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Maritime New Zealand Funding review

Maritime New Zealand (MNZ) is undertaking a funding review of MNZ and its functions, following a Value for Money (VfM) review in 2010.

Value for Money (VfM) review

The review is being undertaken to ensure the organisation is adequately and appropriately funded over the long term for the things it is required to do.

The purpose of the funding review is to ensure MNZ has in place robust, sustainable and defendable funding arrangements that:

• support business operations within the maritime regulatory environment and MNZ
• balance the range of interests with the maritime community
• are flexible and can be modified effectively and efficiently when required…

…so that over the long term MNZ is funded properly for the things it is required to do.

The funding review is focusing on MNZ functions and services, including shared services provided by MNZ to the Marine Pollution Response Service (MPRS) and the Rescue Coordination Centre New Zealand (RCCNZ). MPRS and RCCNZ funding and expenditure, however, are not included.

The review will enable informed decisions to be made about any changes to the levy that funds much of MNZ’s functions (the Marine Safety Charge) framework and also to fees charged.

Maritime community representatives are involved in the review process as part of a Sector Reference Group. Their perspectives will make a valuable contribution to the review.

Funding review Sector reference Group

The grounding of Rena in early October 2011 diverted resources from the funding review for some time. The Minister agreed to pause development of options for new marine safety charge levels. Some funding review and ‘value for money’ implementation work continued on identified activities that were not directly affected by the Rena response.

The project resumed in March 2012. A proposal will go to the Minister for consideration with Cabinet in July 2012, to be followed by sector consultation about:

• the funding review’s proposal on the future treatment of marine safety charges and fees
• what will be paid for by the Crown.

Consultation is expected to be for six weeks during August/September 2012.

Public meetings will be held in a number of locations around the country to give the sector a chance to hear about the proposal and to ask questions.

Dates will be advertised on the Maritime New Zealand website and in publications closer to the time.

The outcome of the consultation and Cabinet’s decision is expected to be in November 2012. Implementation will be from a date in 2013. A firm date is yet to be decided.