A consultation document for Government Departments, Crown Entities, and other State Sector Agencies

Transcription

1 A Cabinet Directive and Ministerial Direction to support a whole of Government approach to the New Zealand Business Number A consultation document for Government Departments, Crown Entities, and other State Sector Agencies Purpose This document has been prepared for consultation with government departments and Crown entities to solicit views on the content of a draft whole-of-government approach to the New Zealand Business Number (NZBN). The Cabinet Directive (likely to be via a Cabinet Office circular) will give direction to government departments and invite other specific agencies to give effect. The Ministerial Direction will be issued jointly to Crown Entities by the Ministers of State Services and of Finance under section 107 of the Crown Entities Act 2004, to support a whole of government approach. The Cabinet Directive and the Ministerial Direction, referred to collectively as the directions, have been developed having regard to the matters set out in EGI Min (15) 6/2 1. For Crown entities this document should be considered in conjunction with the proposed draft text of the Ministerial Direction provided. Cabinet recently endorsed the NZBN programme business case. 2 Budget 2015 allocated funding over four years to expand the use of the NZBN, as well as supporting the implementation of a number of tell government once initiatives. One of the pre-requisites for realising NZBN benefits set out in that business case is agency participation. Without agency participation, there is no benefit, and the investment objectives cannot be met. Each of the proposed draft requirements in this document has been developed to ensure the policy intent of NZBN and the milestones in the business case are achieved and the benefits are realised. Key assumptions include that, over time, agencies will be changing their operating models to incorporate NZBN, agencies will be storing and utilising the NZBN and other primary business data in their systems and, where appropriate, using the NZBN to update business information. The onus will be on agencies to report on progress and explain any delays or issues including demonstrating why the NZBN should not be in scope if they are changing their systems and not incorporating NZBN. Further assumptions are noted below where appropriate. Following approval from the Ministers of Economic Development (Lead), Finance and State Services, this document commences the formal whole-of-government consultation process. Information about this process and indicative dates are attached in Annex 1. 1 The Minute is available upon request for agencies who were not included in circulation 2 Cabinet has agreed that the Result 9 agencies implement the NZBN programme in four tranches as proposed in that business case (EGI Min (15) 6/2 refers). Tranches 3 and 4 will also be subject to further business cases. 1

2 In this document the terms government agency or agency (and plural forms) refer to any department, Crown-entity or other state sector organisation subject to consultation on the directions. The terms business entity or entity (and plural forms) refer to an entity which has been allocated an NZBN (except where there are specific references to Crown entities). The NZBN Vision The compliance costs of dealing with government adversely affect the productivity of business and therefore reduce the potential for economic growth. The NZBN is one of several initiatives aimed at achieving the Result 9: Better for Business (R9) commitment of reducing business costs from dealing with government by 25% by 2017 through year-on-year reduction in effort. The NZBN number is a New Zealand specific series of global location numbers sourced from GS1, a global standards organisation. Each number identifies a business entity. The business entities that will be identified by an NZBN include: government agencies, companies, incorporated societies (and other entities listed on specified public registers), and sole traders, partnerships, or trusts that are in business 3. The NZBN will be able to be used in business-to-government and business-to-business transactions. This will reduce transaction costs. The compliance cost savings to business will be delivered when businesses are able to: use their NZBN when they deal with government departments and Crown entities update their core business information (known as primary business data) in one place rather than with each agency they deal with; access an integrated process to perform business activities that currently require transacting with multiple agencies (e.g. ceasing a business). The benefits for agencies are: A single authoritative all-of-government source of primary business data available for use by every agency; Improved information quality, reducing costs to agencies of collecting information, eliminating manual data processing and the ambiguity of data shared about an business entity in agency systems; Improved ability to identify a business entity with certainty, in particular when communicating across agencies, facilitating broader government information sharing initiatives; Improved customer experience through more effective transactions, for example, improved targeted communication between government and business; More effective and efficient interactions between businesses and government leading to improved confidence in government. For example, reduced customer interaction (and reduced administration costs) along with more robust data will enable agencies to focus on 3 For more detail about entities that can have an NZBN you can refer to clauses 9 to 12 (and the definitions of entity business and government agency in clause 5) of the NZBN bill at 2

