strategic intentions 2016–2020 - new zealand … · 2 ministry of foreign affairs and trade...

A.1 SOI (2016)

STRATEGIC INTENTIONS 2016–2020

Presented to the House of Representatives pursuant to section 39 of the Public Finance Act 1989

PRINT - ISBN 978 0 477 10243 8

COVER ARTWORKJon Tootill born 1951 New Zealand Māori tribal affiliation: Ngāi TahuPioriori 2014gouache and pencil on paperCollection of the Ministry of Foreign Affairs and Trade

MINISTRY OF FOREIGN AFFAIRS AND TRADE STRATEGIC INTENTIONS

Presented to the House of Representatives pursuant to section 39 of the Public Finance Act 1989

PRINT - ISBN 1176 2470

COVER ARTWORKToi Te Rito Maihi, born 1936New ZealandMāori tribal affiliation: Ngāpuhi, Ngāti KahungunuHarakeke 1996acrylic on canvas2400 x 1000 mmCollection of the Ministry of Foreign Affairs and Trade


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Foreword from our Minister 2

Introduction from our Chief Executive 4

Nature and scope of functions and operations 6

Strategic direction 7

Operating intentions 12

Managing functions and operations 21

Departmental capital and asset management intentions 23

Contents


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The Government’s vision for New Zealand is a more open, more confident, outward-facing country that plays its part in the region and globally. During New Zealand’s United Nations Security Council (UNSC) term we have demonstrated our ability to deliver on our commitments, and our willingness to engage in a balanced way with challenging issues such as the Middle East peace process. Delivering a strong performance during our second year on the Council is a top priority. We remain focused on improving how the Council works. It is in all our interests to have a stronger and more relevant Council, capable of fulfilling its intended purpose, and we will continue to play our part in realising this goal.New Zealand has nominated Helen Clark for the next United Nations (UN) Secretary General. The Government is committed to supporting her candidacy as the best person for the job.Enhancing the well-being of our Pacific neighbours is an enduring goal. Close to 60 percent of our development assistance goes to the Pacific – approximately NZ$1 billion over the current three-year budget. With climate change presenting a threat to the Pacific, shifting the region from its dependence on fossil fuel to renewable energy continues to be a big focus, with New Zealand leveraging international support to amplify our aid investment. The Pacific Broadcasting Initiative and the New Zealand Institute of Pacific Research are important initiatives that will enhance New Zealand’s visibility in the region and create a centre of excellence for Pacific knowledge.Our trading relationships are critical to New Zealand’s long-term prosperity. In a competitive global environment, we need to take a strategic approach to derive maximum value for our exporters. This means sustaining and refreshing long-standing relationships; growing and deepening new relationships; and identifying and pursuing future opportunities in emerging markets.

The growing middle classes in Asia and Latin America present significant opportunities for expanding both the volume and value of New Zealand’s exports, as do the markets of the Middle East and Africa. Ensuring we are positioned with the right international footprint to take advantage of this will remain an ongoing priority, just as the deepening and strengthening of our more established relationships continues to be important. Cooperation with Australia remains a central feature of our foreign policy, as we focus on securing and implementing changes to the conditions for New Zealanders in Australia, and advancing the Single Economic Market agenda. Coordination with Australia will also be essential in our approach to foreign policy challenges in our region and beyond.We will be working within the Brexit landscape to protect and advance New Zealand’s interests. We have made good progress in building better architecture for a relationship with the European Union and anticipate formal free trade agreement (FTA) negotiations commencing next year. The United States will also be a focus, as we look to build early connections with the incoming administration following the United States presidential elections later this year. Strengthening relationships in the Asia–Pacific will be a further priority, given this region’s increasing importance to New Zealand’s security and prosperity. This will require continued successful management of key bilateral relationships. Maximising New Zealand’s place in key political and security regional architecture, such as the East Asia Summit and Association of Southeast Asian Nations (ASEAN) Regional Forum, will be important. Closer trade and economic integration with our largest trading partners will be furthered

Foreword from our Minister

FOREWORD FROM OUR MINISTER

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with the implementation of the Trans-Pacific Partnership (TPP), progress in the Regional Comprehensive Economic Partnership (RCEP) negotiations and preparations for Asia–Pacific Economic Cooperation (APEC) 2021, which New Zealand will host.The Ministry has continued to operate effectively within its reduced budget, and has returned funds to the Crown over recent years. At the same time, the Ministry has also been able to open several new posts within its baseline budget. Rising cost pressures, however, mean that operating within a flat-lined appropriation will prove increasingly challenging. The Ministry will need to consider carefully how it manages its resources to deliver on current objectives, while also being positioned to realise emerging opportunities in what is a very dynamic external environment.

FOREWORD FROM OUR MINISTER

Responsible Minister statement I am satisfied that the information on strategic intentions prepared by the Ministry of Foreign Affairs and Trade is consistent with the policies and performance expectations of the Government.

HON MURRAY McCULLYMinister of Foreign Affairs Responsible Minister for the Ministry of Foreign Affairs and Trade

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The Ministry of Foreign Affairs and Trade acts in the world to make New Zealanders safer and more prosperous. In doing so we must have a realistic perspective of the world in which we live and the rapid changes that are occurring. On one side, global inter-connectedness is increasing, driven by trade and investment, people-to-people links, technology developments, and the emergence of a global popular culture. On the other, major power relationships are in transition. The emergence of nationalist trends in some quarters will place multilateralism under pressure. Adherence to global rules-based architecture, rooted in values sympathetic to New Zealand’s interests, is no longer assured.New Zealand’s independent foreign policy responds to this dynamic environment by placing greater emphasis on trade and economic opportunities; strengthening our traditional partnerships and those in the Asia–Pacific region; ensuring our aid programme effectively delivers development results in line with the Ministry’s strategic objectives; and investing in the multilateral institutions that support our wider objectives.Our trade agenda remains central to New Zealand’s success as a small nation. Trade grows the economy for the benefit of all New Zealanders.The Ministry has played a central role in helping to bring the 12-country TPP trade negotiation to a successful conclusion. We have now turned our attention to entry into force. However, we do not want to rely on any one single market. To reduce risk, we continue to negotiate other trade agreements to ensure our exporters have options and opportunities around the world. These include the RCEP, a potential FTA with the European Union, and an FTA upgrade with China. We will also negotiate a Brexit deal and refresh the New Zealand trade policy strategy.Traditional partnerships remain important and further investment in these relationships is essential. But we also seek new relationships that provide new opportunity and increased connectivity.

