TEL +64 4 473 0111
FAX +64 4 494 1263
Level 11,1 Grey Street, PO Box 25620, Wel ington 6140
New Zealand
8 March 2024
John Luke
Our ref: F33866
[FYI request #24688 email]
By email
Dear John
Official Information Act request: Board meeting minutes and Conflict of Interest register
I refer to your request under the Official Information Act 1982 (the Act) to Maritime NZ, which
we received on 18 December 2023.
In your request, you asked for Board meeting minutes from 2021 to 2023, and the updated
Conflict of Interest register. You later refined your request to meeting minutes only, without
any supplementary documentation that may be attached to the minutes, and you reduced the
timeframe to years 2022 to 2023.
We have considered your request in accordance with the Act. Accordingly, we attach all
Board meeting minutes covering the above period:
• ‘Out of Session’ Board meeting minutes – date of meeting 25 January 2022
• Board minutes – date of meeting 1 March 2022
• Board minutes – date of meeting 21 April 2022
• Board minutes – date of meeting 3 May 2022
• Board minutes – date of meeting 20 June 2022
• Board minutes – date of meeting 16 August 2022
• Board minutes – date of meeting 13 September 2022
• Board minutes – date of meeting 31 October 2022
• Board minutes – date of meeting 29 November 2022
• Board minutes – date of meeting 27 February 2022
• Board minutes – date of meeting 17 April 2023
• Maritime NZ May 2023 Board Meeting Minutes – date of meeting 22 May 2023
• Maritime NZ June 2023 Board Meeting Minutes – date of meeting 19 June 2023
• Maritime NZ July 2023 Board Meeting Minutes – date of meeting 17 July 2023
• Maritime NZ August 2023 Board Meeting Minutes – date of meeting 15 August 2023
• Maritime NZ September 2023 Board Meeting Minutes – date of meeting
28 September 2023
• Maritime NZ June 2023 Board Meeting Minutes – date of meeting 19 June 2023
• Minutes of the Maritime NZ October 2023 Out-of-Cycle Board Discussion – date of
meeting 16 October 2023
• Maritime NZ October 2023 Board Meeting Minutes – date of meeting
30 October 2023
We are withholding the Conflict of Interest register under section 9(2)(ba)(i) of the Act on the
grounds that the information was provided by the Board members subject to an obligation of
confidence, and the making available of the information would be likely to prejudice the
supply of such information, and it is in the public interest that such information should
continue to be supplied.
Some information within the minutes is withheld under the following grounds:
• 6(a) – disclosure of the information would be likely to prejudice the international
relations of the Government of New Zealand
• 9(2)(a) – to protect the privacy of individuals
• 9(2)(b)(ii) – disclosure of the information would be likely to prejudice the commercial
position of the person who supplied or who is the subject of the information
• 9(2)(ba)(i) – the information is subject to an obligation of confidence
• 9(2)(f)(iv) – maintain the constitutional conventions for the time being which protect
the confidentiality of advice tendered by Ministers of the Crown and officials
• 9(2)(g)(i) – maintain the effective conduct of public affairs through the free and frank
expression of opinions
In making the decision to withhold the information outlined above under section 9 of the Act,
we do not consider that withholding this information is outweighed by other considerations
which make it desirable, in the public interest, to make that information available.
You have the right to seek an investigation and review by the Ombudsman of this decision.
Information about how to make a complaint is available at
www.ombudsman.parliament.nz or
freephone 0800 802 602.
Please note that this response (with your personal details removed) may be published on
Maritime New Zealand’s website.
If you wish to discuss any aspect of your request with us, including this decision, please feel
free to contact
[Maritime New Zealand request email]
Yours sincerely
Christine Ross
Manager, Communications and Ministerial Services
‘Out of session’ Board meeting
minutes
DATE OF MEETING
25 January 2022
TIME AND VENUE
10:00am | via Zoom
MEETING
‘Out of session’ Board meeting
AUTHORITY
Jo Brosnahan (Chair), Belinda Vernon, Roy Weaver, Danny Tuato’o, Denis O’Rourke
ATTENDING
Kirstie Hewlett, Heather Horton (minutes)
EXECUTIVE TEAM
Andrew Saunderson
APOLOGIES
None
GUESTS
Sally Kane, Rochelle Wengrzik, Brian Cosgriff, Paula Evans
Matthew Geddes &
s 9(2)(a)
(Audit New Zealand)
1.
