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STANDARDS COUNCILSTATEMENT OF INTENT

2012 – 2015

G.15

OUR VISION New Zealand’s leader in creating value through standardisation

OUR MISSIONTo improve New Zealanders’ lives

OUR VALUESWe have integrity – our dealings are transparent and honest

We are a team – we value our relationships with each other and with our stakeholders

We are professional – we work with the community to provide products and services we can all rely on

We are dynamic – we are forward thinking and provide creative solutions

OFFICELevel 10, Radio New Zealand House 155 The Terrace, Wellington 6011 Private Bag 2439 Wellington 6140

T: (04) 498 5990 F: (04) 498 5994 [email protected] www.standards.co.nz

G.15

STANDARDS COUNCIL

STATEMENT OF INTENT 2012 – 2015Presented to the House of Representatives pursuant to section 149 of the Crown Entities Act 2004

COPYRIGHT STATEMENT AND LICENCE Crown copyright ©. This copyright work is licensed under the Creative Commons Attribution 3.0 New Zealand licence. In essence, you are free to copy, distribute, and adapt this work, as long as you attribute it to Standards New Zealand and abide by the other licence terms. To view a copy of this licence, visit http://creativecommons.org/licenses/by/3.0/nz/. Attribution to Standards New Zealand should be in written form and not by reproduction of the Standards New Zealand logo.

ISSN 2230-407X (Print) ISSN 2230-4088 (Online) G. 15

1STANDARDS COUNCIL | STATEMENT OF INTENT 2012 – 2015

CONTENTSChair’s foreword 2

Introduction from the Chief Executive 4

Part 1: Our role and context 5

Purpose and functions 5

Standards as solutions 6

How we operate 7

A changing environment 9

Part 2: Our operating intentions 11

Strategic priority areas 11

Outcomes framework 13

Part 3: Service performance 16

Statement of forecast service performance 16

Part 4: Financial management 17

Statement of responsibility 17

Budgeted financial statements 18

Statement of significant underlying assumptions 21

Statement of significant accounting policies 23

Nominating organisations 30

Standards Council IBC

2 STANDARDS COUNCIL | STATEMENT OF INTENT 2012 – 2015

CHAIR’S FOREWORD

The national Standards catalogue, which contains national, international, and joint Australian/New Zealand Standards, is a repository of knowledge to help New Zealanders lead lives that are safer, healthier, more prosperous, and more convenient, as well as helping to protect our environment. Standards are a means of sharing core technical knowledge and supporting innovation transfer. International Standards strengthen our trade relationships and ensure we are aligned with international best practice. Joint Australian/New Zealand Standards are critical to an integrated trans-Tasman economy. We provide value for money by creating cost-effective, consensus-based solutions to regulators, government, industry, and consumers using a Standards development process that compares favourably to Standards development elsewhere.

The Standards Council is one of the five Crown standards and conformance bodies in New Zealand. All of these bodies are government owned, differ in status, and operate independently.

The Standards Council is a self-funded, independent body that recoups its operating costs by securing service funding for the development of Standards solutions, revisions to existing Standards, and through sales of Standards. While its functions under the Standards Act 1988 are wide, the Standards Council is only able to discharge these functions as far as resources will allow.

The Council faces significant challenges to its medium to long-term sustainability in the current environment. This is due to the economic downturn, delays in legislative citations, and less spending on Standards development by regulators, especially in the building and construction sector. For the first time in 3 years, despite significant restructuring, operational efficiencies, and downsizing, we are forecasting a deficit in our year-end financial results. This underscores the pressing need to review our current policy settings and business model and how the wider standards and conformance infrastructure operates to maximise value for money for New Zealanders.

As many Standards are commissioned by regulators, we face new opportunities and challenges as public sector budgets continue to tighten, government departments merge, and the focus is on ‘doing more with less’. Standards should and must be part of that response, so there is a need to ensure that Standards development efforts are not fragmented or duplicated across the wider state sector. The Council is currently investigating a coherent national approach to standardisation to address this. We look forward to working with the new Business, Innovation and Employment Ministry to progress work which will look at how to best use the standards and conformance infrastructure for the enduring benefit of New Zealanders and our economy.

Standards need to be kept current and fit for purpose if the Standards Council is to recover costs effectively. As the average age of Standards in the national catalogue increases, support must be secured from industry groups and regulators (who rely on these Standards) to allocate the resources needed to update them. There is an increasing demand for ‘open source’ Standards and improved access to Standards by specific industry groups. This requires alternative funding mechanisms, for example public/private partnerships, which are being explored. Strong support from industry and government has been a critical success factor of national standardisation strategies in other countries, and New Zealand requires the same.


Within the building and construction sector, Standards New Zealand is committed to quickly responding to the recommendations arising from the Canterbury Earthquakes Royal Commission and the Canterbury rebuild. Clarity of the role, place, and funding for Standards underpinning the New Zealand Building Code will be critical to addressing the Commission’s final recommendations.

Overall we must reposition our organisation for an enduring capability to provide New Zealand’s Standards. This may well involve changes to our business model and to the nation’s standards and conformance infrastructure.

John Lumsden Chair Standards Council


INTRODUCTION FROM THE CHIEF EXECUTIVE

Standardisation spans all aspects of New Zealand’s economy and society, and indeed our daily lives. The basis for Standards and standardisation is creating public good and economic benefits.

Research conducted in 2011 by Business and Economic Research Limited (BERL) mirrors a number of international studies that show Standards can, over time, significantly add to a nation’s annual gross domestic product (GDP). Standards bolster an economy by encouraging innovation, improving market efficiency, and reducing transaction costs. Combined with the myriad of health and safety, environmental, and social benefits they bring, it’s clear that Standards have an important role to play in all aspects of New Zealand society now and into the future.

Beginning in 2007, the Standards Council refocused its business model to ensure Standards New Zealand’s viability could be maintained. Independent consultants PricewaterhouseCoopers found that despite the risks associated with a user-funded business model, Standards New Zealand’s operations were robust and the model was realistic and achievable at the time. Since then, however, the operating environment has significantly changed – from the Canterbury earthquakes, to the effects of the economic downturn, to changes within the public sector – and, while the model has allowed Standards New Zealand to remain viable, the organisation faces significant challenges for medium to long-term sustainability. Standards New Zealand remains results focused and committed to using its resources to deliver maximum value to its clients, customers, and owner.

Standards New Zealand has nearly 80 years experience in developing Standards – our organisation was founded in the wake of the Hawke’s Bay earthquake of 1931 to ensure future events did not result in the same loss of life and devastation. The Canterbury Earthquakes Royal Commission’s Interim Report recommended the review of several key building Standards based on learnings from the Canterbury earthquakes. We are ready and able to do our part to support the rebuild of Canterbury. We have also invited the Department of Building and Housing to confirm its intentions for funding the review of relevant Standards that underpin the rebuild of Canterbury and the New Zealand Building Code.

As New Zealand’s national Standards body, we continue to provide Standards solutions to address a range of challenges and opportunities facing New Zealand. As we look toward the future in our 2012 – 2015 Statement of Intent we also look back at what we have already accomplished and with a clear resolve to continue to develop Standards solutions that improve New Zealanders’ lives.

Debbie Chin Chief Executive Standards New Zealand


PART 1

OUR ROLE AND CONTEXT

PURPOSE AND FUNCTIONS The Standards Council operates as an autonomous Crown entity under the Standards Act 1988 and the Crown Entities Act 2004. Standards New Zealand is the operating arm of the Standards Council.

The Standards Act charges the Standards Council with developing, promoting, and facilitating the use of Standards and standardisation to help deliver a broad spectrum of social and economic benefits. This value is wide ranging and includes increased productivity, enhanced market access for producers, and improved consumer safety.

