EventsFeaturesImage galleriesMediaPublicationsAnnual reportAsia White PaperBusinesslinkNewslettersPost Election BriefStatement of intentTrade matters
Find MFAT's information paper on a country or territory. (We don't have information papers on all countries.)
Although we have tried to use plain English content on the site, you may come across specialist terms and acronyms. Find out what they mean in our glossary of terms.
If you come across a term that isn't included in the Glossary please send us an email.
I have the honour to present to you the report of the Ministry of Foreign Affairs and Trade for the year ended 30 June 2009.
John Allen
Secretary of Foreign Affairs and Trade
The global economic crisis in the second half of 2008 had a significant impact on the domestic and international environment in which the Ministry operated during the past year. The impact of the global economic crisis on global trade flows, on international finance, on national budgets, and on New Zealand’s own fiscal situation, meant that the Ministry had to be nimble in responding to the crisis to defend and promote New Zealand’s interests, adjust to a tighter budgetary situation, while at the same time driving forward to deliver on key foreign and trade policy outcomes.
As a result of the election of a new Government in November, the Ministry has been working to ensure that resources and operational policy settings correspond with the high-level foreign and trade policy priorities as set out by the Government in its pre-election manifesto, and articulated by Ministers to the senior management team. This work continues.
Against this changing backdrop, I am pleased to report that the Ministry made good progress towards achieving international relations goals as set out by the new Government, and in the Statement of Intent 2008-11. I want to acknowledge particularly the strategic oversight and leadership of Simon Murdoch who retired as Chief Executive of the Ministry in June. The product of the Ministry’s efforts is the result of his guiding hand and management, not just in the past year, but in the seven years that he so ably led the Ministry.
The Ministry recorded a number of significant results, some of which were the result of incremental steps made over a number of years and were supported by other agencies. In progressing the Government’s goal to pursue a rich agenda of trade negotiations that will deliver growth opportunities in the future, outcomes included the: top of page
Through these initiatives a significant strategic positioning of New Zealand in the Asia/Pacific region for regional economic integration was achieved. Our relationship with Asia was given greater intensity through high-level visits and other engagement with China, Japan and Korea, Indonesia, Malaysia, Viet Nam and India.
In our home region the Ministry managed four high-level Pacific meetings including the Niue Pacific Leaders Forum, the Port Moresby Special Leaders’ Meeting, United States (US) Secretary of State Rice’s meeting in Apia, and the Pacific Trade Ministers Meeting in Auckland. These helped to advance New Zealand interests in relation to the Forum, Fiji, bilateral engagement with the US and Australia, and the start of negotiations of a Pacific regional trade agreement. The trans-Tasman relationship was lent a new vitality through a refreshed and ambitious agenda given effect in the Sydney Declaration and the Australia/New Zealand Prime Ministers’ Action Plan.
In the multilateral arena the Ministry participated in small group negotiating processes on climate change leading up to the landmark United Nations (UN) conference on climate change in Copenhagen. This enabled New Zealand to stay well informed and well positioned to protect and advance our interests and to ensure that our climate change obligations in the future climate change architecture are balanced with the Government’s growth agenda. As a pro- conservation voice and a key member of the International Whaling Commission’s (IWC) Small Working Group, New Zealand played a pivotal role in advancing the "diplomatic process" aimed at reforming the IWC and resolving differences over whaling. The Ministry contributed to successful lobbying for appointment of former Prime Minister Helen Clark to the position of Administrator of the UN Development Programme.
Outside of these highlights for the year the Ministry demonstrated its capability to respond quickly and effectively to unplanned events that could have impacted adversely on our security and prosperity interests, or where New Zealanders were suddenly at risk overseas.
In response to the global economic crisis the Ministry used its posts to provide timely information to assist central agency and Government policy-making in the light of developments around the world, and to exert influence in the lead-up to international meetings on the crisis.
The Ministry’s emergency planning processes for responding to consular incidents were fully tested in November 2008 when it was required to manage three concurrent crises: the Mumbai terrorist bombings; the shut down of Bangkok International Airport; and the Air New Zealand plane crash at Perpignan, France. The effective responses by staff in Wellington and at the relevant offshore posts demonstrated the benefits of investing in planning and training for such emergencies.