3 core business functions, be more responsive to business customers and improve decision making. The goal of a Cabinet Directive and Ministerial Direction The Government has stated the main goal of the NZBN is to replace, over time, many of the separate business entity identifiers currently used by business and government agencies when dealing with each other 4. No comprehensive statement has been made stating when or how this goal will be achieved. Consequently, agencies are uncertain about what they need to do to meet the Government s expectations. It also means there is business uncertainty about when they can expect to obtain the benefits of the NZBN. It is important to the success of the NZBN, that agencies implement the NZBN swiftly and comprehensively. Issuing a high-level direction to agencies that deal with business (through performing their functions, or procuring goods and services) will make clear what is required of them and by when. On 30 March 2015 Cabinet agreed in principle to issue directions on the NZBN 5 : To government departments through an appropriate mechanism 6 ; and To Crown entities by the Minister of State Services using a power of direction in the Crown Entities Act 2004 (section 107). Cabinet also agreed the directions be underpinned by: Descriptions of the vision, goal and major milestones; A presumption that government agencies will be subject to the direction; A high level description of what agencies need to do to comply with the direction; A requirement on agencies to report on progress annually in accordance with the established government sector reporting cycle, starting with the 2015/16 year; Provision for monitoring those reports and reporting to Ministers. Cabinet approval of the NZBN Programme Business Case On 30 March 2015 the NZBN Programme Business Case was agreed by Cabinet. 7 The business case includes the proposal to implement the NZBN in tranches, articulating the projects needed to achieve the NZBN goals. Because agency participation is a pre-requisite for realising the benefits outlined in the business case, and the aim of the draft Cabinet directive and Ministerial direction is to guide the operationalisation of the benefits to business, key milestones articulated in the business case have been incorporated into this consultation draft as categories. 4 This is an inclusive definition referring not only to businesses that have a compliance obligation with an agency, but with any business they may interact with (e.g. vendors, suppliers etc). 5 EGI Min (15) 6/2 refers. 6 The Cabinet Office has subsequently advised that a Cabinet Office Circular appears to be the most appropriate mechanism. (This can be confirmed after consultation on the directions, when their content and scope will be more settled). 7 EGI Min (15) 6/2 refers. 3

4 Category A requirements (recognise the NZBN) In May 2014 Cabinet agreed the eight Result 9 agencies (ACC, Callaghan Innovation, Customs, Inland Revenue, MBIE, MPI, NZTE, and Statistics NZ) be required to recognise businesses by their NZBN by the end of the 2017 calendar year 8. The purpose of recognise is so businesses would only need to use one number (the NZBN) when interacting with agencies, and agencies must at least be able to recognise the business entity solely on the NZBN 9. An agency must recognise the NZBN when a business entity (via a person or a system) provides a valid and correct NZBN to the agencies as its identifier. Businesses do not differentiate between Result 9 agencies and other agencies. The expectation of businesses is all the agencies they deal with will recognise the NZBN. It is proposed other agencies and appropriate Crown entities be required to meet the recognise requirement by the end of the 2018 calendar year. The requirement to recognise 10 the NZBN means: 1. If a person or system provides the agency with a valid NZBN, the agency is able to identify the business entity from the NZBN (without requiring an additional identifier from the person or system). 2. Recognise other agencies by their NZBNs (NZBNs are expected to be allocated to the state sector in the first quarter of 2016) It does not require the agency to: Obtain data about a business entity from the NZBN register, Replace an existing identifier with the NZBN in the agency s processes or internal systems. It does not prevent the agency from requiring the business entity to provide an existing identifier to the agency: If that identifier is not used to identify it as a business entity but for some other purpose (such as a product specific or location specific identifier) or; If required by an enactment or any rule of law. Assumptions about the recognise requirement The recognise requirement is the first step for agencies integrating the NZBN. While the recognise requirement does not require an agency to obtain data about a business entity from the NZBN Register it is assumed there will be some initial data matching and data consumption to ensure the correct mapping of NZBNs against business entities in their systems. 8 This decision was to be implemented by way of legislation [EGI Min (14) 11/7 refers]. Cabinet subsequently agreed that this now be achieved by Cabinet directive [EGI Min (15) 6/2 refers]. 9 This is an inclusive term referring not only to businesses that have a relationship with an agency due to compliance obligations, but with any business they may interact with. E.g. vendors, suppliers etc. 10 As set out in clause 34 of the exposure draft of the NZBN Bill. 4