While its functions under the Standards Act are wide, the Standards Council, a small self-funded Crown entity, is only able to discharge these functions as far as resources will allow under its current policy settings.

The Standards Council is one of the five Crown standards and conformance bodies in New Zealand. All of these bodies are government-owned, differ in status, and operate independently. This national collection of agencies makes up New Zealand’s standards and conformance infrastructure.


STANDARDS AS SOLUTIONSStandards solutions are developed by expert committees comprised of government, industry, and consumer representatives. The process is consensus based and transparent and includes a period for public comment. Standards solutions are used on issues ranging from installing insulation, to testing water quality, to managing risk. All Standards solutions are outcomes focused, but can be adjusted to meet the specific needs of a sector.

Standards are generally voluntary, but can be mandatory when cited in legislation or conditions of resource consents or designations. They may also be referenced in regulations as one means of compliance or as an acceptable solution under those regulations, without being mandatory. They are an important tool to promote Government’s objective of better, less regulation.

FOR THE PUBLIC GOODWe create Standards solutions to contribute towards the public good of New Zealanders. The national Standards catalogue is a repository of knowledge to help New Zealanders lead lives that are safer, healthier, more prosperous, and more convenient. Standards in our catalogue keep our homes, playgrounds, buildings, and health services safer. They can prevent accidents and injuries, and they minimise the impact of disasters such as earthquakes, fires, and electrical hazards. They also help to protect our environment.

ECONOMIC BENEFITSIn 2011, the Standards Council and BRANZ commissioned Business and Economic Research Limited (BERL) to look at the economic benefits of Standards to New Zealand. BERL’s report The Economic Benefits of Standards to New Zealand provides compelling evidence of how sustained investment in developing and maintaining Standards could lift New Zealand’s gross domestic product by up to 1%. It found, as have a number of international studies, that Standards are powerful economic levers – they encourage innovation; improve market efficiency and prevent market failures; improve information to purchasers; and reduce transaction costs1.

While economic benefits are not always the primary consideration behind Standards development, as the report noted:

…the resources devoted to the production of Standards, and the ways in which Standards change people’s behaviour, inevitably has an economic effect. Similarly, many Standards are not designed with a specific economic outcome in mind, but to increase safety or manage risk. To the extent that accidents or risks lead to economic costs then their prevention through the use of Standards has an economic effect.

REDUCING WASTEBy creating consistency, streamlining processes, and ensuring that groups of products can work together, Standards provide guidance that eliminates wasteful duplication, broadens supplier options, and helps boost productive output.

SUPPORTING INNOVATION Standards act as a tool for sharing core technical knowledge and supporting innovation transfer within industries. Spending less time and money reinventing the basics means resources can be concentrated on developing new, more innovative products and services.

1 Retrieved from: http://www.standards.co.nz:81/news/The+economic+benefits+of+standardisation+to+New+Zealand.htm


HOW WE OPERATEThe Standards Council’s core functions include developing, promoting, and facilitating the use of Standards and standardisation to help deliver social and economic benefits. The Standards Council’s operating arm, Standards New Zealand, undertakes these functions as resources allow.

Standards New Zealand provides Standards solutions by:

• engaging with new and current clients to fund development of Standards solutions

• managing and coordinating Standards development to meet client needs

• facilitating stakeholder participation in Standards solution development

• publishing Standards solutions

• overseeing New Zealand’s participation in international and regional Standards development.

Standards New Zealand promotes the use and uptake of Standards solutions, through:

• direct marketing, telemarketing, subscription services, and order fulfilment through our e-business platform and customer service help desk

• relationship building and communication to all sectors

• initiatives for education to support the application of Standards as part of learning.

OUR BUSINESS MODELOur policy settings require the Standards Council to be a self-funded, independent body that must remain cost neutral. We must recoup our operating costs by securing service funding for the development of Standards solutions, revisions to existing Standards, and through the sales of Standards.

Beginning in 2007/08, and culminating in 2008/09, the Standards Council refocused its business model to maintain year-to-year viability. The model was reviewed by independent consultants PricewaterhouseCoopers (PwC) in the last quarter of 2008/09. PwC identified ongoing challenges to the Council securing adequate revenue to remain financially sustainable, but found that the Council’s model was achievable and realistic at the time. PwC also noted Standards New Zealand was well positioned to adapt to changing customer, client, and market needs. Our guiding principles under this business model include setting clear priorities within our business and capitalising on the broader value contained in the Standards development process and the existing national Standards catalogue.

These guiding principles have served the Standards Council well, but our operating environment has drastically changed since 2009. For example, the Canterbury earthquakes; the continued repercussions of the economic downturn; and major shifts within the public sector have dramatically affected nearly every aspect of our model. For the first time in 3 years we are forecasting a deficit in our year-end financial results which only underscores the need to adapt to the changing environment.

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Clients

Customers

CommitteesConsumers


OUR VALUE PROPOSITIONThe knowledge and intellectual property contained in the national Standards catalogue underpins our value proposition. This knowledge comes together through the formation of expert committees, with a balanced representation of stakeholders, using a consensus-based process. As the national Standards body we also draw on international expertise in Standards development.

We provide value for money by offering cost-effective, consensus-based solutions to regulators, government, industry, and consumers. Our Standards development process compares favourably to international Standards development – the average New Zealand Standard takes only 13 months to develop, including a prescribed 2-month period for public comment and consultation.

OUR INTERNATIONAL CONNECTIONS In an era of economic globalisation, the rapid development of information and communication technologies, increases in personal mobility, and the challenge of facing diverse kinds of risk, Standards build confidence on the world stage.

Standards often provide a commonality for export sectors that assist in overcoming global trade challenges. Examples of the value of international standardisation include the credit card, the global system for mobile communications that supports mobile phones, and transportable freight containers. International Standards provide an assurance to companies and countries unfamiliar with each other that they can join new markets and trade with certainty.

INTERNATIONAL STANDARDSAs New Zealand’s representative for the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), and Pacific Area Standards Congress (PASC), we ensure New Zealand has a voice in the international Standards community. Standards New Zealand uses and endorses the international Standards process. International Standards are consensus-based, industry-wide, and voluntary.

International Standards strengthen our trade relationships and ensure we are aligned with international best practice. Through our participation in international Standards organisations we are able to share our expertise and knowledge in a number of areas, as well as ensure that New Zealand interests are considered.

Again, limited resources provided to the Standards Council mean that New Zealand participation in the international Standards community is constrained. We continue to highlight to government the value to New Zealand of participating in international Standards development and the risks of not being at the table where international Standards may become trade barriers.

Our approach to draw on international, then regional and, where appropriate, national best practice to create Standards solutions is consistent with New Zealand’s international obligations. This hierarchy also reflects our commitment to global standardisation. In coordination with the new Business, Innovation and Employment Ministry we will continue to work with key sectors to:

• prioritise resources for effective international participation on committees where there are significant benefits to New Zealand

• identify new international Standards of strategic value to New Zealand

• secure funding for the adoption of international Standard equivalents into the New Zealand catalogue.


OUR PARTNERSHIP WITH STANDARDS AUSTRALIAThe New Zealand-Australia relationship is vital to both countries – two-way trade is currently worth over $17 billion, and two-way investment is over $65 billion. Over 80% of our national Standards catalogue is formed from joint Australian/New Zealand Standards, covering items as diverse as electrical goods, construction, and compliance programmes.

Given the importance of an integrated trans-Tasman economy, and the increasing role both countries play in each other’s regulatory reforms, this close relationship between the New Zealand Standards Council and Standards Australia is critical. Executive governance teams meet regularly for strategic planning and there is frequent contact between project management teams on the development of joint Standards. This relationship remains strong and we will continue to build on this unique and beneficial partnership.