Meeting opening and administration
1.1
Chair’s welcome and apologies
The Chair welcomed Board members, management and Audit NZ representatives to the
first Board meeting of 2022 and invited Danny Tuato’o to open the meeting with a karakia.
2.
Annual Report and financial statements
The paper was introduced by the DCE OSS who provided some context for the audit and
Annual Report and financial statements not being concluded by 31 December 2021. He
acknowledged the incredible amount of work the Finance and Planning, Performance and
Risk teams had undertaken and the engagement with Audit NZ.
s 9(2)(a)
, Audit NZ, acknowledged the continued efforts of the teams at Maritime
NZ in getting the audit completed, citing the audit had extended longer than initially
planned due to a shortage of resources at Audit NZ which had culminated in not reaching
the original timeframe.
The management letter from Audit NZ was introduced by Matthew Geddes, noting that
Audit NZ intended to issue an unmodified audit opinion, meaning they were comfortable
that the financial statements and service performance information in the Annual Report
reflect Maritime NZ’s performance for the year. However, included within that would be an
under the Official Information Act 1982
‘emphasis of matter’ paragraph for Covid-19 impacts, particularly in relation to the ‘going
concern’ assumptions that are of importance to a reader of the Annual Report.
Several focus areas were identified during the audit namely –
1.
financial sustainability, part of which was considering the ‘going concern’ assessments,
the Letter of Support and associated Cabinet approvals;
2.
revenue recognition with no issues identified to report on;
3.
Maritime NZ’s performance reporting with several recommendations made for
improvement in the report in relation to tidying up systems and processes and clear
documentation in respect to key data definitions.
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Several recommendations are outlined in the report, two relating to financial processes,
one for improving the review process for monthly journals, one for the approval process for
the Chief Executive and Board expenditure and several for the performance reporting. Of
note was that the ESCO assessments had been graded the same as the previous year.
The CFO commented in respect of the two financial findings and acknowledged that
solutions would be found for these. Audit NZ would be consulted, in particular, on the
solution for the approval process for the Chief Executive and Board expenditure.
The Planning, Performance & Risk Manager responded to the recommendations on
performance reporting and advised they were items already being worked on across the
business. Findings on the serious harm reporting have been taken on board to clarify we
are not including the recreational serious harm numbers in that impact area. This had also
been made clear in the Statement of Intent 2021-2025.
With regard to ‘implementation of new performance measures’, the Board commented they
were pleased to see reference to
‘the percentage of higher risk ships entering New
Zealand that are inspected’ as this was quite a difficult area for MNZ to handle in terms of
knowledge, but sought clarification on how that ties together the implementation of new
performance measures.
The Board were advised that MNZ had been investing a lot in their data capabilities and in
trying to tell a performance story, but there may have been a mismatch and not quite a
thorough enough process to understand if it was possible and no opportunity to test it.
MNZ will be implementing methodology to ensure enough information is captured about a
measure to understand the data, nuances etc. before inserting it as a measure. The Te
Korowai work programme will see strengthening and fine tuning of some of those
performance measures.
In conclusion, the Board commented that it was a good, constructive and clean report and
were pleased with the outcome. The Chair thanked the auditors and the appropriate MNZ
teams for their tremendous support and hard work.
The auditors enquired if there were any concerns from the Board in terms of fraud which
they should be aware of and the Chair advised, on behalf of the Board, there were none.
The details for the re-appointment process for the auditors was discussed and it was noted
that Audit NZ would communicate the re-appointment proposal and fee once the process
was concluded.
Resolution
The Board resolved to:
a)
note the timeline for presentation and publication of the Annual Report;
b)
note the content of the management representation letters to the Board from the
Chief Executive and Chief Financial Officer;
under the Official Information Act 1982
c)
note the content of the management letter from Audit NZ;
d)
note the content of the going concern assessment from the Chief Financial Officer;
e)
note the content of the Letter of Support from the Ministers of Finance and Transport;
f)
approve the content of the representation letter from the Board to Audit NZ and
authorise the Chair and Chair, Audit & Risk Committee to sign the letter on behalf of
the Board (by electronic signature);
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g)
approve the Annual Report 2020-21, including the financial statements and
statements of performance for the year ended 30 June 2021, for Maritime NZ and for
the NZ Oil Pollution Fund; and
h)
approve the Statements of Responsibility for the financial statements and statements
of performance for Maritime NZ and for the NZ Oil Pollution Fund and
authorise the
Chair and Chair, Audit & Risk Committee to sign the statements for and on behalf of
the Board (by electronic signature).