5 Category B requirements (update primary business data) The NZBN Bill proposes a set of primary business data that the New Zealand Business Number register will contain for a type of business entity (clause 20). The Category A requirement to recognise the NZBN is focused on agencies incorporating one of these primary business data elements - the NZBN - into their operations (albeit in a limited way). Category B involves agencies sourcing from the NZBN Register, the NZBN primary business data elements they require for their operations. These data elements will evolve over time 11. Category B will also require agencies to implement capabilities to share changes to primary business data to give effect to tell government once. To do this agencies will also use the NZBN in outbound communications where they would use an identifier to identify the entity. Over time, the NZBN will supersede any equivalent entity identifier in all agency communications. The outcome of Category B is businesses will be able to update participating agencies once as to their primary business data, irrespective of which agency they are interacting with. This may require legislative change for agencies, for example to existing agency data definitions, to ensure that the NZBN data elements are captured and able to be shared. The requirements for compliance with Category B (no later than the end of ) are: The NZBN Register will need to make primary business data available for consumption by other agencies; The NZBN Register will need to accept authorised changes to primary business data initiated at other participating agencies; Participating agencies will source from the NZBN Register primary business data relevant to their functions where the agency is authorised to access the data; Participating agencies will provide a capability so business customers can update their primary business data and share these changes with the NZBN Register; Participating agencies can determine the person or system providing primary business data (or consenting to the provision of data, where consent is required) on behalf of a business entity is authorised to do so All participating agencies will use the NZBN as the entity identifier in appropriate outbound communications where they would currently use an identifier (other than the business entity s name) to identify the business entity Additional primary business data can be added through regulations. 12 A Ministerial Direction must be reviewed no later than 5 years after being issued. 13 This does not preclude an agency from using other identifiers alongside the NZBN if appropriate (e.g. subparts of a business entity for levying purposes) 5

6 Category C requirements (operationalising the NZBN vision across government) Category C requirements will leverage the NZBN Register for whole-of-government service delivery. This means the NZBN should be considered when making investment decisions and the information held on the NZBN Register should be used when services are redesigned or new integrated services are developed. ACC, Inland Revenue and the Ministry of Business Innovation and Employment (MBIE) are committed to developing an integrated, comprehensive registration process for the creation and cessation of business entities that spans these three agencies. To fulfil Category C requirements agencies will be required to: Demonstrate that leveraging the NZBN Register and associated data has been considered when making system investment decisions Be able to justify any decision not to use Phase out identifiers (other than the NZBN or the business entity s name) with an equivalent purpose to the NZBN as part of any system transformation programme. Consider whether their business cessation and creation processes should be added to the integrated registration process to be implemented by MBIE, ACC and Inland Revenue. Privacy Privacy considerations are key to the implementation of the NZBN project. Implementation of all three category requirements of NZBN will necessitate agencies to collect, store and use primary business data alongside their own agency-specific business information. Agencies will therefore need to ensure they have appropriate processes, systems and protections in place to secure business information. This includes, but is not limited to, minimising unnecessary data collection, embedding privacy into the architecture of IT systems, and offering full lifecycle protection of information. Monitoring and reporting requirements It has been agreed by Cabinet that there is a requirement to report on progress (towards Category A, B and C requirements) annually in accordance with the established government sector reporting cycle (for years ending on 30 June), starting with the 2015/ 2016 year. For Crown Entities this will form part of their annual report. A centralised system for monitoring agencies implementation and reporting to Ministers on implementation progress is required to ensure benefits are achieved, particularly key agencies contribution. The NZBN Register will carry out this reporting. 6

