Annex 1 'Relationship Letter' Between The Ministries Of Commerce And Consumer Affairs

The Ministry of Commerce's purpose is to help New Zealanders prosper                 The Ministry of Consumer Affairs' purpose is to help New Zealanders prosper by promoting a fair and informed market place for consumers

3 October 1996 Paul Carpinter Secretary of Commerce Relationship - Ministry of Consumer Affairs and Ministry of Commerce As we have discussed, it is appropriate to clarify the relationship between the Ministry of Consumer Affairs (MCA) and the Ministry of Commerce (MCM). This should assist each Ministry to understand and gain maximum advantage from the other. Introductory issues MCA is an operating division of MCM. The ownership Minister for both is the Minister of Commerce. The vote Minister for MCA is the Minister of Consumer Affairs. In accordance with the purchase agreement between the Minister of Consumer Affairs and the Secretary of Commerce and the Head (General Manager) of MCA, the General Manager of MCA is accountable to the Minister of Consumer Affairs for the delivery of annually agreed outputs to the quality, quantity and cost specified and the Secretary of Commerce is responsible for monitoring the delivery of those outputs. Relationship - Secretary and General Manager of MCA The Secretary is responsible for employing the General Manager of MCA through an employment contract and for managing the performance of the General Manager MCA through an annual performance agreement. The performance agreement sets out key outputs and management strategies for MCA and will reflect the outputs and management strategies agreed between the General Manager, Managers and staff of MCA. In this context, the Secretary seeks to ensure that The General Manager of MCA manages MCA appropriately to ensure that policy advisory and operational functions are undertaken to an appropriate level of quantity, quality and within budget The General Manager of MCA provides appropriate strategic direction and leadership on policy advisory and operational matters In addition, the General Manager will inform the Secretary of matters of note, specifically those that involve public comments, statements or positions in respect to the work of MCA. In practice, the General Manager of MCA is directly accountable to the Secretary for the efficient and effective management of MCA, and receives delegated authority from the Secretary in the same way as other MCM General Managers. The Secretary is responsible for ensuring that MCA has access to good quality corporate services such as Human Resource services, Legal services, Financial services and IT services. On policy advisory and operational matters relating to consumer affairs issues, the General Manager of MCA reports directly to the Minister of Consumer Affairs and has an independent voice (from MCM) on consumer matters. The Secretary expects the General Manager, managers and staff of MCA to make a full contribution to the operation and management of the Ministry of Commerce, as is appropriate to their level of responsibility and available resources, and at all times to be good representatives of MCA and Commerce. MCA welcomes feedback from the Secretary on matters relating to the quality of its work, its management strategies and external relationships. The Secretary will at all times ensure that such feedback is constructive and timely. Such feedback may be provided through the General Manager or directly to MCA staff, in which case the General Manager will be informed of the feedback by the Secretary. Relationship - MCA and MCM The relationship between MCA and MCM flows from the purpose and mission of each Ministry. They are set out below: The Ministry of Commerce's mission is: "By being professional, dynamic and innovative, Commerce will be recognised as a leader both in the delivery of services to business and consumers, and in the provision of policy advice to Government on business and consumer issues" The Ministry of Commerce focuses principally on issues affecting the operation of business, in the interests of efficiency and ultimately consumer benefit. The purpose and mission of the ministry of Commerce encompasses the purpose and mission of the Ministry of Consumer Affairs by its references to 'consumers' and 'consumer issues'. However, as set out below the Ministry of Consumer Affairs has a more direct and detailed interest in consumer issues. MCAs mission is: To provide high quality advice to Government on key laws, practices and policies affecting consumers To enhance consumers' ability to function effectively and equitably in the market by providing information, education and advice To ensure that market transactions based on weight and measurement are accurate and fair To promote improved market practices and encourage compliance with codes, standards and laws in the interests of consumers and business MCA focuses on issues which affect consumers. MCA's view is that informed and empowered consumers are an integral and critical part of an efficient market. Conclusion The General Manager MCA and the Secretary are committed to a constructive and effective working relationship that will Enable appropriate and effective integration of consumer and business issues, Generate joint benefits from each Ministry's skills, experiences and external relationships, at a policy and operational level, and Create joint benefits for staff in career paths and developmental opportunities. Overall, this commitment recognises the importance of a proper balance between independence of approach and effectiveness in integration. Keith Manch Paul Carpinter General Manager Secretary

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