A CHANGING ENVIRONMENTThe past few years have seen a number of dramatic economic events that have had far-reaching global consequences. With future global conditions uncertain, the outlook for New Zealand and its trading partners over the next few years remains tenuous.

In this environment, it has become apparent that our current business model and way of working will need to continue to adapt. In this way we can continue to ensure Standards New Zealand remains relevant and responsive to the wider needs of society and the economy. Delays in citation and less spending on Standards development by regulators, especially in the building and construction sector, are having a significant impact on the Council. Coupled with deteriorating market conditions and the current economic outlook for New Zealand, our medium to long-term sustainability is under pressure.

To ensure we are well placed to carry out our mission we will work closely with the Business, Innovation and Employment Ministry. A strong working relationship with the new Ministry will be essential to progress work which will look at the role, place, and functions of the national Standards body and how to best use the standards and conformance infrastructure for the benefit of New Zealanders and our economy.

This review is fundamental to addressing a number of challenges the Council is facing and should lead to an enduring solution for the national Standards body. For instance, maintaining our national Standards catalogue remains paramount to staying relevant for New Zealand’s changing needs. These Standards need to be kept current and fit for purpose for the Standards Council to recover costs effectively. As the average age of Standards in the catalogue increases, we need support from industry groups and regulators (who rely on these Standards) to secure the resources needed to update them.

As many Standards are commissioned by regulators and government, we face new opportunities and challenges as public sector budgets continue to tighten, government departments merge, and the focus is on ‘doing more with less’. Standards can be part of that response, however we need to work with the Business, Innovation and Employment Ministry to ensure Standards development efforts are not fragmented or duplicated across the wider state sector. The Council is currently investigating a coherent national approach to standardisation to support this and we will use this thinking to help inform the Ministry’s wider policy review for the standards and conformance infrastructure.


New Zealand’s economic recovery will be assisted by the rebuild of Canterbury and the associated growth in the construction sector, however for the Standards Council there are concerns about the timing and funding of Standards development and revisions based on the findings of the Canterbury Earthquakes Royal Commission. The use of Standards has been credited with reducing the loss of life and property in the Canterbury earthquakes. Published Standards, however, need to be revised to keep pace as new information becomes available. This point was highlighted in the Royal Commission’s Interim Report which states:

Two reports (‘Stairs and Access Ramps between Floors in Multi-storey Buildings’ by Des Bull and ‘Preliminary Observations from the Christchurch Earthquakes’ by John Hare) provided to the Royal Commission for the purposes of its Inquiry, establish that there are aspects of structural design and construction which need urgent attention in the context of the imminent rebuilding work in the Christchurch CBD ... The proposed actions involve recommendations for changes to construction practice and design standards, as well as further research.2

Fit-for-purpose Standards must underpin much of the rebuild of Christchurch. To that end we are working with leading researchers including GNS Science, the University of Auckland, the University of Canterbury, BRANZ, and other industry experts on what changes must be made to our Standards to reflect our growing knowledge in all aspects of building. This important work, however, will require proper resourcing and decisions on how the work and roll-out of information will be funded.

Additionally, the rebuild of Christchurch has brought to the fore the increasing demand for ‘open source’ Standards and improved access to Standards by specific industry groups. We are exploring options to continue to respond to these demands consistent with our policy settings and core function to promote standardisation within New Zealand.

MANAGING RISKTo address the issues and associated risks described above will require the Standards Council to be strategic, resilient, and agile in its operations. This may mean significant organisational changes for Standards New Zealand and a re-evaluation of the products and services we provide. We will continue to base our risk management system on resources such as AS/NZS ISO 31000:2009 Risk management – Principles and guidelines that includes:

• an audit and risk subcommittee with clear delegations and an annual work programme

• a risk register and mitigation treatments

• policy, procedure, and legislation compliance monitoring

• internal and external audits

• integrated governance and management reporting.

2 Canterbury Earthquakes Royal Commission. Interim Report. October 2011: 9.


PART 2

OUR OPERATING INTENTIONS

How we will operate over the next 3 years is guided by four overarching themes:

• maintaining our financial stability and viability given the current operating environment

• clarifying our role and strengthening relationships in our key sectors (increasing depth rather than breadth)

• adapting to changing stakeholder needs

• repositioning for medium to long-term sustainability.

These are reflected in our areas of strategic priority and outcomes framework and through a mix of result and activity-based measures.

STRATEGIC PRIORITY AREASIn order to support its outcomes the Standards Council has developed three strategic priority areas for the next 3 years.

FOCUSED, STRATEGIC STAKEHOLDER ENGAGEMENT Our engagement with stakeholders, and with core sectors of the economy, will be undertaken in a more focused and strategic way. Standardisation is a powerful lever to improve productivity and achieve quality commercial, regulatory, and social outcomes.

To maximise these benefits, the Standards Council is investigating a coherent national approach to standardisation. That is, one that meets the needs of our stakeholders in a coordinated way, and is aligned with Government’s priorities to promote productivity, innovation, and a more resilient economy. The Council is engaging with stakeholders to undertake this work. Strong support from industry and government has been a critical success factor of national standardisation strategies in other countries, and New Zealand requires the same.

Within the building and construction sector, of primary importance is our commitment to quickly respond to the recommendations arising from the Canterbury Earthquakes Royal Commission and the Canterbury rebuild. Clarity of the role, place, and funding for Standards underpinning the Building Code will be critical to addressing the Commission’s final recommendations.

In our other key Standards development sector, energy safety, we will build on and strengthen existing relationships with funders, regulators, and Standards customers. In other sectors we will continue to identify, analyse, and capture opportunities to better meet emerging industry needs.

We will continue to support our expert volunteer committees, whose contribution is vital to New Zealand Standards development. We will seek ways to rejuvenate and encourage levels of participation while keeping the integrity of our world-class consensus building process intact.


MORE RESPONSIVE PRODUCTS AND SERVICESOur commitment to developing new Standards products and services will continue over the next 3 years. By investing time and resources into providing more valuable solutions to our clients and customers we aim to increase demand for our goods and services.

We will identify ways to better leverage and provide improved access to the breadth of intellectual property and knowledge contained in the national Standards catalogue. We will expand the range of national, regional, and international products and services available for sale. This will involve adapting existing products and services and seeking out new ones, with a particular focus on those that can be sold through Online Library subscriptions and other licensed subscriptions. We will also look at how public/private partnerships could support improved funding of, and access to, information for the building and construction sector.

Where it is viable, we will consider initiating and funding3 projects of significant interest. In these instances, Standards projects can be delivered even more quickly, providing timely solutions for industry and government.

MAINTAIN VIABILITY AND MARKET RELEVANCEThe Council is committed to maintaining its financial stability and viability in order to move towards medium to long-term sustainability. This remains a paramount challenge given its current policy settings and operating environment.

Our focus on stability and viability means we must operate in an efficient and cost-effective way. This means tight management of operating expenses and carefully balancing revenue and costs to ensure that the business remains financially stable while also seeking out new and alternative opportunities to generate revenue. When seeking out new opportunities, we will be looking at the most effective ways to provide our services with the funding available from sponsors.

Equally, this means maintaining our high standards for customer, committee, client, and staff satisfaction so that we continue to meet stakeholder expectations and provide a good workplace for our staff.

Longer-term sustainability will require clarifying the role, place, and functions of the national Standards body in conjunction with the Ministry of Business, Innovation and Employment. Equally, opportunities for greater coordination and efficiency within the standards and conformance infrastructure will need to be revealed.