The fulcrum for us is the Asia–Pacific. This is where our history, geography and aspirations intersect. As global wealth and power shift to East Asia, it is becoming that part of the world where the balance of our economic and security interests requires the most accurate calibration. It is, above all, where we must be a trusted participant, not a spectator.Given the importance of the Pacific’s stability and prosperity to New Zealand, our diplomatic, development, and wider efforts in the region must be coherent and deliver tangible outcomes. In line with our aspiration to be a recognised centre of excellence on Pacific affairs, we are making changes in the Ministry to enhance the coherence and depth of our Pacific work and stepping up our strategic leadership role with the many State sector agencies with Pacific connections.New Zealand benefits from building and sustaining effective international architecture that magnifies our weight and influence.Performing responsibly and credibly on the UNSC remains a key foreign policy priority. The centrepiece of this will be New Zealand’s Council presidency in September 2016.New Zealand has nominated Helen Clark for the role of UN Secretary General. This will be an intense and focused campaign, with a final decision expected later this year. We are also working to reinforce international rules and frameworks that advance our national values and protect our national interests. New Zealand benefits from an international system that encourages countries to work together for shared benefit. We are working within these frameworks to secure international rules and engagement in trade, security and the environment. Following through on the implications of the Paris Agreement on climate change will be a major focus of our work in the years ahead.To deliver on this ambitious agenda, we will need the organisational capacity and capability to achieve our ambitions.

Introduction from our Chief Executive

INTRODUCTION FROM OUR CHIEF EXECUTIVE

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Chief Executive statement of responsibility In signing this information, I acknowledge that I am responsible for the information on strategic intentions for the Ministry of Foreign Affairs and Trade. This information has been prepared in accordance with section 38 and section 40 of the Public Finance Act 1989.

BROOK BARRINGTON

Secretary of Foreign Affairs and Trade

Delivering high-quality strategic performance means keeping our purpose firmly in mind, and putting in place the plans, people and resources that enable us to deliver concrete outcomes that make a real difference to New Zealand’s interests. The organisation must be responsive and flexible to the shifting priorities of our business, while ensuring our people have the stability they need to hone their expertise, develop connections within the Ministry and externally, and feel like they belong. A healthy and safe working environment, in which people can build a career, will help to sustain this Ministry as a high-performing organisation that delivers on our purpose of making New Zealanders safer and more prosperous.It is people who make up this Ministry. Both onshore and offshore, we have people who are ambitious for New Zealand, who have judgement leavened by experience, and who are articulate, optimistic, resilient and responsive. These people inspire trust and confidence that we can deliver on the Government’s agenda for New Zealand.

INTRODUCTION FROM OUR CHIEF EXECUTIVE

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Who we areThe Ministry of Foreign Affairs and Trade (MFAT) acts in the world to make New Zealanders safer and more prosperous.We do this through:• improving prosperity for New Zealand and

our region• ensuring the stability, security and resilience

of our country, our people, and our region• leadership, by amplifying New Zealand’s

influence and standing in the world• kaitiakitanga, or stewardship, by delivering

solutions to global challenges for the benefit of present and future generations.

In positioning New Zealand in the world, the Ministry leverages what no other entity in the country has: a global network, based on global connections at all levels, safeguarded by international law, able to speak with an authoritative voice, and with heads of missions/posts formally charged with representing the state.We are the Government’s specialist international legal adviser and international negotiator, and we lead the New Zealand Government’s diplomatic network. To advance these functions we must work across the Ministry, with State sector colleagues, our wider constituency, and partner governments.In seeking to make New Zealanders safer we not only deliver consular services, but also provide meaningful information intelligently assessed, identify and defuse points of conflict, pick international trends and position New Zealand to benefit from them, and operate at the point of intersection between domestic and international risk.In seeking to make New Zealanders more prosperous, we negotiate market access for New Zealand firms, defend and advance our trade interests at and behind international borders, and bring an international perspective to the domestic economic debate. The New Zealand Aid Programme supports New Zealanders’ prosperity and security by helping developing countries achieve sustainable economic development and improving the lives of their citizens.

PortfoliosThe Ministry works for Ministers in three ministerial portfolios: • Foreign affairs• Trade• Climate change issues.

We manage New Zealand’s official development assistance, and disarmament and arms control, as part of the foreign affairs portfolio.

VotesWe administer two votes: • Vote Foreign Affairs and Trade, which also

provides funding to one Crown entity (New Zealand Antarctic Institute) and two Crown charitable trusts (Pacific Cooperation Foundation and Asia New Zealand Foundation)

• Vote Official Development Assistance, which consists of one departmental appropriation and two multi-year non-departmental appropriations. The current multi-year period covers 2015/16–2017/18. The multi-year approach allows for predictability of aid volume in out-years and increases effectiveness.

Crown entity responsibilities The Ministry monitors Antarctica New Zealand. This Crown entity provides logistical support to and manages New Zealand’s activities in Antarctica and the Southern Ocean, particularly in the Ross Dependency.With the Ministry of Business, Innovation and Employment we also jointly monitor the performance of New Zealand Trade and Enterprise, the Government’s international business development agency.

Legislation administeredWe solely administer 31 pieces of legislation. With the Ministry of Justice we jointly administer the International Crimes and International Criminal Court Act 2000 and the Terrorism Suppression Act 2002. We also administer export controls on strategic goods under the Customs Export Prohibition Order 2011. We administer several statutory regulations, particularly in the area of UNSC sanctions, diplomatic privileges and immunities, and Tokelau.

Nature and scope of functions and operations

NATURE AND SCOPE OF FUNCTIONS AND OPERATIONS

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MINISTRY OF FOREIGN AFFAIRS AND TRADE STRATEGIC INTENTIONS STRATEGIC DIRECTION

Operating environmentOUR INTERNATIONAL ENVIRONMENT

New Zealand (like other countries) is facing the risk of a more turbulent international context. In times of uncertainty, countries like ours benefit from building and sustaining effective rules-based systems and architecture, reinforcing international norms that reflect our national values, pursuing a balanced portfolio of relationships and diversifying our markets.New Zealand is an active, constructive, and well-respected member of the global rules-based system, shown by our election to the UNSC for 2015–2016. That system is under pressure, however, as the pace of global change, the diversity of country interests, and the need for rapid responses make it harder to secure multilateral or regional agreement.For New Zealand to advance its international interests we must: • obtain accurate information in good time • assess that information to see how it might

impact on New Zealand’s interests • provide the Government with high-quality

advice • be able to implement the Government’s

decisions in an effective and timely way.

