Leadership - Firm Capability, Vote Commerce Sectoral and Regional Development Government Procurement Reform Policy Advice and Sector 3,000 - - - - Leadership - Firm Capability, Sectoral and Regional Development West Coast Timber Industry West Coast Timber Industry 4,000 - - - - Settlement Settlement The Release and Redevelopment Purchase of Queen’s Wharf, 20,000 - - - - of Queen’s Wharf, Auckland Auckland RWC Free-to-Air Broadcasting Rugby World Cup Free-to-Air 640 1,600 960 - - Rights Broadcasting Rights Final Fund Applications Enterprise Development Fund 600 - - - - Contribution to the Establishment Identification and Co-ordination of - (70) (140) (150) (151) of the Productivity Commission International Market Opportunities Contribution to the Establishment Regional Partnerships - (48) (94) (100) (100) of the Productivity Commission and Facilitation Funding for Economic Growth Identification and Co-ordination of (180) - - - - Agenda and Managed Funds International Market Opportunities Domicile work Funding for Economic Growth Regional And Sector (570) - - - - Agenda and Managed Funds Development Services Domicile work Funding for Economic Growth International Biotechnology (3,270) - - - - Agenda and Managed Funds Partnerships Domicile work Funding for Economic Growth Policy Advice and Sector - 1,500 - - - Agenda and Managed Funds Leadership - Firm Capability, Domicile work Sectoral and Regional Development Funding for Economic Growth Transformational Initiatives Fund - 2,520 - - - Agenda and Managed Funds Domicile work Food Innovation Network Establishment and operation of 5,000 9,015 5,360 950 780 the Food Innovation Network New Zealand Food Innovation Network Regional Partnerships and (3,000) (6,115) (5,360) (950) (780) Facilitation Food Innovation Network Transformational Initiatives Fund (2,000) - - - - Square Kilometre Array Square Kilometre Array - 1,000 700 700 600 Square Kilometre Array Regional Partnerships - (1,000) (700) (700) (600) and Facilitation Rowing NZ High Performance Grant to Rowing New Zealand 1,000 - - - - Centre ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2010/11 B.5A Vol.1 111 VOTE ECONOMIC DEVELOPMENT 2009/10 2010/11 2011/12 2012/13 2013/14 Budgeted Budget Estimated Estimated Estimated Policy Initiative Appropriation $000 $000 $000 $000 $000 Rowing NZ High Performance Negotiation and Completion (1,000) - - - - Centre of Stadium Projects Funding for the NZ 2011 Office Policy Advice and Sector 750 2,750 1,500 - - Leadership - Firm Capability, Sectoral and Regional Development Funding for the NZ 2011 Office Rugby World Cup Leverage - 3,300 7,950 - - and Legacy Programmes Funding for the NZ 2011 Office Regional Partnerships - (5,650) - - - and Facilitation Funding for the NZ 2011 Office International Biotechnology - (2,300) - - - Partnerships Total Initiatives 26,061 8,143 11,617 991 790 Analysis of Significant Trends Total Vote: All Appropriations Figure 1 - Trends in actual and estimated expenses and capital expenditure Source: Ministry of Economic Development The departmental and non-departmental appropriations in Vote Economic Development, which are detailed in the Summary of Financial Activity table above, show the following significant changes below: 112 ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2010/11 B.5A Vol.1 VOTE ECONOMIC DEVELOPMENT Departmental output expense Figure 2 - Trends in departmental output expenses Source: Ministry of Economic Development The increase between 2006/07 and 2007/08 mainly reflects the Buy Kiwi Made Marketing programme of $6.400 million. The decrease between 2007/08 and 2008/09 mainly reflects the cessation of the Buy Kiwi Made Marketing Programme of $5.682 million, and the disestablishment of the Growth and Innovation Advisory Board of $115,000