Activity milestones

Strategic priority area Activity milestone to be achieved by 30 June 2013

Focused, strategic stakeholder engagement

• Develop and document a concept for a national standardisation approach and test commitment from key stakeholders

• The role and place of Standards supporting the Building Code is clarified following the Canterbury Earthquakes Royal Commission, and work is instigated to update the affected Standards

• Volunteer Rejuvenation Strategy delivered to agreed project plan

More responsive products and services

• Continued promotion of online services resulting in growth in Online Library subscriptions that is equal to, or greater, than FY 12/13 budget

• At least three self-funded Standards development projects have been initiated by Standards New Zealand to support regulators and organisations

Maintain viability and market relevance

• Policy options are identified to promote the long-term sustainability of the national Standards body infrastructure in conjunction with the Ministry of Business, Innovation and Employment, and implementation of the preferred option is progressed

3 This requires that Standards New Zealand self-funds these projects. These projects are funded when the benefits from potential sales of the published Standard outweigh the costs of its development and promotion.


OUTCOMES FRAMEWORKThe value Standards add to the New Zealand economy can only be realised if the national Standards body is well positioned to produce high-quality outputs. Our outcomes framework and performance measures reflect this.

In the current economic environment, the Government’s focus is clear: value for money, and doing more with less. Already the Council’s financial stability is under pressure. Success means meeting and maintaining our performance standards in this challenging environment, and then gradually rebuilding towards longer-term sustainability.

Because Standards solutions are often part of wider initiatives or interventions, measuring the direct effect of these solutions on our impacts and outcomes can be difficult. Additionally, the Standards Council does not receive any direct appropriation or levy funding for the delivery of its outputs.

Our outcomes framework is based on the assumption that if Standards are purchased, they are being used, and if Standards solutions are funded, then they are supported. Support for, and uptake of, Standards solutions leads to the economic and social benefits that have been described at the beginning of this document.

Accordingly our performance measures are proxy indicators for our impacts. If we are receiving sufficient sponsorship to develop Standards for sale (which generates our revenue) then we are financially stable. If we are maintaining our cash flow reserves, then we are financially viable, and well positioned to improve our end-of-year results over the next 3 years (as the relevant aspects of our strategy materialise). If our client, committee, and customer satisfaction levels are high, then we know that we are delivering high-quality products and services.

Outcomes framework

Vision New Zealand’s leader in creating value through standardisation

High-level outcome

Economic growth: Increased productivity and

innovation, expanded markets, and improved asset use

Improved welfare and safety: Products and services

that are safe, reliable, and fit for purpose

Intermediate outcome

Government, regulators, industry, advocates, and consumers have a greater range of useful Standards solutions (and improved awareness of how they can be

applied) to deliver key outcomes

Impacts

Outputs

Use of Standards solutions by customers (Standards purchasers)

Uptake of Standards solutions

Support for the development of Standards solutions from clients

(Standards sponsors)

Provision of Standards solutions

Performancemeasures

Financial stabilityStakeholder satisfaction4 Financial viability

Performancestandards

FY 12/13 end-of-year result

≥ budget

Clients ≥ 5.6Committees ≥ 5.8Customers ≥ 6.0

Financial reserves maintained at not less than $2 million each

year5

4 As measured by independent survey, score out of 7.

5 Represented by the total of ‘cash’ and ‘cash equivalents’ and ‘short-term deposits’.


CONTRIBUTION OF COLLABORATIONCollaboration is fundamental to the way we operate. Standards development committee members, their employers, and the organisations that nominate them are critical to the Standards development process in New Zealand. Over 2000 New Zealand technical experts and consumer representatives donate their time, knowledge, and skills to serve on the committees that write and review Standards solutions.

FOCUSED ON CONTINUOUS IMPROVEMENT – EVALUATIONWe evaluate our activities, our influence within the sectors in which we operate, and our ability to meet the changing needs of our clients, customers, and other stakeholders. This includes using independent surveys to measure satisfaction levels for three groups of stakeholders – those who serve on Standards development committees, clients who contract Standards New Zealand for Standards solutions, and customers who purchase Standards.

OUR ORGANISATION’S HEALTHGiven our self-funded, cost neutral status, Standards New Zealand has a strong focus on using its resources to deliver the maximum value to New Zealand. Additionally, with our medium to long-term sustainability under pressure we seek to maintain financial viability and our operational capability and capacity in the current operating environment.

Organisational health

Business objective

The national Standards body’s resources are optimised to fulfil the Standards Council’s vision

Business impacts

The Standards Council’s financial viability is maintained

The Standards Council’s operational capability and capacity are well

managed

Business measures

Financial reserves are maintained at not less than $2 million each

year6

Overall staff satisfaction7 ≥ March

2013 public sector benchmark result8

ISO 9001 certification is maintained by Standards New

Zealand

6 Represented by the total of ‘cash’ and ‘cash equivalents’ and ‘short-term deposits’.

7 As assessed by annual Kenexa/JRA staff survey: overall performance index.

8 The public sector benchmark result is the weighted mean of the overall satisfaction ratings (overall performance index)

from the total number of state sector organisations in the survey sample.


Key to this focus is building and maintaining an agile team of high-quality, motivated staff. Standards New Zealand has rigorous recruitment processes, clear policies and procedures, and well-established staff development programmes, and continues to strengthen coaching and mentoring within the organisation. We seek to live out our organisation’s values – integrity, teamwork, professionalism, and dynamism – in all aspects of our work. We:

• ensure we have the right mix of skilled, adaptable staff with a committed service focus

• continue to use an independent human resources survey to identify areas for continuous improvement within the organisation

• provide ongoing personal development opportunities to help our staff continue to deliver excellent results for our clients, customers, and committees

• continue to foster a professional, results-focused culture that reinforces the business-like discipline essential to the Standards Council’s business model.

Standards New Zealand’s quality assurance system is aligned with AS/NZS ISO 9001:2008 Quality management systems – Requirements, and provides a vehicle for implementing continuous improvements, improving customer satisfaction, and motivating staff.

The Standards Council is aware that its current online systems constrain its ability to grow in this area. While work has been undertaken to identify potential solutions, the Council’s current financial situation means it would be imprudent to make the large investment that updating ageing systems would require. Currently, we are investigating ways to better leverage the current system to keep up with changing needs.


PART 3

SERVICE PERFORMANCE

STATEMENT OF FORECAST SERVICE PERFORMANCEThe Standards Council has been granted an exemption under section 143 of the Crown Entities Act 2004 from including in its statement of service performance operational activity (outputs and associated measures) which are not directly funded (in whole or in part) by the Crown.

The Standards Council is a fully self-funded Crown entity, recovering our operating costs from third-party agreements for service, sale of publications, and sources of revenue other than direct appropriation, levies, fees, or charges prescribed by or under any Act.


PART 4

FINANCIAL MANAGEMENT

STATEMENT OF RESPONSIBILITYThe information contained in this Statement of Intent for the Minister of Commerce has been prepared in accordance with the Public Finance Act 1989 and the Crown Entities Act 2004.

The Standards Council is responsible for:

• the preparation of the financial statements and the judgements used therein

• establishing and maintaining a system of internal control designed to provide reasonable assurance on the integrity and reliability of the financial reporting.

In the opinion of the Standards Council, the forecast financial statements reflect fairly the financial position and operations of Standards New Zealand.