10.41
s 9(2)(a)
,
s 9(2)(a)
, Rochelle Wengrzik and Brian Cosgriff left the
meeting and Paula Evans joined the meeting
3.
Wellington National Office property update
The DCE OSS briefly introduced the paper seeking the Board’s agreement to high-level
commercial terms to secure long-term lease arrangements for Maritime NZ’s National
Wellington office.
The Strategic Property Lead, Paula Evans commented that in addition, the paper also
sought agreement to the exit strategy for Level 4 of 99 Customhouse Quay (CHQ) but with
MNZ retaining Level 1 of that building as part of the broader National Wellington office
solution. Discussions on this retention were progressing positively and would be subject to
further discussion in light of current market activity.
The Chair commented that it was a good paper outlining key issues, providing an overview
of the market and problems in the market and clarity on what the recommendations were.
The Board queried what risk was associated with the commitment to a longer term lease in
the event of lack of funding and reduction in head count, culminating in a bigger footprint
than was needed.
s 9(2)(g)(i)
Management responded that in relation to head count, MNZ was actually reducing footprint
by giving up Level 4 in CHQ, and that it was more likely there would be increases rather
than reductions of staffing levels over time.
In relation to the re-fit amount, the benefit for the landlord would be retention of a reliable
government tenant in a ‘B rate’ building and the longer term gain of the investment outside
of the lease.
Discussion ensued on the seismic ratings, noting that for Grey Street it was 85% based on
the seismic rating obtained from the acquisition of Level 5, with a similar percentage for the
CHQ building. Management advised that the commercial terms required an earthquake
rating of 80% or higher for the duration of the lease. It was also noted that buildings are
now assessed more broadly against C5 guidelines introduced in the last three years which
look into the structural components of buildings and whether they align with those
guidelines. Evidence was being sought from the landlords as part of the commercial terms
that their buildings aligned with the C5 guidelines and Yellow Chapter requirements.
under the Official Information Act 1982
The Board asked if management would endeavour to do the re-fit within the allocation of
$870,000 or anticipated spending more. Management responded that MNZ would likely
spend more but would need to assess what would be needed and available funding. With
regard to the re-design of CHQ, the Executive Team would be discussing how best to use
Level 1 and it was more about how best to utilise this location as opposed to a re-design.
Additionally, savings would be achieved by surrendering Level 4 of CHQ, property spend
had been budgeted for ahead of time and it was anticipated there would be no further
costs in respect of Level 1 CHQ as we awaited a further floor becoming available in Grey
Street.
In respect of Grey Street, the Board queried if there were any known demolition plans or
demolition clauses in the lease that might reduce the term that has been secured.
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3
Management advised that there is a clause within the agreement to lease where the
landlord has indicated they may look to do some building redevelopment work in future
years. However, this lease would see a guaranteed occupancy of at least six years, with
two years prior notice of any intention to undertake redevelopment. The first right of
refusal conditions were also confirmed.
The Chair was comfortable in delegating the Power of Attorney to the Chief Executive to
agree commercial terms and to enter into lease arrangements, assuming the terms did not
deviate from those the Board were agreeing to in recommendation h). However, to protect
all parties, the Chief Executive was asked to let the Board have sight of the final terms
negotiated to provide assurance that nothing untoward had arisen during the process.
