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Publications ~ Departmental Forecast Report for the year ended 30 June 2000

Part A - Introduction and Highlights

• Chief Executive's Introduction
• Purpose Statement
• Strategic Priorities
• The Links to Government Outcomes
• Financial Highlights

 

CHIEF EXECUTIVE'S INTRODUCTION

The Department of Prime Minister and Cabinet (DPMC) operates at the heart of government. Our main role is to ensure that the core collective decision-making process of the Cabinet is supported as well as possible.

Our roles and activities reflect those of our minister, the Prime Minister. We have direct control over very little of the operations of government, but our minister is continually called to account for the performance of all areas of government. As a result, we have an interest in:

• every aspect of government; departments, crown entities and SOEs;
• every activity of government; such as regulation, law and order, national security, care for children and their families; and
• every way that the Government and people interact; over the counter, in the classroom, in national parks or on the marae.

We have extensive networks, mostly through the public service. We use them to identify areas of concern and to help develop policy responses that reflect the collective wishes of the Government. We aim both to assist when an immediate response is needed, and to co-ordinate the development of long term strategic policy.

In addition, we are responsible for supporting the Governor-General. This involves both supporting him in his constitutional role as Head of State and maintaining all aspects of his day-to-day activities.

Across all areas of the department our work must show some key hallmarks. Our work must be:

• thorough; we must canvass all key aspects of issues we are involved in and ensure that all key players are involved in collective decisions
• pithy; we must get to the heart of the matter quickly and clearly
• discreet; the Prime Minister, ministers and the Governor-General have to know that they can rely on us to keep the Government's business private when it ought to be private
• free and frank; there is no point in saying what we think our minister may want to hear, we must "tell it like it is"
• honest; ministers and others we deal with must be able to rely on us to be truthful messengers and honest brokers
• politically impartial; though we work in a highly political environment, our role is to focus on policy and process, not party politics.

While all these requirements apply in any government department, they are especially important in DPMC.

In the coming fiscal year, 1999/2000, there are some developments which will dominate our work.

APEC, especially the leaders meeting in September 1999 will be a major event. The Prime Minister will chair a meeting of leaders representing nearly half the world's people and over half the world's economic activity. As well as ensuring that she has good support in that role, and that the rest of the government process continues uninterrupted, DPMC will be responsible for ensuring that there is strong co-ordination of security activities throughout the New Zealand hosting of APEC.

The onset of the new millennium involves two contrasting focuses. Celebrations throughout the country require some ministerial oversight to ensure that New Zealand takes the chance appropriately to mark our unique identity. In particular, preparation for Waitangi Day next year demands a close focus as we celebrate one nation of diverse peoples. On the other hand, the millennium poses the problem of possible Y2K computer failure. DPMC will be ready to play a co-ordinating role if substantial infrastructure failure demands a major response.

The run up to the general election will be a time of highly charged politics. During that time we will continue our role of offering loyal support to the Prime Minister in respect of her governmental obligations. However, we will maintain a proper separation from anything connected to the election campaign. After the election, if there is a period of uncertainty before a government emerges, we will be responsible for assisting the operation of the caretaker conventions. If called on we will offer appropriate support in the provision of advice to parties negotiating to form the Government.

When the identity of the Government is clear, it is the department's role to manage any necessary transition, arrange the swearing in of ministers and co-ordinate briefings for ministers.

We also have a key role in ensuring that the intentions and priorities of the Government are understood and respected through government departments. In particular, the promulgation of the Government's goals for the term of the next parliament and beyond, and the expression of these goals as management targets for departmental activity, are services which DPMC has performed after each of the recent elections and which we stand ready to do again after the coming election.

In carrying out these tasks, and our day-to-day activities, the key asset of DPMC is our staff. While no single formal discipline dominates among our staff, the major focus is the art of government; in particular the support of a democratic government. A key goal for the department is to maintain a core of staff with extensive public service experience, powerful analytical skills and managerial abilities to provide "head office" strategic skills for the Government. We aim to supplement that team with a steady turnover of energetic and intelligent people from many backgrounds, so that they may learn from and contribute to the government process.

