Post-Election Brief - November 2008

F. NZ Inc – Interagency Cooperation and Agency Services Overseas

In a globalised world, international issues and cross-border impacts can be drivers of domestic policy as much as national issues and developments.  Building effective international connections is central to developing pro-active policy responses to the opportunities and risks posed by globalisation.  The number of staff deployed overseas by other Government agencies has risen significantly in recent years.  Of the 360 New Zealand-based staff serving at Ministry posts offshore, over one-third (ie 130) are from other agencies – eg NZTE (33), Defence (28), Immigration (23), Police (9), Education (8), Customs (5), Agriculture and Forestry (3), Research, Science and Technology (2).  A number of agencies such as NZTE, Immigration and Internal Affairs operate branches within or alongside Ministry posts, sometimes run by local employees.  In every case it is the Ministry’s Head of Mission who is responsible to the host country for the conduct of all New Zealand diplomatic and consular staff.     

The Ministry supports staff from other agencies by assisting with their pre-posting training and transfers and providing, though its network of overseas posts, a secure diplomatic platform for them to work from.  A number of projects are underway to improve delivery of the Ministry’s services, eg  IT connectivity. 

In 2006, in order to promote greater policy alignment and operational cohesion among agencies working overseas, Cabinet authorised New Zealand Heads of Mission to lead the NZ Inc teams offshore.  Practical guidelines were approved in 2007 outlining a set of basic practices to encourage collaborative behaviours.

The Ministry also works closely with other agencies in Wellington to align strategic goals and policy frameworks offshore.  The NZ Inc teams at posts take these forward.  This often involves defining New Zealand’s value proposition to the country concerned, identifying the decision-makers and constituencies that have the ability to influence the desired outcome, and shaping an overall engagement strategy to build awareness, confidence and a series of mutual interests that will ultimately support a new level of cooperation to achieve the specific benefit sought by New Zealand.  The Ministry coordinates, delivers and calibrates continuously to build the logic and momentum for engagement.  This is frequently a long-run process taking years, but the synergies and connections act as a multiplier of the total NZ Inc effort and impact offshore.  Posts like Beijing, Brussels, Canberra and Washington, now develop annual NZ Inc country strategies along these lines. 

NZTE is by far the Ministry’s largest and closest partner offshore.  It has its own network of 38 offices as well as staff in Ministry posts.  Its offices include five regional “hubs” (Hamburg, Singapore, Hong Kong, Los Angeles, Sydney), as well as 33 “spoke” offices.  NZTE is currently progressing two priority objectives.  The first is a four-year Asia Expansion Strategy which envisages adding up to five additional offices in China’s second-tier cities and establishing new beachheads and concept centres in China, Japan and India. The Ministry and NZTE have agreed on a set of consultative principles to mitigate any budgetary and operational implications for the Ministry’s own resources and objectives as NZTE’s offshore footprint changes. 

NZTE’s second priority is its “Globally Competitive Firms” work-stream, requiring it to engage more intensively with a select group of firms that have the potential to enhance their growth in New Zealand’s major markets significantly.  This “narrower and deeper” focus will oblige NZTE to provide more sophisticated and integrated in‑market business support.  The Ministry has an underpinning role through its leadership of NZ Inc and specific contributions to help business - eg sponsoring promotions, access to decision-makers.

In emerging markets where NZTE has limited or no ability to monitor and follow-up longer-term risks and opportunities (eg some parts of Asia, Latin America, the Middle East and Africa, Central and Eastern Europe, and the Pacific), the Ministry and NZTE are developing a pilot market development scheme.  This aims to join up NZTE’s knowledge of New Zealand firms and business strategies with the Ministry’s local knowledge and connections.  Ministry staff familiar with the language and culture of a specific market would have a defined role in prospecting for opportunities which NZTE lacks the resources to explore.  By formally linking the two organisations’ strengths, the arrangement would provide a more pro-active NZ Inc response.

Issues to be addressed over the coming year include: support NZTE’s Asia Expansion Strategy and manage implications for existing networks, resources, and relationships pilot a scheme to monitor and follow-up longer-term risks and opportunities to trade development in emerging markets that are not an immediate focus for NZTE provide in-market support to the Globally Competitive Forms initiative and open doors for New Zealand business
expand the Ministry’s targeted economic and market intelligence reporting to meet the requirements of New Zealand business focus on strengthening NZ Inc policy alignment and operational coordination including roll-out of an NZ Inc portal to aid IT connectivity.

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