As we seek to build a strong, capable organisation, there are risks we must manage.

The specific risks faced by the Ministry

The two biggest risks for the Ministry in the current environment are that we are unable to respond to the government’s priorities – especially the increased emphasis on land transport – and that we fail to recognise, understand and respond as needed to the challenging global economic situation.

The main risks that arise from these in our operating environment are:
• lack of capability to respond to changing priorities and significant work programmes
• insufficient resources and expertise
• failure to anticipate a changing economic environment which could affect funding
• ineffective relationship management
• loss of confidence in the Ministry.

We have also indentified some ongoing operating risks:
• inappropriate policy advice that results in a major policy failure
• financial modelling inaccuracies
• failure to prepare for natural disasters
• ineffective facilitation of sound governance, performance and accountability of Crown agencies
• national emergency affecting the transport sector
• security breach.

How we will manage these risks

We mitigate the risks in our operating environment through an annual programme to address risk and performance issues, six-monthly risk workshops and regular scanning of the external operating environment eg oil prices, revenue collection and economic indicators.

We regularly review our progress on the work programme through the weekly meeting of the Ministry Leadership Team and weekly meetings with the Minister of Transport. To meet the priorities of the new government we are re-organising the way we work to allow for a more flexible workforce.
This will mean we can shift resources to the areas of priority relatively easily.

We have built solid relationships with the Crown entities, with particular emphasis on our biggest Crown entity, the NZ Transport Agency. Through regular meetings to facilitate effective governance and accountability we are able to ensure they too are focused on the government’s priorities.

The Ministry has in place emergency management plans and a business continuity plan in the event of a building, local, regional or national emergency. We take part yearly in emergency exercises as part of our coordination role of providing strategic advice to the sector during an emergency.

The Ministry plays a lead role in the maintenance of the Transport National Emergency Response Plan. This plan provides a framework for transport agencies to participate in a whole of government response to an emergency.

Risk management framework

The Ministry’s risk management arrangement allows us to identify and manage risks on an ongoing basis. The oversight of risks sits with the Risk Management Committee, however the Ministry Leadership Team reports monthly on any work programme risks. These reports are tabled at the Ministry Leadership Team meetings.

We have also put in place Complywith which ensures the Ministry is meeting all its legal obligations. The system requires the responsible staff member to confirm that we do comply with all legislative responsibilities.

Departmental Capital Intentions

Each year the Ministry prepares a capital programme to ensure the Ministry has the infrastructure required to fulfil its functions. The draft programme is subject to approval by management. The assets of the Ministry and the capital programme are detailed briefly below.

Property, plant and equipment
The Ministry of Transport operates from three offices, with the main site, and the majority of the staff, located in Wellington. All of its premises are leased, so the majority of the assets are leasehold improvements, computer equipment, fixtures and fittings.

Leasehold improvements
The Ministry has no plans to incur significant leasehold improvement expenditure in the next four years. The Ministry moved into its Wellington office in April 2006, its Auckland office in July 2005 and its Christchurch office in May 2008.

Computer equipment
The Ministry has a three-year rolling replacement programme for computer equipment.

Milford Sound/Piopiotahi Aerodrome
The Ministry also owns the infrastructure at Milford Sound/Piopiotahi Aerodrome.

Fixtures and fittings
All of the Ministry’s offices are fully equipped, but there is an ongoing need to make small purchases of replacement or additional equipment.

Intangible assets
The Ministry has an investment in its own operational systems. In the last three years the Ministry has implemented a relationship management system and has prepared to roll out an electronic document and records management system. There will be further system implementations in the future but none have been confirmed at this time.

Proposed Capital Programme

  2009/10
$000 
2010
$000 
2011/12
$000 
2012/13
$000 
Property, plant and
equipment 
500 500  500  500 
Intangible assets - software 300 300  300  300
Total 800 800  800  800


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