As a small country with wide-ranging international interests, we must identify where to focus our attention and resources and adjust when events demand it. As an Asia–Pacific country, we seek to contribute meaningfully to the security, stability and prosperity of the region. We are a global trading nation, and seek to advance our interests through a robust international rules-based trading system, as well as by negotiating high-quality and comprehensive bilateral and regional trade agreements.We are a member of an international community and we seek smart solutions to global challenges, with particular focus on climate change, resource stewardship, and counter-terrorism and radicalisation within a world of increasing instability.

We put country relationships at the heart of our approach to aid delivery. We draw on the best of New Zealand’s knowledge and skills and focus our aid to achieve sustainable, inclusive and resilient development outcomes that meet the aspirations of people in our partner countries. Supporting our neighbours to thrive contributes to our regional peace, stability and prosperity.We pursue our interests through connections with others in our region and globally. This includes strengthening our mature relationships, such as with Australia, Europe, and the United States; nurturing growing relationships, such as with China and Latin America or expanding our reach in Asia; or exploring new relationships in areas where we have not historically been well connected, such as those in Africa and the Caribbean.

OUR DOMESTIC ENVIRONMENT

The Ministry focuses on delivering on the Government’s priorities. The key foreign policy priority is ensuring that New Zealand performs responsibly and creditably on the UNSC during 2015–2016 and maximises gains from membership during the term and afterwards. The Government’s Business Growth Agenda is central to the Ministry’s work, requiring continuity as well as refreshed thinking on how to raise exports to 40 percent of gross domestic product by 2025. We also work alongside agencies in the national security sector to advance New Zealand’s security interests and keep New Zealanders safe. The Ministry leads the formulation and delivery of the Government’s foreign, trade and development policy. Many domestic agencies also have their own international engagement. The Ministry therefore plays an important role in integrating NZ Inc’s international efforts, to support efficient and effective collaboration across the public sector to achieve maximum impact, both onshore and through New Zealand’s offshore network. This is consistent with a clearer focus across the State sector on working together to better deliver results for New Zealanders, including in the current constrained fiscal environment.

Strategic direction

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We also work with other agencies to deliver domestic and international policies that benefit our aid partners, especially those in the Pacific, in line with our efforts to develop shared prosperity and stability through the New Zealand Aid Programme.Māori are important players in the domestic economy and increasingly in the international economy. The Ministry engages with Māori across a range of foreign policy issues of priority for the Government and for Māori, including how to support Māori business ambitions: for example, through the Crown-Māori Economic Growth Partnership, He Kai Kei Aku Ringa, and the Business Growth Agenda.The Ministry contributes to the collective agency effort to restore Christchurch’s economy as part of the Government’s priority to rebuild Christchurch. An important component of this is exports. We also work closely with the city to maximise its strategic advantage, including as a gateway city to Antarctica. The Ministry works with the Auckland Council to help achieve better export outcomes and develop international connections for Auckland businesses. The Ministry has offices in Auckland and Christchurch to enhance our government-to-business interface, and operates with New Zealand Trade and Enterprise a government-to-government partnership office in Auckland to enhance collaboration. The Ministry also contributes to the better public services result areas to improve interaction with government and all-of-government initiatives to achieve results that make a difference to New Zealanders.

OUR ORGANISATIONAL CONTEXT

Current areas of focus for improvement in the Ministry include:• lifting strategic performance across the

organisation to deliver on our new strategic framework and enable intelligent resource trade-offs between competing priorities

• strengthening the career Ministry to make MFAT a better place to work and enhance performance

• keeping our people healthy and safe by having robust systems and processes in place, not just to fulfil legislative responsibilities, but to sharpen our commitment to staff well-being.

Strategic objectivesThe Ministry has seven priority objectives for the next four years. Each of the objectives includes a set of goals, success indicators, and deliverables, which will be the focus of our activity in this period. The New Zealand Aid Programme has six policy priorities and 12 investment priorities that are also reflected in these deliverables.1 The seven objectives are:1. Maximise the impact of New Zealand’s

membership on the UNSC.2. Increase market access, regional economic

integration, and improve the international performance of New Zealand businesses.

3. Embed New Zealand as an integral and trusted partner in the Asia–Pacific.

4. Maximise the impact of New Zealand’s engagement in improving the prosperity, stability and resilience of the Pacific Islands region and its people. What happens in the Pacific has a direct bearing on New Zealand’s well-being.

5. Promote sound international solutions on climate change, natural resources and environmental protection.

6. Protect and advance New Zealand’s and New Zealanders’ security.

7. Build robust and enduring organisational capability to deliver strengthened and coherent international engagement.

1 New Zealand Aid Programme Strategic Plan 2015-19

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Within the context of our seven objectives, the priority initiatives and projects for the Ministry are:• Secure Helen Clark’s selection as the next

UN Secretary General.• Become a centre of excellence in Pacific

matters by establishing a Pacific Branch in the Ministry, finalising the framework for engagement in the Pacific, and strengthening the international development operating model.

• Advance entry into force and implementation of the TPP.

• Conclude preparations for and launch New Zealand-European Union FTA negotiations.

• Protect and advance New Zealand’s interests as Brexit unfolds.

• Launch a refresh of the New Zealand trade policy strategy.

• Ratify the Paris Agreement on climate change and ensure New Zealand is ready to implement from 2020.

• Deliver enhanced benefits from our engagement with China through an integrated capability and infrastructure development programme.

• Position New Zealand to pursue our interests effectively with a new United States administration and Congress.

• Deliver new capability and funding to secure New Zealand’s strategic interests in Antarctica and the Southern Ocean.