Resolution
The Board resolved to:
Background
a)
note previous updates on the Wellington National Office project;
b)
note further work underway to develop commercial terms to retain Level 1, 99
Customhouse Quay;
c)
note that the Wellington property search last year did not identify potential alternative
property solutions;
d)
note that specialist property advice has indicated further tightening of the Wellington
commercial property market;
Wellington National Office Solution
e)
agree exiting Level 4, 99 Customhouse Quay at the conclusion of the existing lease
term (30 June 2022), which is no longer required through ongoing implementation of
the MNZ@Work strategy;
f)
note the relative advantages of the proposed Wellington National Office
accommodation solution;
g)
agree the solution of a new 9 year lease for 1 Grey Street;
h)
agree the proposed commercial terms to enter into new lease arrangements for
upgraded office space at 1 Grey Street;
i)
note the principles-based, integrated design/delivery approach for 1 Grey Street; and
Board approval
j)
delegate Power of Attorney to the Chief Executive to agree commercial terms and
enter into lease arrangements for 1 Grey Street and 99 Customhouse Quay and notify
the Board of those final agreed terms.
11.01
s 9(2)(a)
and Paula Evans left the meeting
under the Official Information Act 1982
4.
Director’s oral update
The Director provided an update to the Board as follows:
COVID-19 vaccine policy
The Executive Team will today consider the C-19 vaccine policy following the consultation
process. There is broad support from Maritime employees on the policy. A risk
assessment has been conducted which indicates that everyone in the organisation is
required, at some point, to come into the office or to undertake field work and not work
from home on a full-time basis.
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Red protection framework
Guidance from the Public Sector Commission is that government agencies should continue
to operate normal working arrangements under Red settings, the only exception being
those workers who might be vulnerable. Any staff that fit into that category have been
encouraged to come forward so a plan can be put in place. MNZ are encouraging staff to
get booster vaccinations; staff who work at the border are required to get boosters by mid-
February.
Part of MNZ’s COVID protection is to limit interaction with external visitors into the offices.
External visitors will be required to be vaccinated, scan in, wear masks and will be limited
to public areas of offices. In certain circumstances, meetings may need to be held with
unvaccinated people but an even stronger set of health measures are required to be met.
All good health, safety and hygiene practices will continue. We are trying to achieve a
balance of people first but still provide our regulatory services. The Executive Team will
today review the organisation’s Business Continuity planning and look at processes for
implementing two-bubble plans where appropriate for some teams. The DPMC have
approached us with regard to our needs for rapid antigen tests and the numbers have
been provided in relation to our frontline staff and those performing critical roles.
The Chair proposed that, under the current Omicron red traffic light setting, all Board
meetings be conducted online for the time being and Board members were fully supportive
of this course of action. The stakeholder event scheduled for the end of February would
be cancelled.
The Director confirmed she would forward COVID-related e-mails to staff to the Board for
their information.
The Board queried the approach for Maritime Officers undertaking audits, inspections etc.
if the regulated person is unvaccinated. The Director responded that services are still
carried out whether people are vaccinated or unvaccinated, utilising health and safety
protocols in relation to mask wearing, physical distancing, QR scanning and ensuring staff
have received boosters. Staff undertaking these roles have good access to medical grade
masks in the case of domestic work and N95 grade masks in the case of the border.
Select Committee
The Chair and Chief Executive are required to attend the Select Committee on 10
February for the financial review hearing. Preparation is underway for the Board Chair’s
introduction, and answers to likely questions from the Select Committee.
Water safety
In light of the number of drownings over the holiday period, MNZ is collaborating with
Water Safety NZ colleagues, looking at the cases and identifying if there are any common
themes. It has highlighted that there should be better communication and co-ordination of
the public media between water safety groups and work was underway to put this in place.
The ‘No excuses’ campaign is proceeding well with really good feedback from
Harbourmasters and the public. MNZ’s ‘Behaviour change’ campaign was also timely.
Te Korowai o Kaitiakitanga
under the Official Information Act 1982
Phase 1 is almost complete. Work will now get underway on packaging into a four-year
plan that will be brought back to the Board to discuss and which will guide and identify the
right strategic direction and focus for the next few years.
The Chair queried when we might hear about the budget bids. The Director advised that it
could well be March/April.
Resolution
The Board resolved to:
a)
note the Director’s oral update.
