Code For Business Development Boards 1998 Pursuant to section 7 of the Business Development Boards Act 1991, the Minister of Business Development hereby revokes the Code For Business Development Boards 1995 and prescribes the following code in its place. Code 1. Title and commencement (1) This code may be cited as the Code For Business Development Boards 1998. (2) This code comes into force on 16 June 1998. 2. Definitions In this code, unless the context otherwise requires ``Business Development Programme'' means the Government programme described in clause 5 (2) of this code: ``Enterprise assistance'' means measures aimed at fostering economic growth including improving capabilities and growth potential of businesses: ``Government's enterprise assistance package'' means the Government's measures that are targeted at addressing problems that constrain business, especially small to medium sized firms, from achieving optimal performance and so contributing fully to the improvement of New Zealanders' standard of living. These measures are delivered by a range of agencies: ``Minister'' means the Minister of Business Development: ``SME'' small to medium enterprise means a business, including subsidiaries, employing 50 or fewer full-time or full-time equivalent staff, which is resident in New Zealand and registered for income tax or GST. Part I Goal of the Boards 3. Goal of Business Development Boards The goal of each Business Development Board is to enhance the capacity of New Zealand business to achieve and sustain international competitiveness. Part II Activities Boards are to Undertake 4. Activities The activities each Board is to undertake are (a) To administer the Government's Business Development Programme; (b) To provide advice to the Minister on the programme and on business development in its region in accordance with clause 8 of this Code. 5. Business Development Programme (1) The aim of the Business Development Programme is to help New Zealand's SMEs gain access to the information and skills they need to compete effectively in today's globalised trading environment and so accelerate and sustain economic growth. (2) The Business Development Programme consists of the following components: (a) An information component. (b) A business capability component comprising: i A preliminary business appraisal element; ii A business training and education element; iii Business Best Practice education and recognition initiatives. (c) A regional co-operation component. (3) Boards shall administer the Business Development Programme in accordance with the provisions in this Code (including the Schedule to this Code) and consistently with any purchase agreement entered into between the Minister and the Boards. 6. Co-operation Boards shall develop relationships and work closely with other enterprise assistance providers in their region to minimise the potential for overlap in the services each provides whilst maximising effective coverage of enterprise assistance measures. Part III General 7. Support for domestic industry and purchasing Each Board shall follow the Government's public sector agencies purchasing requirements as notified to it from time to time. 8. Advice to the Minister Each Board shall advise the Minister, on at least a quarterly basis, in relation to (a) Significant business developments in its region; and (b) Significant matters affecting business development in its region. 9. Decision making (1) Each Board may delegate to any employee any of the functions and powers of the Board under the Business Development Programme, other than the power to determine the making of a financial contribution to a business training and education programme in accordance with clause 8 of the Schedule; provided that the person to whom those functions and powers are delegated shall not delegate those functions and powers without the written consent of the Board. (2) Every person purporting to act pursuant to any delegation under subclause (1) shall, in the absence of proof to the contrary, be presumed to be acting in accordance with the terms of the delegation. (3) Any delegation under subclause (1) may be made to a specified person or to persons of a specified class, or to the holder or holders for the time being of a specified office or specified class of offices. 10. Revocation The following are hereby revoked: (a) The Code for Business Development Boards 1995 published in the New Zealand Gazette, 7 December 1995, page 4692 (b) The Code for Business Development Boards 1995, Amendment No. 1, published in the New Zealand Gazette, 10 October 1996, page 3478. 11. Transitional (1) Any direction made under clause 11 of the Code for Business Development Boards 1995 which was in force immediately before 16 June 1998 is revoked as at and from that date. (2) Notwithstanding clause 10, every (a) application for a grant received by a Board but not determined: (b) grant made: on or before 8 April 1998 shall be dealt with as if this Code, other than subclause (1) of this clause, had not come into force. Schedule The Business Development Programme I Provision of Information 1. Boards shall endeavour to provide relevant and timely information for SMEs within the following main categories: (a) The overall economic and regulatory environment in which businesses operate, highlighting the significance of particular developments for SMEs; (b) New Zealand's trading activity and the regional economy, highlighting opportunities for SMEs; (c) Techniques to improve business skills; (d) Sources of advice and assistance for SMEs. II Business Capability Improvement 2. Assistance provided under the business capability improvement component may involve: (a) Preliminary business appraisal designed to assess individuals' and businesses' capability, skill and performance levels at a given point in time; and/or (b) Business training and education element based on capability, skill and performance `gaps' identified in the appraisal. SMEs will be referred to business training of a level and duration appropriate to their needs to develop their capabilities, skills and performance; and/or (c) Business Best Practice education and recognition initiatives directed at fostering the application of total quality management principles and practices in New Zealand organisations, particularly SMEs. Businesses will be encouraged to apply total quality management principles. II.a Preliminary business appraisal element 3. This element will focus on 8 business capabilities: business planning; marketing; operations management; financial and information systems; organisation and human resource management; product design, research and development management; quality; environmental management. 4. Subject to clause 5 of this Schedule the appraisal will be carried out by a person who is selected and paid in full by the SME. 5. A free pre-appraisal may be carried out by the Board for individuals yet to establish a business. II.b Business training and education element 6. The eight capabilities covered in the preliminary business appraisal element provide the basis for this element. It involves a business training and education element which is based on capability, skill and performance gaps which have been identified through the appraisal. 7. Boards will refer SMEs to persons or entities who provide training in the relevant skill. No money will be provided to individual course attendees under this element. 8. Where an appropriate training programme is not available in a region, the Board may contract with a provider to deliver a suitable programme. If the costs of running such a programme cannot be met in full by the fees paid by SME participants in that programme, the Board may assist by making a financial contribution. What activities may be considered 9. Assistance is only available for legal activities. Dated at Wellington this 16th day of June 1998. MAX BRADFORD, Minister of Business Development Explanatory Note: This note is not part of the notice, but is intended to indicate its general effect. This notice revokes the Code for Business Development Boards 1995 (``the 1995 Code'') and replaces it with a new Code. The new Code effectively provides for the continuation of the Business Development Programme as it existed under the 1995 Code, with the exception of the grant elements. Thus, the Business Development Programme as provided for in this Code consists of the following components: (a) An information component. (b) A business capability component comprising: i a preliminary appraisal element; ii a business training and education element; iii Business Best Practice education and recognition initiatives. (c) A regional co-operation component. Provision of information The Board shall endeavour to provide relevant and timely information for small to medium enterprises relating to the overall economic and regulatory environment, New Zealand's trading activity and regional economy, techniques to improve business skills, and sources of advice and assistance for small to medium enterprises. Business capability improvement Preliminary business appraisal Designed to assess individuals' and businesses' capability, skill and performance levels at a given point in time. This component will focus on eight business capabilities: business planning, marketing, operations management, financial and information systems, organisation and human resource management, product design/research and development management, quality and environmental management. The appraisal will be carried out by persons selected and paid for by the SME or a pre-appraisal may be carried out by Boards for individuals yet to establish a business. Business training and education element This will involve business training and education based on the capability, skill and performance gaps identified through the appraisal. Transitional provisions This Code provides for the 1995 Code to continue to apply to all grants made and applications received by Boards up to and including 8 April 1998. This allows these grants and applications to be administered and processed by Boards in accordance with the 1995 Code.