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MINISTRY OF FOREIGN AFFAIRS AND TRADE STRATEGIC INTENTIONS STRATEGIC DIRECTIONMINISTRY OF FOREIGN AFFAIRS AND TRADE STRATEGIC INTENTIONS

1 New Zealand Aid Programme's Strategic Plan 2015-19

STRATEGIC DIRECTION

The Ministry acts in the world to make New Zealanders safer and more prosperous

frameworkOur strategic

Economy Build a more competitive and productive economy

FinancesResponsibly manage the

Government’s finances

ServicesDeliver better public

services to New Zealanders

Christchurch Support the rebuilding

of Christchurch

Objective 1

UNSCMaximise the impact of New Zealand’s membership on the UNSC

Objective 2

BGAIncrease market access, regional economic integration, and improve the international performance of New Zealand businesses

Objective 3

Asia–Pacific Embed New Zealand as an integral and trusted partner in the Asia–Pacific

Objective 4

PacificMaximise the impact of New Zealand’s engagement in improving the prosperity, stability and resilience of the Pacific Islands region and its people. What happens in the Pacific has a direct bearing on New Zealand’s well-being

Objective 5

Environment Promote sound international solutions on climate change, natural resources and environmental protection

Objective 6

SecurityProtect and advance New Zealand’s and New Zealanders’ security

Government priorities

…the delivery of our

four-year foreign policy,

trade and development

objectives,that in turn contribute…

With our

robust and enduring organisational

capability, we support…

…to our

strategic outcomes,that are aligned with…

Our people are highly capable and diverse, with the right skills and expertise needed to deliver on Government priorities, and are highly

engaged and productive

people

Our broad established diplomatic network of offshore posts, accreditations and honorary consuls, as well as our digitally enabled networks, are in the right places at the right time

networksOur relationships with domestic and international partners (governmental, multilateral, civil society, and sector groups), are targeted and used effectively to build influence and reputation

relationships

The way we operate our business and the tools we use to achieve and deliver our objectives are fit-for-purpose to enable fast, efficient, and effective delivery

systems

Our work delivers improved prosperity for New Zealand and our region

Prosperity

Our work delivers security and resilience to our country, our people, and our region

StabilityOur work amplifies New Zealand’s influence and standing in the world

Leadership

Our work delivers solutions to global challenges, for the benefit of present and future generations

Kaitiakitanga

1110

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The Ministry’s four-year objectives, associated goals, success indicators, and deliverables for 2016-2020 are described below.

OBJECTIVE 1

Maximise the impact of New Zealand’s membership on the UNSCConflicts continue to present threats to international peace and security. Preventing and resolving these conflicts poses challenges for the UN system, including the UN Security Council. An effective UNSC can improve peace and security in the world, and benefit New Zealand's security and prosperity.With the election of a new UN Secretary General, there is opportunity to seek improvements to the way the UN works and delivers for member states. New Zealand has nominated Helen Clark for the role of UN Secretary General.New Zealand’s UNSC 2015-2016 term provides a once in a generation opportunity to have a positive impact on several prominent issues. This includes advocating for a stronger voice for small states, especially Small Island Developing States (SIDS), in the UNSC and other multilateral fora. New Zealand’s performance on the Council is an opportunity to build our international credibility, diplomatic brand and capability. The Ministry will continue to leverage this for diplomatic influence through our network, through the remainder of our term and beyond.

What we intend to achieve• New Zealand’s contributions lead to a more

effective UN Security Council • A more effective and efficient UN system• Helen Clark elected as UN Secretary General• Wider recognition of a stronger diplomatic

brand and new capability enables New Zealand prosperity and security objectives.

What success will look like• New Zealand initiatives, including during our

second Presidency, foster UNSC action on key issues

• New Zealand initiatives improve Council processes and endure after 2016

• Increased emphasis on interests of small states in the UN system

• Helen Clark positioned strongly as UN Secretary General candidate in final selection process

• Targeted relationships developed with newer partners while new areas of value progressed with more established partners

• Diplomatic capability and knowledge enhanced through UNSC term.

What we will do to achieve this• Stimulate Council action on the Middle East

peace process• Prepare and deliver an effective second

UNSC Presidency • Make a constructive and credible contribution

towards the resolution of major issues before the UNSC and improve the operation of Council processes

• Ensure all states, and SIDS in particular, are given a fair hearing in the UNSC during our term and establish enduring international attention to SIDS issues

• Deliver a high-quality campaign in support of Helen Clark’s candidacy for UN Secretary General

• Develop and diversify newer relationships with priority states

• Strengthen relationships with established partners to achieve specific objectives

• Utilise UNSC capability and expertise to progress other policy priorities after New Zealand’s Council term ends.

Operating intentions

OPERATING INTENTIONS

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MINISTRY OF FOREIGN AFFAIRS AND TRADE STRATEGIC INTENTIONS OPERATING INTENTIONS

OBJECTIVE 2

Increase market access, regional economic integration, and improve the international performance of New Zealand businessesThe Business Growth Agenda (BGA) is central to the Government’s priority of building a more productive and competitive economy. Lifting productivity and competitiveness, particularly through exports, is critical to creating business opportunities, more jobs and higher wages, and ultimately the higher living standards to which New Zealanders aspire.New Zealand needs to mitigate challenges to and look to advance our interests in the United Kingdom’s exit from the European Union.We need to mitigate enduring challenges to New Zealand of distance from markets, small scale, and maintaining and increasing openness of key markets. We also need to add more value to volume and support high-value, premium, knowledge-intensive businesses. Internationally connected businesses offer significant benefits to our economy, with evidence of positive impacts on employment and productivity.

What we intend to achieve• Secure and improve access for a wider range

of New Zealand exports by market and sector to support the BGA goal of lifting exports to 40 percent of gross domestic product by 2025

• Help create the conditions in which a diverse range of high-value, internationally connected businesses are able to seize opportunities

• Improved domestic and international policy environment for New Zealand businesses.

What success will look like• Increased proportion of trade covered by

FTAs• Existing market access is maintained• Market access barriers are progressively

lowered or removed• New Zealand exporters are satisfied with the

support received from MFAT

• Contacts and assistance provided to a more diverse range of businesses

• MFAT posts connect businesses with opportunities (including overseas direct investment and foreign direct investment)

• Improved domestic and international policy environment for New Zealand businesses.

What we will do to achieve this• Resolve major New Zealand market access

challenges including through dispute settlement and protecting the integrity of the New Zealand brand

• Sustain a robust and viable World Trade Organization

• Conclude and implement the TPP, the RCEP, the Pacific Agreement on Closer Economic Relations Plus, the Gulf Cooperation Council FTA and a refreshed China FTA; negotiate a Brexit deal and launch and conclude European Union FTA negotiations; make progress with selected emerging economies

• Deliver, with NZ Inc agencies, intensified operational support to assist businesses to achieve their internationalisation objectives

• Deliver, with NZ Inc agencies, an improved domestic and international policy environment.