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1982
Act
Information
Official
the
under
Released
Board minutes
DATE OF MEETING
1 March 2022
TIME AND VENUE
9:00am | via Zoom
MEETING
Board meeting
AUTHORITY
Jo Brosnahan (Chair), Belinda Vernon, Roy Weaver, Danny Tuato’o, Denis O’Rourke
ATTENDING
Kirstie Hewlett, Heather Horton (minutes), Jane Wallace (minutes)
EXECUTIVE TEAM
Andrew Saunderson, Nigel Clifford, Kenny Crawford, Peter Brunt, Sharyn Forsyth, Anne
Greenwood
APOLOGIES
None
GUESTS
Rob Warner (item 3.1), Matt Dean,
s 9(2)(a)
, Tracey Bates, Richard
Monigatti, Brodie Ward-Johnston - Covid-19 Response Team (item 3.2), s 9(2)(a)
(items 4.2 & 4.3)
Board only time was held prior to the meeting.
1.
Meeting opening and administration
1.1
Chair’s welcome and apologies
The Chair welcomed Board members and management to the Board meeting and invited
Danny Tuato’o to open the meeting with a karakia.
1.2
Declaration of interests
The Board reviewed the interests register and no amendments were specified.
1.3
Confirmation of previous minutes and actions arising
The Board reviewed the actions arising and discussed the following:
Board values session – the Chair would like to do a separate session online and will plan
this in conjunction with the Director and Board Governance Co-ordinator.
Board Charter – the Chair would like to do a more in-depth evaluation of the Charter to
explore how the Board want to work together and proposed this be done alongside the
Values session
Board review – the Chair would like to re-visit this review with Board members at the next
under the Official Information Act 1982
meeting and to discuss individual development plans.
Travel - general policy for the organisation is that travel is only being undertaken if
required to carry out regulatory services. International travel would only be undertaken
with approval at Deputy Director level.
Rapid Antigen Tests (RATS) – the Director advised that RATS would be supplied to staff
doing regular frontline work which would enable them to do two to three tests a week.
RATS would also be available for critical risk functions such as RCCNZ and staff who
might have to do one-off travel.
Resolution
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The Board resolved to:
(a)
note the Register of Interests;
(b)
approve the minutes of the Board meetings held on 23 November 2021 and 25
January 2022 as a true and accurate record of the meetings; and
(c)
note the actions arising as discussed above.
1.4
Audit & Risk Committee resolution
The ARC Chair introduced the paper seeking Board approval to the
ARC Charter. The
Board discussed the tracked version of the
ARC Charter which included the amendments
made at the 14 February ARC meeting and proposed two further amendments, namely:
1.
Oversight of Organisational Polices – Clause 13 – amend item a) to read
oversee
and consider the appropriateness of Maritime NZ organisational policies on a regular
basis
2.
Membership - Clause 15 – removal of words
‘However, membership’ replaced with
‘Membership’ in the second sentence.
Resolution
The Board resolved to:
a)
approve the
ARC Charter with the above amendments; and
b)
endorse as an appendix to the
Board Charter.
1.5
Board Charter review
The Chair led the discussion on the
Board Charter review and proposed a quick overview
and edit of the document with a follow-up Board session to explore the more in depth
issues of the
Charter. The Board provided feedback as follows:
Use of our Māori name. As part of the Te Ao Māori strategy we need to confirm we
are comfortable with the name of our organisation. There is a legislative aspect to our
formal legal name.
Would like to see
Board Charter bi-lingual and we need to explore this further.
If we use a Te Reo name it needs to be something relatively short, easy to pronounce
and well understood representing who we are and what we do. Would suggest there is
an opportunity to engage with Māori and have a name given to us as has happened
with Coastguard NZ. This will be undertaken as part of Te Ao Maori work
Clause 8 - Values and Principles – refers to numerous documents. If you refer to
documents they need to be either attached, loaded into the Board’s Resource Centre
as Appendices or take key elements of the documents and include them in the body of
the
Charter for continuity.
Clause 10 – remove the words ‘
direct its energies and’ so that it reads
Generally, the
under the Official Information Act 1982
Board wil focus on …
Clause 10.1 – come back to the wording of this clause in light of feedback on the
Board having a leadership role steering the design and implementation of the
regulatory strategy for the organisation. Management can provide concepts and ideas
on this for further discussion by the Board.
Clause 10.2 – accept change to the wording in the first sentence
Clause 10.3 – accept changes to the wording in the paragraph
Clause 10.4 – the clause should be broadened to include culture of the organisation.
The Board’s overal responsibility is ensuring the Executive Team deliver an
appropriate culture. Accept other changes to the wording in the clause.