Signed on behalf of the Council:

John Lumsden Chair Standards Council

20 April 2012

Vaughan Renner Council member Standards Council

20 April 2012


BUDGETED FINANCIAL STATEMENTS

FORECAST STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARS ENDING 30 JUNE 2012 – 2015

2012Estimated actual

($000)

2013Forecast

($000)

2014Forecast

($000)

2015Forecast

($000)

Income

Sale of documents 4,514 4,849 4,904 5,043

Contracts for service 1,368 1,700 1,900 2,000

Membership 580 578 549 533

Royalty income 409 424 432 441

Other income 488 335 328 323

Interest income 104 100 100 100

Gains 0 0 0 0

Total income 7,463 7,986 8,213 8,440

Expenditure

Personnel expenses 3,607 3,530 3,617 3,708

Other operating expenses 3,084 3,572 3,637 3,732

Fees paid to auditors 28 32 33 34

Council fees 123 138 142 145

Depreciation and amortisation expenses 681 672 375 392

Rental expense on operating lease payments 375 392 392 392

Stock written-off 15 15 15 15

Total expenditure 7,913 8,351 8,211 8,418

Surplus -450 -365 2 22

Other comprehensive income 0 0 0 0

Total comprehensive income -450 -365 2 22

The Statement of significant accounting policies (page 23) forms an integral part of these financial statements.


FORECAST STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013


($000)

2013Forecast

($000)

Assets

Current assets

Cash and cash equivalents 565 470

Debtors and other receivables 881 763

Prepayments 16 5

Inventories – stock of publications 299 210

Investments – short-term deposits 2,180 2,294

Total current assets 3,941 3,742

Non-current assets

Investment – shares 2 2

Property, plant, and equipment 171 244

Intangible assets 1,290 846

Total non-current assets 1,463 1,092

Total assets 5,404 4,834

Liabilities

Current liabilities

Creditors and other payables 610 525

Employee entitlements 498 350

Income in advance 781 837

Total current liabilities 1,889 1,712

Non-current liabilities

Employee entitlements 142 114

Provisions 133 133

Total non-current liabilities 275 247

Total liabilities 2,164 1,959

Net assets 3,240 2,875

Equity

General funds 3,239 2,874

Other reserves 1 1

Total equity 3,240 2,875



FORECAST STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013


($000)

2013Forecast

($000)

Balance at 1 July 3,690 3,240

Total comprehensive income -450 -365

Balance at 30 June 3,240 2,875


FORECAST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2013


($000)

2013Forecast

($000)

Cash flows from operating activities

Receipts from customers 7,405 8,113

Interest received 111 100

Dividends received 0 0

Payments to suppliers -5,366 -5,770

Payments to employees -2,220 -2,242

Goods and services tax (net) 29 6

Net cash from operating activities -41 207

Cash flows from investing activities

Receipts from sale of property, plant, and equipment 0 0

Receipts from investments – short-term deposits 0 0

Purchase of property, plant, and equipment -103 -173

Purchase of intangible assets -62 -30

Acquisition of investments – short-term deposits -88 -100

Net cash from investing activities -253 -303

Net cash from financing activities 0 0

Net increase/(decrease) in cash and cash equivalents -294 -96

Cash and cash equivalents at the beginning of the year 859 565

Cash and cash equivalents at the end of the year 565 469

The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department.

The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.



STATEMENT OF SIGNIFICANT UNDERLYING ASSUMPTIONSThese financial statements within the Statement of Intent have been compiled consistent with:

• the Letter of Expectations from the Minister of Commerce

• the requirements of the Public Finance Act 1989

• the requirements of the Crown Entities Act 2004

• generally accepted accounting principles.

The external policy settings which have guided this Statement of Intent are:

• a full user-funded model is to remain in place

• the Standards Council is an autonomous Crown entity that receives no direct funding from the Government

• the Standards Council will retain administration/stewardship of Crown copyright of Standards’ intellectual property

• the Standards Council will remain the ‘national Standards body’

• the Standards Council’s primary function is to develop and promulgate Standards and standardisation in New Zealand

• the Standards Council’s business model must be financially sustainable, and lead to more efficient and effective use of resources consistent with Government priorities and the Standards Act 1988. The wider functions contained in the Standards Act 1988 will be discharged as resources allow

• no allowance has been made for legislative change that would place additional funding requirements on the organisation, or that would bring Crown funding into the organisation.

The following general accounting principles have been adopted in the preparation of these statements.

• The measurement base applied is historical cost basis.

• The trading arm of the Standards Council, Standards New Zealand, is assumed to be a going concern.

• Revenues earned and expenses incurred are matched using the principles of accrual accounting.

Other assumptions taken into account in the preparation of these financial statements are:

• continuing with the planned and agreed initiatives that underpin the Standards Council’s three strategic priority areas:

– focused, strategic stakeholder engagement

– more responsive products and services

– maintain viability and market relevance

• the economic situation globally continues to worsen, with New Zealand facing a slow recovery supported by low interest rates

• the forecasts signal and reflect the reality of the Standards Council’s stressed business model

• continuing divergence between the Canterbury recovery programme and slowing activity in the rest of the country will continue over the next 1 to 2 years

• the review, development, and purchase of relevant Standards to underpin the Canterbury recovery programme, encompassing design to rebuilding phases, will occur over the next 2 to 3 years


• NZS 3604:2011 Timber-framed buildings will continue to be an important Standard for the building and construction sector setting a minimum standard for the design and construction of timber-framed houses in New Zealand

• the national Standards catalogue continues to age due to the lack of an agreed Standards development work programme in a number of sectors, including building and construction

• best current thinking about the Canterbury Earthquakes Royal Commission is that the Standards New Zealand Council would continue to be participating as an expert contributor. A small allowance has been made for involvement

• sale of documents’ revenue has been calculated based on known new documents planned for publication this year, as well as projected revenue sale of existing documents

• international strategies are a key element for delivery value to New Zealand as they inform the development of national Standards solutions and their use in New Zealand. They also enable New Zealand to influence the development of Standards development and used globally

• our ability to engage on the international stage is driven by the level of funding made available by government agencies, industry bodies, and organisations that self-fund their participation

• continuing to develop new channels to sell documents which is expected to continue to increase sales and extend our reach into industry sectors

• it remains imperative that we continue to recover the full costs of Standards development

• no investment in our ageing online legacy systems which continues to frustrate users and constrains the Standards Council’s growth imperatives

• ongoing increased operating costs associated with the roll out of the Information Systems Strategic Plan phase 1 work programme (for example total cost of ownership and depreciation) compared with the minimal cost of legacy systems/assets.

These forecast financial statements comply with FRS-42 (Prospective Financial Statements) which was approved in December 2005 by the Accounting Standards Review Board under the Financial Reporting Act 1993.

The purpose of the forecast financial statements is to provide Parliament and interested parties with a full and balanced view of the Standards Council’s performance intentions. Use of this information for other purposes may not be appropriate.

The forecast results for 2011/2012 include the actual results to 29 February 2012. There is no intention to update the forecast financial statements subsequent to presentation.


STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITYThe Standards Council (‘the Council’) is an autonomous Crown entity as defined by the Crown Entities Act 2004 and is domiciled in New Zealand. As such, the Council’s ultimate parent is the New Zealand Crown.

The Council’s primary objective is to develop Standards and to promote, encourage, and facilitate the use of Standards and other Standards solutions in New Zealand, which contribute to the health, safety, and social and economic well-being of New Zealanders, as opposed to that of making a financial return.

Accordingly, the Council has designated itself as a public benefit entity for the purposes of New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS).

These are the forecast financial statements of the Standards Council. The Council operates a trading arm, Standards New Zealand, whose results are incorporated in these financial statements.

BASIS OF PREPARATION

Statement of complianceThe financial statements of the Council have been prepared in accordance with the requirements of the Crown Entities Act 2004, which includes the requirement to comply with New Zealand generally accepted accounting practices.

The financial statements comply with NZ IFRS, and other applicable Financial Reporting Standards, as appropriate for public benefit entities.