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OBJECTIVE 3

Embed New Zealand as an integral and trusted partner in the Asia–Pacific New Zealand has significant and growing interests in the Asia–Pacific. Economically dynamic and seeking to manage geopolitical shifts, the region is seeking to become more closely integrated, with New Zealand having a direct stake in how that process plays out. Engagement with the region provides a strategic opportunity to demonstrate our value and increase influence, reputation and connectivity. Trade and economic integration with the region is key to New Zealand’s future prosperity. Implementation of TPP, successful conclusion of RCEP and inclusion in the Pacific Alliance are priorities. Security and stability in the Asia–Pacific are vital to New Zealand’s interests. This underpins our strong support for effective regional architecture. Enduring and effective bilateral relationships that protect and promote New Zealand interests are also critical.

What we intend to achieve• New Zealand’s Asia–Pacific political,

economic and security interests are safeguarded

• Effective regional architecture that protects and advances New Zealand’s interests

• More New Zealand businesses enter and succeed in Asia–Pacific markets.

What success will look like• Issues important to New Zealand are managed

successfully and key objectives are achieved• Bilateral partners’ views, positions and

actions support New Zealand’s interests• Disagreement on issues is well managed • Regional issues are managed peacefully

through the ASEAN Regional Forum and the East Asia Summit

• The shaping of norms and goals on emerging security and economic issues match New Zealand interests

• The number of New Zealand exporters succeeding in Asia–Pacific markets is increased

• Contacts and assistance provided to a more expansive group of businesses operating in the Asia–Pacific region

• MFAT posts connect businesses with opportunities (including foreign direct investment).

What we will do to achieve this• Manage a portfolio of relationships that

balances New Zealand’s broad range of interests in the Asia–Pacific

• Position the East Asia Summit as the premier leaders-led dialogue on regional strategic challenges

• Deliver an effective and impactful APEC 2021 that progresses New Zealand’s Asia–Pacific interests and maximises profile opportunities

• Deepen political influence within ASEAN and increase emphasis on the contribution of the ASEAN region to BGA goals

• Deliver a development programme that focuses on improving renewable energy, disaster risk reduction, and agriculture capability to enable economic growth and human development

• Improve coordination between NZ Inc government agencies to deliver refreshed country-specific strategies and objectives in the region

• Support businesses to take opportunities created by new and refreshed regional FTAs

• Support New Zealanders and New Zealand organisations to be more capable of engaging in the region.


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OBJECTIVE 4

Maximise the impact of New Zealand’s engagement in improving the prosperity, stability and resilience of the Pacific Islands region and its people. What happens in the Pacific has a direct bearing on New Zealand’s well-being New Zealand is a Pacific country with a long history of engagement in the region, a large Pacific community, and a Pacific identity. Shifting geopolitical dynamics require New Zealand to adapt to secure and deepen its leadership role in the Pacific. This includes demonstrating our Pacific knowledge, helping Pacific partners to better harness opportunities for increased prosperity, and delivering targeted, whole-of-government assistance involving Pacific, regional and international partners. Pacific Island countries face a range of challenges including limited resource bases, economic under-performance, and environmental vulnerability. We have an enduring interest and a significant role to play to ensure our Pacific neighbourhood maximises development outcomes and builds resilience and stability.

What we intend to achieve• Pacific Island countries policies and actions

reflect New Zealand values and strategic interests

• Pacific Island countries are well governed, resilient and stable

• Increased prosperity for Pacific peoples• Improved human development outcomes for

Pacific peoples.

What success will look like• Decisions by Pacific Island countries and

regional fora align with New Zealand interests

• New Zealand enhances its position as the partner of first choice for Pacific Island countries

• Strengthened economic governance, resilience, and law and justice systems

• Improved contribution from agriculture, tourism and fisheries sectors

• Increased economic benefit from trade and labour mobility

• Increased access and use of renewable energy and information technology

• Improved health of people in the Pacific • Improved knowledge, skills and basic

education.

What we will do to achieve this• Coordinate New Zealand diplomacy and

development delivery• Lead coherent policy development and

execution across NZ Inc agencies• Engage with Pacific leaders to ensure an

effective, leader-led Pacific Islands Forum• Improve Pacific Island countries capability

to manage national and regional threats to stability

• Undertake rapid and effective responses to humanitarian emergencies

• Increase private sector-led economic growth• Implement an effective New Zealand Aid

Programme through evidence-informed practices.


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OBJECTIVE 5

Promote sound international solutions on climate change, natural resources and environmental protectionComplex threats to the world’s natural environment pose risks to the security and prosperity of New Zealand, our region and the world. Growing international momentum calls for action, including on climate change and threats to our oceans. International responses bring both economic costs and opportunities for New Zealand. Our geographic location means we give priority to the security, economic and kaitiakitanga dimensions of the Pacific, the Southern Ocean and Antarctica. In turn, New Zealand has an opportunity to offer leadership and expertise in these domains.

What we intend to achieve• An effective global response to climate

change to which New Zealand contributes credibly and through which Pacific climate resilience improves

• Healthy and productive oceans, in particular the Pacific and Southern Oceans

• New Zealand’s strategic interests in Antarctica are safeguarded.

What success will look like• Rules and guidelines agreed under the Paris

Agreement support New Zealand’s ability to fulfil its obligations

• New Zealand recognised as a champion of the Global Research Alliance, fossil fuel subsidy reform, and carbon markets

• Climate resilience is improved in the Pacific, including through better access for Pacific Island countries to the Green Climate Fund

• Improved management of key Pacific fish stocks

• Ross Sea Marine Protected Area established• Illegal, unreported, and unregulated (IUU)

fishing eliminated in the Southern Ocean and reduced in the Pacific Ocean

• Whaling eliminated in the Southern Ocean • The value of Christchurch as a gateway city

to Antarctica is sustained and developed • New Zealand is equipped to operate

effectively in Antarctica, including with key partners

• Antarctic science delivers benefits to New Zealand in line with government priorities

• Tourism management in Antarctica is strengthened

• New Zealand activity in Antarctica is an exemplar of environmental protection.