Clause 11.3 – the Board monitors the performance of the Chief Executive in relation to
the overall organisation and the Chief Executive monitors the performance of
management. This clause should be reworded to reflect this.
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Clause 11.5 – accept changes to the wording.
Clause 11.7 – clause should be broadened to cover public reporting and reporting to
the Crown, Minister and Ministry.
Clause 11.8 – hold for further discussion
Clauses 19, 20, 21 and 22 – accept changes to wording
1982
Clause 23.2 – amend to read ‘
the Member makes proper inquiry where the need for
advice is appropriate in the circumstances’
Clause 35 – the Chair said that the MNZ induction was formed but would like further
development of Board induction process for each individual.
Clause 52 – we should capture that ‘out of session’ Board minutes/resolutions are
Act
ratified at the next available Board meeting. Add another clause to cover this.
Diversity policy – conversation on this is needed. The Chair can share with the Board
some thinking on diversity of Boards to assist in the conversation.
The Chair would also like to do a ‘Mind the Gap’ evaluation with the Board and will
circulate the process to Board members.
The Board should discuss online meeting etiquette and procedures and whether they
should be included in the
Charter.
Add something on how we develop generative conversations.
Resolution
The Board resolved to:
a)
note the minor edits in the
Board Charter will be accepted;
Information
b)
note other issues raised will be discussed in-depth at a future follow-up Board
meeting/session.
1.6
Board schedule and work programme
The Board reviewed the Board schedule and work programme and noted:
the April meeting will be virtual;
the May meeting will be held in Wellington (dependent on Covid-19 situation)
the June meeting could possibly be Nelson (dependant on Covid-19 situation)
Official
the meeting and visit to Queenstown be rescheduled to August;
any future arrangements for visits would be discussed at the April meeting.
Resolution
the
The Board resolved to:
(a)
note the
Board schedule and work programme and items discussed above.
2.
Director’s report
The report was taken as read. The Director mentioned that the Board will be provided with
further updates on the work in respect of the Port and Harbour Safety Plan and
under
Recreational Craft Strategy at a future Board meeting. One of the challenges for the
organisation at the moment was the budget uncertainty.
Resolution
The Board resolved to:
a)
note the contents of the report.
10.46am - the Board adjourned for a short break
11.00am – the Board meeting reconvened and Rob Warner, Chief Advisor Strategy joined
the meeting
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3.
Strategic conversations and decisions
3.1
Board strategic conversations and uncertainties
1982
The Chair introduced the paper proposing a suggested framework for the Board’s strategic
engagement with management for the future – this involved trial ing a ‘generative’
discussion’ format (i.e. exploring what is broadly possible) using the theme of strategic
uncertainties associated with Maritime NZ’s ‘clean’ role.
Act
The Chief Advisor Strategy facilitated the session, and posed a number of framing
questions to the Board for consideration – namely:
What question if answered would make the most difference to the trajectory of
Maritime’s ‘clean’ future?
To what extent is ‘clean’ critical to MNZ’s identity as opposed to our ‘safe’ and ‘secure’
role. How do we define ourselves as an agency?
What is our intention and how would we generate the positive change we want to see?
What draws you attention to this topic as a strategic priority compared to ‘safe’ and
‘secure’?
What is our relationship between ‘safe’, ‘secure’ and ‘clean’, e.g. can we be ‘safe’
without being ‘clean’?
Some key themes emerging from the Board’s wide ranging discussion included:
Information
Who is really responsible for clean oceans in NZ and within NZ’s area of
responsibility? If we have a role other than our focus on oil pollution, what could be
our greater role and what might bound or constrain this?
The big question is what we want to do, if we are going to have ‘clean’ do we want to
more clearly define making a contribution to clean oceans and concentrate on marine
emissions or alternative fuels or do we broaden our brush wider. The Board is yet to
define what greater contribution could be made in our capability for cleaner oceans
within NZ
A problem with the cleanliness of oceans is the range of organisations involved with
specific responsibilities but no one with overall responsibility and thus there is no
Official
strategy which would make a difference in NZ’s contribution to clean oceans. This is
where the country has a real challenge to care for the oceans.
