An independent report released 21 December 2010 shows that overall Maritime New Zealand (MNZ) is providing value for money and is acting in within its mandate.
The report, commissioned by the MNZ Authority and carried out by Ernst & Young, also identifies opportunities to ensure that taxpayers and the maritime industry continue to get the right services delivered in the right place at the right cost.
Value for money review report - Ernst & Young [PDF: 1.89Mb, 125 pages]
Like all good organisations, Maritime New Zealand (MNZ) wants to ensure it is delivering value for money and is always looking for ways to lift productivity and performance.
The review of MNZ was focused on helping identify if its current funding is appropriate for the services delivered, and to ensure that tax payers and industry are getting value for money. It was not a result of any concern over the way the organisation is currently being operated.
The government is committed to ensuring services provided by public sector agencies are delivered efficiently and cost effectively – and regular reviews such as this are an important part of this process.
The review found that, overall, MNZ does deliver value for money, and is operating within its mandate.
The review also found that MNZ as an organisation is significantly increasing its maturity across core capabilities.
However, it identifies issues that need to be addressed if the progress made by the organisation over the past few years is to be sustained, and has made a number of recommendations to help achieve this.
Ernst & Young carried out the review, in response to the need for a robust, independent analysis of MNZ’s role and functions.
A sector reference group, of representatives from the maritime industry, took part in the review process. Representatives from the Ministry of Transport and Treasury were also involved as members of a steering committee.
The review began in June 2010 and was completed in October 2010.
The review looked at whether MNZ is efficiently performing its statutory functions and obligations, including provision of any services that are not currently mandated. It also considered the impact of MNZ services on the effective functioning of the maritime industry and the New Zealand economy and whether MNZ’s current strategic objectives are appropriate and sustainable. The review also considered information systems, staff capability and processes and procedures, in order to have a clear understanding of MNZ’s business.
The Rescue Coordination Centre New Zealand (RCCNZ) and the Marine Pollution Response Service’s (MPRS) funding and activities were not considered as part of the review. Both will be the subject of separate reviews. A capability review of MPRS is currently underway, with RCCNZ to be reviewed in the next financial year.
The Marine Safety Charge was not considered as part of the review, as it will be looked at as part of a wider funding review. The funding review will begin in 2011 and a timeline for this review will be available before the end of 2010.
This has not been recommended. The review finds that overall, MNZ is providing value for money within its current budget and is operating according to its mandate.
It has identified that MNZ carries out a broad range of functions and as a small organisation is under increasing pressure in delivering these functions within its current resources. Additionally, services could not be discontinued without affecting MNZ’s ability to fulfil its functions, which would have an impact on the maritime industry.
At the same time, the review has made recommendations on how MNZ could more efficiently and effectively deliver the services it is required to provide. MNZ is already working on how best to give effect to these recommendations.
Planning has begun on a wider funding review of MNZ. This review will be carried out in the New Year and will consider all elements of MNZ’s funding, including Crown funding, direct charges and the Marine Safety Charge. Sector consultation will be held as part of that review and a sector reference group will provide input and information throughout the process. A timeline for the funding review will be made available before the end of 2010.
Yes. A Sector Reference Group, comprising representatives from the various maritime sectors was formed and consulted during the review. Their views have been incorporated and reflected in the report.
MNZ is working through how it will give effect to the review recommendations, and has already accepted the majority of them. Some of the recommendations are, however, dependent on the outcome of the upcoming funding review.
The funding review is to be carried out by MNZ with support from the Ministry of Transport, Treasury and a number of independent people. It will take longer than originally planned, as changes to MNZ’s financial and activity recording systems are required to capture the more detailed data necessary for a cost recovery framework.
Following the data gathering process, a discussion document on the funding review will be drafted and released for public and sector consultation. This is planned to be released toward the end of 2011.