What we will do to achieve this• Work with others to implement the Paris

Agreement on climate change, and pursue international rules and settings that enable New Zealand to meet its commitments

• Work with partners to progress the Global Research Alliance, fossil fuel subsidy reform, and carbon markets

• Help develop more climate-resilient infrastructure and communities in the Pacific

• Address key challenges in the Pacific and Southern Oceans through improved conservation and management

• Protect the Pacific and Southern Oceans from IUU fishing

• Ensure New Zealand’s Antarctic-related diplomacy, security, science and operational platforms are aligned and delivering best value to Christchurch and New Zealand

• Make a constructive contribution to limiting the adverse effects of increased human activity in Antarctica.


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OBJECTIVE 6

Protect and advance New Zealand’s and New Zealanders’ security The international rules-based system has long been a foundation for New Zealand’s security interests. However, emerging and persistent international security threats, and an increasingly interconnected world, are more directly impacting on New Zealand’s security and prosperity, and on the safety of New Zealanders.This changing environment means that New Zealand needs to be actively protecting its own interests. We have a direct interest in contributing to, and helping to shape, a stable and secure Asia–Pacific region, as well as a specific responsibility to contribute to a stable and secure South Pacific. There is also an increased expectation on New Zealand to contribute to broader global efforts to respond to this increasingly volatile security landscape. New Zealand’s contributions to peace and security initiatives is an investment in (and expectation of) mutual security relationships and develops broader diplomatic capital.

What we intend to achieve• External threats to the security of

New Zealand and New Zealanders are assessed and mitigated

• Contributions to international peace and security initiatives / institutions project New Zealand’s influence and help advance broader national security and foreign policy goals

• The South Pacific is more secure and stable and we help shape the security dynamics in the broader Asia–Pacific region in our interests.

What success will look like• Relevant threats to New Zealand are

identified and assessed by MFAT’s offshore network in a timely manner

• Threats to New Zealand security interests are mitigated as appropriate

• Our partners view New Zealand efforts as making a credible contribution

• The shaping of norms on emerging security issues match New Zealand interests

• New Zealand’s security objectives are integrated within broader bilateral, regional, trade and development goals

• Pacific Island countries governments are able to proactively address security threats

• Medium-term regional counter-terrorism threat levels do not increase

• New Zealand is included in and influences regional decisions and the Asia–Pacific regional security fora.

What we will do to achieve this• Improve the safety of New Zealanders

offshore, particularly during major events and international crises

• Reduce the risk to New Zealand and New Zealanders from terrorism, cyber and space threats, and illegal migration

• Influence partners to take action in New Zealand’s direct security interests

• Enhance the Government’s understanding of the broader external security threats to New Zealand, our interests, and our foreign policy dimensions

• Advance international humanitarian law, UN, and treaty-based disarmament and non-proliferation efforts regarding conventional and nuclear weapons

• Improve coordination between New Zealand security agencies in engagement on international security issues

• Advance New Zealand’s security interests and connections in Asia–Pacific via bilateral engagements and at regional fora.


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OBJECTIVE 7

Build robust and enduring organisational capability to deliver strengthened and coherent international engagementa. Our People are highly capable and diverse,

with the right skills and expertise needed to deliver on government priorities, and are highly engaged and productive.

Our workforce needs to match our business need, and adapt to align skills, knowledge and experiences with our business objectives. Resource pressures and deployment requires effective people management and leadership, and our people need to be operating in a safe and healthy working environment.

What we intend to achieve• Staff are flexibly deployed to meet changing

business priorities• Changing business need and capacity and

capability workforce requirements are anticipated

• Our workforce includes broader and deeper perspectives to enhance organisational performance

• Management and leadership optimises our people resource and staff are highly engaged and productive

• Our people operate within a safe and healthy working environment that is within an acceptable level of risk.

What success will look like• Business priorities are well resourced

through staff being deployed in a more flexible and timely way

• Workforce requirements are being more readily identified and addressed to deliver on business plans

• Employee engagement survey scores indicate that resourcing and prioritisation processes are more fit-for-purpose

• The range of diversity increases innovation and new ways of addressing problems and designing solutions that are more effective in our operating environment

• Metric reporting indicates that workers are in an environment where health and safety risks are being well managed through effective mitigation.

What will we do to achieve this• Design and implement a process that will

enhance flexibility in resourcing business priorities

• Develop a workforce planning maturity model • Attract more diverse talent to the Ministry

through implementing changes to the workplace experience

• Design and implement improved approaches to health and safety, particularly in the offshore network.

b. Our Networks — Our broad established diplomatic network of offshore posts, accreditations and honorary consuls, as well as our digitally enabled networks, are in the right places at the right time.

Evolving government priorities in a complex global environment require us to focus our resources and adjust to change. Available resources, a drive for greater efficiency and effectiveness, security challenges and our health and safety obligations will also impact the shape and scale of our network. A whole-of-government approach is required for policy coherence and service delivery through our network. Rapid changes to the way information flows require smart digital thinking and forward planning. New Zealanders have an expectation that our network will deliver value for them.

What we intend to achieve• A network that is responsive to changing

political, security, trade and consular priorities

• An optimised NZ Inc network that provides a coherent New Zealand face to the world

• Improved value-for-money from New Zealand’s offshore footprint

• A network that keeps our people and information safe.


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What success will look like• Evidence that our network is being adapted as

priorities change• Improved policy coherence in NZ Inc offshore

activities• Increased use of NZ Inc common workspaces• The Ministry’s capital and operating

investment enables better deployment of property and IT resources

• Reduction in forecast increases to long-term costs for our network

• Increased use of digital technology• Operation of our networks meet health and

safety and security requirements• Low occurrences of health and safety

incidents and security breaches.

What we will do to achieve this• Develop an investment approach that

identifies long term priorities and presents an investment-ready proposition

• Ensure a network with operating and establishment models is tailored to different locations and circumstances

• Lead a more coordinated NZ Inc network with sharper interoperability and better informed strategic decisions

• Improve the use of technology to deliver services and communicate digitally

• Ensure more flexible deployment of expertise across the network

• Ensure coherent governance of the offshore footprint

• Integrate a health and safety programme and security into the operation of our networks.

c. Our Relationships with domestic and international partners (governmental, multilateral, civil society, and sector groups), are targeted and used effectively to build influence and reputation.