The melamine contamination issue in China required a careful and effective diplomatic response to ensure that New Zealand’s international reputation was maintained, that our trade in dairy products continued globally, and that our good relationship with China was not damaged. Our Embassy in Beijing played a central role in this achievement and was closely supported by our global network of posts and supporting units in Wellington, including other agencies.
The Ministry, in response to the Government’s strong desire to get better outcomes and efficiencies from New Zealand agencies working offshore, and to enhance New Zealand’s prosperity, commenced work on developing processes to enhance NZ Inc coordination. This has flowed into a major review led by the Ministry of New Zealand’s offshore network to be completed by the end of 2009.
In early 2009 the Government also mandated a review of NZAID’s institutional arrangements with the Ministry, and its policy settings, in order to ensure that Official Development Assistance (ODA) was closely aligned with and supported foreign policy priorities. As a result, NZAID’s semi-autonomous body status was removed and NZAID was moved back into the normal range of accountabilities under the State Sector Act and the Public Finance Act. The strategic objective and mandate for New Zealand’s ODA was changed to: Sustainable development in developing countries, in order to reduce poverty and contribute to a more secure, equitable and prosperous world, with a focus on sustainable economic development and a core focus on the Pacific. NZAID has begun the process of implementing the new policy settings in its programmes, and work is continuing on the down-stream integration issues with the wider Ministry. At the same time, NZAID has been systematically and comprehensively addressing the audit findings of 2007 regarding its contracting practices and has largely completed its programme of improvements.
A major challenge at the start of the year was to implement phase one of the Ministry’s five-year capability strengthening programme as outlined in the 2007 Business Case - Response to Foreign and Trade Policy Challenges 2008-2012. In line with this, 114 new positions were created before the end of 2008, with a focus on strengthening high-priority outcome areas including in trade and economic diplomacy, trade law, the Asia and Pacific regions and some smaller posts.
Because of the forecast tighter fiscal environment, the domestic economic downturn in 2009, and the Government’s drive to get better value for money from the public service, this five-year capability package was significantly reduced. As a result, in early 2009, the Ministry reprioritised the capability development programme to ensure that existing and new resources were closely aligned with the Government’s priorities and managed within the staff establishment cap as at 31 December 2008.
An effective Foreign Ministry with global 24/7 operations 365 days of the year requires efficient and well-managed corporate services. Without such integral support the front line staff in our 53 posts cannot deliver the results or services sought by New Zealanders.
In this regard I can report that the Ministry revamped several of its corporate service divisions in order to implement a knowledge management strategy and improve public diplomacy and outreach, and achieved improved effectiveness of staff working remotely, through implementation of a flexible work environment, including secure mobile computing - a key component of the Ministry’s four-year ICT Strategy. The Ministry continued its capital upgrade programme and successfully completed on time, and within budget, two major concurrent building projects in Pretoria (Chancery) and Dili (Chancery and Staff House). Chanceries were also refurbished in London and Jakarta. In addition, under the five-year capability package the Ministry established three new posts, Stockholm, Brisbane and Melbourne. Having these posts operational within the short timeframes set by the previous government required tight project management and innovative solutions. While only recently established the posts will be included in the offshore footprint review to be completed by the end of 2009.
For the year ahead, the Government has set clear policy directions for the Ministry to increase New Zealand’s prosperity and security interests through a tighter NZ Inc framework. The environment in which we work will continue to be challenging, complex and at times unpredictable. The challenge going forward is to ensure that the Ministry has the capability and capacity to deliver the results required by New Zealanders over the medium term and is able to respond effectively to unplanned events to protect New Zealand’s interests.
The Ministry’s achievements were the product of some 681 staff in New Zealand and 254 staff at 53 posts around the world. They were assisted by 420 overseas staff hired locally. On behalf of Simon Murdoch, the Chief Executive of the Ministry for most of the year, I want to thank all Ministry staff, at home and abroad, for their professionalism and dedication in seeking to advance and protect New Zealand’s interests over the past year.
John Allen
Secretary of Foreign Affairs and Trade