However, who is the lead agency? It is clear where the accountability sits, we have Te
Manatu Waka and Ministry for the Environment clearly in the lead on what NZ’s
emissions reduction strategy is. Maritime NZ has provided a lot of context around the
the
choices for shipping, technology options, etc. It is also clear who is responsible for the
broader oceans frame, i.e. there is a Minister for Oceans and Fisheries in place who
knows there are broader issues so not sure there is confusion politically about who is
in charge
It is important to have a conversation with the Minister. Without the support of the
Minister we are never going to get the policy direction confirmed for our role, the
regulatory authority or funding. Marine emissions could be a good place to start then
move to broader ocean issues.
under
The government and wider community has shown a particular interest in emissions
from shipping but there seem to be constraints in terms of who is empowered to do
what and what actions can be taken. A lot of reference has been made by
stakeholders to barriers that could stop progress. Is this an area Maritime NZ might
well target as a starting point?
Emissions from ships is an area where we are reliant on a raft of agencies and this
seems like where Maritime NZ must place attention
We operate as part of a system and partner agencies and water NGOs are looking to
Maritime NZ for direction, to take the lead and to define where there is overlap and
provide clarity – this seems consistent with the Maritime NZ’s stated position as NZ’s
lead maritime regulatory, compliance and response agency.
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In terms of progressing these themes (i.e. from generative to sense-making), the Board
agreed it would benefit from more contextual information covering:
a summary description/A3 system map of the different roles/large initiatives of
agencies and Maritime NZ currently have in relation to clean (plus including
1982
what our current role/levers are)
key things strategically going on internationally (i.e. work of IMO/green lanes etc
and around fuel supply to inform future discussions)
emerging trends and signals of change in this space that could help the Board
navigate and anticipate strategic uncertainties.
Act
The Chair thanked Board members for their contributions and noted that generative
conversations, although challenging, will become easier and more valuable as the Board
gains more experience with them over the course of the year.
Resolution
The Board resolved to:
a)
Note that it discussed its desire to move to a new approach for strategic conversations
with management over the course of 2022 during the November 2021 Strategic
Workshop
b)
Agreed the adoption of a three stage discussion framework with management
(Generative – Sense-making – Insight to Action) which corresponds to the relative
maturity of strategic thinking, depth of analysis completed and clarity of recommended
Information
Maritime NZ decisions associated with particular strategic topics
c)
Note that the 13 high level strategic uncertainties originally brainstormed by the Board
in 2020 would benefit from being refreshed given Maritime NZ’s evolving operating
environment and changes in strategic intent since that time
d)
Agreed it wishes to incorporate, explore and/or extend identified strategic uncertainties
from this session as part of future Board meetings.
e)
Note the Board Environment Scan needs a refresh and this will be on the agenda for
the next main Board meeting
.
Official
12.17pm – the Board adjourned for lunch
12.50pm – the Board meeting reconvened and the Covid-19 Response Team joined the
meeting
the
3.2
Presentation from Covid-19 Response Team
The DD CSE introduced the Covid-19 Response Team who were established in July 2020
with a focus on assisting the maritime industry with the Covid-19 pandemic. A large
portion of the team are secondees on a six-month rotation and a number of the team are
fixed-term contractors. We work on a six-month rotation as the environment is complex,
ever-changing, and can be stressful due to long working hours.
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Matt Dean provided a brief overview of how the team would present with each member
giving an update on what they do and their impressions.
The team’s presentation covered -
Our reason for being (assist government to keep ships
moving safely, securely and sustainably), the challenges and opportunities as the team
sees them, the vaccination programme put together in conjunction with the Ministry of
Health, stakeholder engagement, crew changes and role of MIQ, managing Covid-19 on
vessels, resurgence, communications, legal focussed on the external legal environment,
policy input and MNZ’s Covid-19 response legacy. In conclusion, having the Covid-19 team in place has enhanced ‘all of government’ and
sector engagement and contributed to a greater organisational confidence. The
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relationship with Te Manatu Waka has been really collaborative and deserves a mention.
Being seconded to the team has presented lots of development opportunities for them.
The Director congratulated and thanked the DD CSE for her hard work, resilience,
relationship management and leadership in managing the Covid-19 response.
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The Chair commented that the team have been incredibly impressive, showing
collaborative leadership in action and thanked them. Praise for the team has also been
received from the Minister and Te Manatu Waka.