Building and maintaining relationships is at the heart of the Ministry’s work. While MFAT’s relationship activities offshore are well understood, it is the quality of the Ministry’s

relationships onshore that often determine international success. These domestic relationships are with NZ Inc government agencies, the private sector and non-governmental organisations, Māori, and the broader New Zealand public.The increasing complexity and interconnected-ness of the modern-day world requires the Ministry to adopt a broader range of relationship building skills, tools and systems. The size of this challenge, and the opportunity to maximise value, also requires MFAT to provide NZ Inc leadership, coordination and support.

What we intend to achieve• NZ Inc agencies’ international delivery is

coordinated and effective • New Zealand has the diplomatic capital to

effectively promote its interests• Relationships with domestic stakeholders

(private sector, non-governmental organisations, civil institutions) that improve the quality of New Zealand’s international engagement and programme delivery

• The Māori dimension is understood and reflected in our work

• New Zealanders support the work of the Ministry and have opportunities to enquire and engage.

What success will look like• NZ Inc agencies understand each other’s

roles and objectives, and how we support others to work towards them

• NZ Inc agencies consider MFAT’s role to have added value

• New Zealand can rally support for priority initiatives as they arise (for example, UNSC and UN Secretary General campaigns, the TPP, APEC 2021)

• Domestic stakeholders are satisfied with their engagement with the Ministry

• The Ministry’s policy development reflects the obligations of the New Zealand Government

• The Māori dimension is reflected in the way we carry ourselves in the world


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• Public information enquiries are responded to in a timely manner (including websites, email, social media)

• Participation in consultations and hui• Official Information Act requests/Ministerials

completed within statutory timeframes.

What we will do to achieve this• Strengthen NZ Inc agencies’ engagement to

deliver increased value from the collective effort

• Enhance diplomatic capital to advance and protect New Zealand’s interests

• Ensure a public diplomacy and communications-savvy organisation informed by, and influential with, publics onshore and offshore

• Improve the domestic engagement framework with stakeholders and Māori partners.

d. Our Systems — The way we operate our business and the tools we use to achieve and deliver our objectives are fit-for-purpose to enable fast, efficient, and effective delivery.

The nature of MFAT’s operations, and location of its posts and accreditations, strongly influences the processes and systems we need to operate effectively. Increasing pressure on MFAT’s resources requires better prioritisation and trade-off decisions. The changing technology and security environment as well as the need to respond to major events and crises requires forward planning, resilience and flexibility within our tools and systems. Our internal business enablers need to align with business objectives, some of which may be influenced by external factors outside of our direct control.

What we intend to achieve• Enduring alignment of the Ministry’s strategy

and budget• Operational management systems are

tailored to the specific and varied needs of our domestic and international operations

• Tools and systems that are secure and resilient in the face of change, uncertainty,

and crises, and suited to varied geographical locations

• Improved engagement, planning and coordination between stakeholders who enable our operations.

What success will look like• Effective management of our capital and

operating investments are in alignment with the Ministry’s strategy

• Delivery of agreed actions from independent reviews to improve our processes and systems

• Both current and future operating management systems deliver effectively and as intended

• MFAT's people and information are kept safe through the delivery of health and safety, security and privacy strategies

• Important information is secure and accessible for those who need it to make decisions

• Continuous alignment of MFAT enabler plans (Asset, IT, Investment, Security, Processes) to strategic objectives

• Alignment of NZ Inc infrastructure offshore.

What we will do to achieve this• Ensure MFAT has the resources, mandate and

capability to deliver its strategic objectives and other core business

• Improve the processes, rules, capabilities, information and behaviours that work together to shape the way our investments and infrastructure are prioritised and managed throughout their life cycles

• Build and implement networks, systems and processes (supported by the appropriate tools) that enable our people and NZ Inc partners to realise their objectives

• Ensure that important information is secure and enables our people and NZ Inc partners to make good decisions and monitor and evaluate performance

• Ensure greater integration of our strategic business objectives with our people, processes and systems.


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The Ministry continuously improves our management of functions and operations so they are delivered effectively and efficiently to support achievement of our strategic objectives. The current areas of focus are below.

Lifting strategic performanceA key priority for the Ministry is lifting strategic performance. We focus on strategic, governance and accountability issues to ensure the senior leadership team (SLT) is best able to deliver organisational leadership. The Ministry’s revised strategic and annual planning process is designed around our four-year objectives. This ensures we deliver directly on our strategic framework. The process ensures SLT have an organisational view of our work and clear goals, ensures good alignment between our four-year objective plans and divisional plans, and allows resources to be allocated and prioritised effectively against our strategic framework. Plans are monitored and adjusted as required, and SLT is updated quarterly on organisational performance. Risk management is integrated with our whole-of-organisation planning processes. In February 2016, enhancements were made to the Ministry’s governance arrangements with the establishment of three ancillary committees to support the SLT Board. The SLT Board oversees how well we are implementing the strategy, managing risk, and deploying resources. The new ancillary committees meet monthly, of which: • the Strategy and Policy Committee oversees

how we plan to develop and deliver our foreign, trade and aid policy

• the Coordination and Performance Committee oversees how we coordinate our effort in the Ministry and with others to deliver our foreign, trade and aid policy

• the Resources Committee oversees what resources we need to develop and deliver our foreign, trade and aid policy.

The Ministry is implementing a portfolio management framework to support senior leadership governance of project investments, benefits and risk. This will provide SLT with a ‘big picture’ of our aggregated portfolio performance to support investment decisions, prioritisation, and governance against our four-year objectives. The Ministry’s Operational Investment Board oversees the operational investment portfolio of programmes and projects for the Ministry. The Ministry needs to ensure the Government’s offshore network is fit-for-purpose now and for the future through long-term investment planning. We will develop a long term investment plan in 2016, as an investment-intensive agency, to help inform decision-making and prioritisation.Lifting strategic performance includes working as one Ministry to more effectively deliver on our objectives. As part of this, the Ministry is establishing a Pacific Branch, finalising the framework for engagement in the Pacific, and strengthening the international development operating model with the aim of becoming a centre of excellence in Pacific matters. This will ensure that the Ministry delivers on an expanded aid programme effectively and efficiently, as set out in the New Zealand Aid Programme Strategic Plan 2015-19, enhances our relationships with customers, partners and stakeholders, and builds an engaged workforce with the capacity and capability to deliver. Capability, organisational arrangements, frameworks and systems to enhance the management of the aid programme, including operational delivery, will be introduced over 2016-17.

