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This Statement of Intent sets out the Government’s key strategic priorities for the next three years. It reflects the Government’s view that foreign and trade policy is essential to achieving its overall goal - growing the economy in order to deliver greater prosperity, security, and opportunities for all New Zealanders. Implementing that vision means keeping New Zealand’s core interests, strengths and capabilities at the centre of our external policies and engagements.
The global recession has made re-focusing on New Zealand’s core interests and strengths an even greater imperative as negative growth and declining international trade and capital flows impact on our major trading partners. With the prospect of a prolonged economic slow-down, the Ministry of Foreign Affairs and Trade and partner government agencies will need to focus on implementing initiatives that help our economy – especially the tradeables sectors and their access to markets and capital – to get through the recession in as strong a condition as possible to take advantage of the recovery and the opportunities it will bring. In practice it will mean putting support for exporters as the top priority for most of our overseas posts. It will also mean a heightened focus on our near neighbourhood and giving priority to assisting the economic development of our Pacific Island partners.
The Government’s specific medium-term priority goals set out in the Statement of Intent require a stronger focus on our relations with the Asia-Pacific region, on boosting sustainable economic development in our South Pacific neighbourhood, on a dynamic FTA strategy for a nation with global trading interests, on advocacy of New Zealand’s interests in international climate change negotiations, and on more targeted engagement with multilateral institutions. Re-focusing New Zealand’s external policies in these directions will change the balance of the Ministry’s efforts going forward.
As part of the overall re-focusing of policies required by Government, the Ministry will also engage in the near-term in an inter-agency process to develop more flexible and cost-effective options for government agencies to pursue New Zealand’s offshore interests. The aim is to have a more cooperative, productive and effective whole-of-government (NZ Inc) operation overseas. The Ministry, New Zealand Trade and Enterprise and Tourism NZ, in particular, will need to work more closely together on market development and investment promotion. The Ministry will also be a key participant in a review to ensure that New Zealand’s offshore network is fit-for-purpose and focused on key countries and markets, especially in Asia.
NZAID, similarly, will re-focus the aid programme and delivery mechanisms to ensure they are well targeted on the Government’s priorities, effective and efficient. That process will involve some institutional change with NZAID becoming directly accountable to the Secretary of Foreign Affairs and Trade Chief Executive under the State Sector Act rather than continuing to operate as a semi-autonomous body.
These priorities and structural changes will help position the Ministry to have a sharper focus on the challenges that New Zealand is facing in the twenty-first century. Implementing them is crucial to creating the opportunities and confronting the risks flowing from the pressures of the global recession. I have every confidence that the Ministry will be successful in meeting these challenges.
Hon Murray McCully
Minister of Foreign Affairs
Responsible Minister
4 May 2009
I am satisfied that the information on future operating intentions provided by my department in this Statement of Intent is in accordance with sections 38, 40 and 41 of the Public Finance Act 1989 and is consistent with the policies and performance expectations of the Government.
Hon Murray McCully
Minister of Foreign Affairs
Responsible Minister
4 May 2009
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