Measurement baseThe financial statements have been prepared on a historical cost basis, except where modified by the revaluation of equity investments at fair value.

Functional and presentation currencyThe financial statements are presented in New Zealand dollars. The functional currency of the Council is New Zealand dollars.

STANDARDS, AMENDMENTS, AND INTERPRETATIONS ISSUED THAT ARE NOT YET EFFECTIVE AND HAVE NOT BEEN EARLY ADOPTEDThere are no Standards, amendments, and interpretations issued that are not yet effective and have not been early adopted.

SIGNIFICANT ACCOUNTING POLICIES

RevenueRevenue is measured at the fair value of consideration received or receivable.

Sales of documentsSales of documents are recognised when the product is sold to the customer.

Contracts for serviceContract for service income is initially recorded as income in advance, and recognised as revenue when earned.


Membership subscriptionsMembership subscriptions are recognised on a straight line basis over the period of the subscription.

Online subscriptionsOnline subscriptions are recognised when payment is received from the customer.

InterestInterest income is recognised using the effective interest method.

RoyaltiesRoyalty income is recognised on an accrual basis in accordance with the substance of the relevant agreement.

Volunteer servicesThe work of the Council depends on many people providing voluntary services towards the development of Standards. Volunteer services received are not recognised as revenue as the Council is unable to reliably measure the fair value of the services rendered.

LEASES

Operating leasesLeases that do not transfer substantially all the risks and rewards incidental to ownership of an asset to the Council are classified as operating leases. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the term of the lease in the Statement of comprehensive income.

INCOME TAXThe Council is a public authority and consequently is exempt from the payment of income tax. Accordingly, no charge for income tax has been provided for.

CASH AND CASH EQUIVALENTSCash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of less than 3 months.

DEBTORS AND OTHER RECEIVABLESDebtors and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest rate method, less any provision for impairment.

Impairment of a receivable is established when there is objective evidence that the Council will not be able to collect amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, and default in payments are considered indicators that the debtor is impaired. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the Statement of comprehensive income. When the receivable is uncollectable, it is written off against the allowance account for receivables. Overdue receivables that have been renegotiated are reclassified as current (that is, not past due).


INVENTORIES – STOCK OF PUBLICATIONSInventories held for sale on a commercial basis are valued at the lower of cost and net realisable value. The cost of inventory is determined using the weighted average cost method.

The write-down from cost to net realisable value is recognised in the Statement of comprehensive income in the period when the write-down occurs.

INVESTMENTSAt each balance sheet date the Council assesses whether there is any objective evidence that an investment is impaired.

Short-term depositsInvestments in bank deposits are initially measured at fair value plus transaction costs.

After initial recognition investments in bank deposits are measured at amortised cost using the effective interest method.

For bank deposits, impairment is established when there is objective evidence that the Council will not be able to collect amounts due according to the original terms of the deposit. Significant financial difficulties of the bank, probability that the bank will enter into bankruptcy, and default in payments are considered indicators that the deposit is impaired.

PROPERTY, PLANT, AND EQUIPMENTProperty, plant, and equipment consists of office equipment, computer hardware, leasehold improvements, heating and ventilation, and telephone systems.

Property, plant, and equipment are shown at cost, less any accumulated depreciation and impairment losses.

AdditionsThe cost of an item of property, plant, and equipment is recorded as an asset only when it is probable that future economic benefits or service potential associated with the item will flow to the Council and the cost of the item can be measured reliably.

DisposalsGains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the Statement of comprehensive income.

Subsequent costsCost incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Council and the costs of the item can be measured reliably.

The costs of day-to-day servicing of property, plant, and equipment are recognised in the Statement of comprehensive income as they are incurred.


DepreciationDepreciation is provided on a straight-line basis on all property, plant, and equipment at rates that will write off the cost of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:

Office equipment 5 – 10 years 10% – 20%

Computer hardware 3 years 33.33%

Leasehold improvements 4 – 12 years 8.33% – 25%

Heating & ventilation 10 – 12 years 8.33% – 10%

Telephone systems 3 – 12 years 8.33% – 33.33%

Leasehold improvements are depreciated over the unexpired period of the lease or the estimated remaining useful lives of the improvements, whichever is the shorter.

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year-end.

INTANGIBLE ASSETS

Software acquisitionAcquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.

Cost associated with maintaining computer software are recognised as an expense when incurred.

As the Council’s website will generate economic benefits in the future all external costs associated with the development of software for the Council’s website are recognised as an intangible asset.

Self-funded StandardsThe costs incurred in the development of a Standard in excess of the contracted value for the services, if any, are capitalised as an intangible asset. An intangible asset is only created if it is probable that the asset will generate future economic benefits. The future economic benefit is the revenue expected to be generated from the future sale of the Standard.

Costs that are directly associated with the development of self-funded Standards include external costs, employee costs, and an appropriate portion of relevant overheads.

AmortisationThe carrying value of computer software with a finite life is amortised on a straight-line basis over its useful life. The carrying value of a self-funded Standard is amortised on a diminishing value basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the Statement of comprehensive income.

The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Acquired computer software 3 – 5 years 20% – 33.33% SL

Self-funded Standards 50.00% DV


IMPAIRMENT OF NON-FINANCIAL ASSETSProperty, plant, and equipment and intangible assets that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the Council would, if deprived of the asset, replace its remaining future economic benefits or service potential.

If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. The total impairment loss is recognised in the Statement of comprehensive income. The reversal of an impairment loss is recognised in the Statement of comprehensive income.

CREDITORS AND OTHER PAYABLESCreditors and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method.

EMPLOYEE ENTITLEMENTS

Short-term employee entitlementsEmployee entitlements that the Council expects to be settled within 12 months of balance date are measured at undiscounted nominal values based on accrued entitlements at current rates of pay.

These include salaries and wages accrued up to balance date, annual leave earned but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave.

The Council recognises a liability for sick leave to the extent that compensated absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that the Council anticipates it will be used by staff to cover those future absences.

The Council recognises a liability and an expense for bonuses where it is contractually obliged to pay them, or where there is a past practice that has created a constructive obligation.

Long-term employee benefitsEntitlements that are payable beyond 12 months, such as long service leave and retiring leave, have been calculated on an actuarial basis.

The calculations are based on:

• likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement and contractual entitlements information

• the present value of the estimated future cash flows.

The discount rate is based on the weighted average of interest rates for government stock with terms to maturity similar to those of the relevant liabilities. The inflation factor is based on the expected long-term increase in remuneration for employees.


SUPERANNUATION SCHEMES

Defined contribution schemesObligations for contributions to KiwiSaver are accounted for as a defined contribution superannuation scheme and are recognised as an expense in the Statement of comprehensive income as incurred.

PROVISIONSThe Council recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

FOREIGN CURRENCY TRANSACTIONSForeign currency transactions are translated into New Zealand dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income.

GOODS AND SERVICES TAX (GST)All items in the financial statements, are stated exclusive of GST, except for receivables and payables, which are stated on a GST-inclusive basis. Where GST is not recoverable as input tax, then it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the Statement of financial position.

The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the Statement of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONSIn preparing these financial statements the Council has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial years are discussed below.

Property, plant, and equipment useful lives and residual valuesAt each balance date we review the useful lives and residual value of property, plant, and equipment.

Assessing the appropriateness of useful life and residual value estimates of property, plant, and equipment requires the Council to consider a number of factors such as the physical condition of the asset, expected period of use of the asset by the Council, and expected disposal proceeds from the future sale of the asset.

An incorrect estimate of the useful life or residual value will impact on the depreciation expense recognised in the Statement of comprehensive income, and the carrying amount of the asset in the Statement of financial position.