7 Agencies covered by the directions Mechanism Agencies proposed to be included Category A requirements (by the end of 2017 for Result 9 agencies and by the end of 2018 for other entities) Category B requirements Category C requirements Monitoring and reporting Most likely to be a Cabinet Office circular to promulgate directions on the NZBN All departments, except for two departments of the legislative branch 14 Other specific agencies Required to give effect Invited to give effect to (see attached schedule) See attached schedule Subject to consultation Required to give effect to Crown Entities Act - Section 107 direction to Crown entities All Crown agents, all ACEs, all ICEs, all PFA Schedule 4A companies, and all Crown entity companies (including CRIs) Required to give effect to except CRIs have regard to See attached schedule Subject to consultation Required to give effect to A broad range of government agencies will be covered by the directions issued. To accommodate this consideration is being given to including a schedule to the directions to group different agencies according to their levels of interaction with business. The schedule may prescribe different dates for those groups to fulfil the different category requirements depending on the benefits to businesses of an agency implementing the NZBN. Some State sector agencies are not subject to directions including the Reserve Bank, State owned enterprises and. At the same time the formal consultation process on the directions is undertaken these agencies will also be consulted and be invited to give effect to the directions. 14 The two departments excluded are the Office of the Clerk and Parliamentary Service (note that Cabinet can only invite the speaker to direct these agencies). 7

8 Disagreement over whether a business identifier is subject to the NZBN recognition obligation Judgement will sometimes be required to determine whether a business number identifies the whole of a business and is therefore subject to the NZBN recognition obligation. Some agencies business-related numeric identifiers have other purposes such as being product-specific, location specific or to identify a non-resident business entity. This means there must be exceptions and this is provided for in the Bill. Sometimes it will be clear a business identifier is within scope but in other cases it will not be. As the agency is privy to its own information and processes, the agency will be required to demonstrate why a number should not be in scope. The NZBN Registrar and an agency will use their best endeavours to resolve any disagreements in good faith at the earliest opportunity. If agreement cannot be reached, the Registrar and agency will then make use of appropriate assistance, such as mediation or other forms of agreed dispute resolution. It is also proposed the Registrar will monitor any disputes and report to Ministers as required. END OF FORMAL CONSULTATION CONTENT Consultation Feedback Consulted agencies are invited to provide feedback on any part of this document. Some specific suggested areas of feedback include: What level of interaction does your agency have with business? (both in business compliance activities and procurement) Final advice to Ministers on categorisation of each agency will focus on both quantity (in terms of dollars) and volume (in terms of numbers of businesses you interact with annually); Do you believe your agency has been correctly categorised (give effect to, have regard to, be invited to) with regard to Categories A and B. If not, why not and what do you think it a more appropriate classification?; How do you believe your agency should be classified for Category C? (give effect to, have regard to, be invited to, excluded from scope); What system changes will your agency be required to undertake to integrate the NZBN? (including any view of associated costs); What do you believe would be a realistic yet ambitious timeframe for your agency to be able to meet the Category A requirement of recognise?; What do you believe would be a realistic yet ambitious timeframe for your agency to be able to meet the Category B requirements?. In relation to the Category B requirement that: participating agencies can determine the person or system providing primary business data (or consenting to the provision of data, where consent is required) on behalf of a business entity is authorised to do so 8