Managing functions and operations

MANAGING FUNCTIONS AND OPERATIONS

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Strengthening the career MinistryPeople are the Ministry’s greatest asset. It is through the efforts of staff that our strategic objectives will be realised. Strengthening the career Ministry is an important priority to make MFAT a better place to work for everyone, across all job families and in all locations. The Ministry has a programme of work consisting of five work streams that will be delivered over 18 to 24 months. The five work streams are: employer of choice; management; career development; postings, partners and families; and people strategy. Within these work streams, we will address issues such as diversity, work-life balance, training and development, and career options for staff.

Improving health and safetyHealth and safety is a further priority. This is about ensuring that our people – onshore and offshore (and those who are on our premises) – are operating in a safe and healthy working environment. A programme of work has been under way since 2015 to ensure the Ministry has robust systems and processes in place, not just to fulfil health and safety legislative responsibilities, but to sharpen our commitment to staff well-being.

EQUAL EMPLOYMENT OPPORTUNITIES

We place a strong emphasis on fostering a diverse and inclusive workplace. In representing New Zealand, it is important we have a diverse workforce that reflects the cultural diversity of New Zealand and our role and position in the Pacific.We are committed to the principle and practice of equality. We base appointments on merit, while recognising the employment aspirations of Māori, Pacific people, ethnic and minority groups, women and people with disabilities. We ensure fairness in employment for all persons and groups.

MANAGING FUNCTIONS AND OPERATIONS

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Capital intentions The Ministry’s capital programme aims to provide modern, secure, and effective premises for NZ Inc’s requirements offshore, and modernise our IT systems. We take a long-term approach to capital asset management by:• developing multi-year asset management

plans• ensuring that investment decisions fit with

our overall strategic direction • ensuring that decisions are justified

according to the assets’ full life costs and perceived benefits.

Property assetsThe Ministry aims to deliver smart, resilient, cost-effective and distinctively New Zealand property assets that support our business in each of our locations.Property asset plans are a key tool in planning our capital asset expenditure. Spanning 10 years, they cover asset acquisitions, divestments, replacements and maintenance and include key performance indicators for measuring success.In the next four years, the following major capital works are planned or under way:• Beijing: rebuild the chancery and official

residence on leased land• Canberra: refurbish our owned chancery• Moscow: relocate and fit out the chancery and

residence• Addis Ababa: build a new chancery and

residence• Suva: build a chancery• Honiara: build a chancery• New Delhi: refurbish the chancery and

upgrade the infrastructure• Tokyo: upgrade the chancery infrastructure• Washington: upgrade official residence.

Technology The Ministry’s IT capital planning process aims to ensure:

• innovative and agile IT solutions delivered by a flexible and efficient IT service

• a secure infrastructure that responds equally well to both enterprise-wide and individual divisions’ needs.

We will demonstrate our success through fewer events that disrupt IT services.The Enterprise IT capital plan aims to provide secure and flexible environments that stimulate participation through deploying collaborative tools that promote innovation across mission, line, stakeholder and user boundaries.Major technology and communication initiatives planned for 2016–2020 include:• the New Zealand Aid Programme

management system project• the data centre review• the asset information management system

project• the expense and invoice management system

project• the global document management system

review• the finance system review• the upgrade of the Ministry Microsoft

software environment.

Capital asset management We are committed to best practice in capital asset management and continued improvement in our asset management tools and methodologies. We judge our capital asset management as successful when:• assets are available to meet specified

requirements; for example, we expect our physical assets and IT to be 98 percent available 24 hours a day, seven days a week

• property assets have the structure and flexibility to meet our current and anticipated business requirements

• assets are fit for their required purpose• capital project management is appropriate,

well managed and well executed.

Departmental capital and asset management intentions

DEPARTMENTAL CAPITAL AND ASSET MANAGEMENT INTENTIONS

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FORECAST DETAILS OF DEPARTMENTAL CAPITAL EXPENDITURE FOR THE PERIOD 2015–2020

2015/16 $000

2016/17 $000

2017/18 $000

2018/19 $000

2019/20 $000

LAND 1,500 – – – –

BUILDINGS 22,015 39,387 29,153 23,135 3,627

PLANT AND EQUIPMENT 1,977 1,340 1,477 1,477 1,551

FURNITURE AND FITTINGS 18,331 26,997 29,157 17,443 15,711

MOTOR VEHICLES 1,500 1,350 1,450 1,450 1,500

COMPUTER HARDWARE 6,850 5,200 3,200 3,250 3,250

COMPUTER SOFTWARE 20,789 13,513 4,404 1,240 683

TOTAL 72,962 87,787 68,841 47,995 26,322


RELEASE AND DISSEMINATION OF PUBLICLY AVAILABLE INFORMATIONWe want to be seen as an effective and proactive communicator in releasing and disseminating our publicly available information. We will seek to achieve this by releasing high-value public data for reuse in accordance with the Declaration on Open and Transparent Government. At all times we will have a healthy respect for, and understanding of, the wide variety of stakeholder expectations for accessing and using our information.

DEPARTMENTAL CAPITAL AND ASSET MANAGEMENT INTENTIONS

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CROWN COPYRIGHT © This work is licensed under the Creative Commons Attribution 3.0 New Zealand licence. In essence, you are free to copy, distribute and adapt the work, as long as you attribute the work to the Crown and abide by the other licence terms.

To view a copy of this licence, visit http://creativecommons.org/licenses/by/3.0/nz/. Please note that no departmental or governmental emblem, logo or Coat of Arms may be used in any way which infringes any provision of the Flags, Emblems, and Names Protection Act 1981. Attribution to the Crown should be in written form and not by reproduction of any such emblem, logo or Coat of Arms.


CROWN COPYRIGHT © This work is licensed under the Creative Commons Attribution 3.0 New Zealand licence. In essence, you are free to copy, distribute and adapt the work, as long as you attribute the work to the Crown and abide by the other licence terms.

To view a copy of this licence, visit http://creativecommons.org/licenses/by/3.0/nz/. Please note that no departmental or governmental emblem, logo or Coat of Arms may be used in any way which infringes any provision of the Flags, Emblems, and Names Protection Act 1981. Attribution to the Crown should be in written form and not by reproduction of any such emblem, logo or Coat of Arms.


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MINISTRY OF FOREIGN AFFAIRS AND TRADE195 Lambton Quay Wellington 6011Private Bag 18 901 Wellington 6160 New Zealand Phone +64 4 439 8000 Fax +64 4 439 8505

www.mfat.govt.nz

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