The Council minimises the risk of this estimation uncertainty by:

• physical inspection of assets, and

• asset replacement programmes.

The Council has not made significant changes to past assumptions on useful lives and residual values.

Intangible assets useful lives and residual values At each balance we review the useful lives and residual value of intangible assets, computer software, and self-funded Standards.

Assessing the appropriateness of useful life and residual value estimates of intangible assets requires the Council to consider a number of factors such as the expected period of use of the intangible asset by the Council, and the expected future economic benefit of the intangible asset.

An incorrect estimate of the useful life or residual value will impact on the amortisation expense recognised in the Statement of comprehensive income, and the carrying amount of the intangible asset in the Statement of financial position.

The Council has not made significant changes to past assumptions about useful lives, amortisation rates, and residual values.

ACQUISITION OF SHARES OR INTERESTS IN COMPANIES, TRUSTS, AND PARTNERSHIPSThe Standards Council has no immediate intention to acquire shares or interests in companies, trusts, or commercial partnerships. In the event the Standards Council identifies an opportunity to do so that is strategically compelling, consistent with its function under the Standards Act 1988, and aligns with the outcomes and objectives set out in this Statement of Intent, the Standards Council will engage with the Ministry of Economic Development and provide written notice to the responsible Minister prior to acquiring any such shares or interest.

The Standards Council will comply with section 100 of the Crown Entities Act 2004.

CONSULTATION AND REPORTING TO THE RESPONSIBLE MINISTERThe Standards Council has in place the following consultation and reporting mechanisms to the responsible Minister:

• this Statement of Intent and adherence to the requirements under the Crown Entities Act 2004 to consult with the Minister in its preparation

• the Annual Report to be submitted in accordance with section 150 of the Crown Entities Act 2004

• the annual Memorandum of Understanding between the Minister and the Standards Council

• regular accountability reports to the Minister to show actual performance against targets, reasons for any significant departure from forecasts, major risks under management, and emerging strategic issues

• the Minister’s annual Letter of Expectations, issued in accordance with section 104 of the Crown Entities Act 2004.

The Standards Council undertakes to consult with the responsible Minister when specific business opportunities or issues arise. The Standards Council supports the concept of ‘no surprises’ for the responsible Minister.

The Standards Council intends to fully comply with section 133 of the Crown Entities Act 2004 in providing to the responsible Minister such additional information as may be requested from time to time.


NOMINATING ORGANISATIONSWe acknowledge the contribution to Standards development of our nominating organisations which include the following. These organisations have nominated committee members for committees active from 1 July 2011 to 2 March 2012.

4RF Communications Ltd

ABES

Access Homehealth

Accident Compensation Corporation

Actaris Measurement Systems Pty Ltd

Action Motor Bodies

AFNOR

Air New Zealand

Airways Corporation of NZ Ltd

Alcatel-Lucent

Ambreed

Andrew & Andrew Electrical Ltd

Arbitrators’ and Mediators’ Institute of New Zealand Inc.

Architectural Designers New Zealand

Association of Accredited Certification Bodies

AsureQuality

Auckland Council

Auckland District Health Board

Auckland Transport

Audit New Zealand

Australasian Lighting Industry Association

Australia Building Codes Board

Australian & NZ Clinical Waste Management Industry Group

Australian Chamber of Commerce and Industry

Australian Communications and Media Authority

Australian Dairy Farmers Federation

Australian Electrical & Electronic Manufacturers’ Association Ltd

Australian Industry Group

Australian Information Industry Association

Australian Local Government Association

Australian Retailers’ Association

Australian Water Association

Autogrow Systems Ltd

Aviation and Marine Engineers Association

Aviation, Tourism and Travel Organisation (ATTTO)

Bibliothèque nationale de France

Bioenergy Association of New Zealand

Black & Decker (NZ) Ltd

Black Box Spatial Ltd

BRANZ Ltd

Broadcast Communications Ltd

Bruce Etwell & Associates

Building and Construction Industry Training Organisation

Building Officials’ Institute of New Zealand

Building Service Contractors of New Zealand Inc.

BusinessNZ

Canterbury District Health Board

Careerforce

CCS Disability Action

Cement and Concrete Association of New Zealand

Central Region Electrical Inspectors Association

Centre for Advanced Engineering

Certification Interests (New Zealand)

Certified Builders’ Association of New Zealand Inc.

Chemical Supplier Interests

Child Safety Foundation New Zealand

CHOICE

Christchurch City Council

Civil Aviation Authority of New Zealand

Consulting Interests Australia

Consulting Interests New Zealand

Consumer Electronic Suppliers’ Association

Consumer Electronics Association of New Zealand

Consumers’ Federation of Australia

Contact Energy Ltd

Counties Manukau District Health Board

Critchlow Limited

CRV Ambreed

CSIRO Land and Water

Customs Brokers and Freight Forwarders Federation of NZ Inc.

DAA Group

Dairy Companies Association of New Zealand

DairyNZ

Dangerous Goods Management Ltd

Danish Agency for Libraries and Media

DeLaval New Zealand

Department of Building and Housing

Department of Conservation

Department of Health, South Australia

Department of Internal Affairs

Department of Justice, Tasmania

Department of Labour

Department of Sustainability, Environment, Water, Population & Communities, Canberra

Department of the Prime Minister and Cabinet

Design Association of New Zealand Inc.

Disabled Persons Assembly (New Zealand) Inc.

District Health Boards New Zealand

Dynamic Controls

Eaton Industries Company

Electrical Compliance Testing Association

Electrical Contractors Association of New Zealand

Electrical Regulatory Authorities Council


Electrical Safety Organisation Inc.

Electrical Workers’ Registration Board

Electricity Commission

Electricity Engineers’ Association of NZ Inc.

Electropar Ltd

ElectroTechnical Association

Electrotechnology Industry Training Organisation

EMC Technologies (NZ) Ltd

Enable New Zealand

Energy Efficiency and Conservation Authority

Energy Management Association of New Zealand

Energy Networks Association

Energy Safe Victoria

Energy Safety Department of Commerce

EnergySafety WA

Engineering Services Australia

Engineers Australia

Environment Canterbury

Environmental Protection Authority

ERMA New Zealand

EROAD Limited

ESR Ltd

Excellence in Communications

FarmSafe Australia

Federated Farmers of New Zealand

Fire Protection Association of New Zealand

Fire Protection Contractors’ Association

Fire Protection Industry Contractors’ Association

Fire Protection Inspection Services

Fisher & Paykel Appliances Ltd

Fonterra Co-operative Group Ltd

Frame and Truss Manufacturers Association of NZ Inc.

Fraser Engineering Group

Gallagher Group Limited

Gary Henderson Consulting Ltd

Gas Association of New Zealand

Gas Equipment Suppliers Group

Gas Industry Company

Gas Utilisation Institute

GEA Farm Technologies New Zealand Ltd

Genesis Energy

Global Standards One

Grey Power New Zealand Federation Inc.

Hastings District Council

HazKnow Limited

Health and Disability Auditing New Zealand

HealthCare of New Zealand

Hire and Rental Association Australia

Hire Industry Association of NZ Inc.

Holiday Accommodation Parks Association of New Zealand

Hospice New Zealand

Housing Industry Association

Hutt Valley District Health Board

IHC

Imarda NZ Ltd

InfraTrain New Zealand Ltd

Ingenium

Injury Prevention Network of Aotearoa New Zealand

Inland Revenue Department

Inside OutWorks Ltd

Institute of Electrical Inspectors Australia

Institution of Fire Engineers

Institution of Professional Engineers New Zealand

Insurance Brokers’ Association of New Zealand

Insurance Council of New Zealand Inc.