9 Do you have a view as to what standard agencies systems and processes should meet when determining this authority? Do you think a specific organisation should have the function of determining this standard, and/or determining whether an agency has meet the required standard? If so, which organisation? 9

10 Annex 1 List of entities for consultation The following is a list of entities being consulted 15. Following feedback it may be determined that some of these entities should be reclassified or considered outside of the scope of the direction and directive as they are not business facing. Proposed consultation for Category A For Category A recognise it is proposed that all departments, except for two departments of the legislative branch 16, all Crown agents, all ACEs, all ICEs, all Crown entity companies (expect for CRIs), and all Public Finance Act Schedule 4A companies be directed to give effect to. Crown Research Institutes cannot be directed to give effect to. It is proposed they be directed to have regard. Proposed consultation for Category B For Category B it is proposed that some departments, Crown entities and other state sector agencies be required to give effect to and others be required to have regard to as below. This is based on the perceived level of interactions entities have with business and may change following consultation. Departments required to give effect to: Ministry of Business, Innovation, and Employment Department of Conservation Department of Corrections Department of the Prime Minister and Cabinet (includes the Canterbury Earthquake Recovery Authority as a departmental agency) Ministry for Culture and Heritage New Zealand Customs Service Ministry of Defence Ministry of Education Education Review Office Ministry for the Environment Ministry of Foreign Affairs and Trade Government Communications Security Bureau Ministry of Health Inland Revenue Department Department of Internal Affairs Ministry of Justice Land Information New Zealand Te Puni Kokiri - Ministry of Maori Development 15 A number of entities have been excluded for reasons such as materiality of their functions and remoteness to government or they may have a historic association with Ministers but not be considered to be within government (for example the Queen Elizabeth II National Trust). 16 The two departments excluded are the Office of the Clerk and Parliamentary Service (note that Cabinet can only invite the speaker to direct these entities). 10

11 Non- Non- Non- Ministry of Pacific Island Affairs Ministry for Primary Industries Ministry of Women's Affairs Serious Fraud Office Ministry of Social Development State Services Commission Statistics New Zealand Ministry of Transport The Treasury New Zealand Police New Zealand Defence Force New Zealand Security & Intelligence Service Departments required to have regard to: Non- Crown Law Parliamentary Counsel Office Other agencies that will be required to give effect to Category B: Type of Entity Name of Entity NZ on Air (Broadcasting Commission) New Zealand Film Commission New Zealand Lotteries Commission Accident Compensation Corporation Callaghan Innovation Civil Aviation Authority Auckland District Health Board Bay of Plenty District Health Board Canterbury District Health Board Capital and Coast District Health Board Counties Manukau District Health Board Hawke's Bay District Health Board Health Promotion Agency Hutt Valley District Health Board Lakes District Health Board MidCentral District Health Board Nelson Marlborough District Health Board Northland District Health Board 11

12 South Canterbury District Health Board Southern District Health Board Tairawhiti District Health Board Taranaki District Health Board Waikato District Health Board Wairarapa District Health Board Waitemata District Health Board West Coast District Health Board Whanganui District Health Board Earthquake Commission Education New Zealand Energy Efficiency and Conservation Authority Environmental Protection Authority Housing New Zealand Corporation Maritime New Zealand New Zealand Fire Service Commission New Zealand Qualifications Authority New Zealand Tourism Board New Zealand Trade and Enterprise New Zealand Transport Agency Pharmaceutical Management Agency Sport New Zealand WorkSafe New Zealand Tertiary Education Commission Broadcasting Standards Authority Commerce Commission Electoral Commission Electricity Authority Financial Markets Authority Southern Response Earthquake Services Limited Tamaki Redevelopment Company Limited Other agencies that will be required to have regard to Category B: Arts Council of New Zealand Toi Aotearoa Social Policy Evaluation and Research Unit Guardians of New Zealand Superannuation Government Superannuation Fund Authority Museum of New Zealand Te Papa Tongarewa Board New Zealand Artificial Limb Service New Zealand Symphony Orchestra 12