The staff of the department are acutely aware of our responsibilities. We believe the position of Prime Minister is so important and demanding that the incumbent deserves the best possible support. We aim to provide that support at all times.

Mark Prebble

PURPOSE STATEMENT

DPMC provides advice to the Prime Minister on policy and constitutional issues, and helps to ensure that there is a high quality and effective process of decision-making by the Government through the provision of impartial secretariat services to the Cabinet and the Executive Council. DPMC contributes to the effective coordination of the work of the Government across departmental lines, tests the quality of advice coming from departments and acts as an "honest broker" where there are conflicts over policy advice being offered by different parts of the public sector.

The department also provides assessments on developments overseas, support to the Governor-General and maintenance of the Governor-General's residences, communication services and policy advice and coordination in relation to the Government's crime prevention strategy.

STRATEGIC PRIORITIES

The department continues to facilitate processes around the review and formulation of the Government's Strategic Priorities. It also provides advice and support to the Prime Minister, in consultation with officials supporting the Cabinet Strategy Committee on those issues identified by the Prime Minister as high risk and high priority.

The Public Sector key result areas (KRA) which underpin the Strategic Priorities and logically link outputs and outcomes are annually assessed by DPMC jointly with the State Services Commission and Treasury.

Through the work of the Crime Prevention Unit, the department contributes to the achievement of the Strategic Priority : "extending economic and social opportunities by preventing youth offending and re-offending".

THE LINKS TO GOVERNMENT OUTCOMES

The Department of the Prime Minister and Cabinet contributes to the following Government outcomes through the work of its constituent business units.

• The Prime Minister in her roles of Head of Government and Chair of the Cabinet is enabled to lead and guide a coherent and informed policy-making process across the range of government activity. (Policy Advisory Group and Cabinet Office)
  
  

• More effective coordination of the policy formulation process is promoted. (Policy Advisory Group)
  
  
• The central processes of executive government are maintained and conducted impartially and effectively, and in accordance with accepted constitutional conventions. (Cabinet Office)
  
  
• Informed policy decision making, particularly in New Zealand's foreign relations and external linkages is enhanced. (External Assessments Bureau)
  
  
• The community is informed about policy changes. (Communications Unit)
  
  
• Community safety and security is enhanced. (Crime Prevention Unit)
  
  
• A coordinated and cooperative approach to crime prevention policy design and programme implementation is promoted. (Crime Prevention Unit)
  
  
• The constitutional, social, and ceremonial functions of the Office of the Governor-General are performed. (Cabinet Office and Government House)
  
  
• The functions and dignity of the Office of the Governor-General are supported and preserved. (Cabinet Office and Government House)
  
  
• The Governor-General's residences are properly maintained. (Government House)

FINANCIAL HIGHLIGHTS

	1998/99		1999/00
	Budgeted $000	Estimated Actual $000	Budgeted $000
Revenue : Crown	12,359	12,359	12,383
Revenue : Other	40	40	45
Revenue : Interest	70	70	60
Output Expenses	12,389	12,257	12,413
Other Expenses	160	160	-
Net surplus (Deficit)	(60)	72	75
Taxpayers' funds	1,306	1,306	1,306
Net cash flows from operating and investing activities	407	539	725

• The Department's annual appropriation for the purchase of outputs is expected to increase by $24,000 (0.2%) in 1999/00 due to an increase in funding for crime prevention activity.

• The estimated actual net surplus for 1998/99 was higher than budgeted because of lower staffing levels than originally forecast. The budgeted net surplus for 1999/00 is expected to be lower, as staffing levels are once again projected to be closer to budget levels.

• Taxpayers' funds are expected to remain constant in 1999/00.

• The variance in cash flows reflects a higher level of cash disbursed for operating and investing activities in 1999/00, as staff costs are expected to be higher than in 1998/99.