International Accreditation New Zealand

International Association for Natural Gas Vehicles

International Telematics

ISBN International

ISSN International

ITHAKA

Joint Accreditation System of Australia and New Zealand

Kites Trust

KiwiRail Ltd

La Trobe University

Landis and Gyr Ltd

Lely New Zealand

Lighting Council Australia

Livestock Improvement

Local Government New Zealand

Low Rise Elevation Suppliers’ Association

LPG Association of New Zealand (Inc.)

Makita New Zealand Ltd

Maritime New Zealand

Master Plumbers’ & Mechanical Services Assn of Australia

Master Plumbers Association of NSW

Master Plumbers, Gasfitters and Drainlayers NZ Inc.

Medical Technology Association of New Zealand

Melco Technologies

Mental Health Commission

Metal Roofing Manufacturers’ Association

MidCentral Health - Public Health

Milfos International Ltd

MilkTest NZ

Ministry for the Environment

Ministry of Agriculture and Forestry

Ministry of Consumer Affairs

Ministry of Economic Development

Ministry of Economic Development - Energy Safety

Ministry of Education

Ministry of Fisheries

Ministry of Foreign Affairs & Trade

Ministry of Health

Ministry of Social Development

Ministry of Transport

National Association of Testing Authorities Australia

National Electrical and Communications Association

National Information Standards Organization

National Institute of Water and Atmospheric Research

National Library of New Zealand

National Lift Association

National On-site Regulators’ Forum


National Rural Fire Authority

National Institute of Informatics

Navigatus Consulting Ltd

Navman Wireless New Zealand

New Zealand Aged Care Association

New Zealand Animal Evaluation Ltd

New Zealand Automobile Association

New Zealand Building Industry Federation

New Zealand Computer Society

New Zealand Concrete Association

New Zealand Concrete Society

New Zealand Contractors’ Federation Inc.

New Zealand Council of Christian Social Services

New Zealand Council of Elders

New Zealand Dairy Breeders’ Federation

New Zealand Defence Force

New Zealand Disability Support Network

New Zealand Electric Fence Energizers Manufacturers’ Standards Group

New Zealand Electrical Institute

New Zealand Fire Equipment Manufacturers’ Association

New Zealand Fire Service

New Zealand Forest Owners Association

New Zealand Holstein Fresian Association (Inc.)

New Zealand Information and Communication Technologies Group

New Zealand Institute of Architects

New Zealand Institute of Building Surveyors

New Zealand Institute of Gas Engineers

New Zealand Institute of Quantity Surveyors

New Zealand Institute of Surveyors

New Zealand Law Society

New Zealand Manufacturers’ and Exporters’ Association

New Zealand Motor Caravan Association Inc.

New Zealand Mountain Safety Council

New Zealand Nurses Organisation

New Zealand Open Source Society

New Zealand Outdoor Instructors Association

New Zealand Pine Manufacturers’ Association

New Zealand Police

New Zealand Pork Industry Board

New Zealand Private Surgical Hospitals Association

New Zealand Property Investors’ Federation

New Zealand Ready Mixed Concrete Association

New Zealand Retailers Association

New Zealand Sign and Display Association Inc.

New Zealand Software Association

New Zealand Specialist Trade Contractors’ Federation

New Zealand Timber Industry Federation

New Zealand Timber Preservation Council

New Zealand Transport Agency

Noel Arnold & Associates

NSW Fair Trading

NSW Health Department

Nurse Maude Association

NZ Meter Ltd

Olex Cables New Zealand

Outdoors New Zealand

Palmerston North City Council

Parkside Laboratories Ltd

Pasifika Integrated Healthcare

PDL Holdings Ltd

Pen & Paper

Philips New Zealand Ltd

Phillips & Smith Ltd

Plastics New Zealand

Platform

Plumbers, Gasfitters and Drainlayers Board

Plumbing Distributors’ Association of New Zealand

Plumbing, Gasfitting, Drainlaying and Roofing ITO

Precast NZ Inc.

Precision Tracking (NZ) Ltd

Queensland Fire & Rescue Service Scientific Unit

Queensland University of Technology

Queenstown Lakes District Council

Radian Technology

Registered Master Builders’ Federation

Regulatory Authorities (Electrical)

Rental Vehicle Association of New Zealand Inc.

Responsible Care New Zealand Inc.

Risk Management Ltd

Road Transport Forum New Zealand (Inc.)

Roading New Zealand Inc.

Robert Bosch Ltd

Royal Australasian College of Surgeons

Royal Institution of Chartered Surveyors

Royal New Zealand Plunket Society (Inc.)

Royal NZ Foundation of the Blind

Ryobi Technologies (New Zealand) Ltd

Safekids New Zealand

Safety Institute of Australia

SafeWork SA

Sales & Promotions (NZ) Ltd

Schneider Electric Ltd

Scion

Sea Air & Land Communications Ltd

Sensortec Ltd

SERDA Groupe

Service and Food Workers Union

Sharp Corporation of New Zealand

Shell Todd Oil Services Ltd

Site Safe New Zealand

Skills Active

Skope Industries Ltd


Society of Fire Protection Engineers

Society of Local Government Managers

Solid Energy New Zealand Ltd

Sony

Stanbury Electrical Engineering Ltd

Standards Australia Limited

Tait Communications

Te Upoko o Nga Oranga o Te Rae

Telarc SAI Ltd

Telecom New Zealand Ltd

Telecommunications Users Association of New Zealand Inc.

TelstraClear Ltd

Testing Interests New Zealand

The Association of Consulting Engineers New Zealand Inc.

The New Zealand Home Health Association Inc.

The New Zealand Refining Company Ltd

The New Zealand Society for Risk Management

TL & Associates

Tourism Industry Association

Transit New Zealand

Transpower New Zealand Ltd

Tranzqual ITO

Tru-Test Limited

Tyco Electronics NZ Ltd

University of Auckland

University of Canterbury

Vector Ltd

Vodafone New Zealand Ltd

Wairarapa District Health Board

Waitakere City Council

WasteMINZ

Wastewater Practitioners’ Association Queensland

Water New Zealand

Water New Zealand, Small Wastewater and Natural Systems Special Interest Group

Water Safety New Zealand Inc.

Wattyl Australia Group

Wellington City Council

Wells Group

Westland Milk Products

Window Association of New Zealand

Wood Processors Association of New Zealand

WorkCover New South Wales

Xlerate Technologies NZ Limited

STANDARDS COUNCILThe Standards Council was established by the Standards Act 1988. At 31 March 2012 the membership of the Council was:

CHAIR John Lumsden Appointed by the Minister of Commerce November 2010

MEMBERSTom Campbell Nominated by the Minister of Commerce

May 2010

Richard Gibbons Nominated by the Electricity Engineers’ Association New Zealand February 2003

John Hannah (Chair of Audit and Risk Subcommittee) Nominated by the New Zealand Vice-Chancellors’ Committee February 2003

Sharon Kletchko Appointed by the Minister of Commerce September 2006

Vivian Kloosterman Nominated by the Institution of Professional Engineers New Zealand August 2005

Vaughan Renner Nominated by Business New Zealand April 2005

Fay Sowerby Nominated by the Minister of Commerce May 2010

Michael Wallmannsberger (Chair of Information Systems Strategic Plan Subcommittee) Nominated by the Council of Trade Unions April 2005

STANDARDS NEW ZEALANDDebbie Chin Chief Executive

Derek Baxter General Manager Solutions

Rob Warner General Manager Strategic Development and Governance

Shona Weller General Manager Customer Services and Sales

Michelle Wessing General Manager Corporate Services

STANDARDS COUNCILSTATEMENT OF INTENT

2012 – 2015

standards council · 2016. 4. 26. · and through sales of standards. while its functions under the...

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