13 Crown Entity Companies Crown Entity Companies Crown Entity Companies Crown Entity Companies Crown Entity Companies - Crown Research Institutes Crown Entity Companies - Crown Research Institutes Crown Entity Companies - Crown Research Institutes Crown Entity Companies - Crown Research Institutes Crown Entity Companies - Crown Research Institutes Crown Entity Companies - Crown Research Institutes Crown Entity Companies - Crown Research Institutes Public Trust Commission for Financial Literacy and Retirement Income Te Reo Whakapuaki Irirangi (Maori Broadcasting Funding Agency) Te Taura Whiri I Te Reo Maori (Maori Language Commission) Testing Laboratory Registration Council (IANZ) New Zealand Historic Places Trust (Pouhere Taonga) New Zealand Antarctic Institute New Zealand Blood Service Careers New Zealand Health Quality and Safety Commission Health Research Council of New Zealand New Zealand Walking Access Commission Real Estate Agents Authority Social Workers Registration Board Radio New Zealand Limited Television New Zealand Limited New Zealand Venture Investment Fund Limited Crown Irrigation Investment Limited AgResearch Limited Institute of Environmental Science and Research Limited Institute of Geological and Nuclear Sciences Limited Landcare Research New Zealand Limited National Institute of Water and Atmospheric Research Limited New Zealand Forest Research Institute Limited (Scion) New Zealand Institute for Plant and Food Research Limited Children's Commission Drug Free Sport New Zealand External Reporting Board Health and Disability Commission Human Rights Commission Law Commission New Zealand Productivity Commission Office of Film and Literature Classification Privacy Commission Transport Accident Investigation Commission 13

14 Independent Police Conduct Authority Takeovers Panel Crown Asset Management Limited Crown Fibre Holdings Limited Education Payroll Limited Fairway Resolution Limited The Network for Learning Limited Research and Education Advanced Network New Zealand Limited Other State sector agencies invited to give effect to the direction Type of Entity Name of Entity Reserve Bank of New Zealand Agricultural and Marketing Research and Development Trust Asia New Zealand Foundation Leadership Development Centre Trust National Pacific Radio Trust New Zealand Game and Bird Habitat Trust Board Ngai Tahu Ancillary Claims Trust Pacific Co-operation Foundation Pacific Islands Business Development Trust Road Safety Trust Te Ariki Trust The Maori Trustee New Zealand Lotteries Grants Board Reserve Bank of New Zealand AsureQuality Limited Electricity Corporation of New Zealand Limited Kordia Group Limited Landcorp Farming Limited 14

15 Meteorological Service of New Zealand Limited New Zealand Post Limited New Zealand Railways Corporation Quotable Value Limited Solid Energy New Zealand Limited Transpower New Zealand Limited Kiwirail Holdings Limited Airways Corporation of New Zealand Limited Animal Control Products Limited Auckland University of Technology Lincoln University Massey University University of Auckland University of Canterbury University of Otago University of Waikato Victoria University of Wellington Aoraki Polytechnic Bay of Plenty Polytechnic Christchurch Polytechnic Institute of Technology Eastern Institute of Technology Manukau Institute of Technology Nelson Marlborough Institute of Technology Northland Polytechnic Open Polytechnic of New Zealand Otago Polytechnic Southern Institute of Technology Tai Poutini Polytechnic Unitec Institute of Technology Universal College of Learning Waiariki Institute of Technology Waikato Institute of Technology Wellington Institute of Technology Western Institute of Technology Whitireia Community Polytechnic Te Wananga o Aotearoa (Te Awamutu) Te Wananga o Raukawa (Otaki) Te Whare Wananga o Awanuiarangi (Whakatane) 15