Act
The Board commented that a highlight of the presentation was reinforcing the importance
of relationships. Relationship building takes a lot of commitment to develop in a
meaningful way. It was great to see the personal development aspect, relationship aspect
and enhancement of maritime reputation in the ports industry. The team were
congratulated on a job well done.
The Chair, on behalf of the Board, thanked the team, reiterating that they had the Board’s
full support for their work and wished them well for the next phase.
The Covid-19 Response Team presentation will be made available in the Board’s
Resource Centre in Diligent Boards.
The Covid-19 Response team left the meeting
3.3
Te Korowai o Kaitiakitanga update
Information
The Director introduced the paper, providing an update on Phase One of Te Korowai o
Kaitiakitanga. Phase One is nearly finished but feedback from the Executive Team had
identified a couple of missing frontline areas – response and security – and work on those
has now commenced. Phase Two will see the start of building projects dependant on
budget and alongside Board conversations.
The Board provided feedback on the update as follows:
First impressions is that this will be a game-changer. It is being undertaken in a
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purposeful way and is on the right track
Good to see comment/observation from MartinJenkins. What is management’s
feedback on MartinJenkins?
The Director responded that MartinJenkins think well about regulatory frameworks and
have helped on the bigger frame and regulatory systems but a large amount of the
the
insight and design came from MNZ staff. For the future we will use them to test
elements of the regulatory strategy and it would be useful for them to have a session
with the Board on assurances on how MNZ is carrying out its regulatory work in its
regulatory role.
Very good outline of the work done so far, good expectations for the future and great
work.
Has provided a real in-depth understanding of what good looks like and a plan to
achieve that. If funding is not forthcoming, the conversation with the Board will be in
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relation to where priorities sit, where to focus and where risk remains.
Great to have in-depth insight into business and real clarity on what needs to happen.
Good to see concentration on short-term improvements for certification and port state
control within existing funding and it will be beneficial to lock in even better
improvements for the future.
s 9(2)(f)(iv)
Encouraged the Director and Executive Team to keep going as it is a well-founded and
great piece of work.
Resolution
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The Board resolved to:
a)
note we have made significant progress on Phase One of Te Korowai Kaitiakitanga
and that the outputs from Phase One are in the resourcing centre for the Board to see;
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b)
note that we plan to bring a straw four-year plan which sets out how we could deliver
priorities for action to the Board for a working session once we have clarity around the
resourcing we may get from Budget 2022;
c)
note that as a priority we are commencing work on developing organisational design,
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capability and capacity change proposals, so that are ready to go as soon as we know
the outcomes of Budget 2022, and that we will engage with the Board on these;
d)
note that we are also beginning work on an operational policy and practice framework
and regulatory process improvements;
e)
note that we are looking to develop a regulatory strategy that sits across this work and
that this will be developed through a series of Board and staff conversations.
4.
Organisational reporting
4.1
Health Safety and Wellbeing report
The report was taken as read. The DCE People & Capability drew attention to the
SafePlus HSW management system survey completed in December 2021. In comparison
to the 2020 survey, there had been a small dip in the overall result, but nevertheless it was
Information
a good result despite staff filling it in late last year when staff were tired and coming out of
lock-down. The findings of the survey will be used to develop a 2022-2023 HSW action
plan. Looking at the top rated questions, those are the items an organisation would be
expected to be exceeding at and for the lowest rated questions there is further work to do
in closing the feedback loops.
The Board queried the Q2 turnover of 3% which seemed too low against the competitive
market trend. Management responded that the figure was just for the quarter rather than
annualised. Annualised turnover is certainly increasing and that is something we have a
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particular focus on and are looking to do some work on the employee value proposition for
retaining staff.
In the Benestar results, there were two items related to workplace bullying and harassment
and the Board were keen to hear if management were satisfied that these had been dealt
the
with adequately. Management responded they were satisfied that a lot of effort had been
put into resolving these issues.
The Chair remarked that it was understood that the Board would receive reports of
workplace bullying incidents however small. It is important that the Board are aware of
bullying or harassment incidents and it would be helpful to explain the situation or provide
a confidential briefing. The Director confirmed all workplace bullying incidents are provided
in reporting to the Board through the report, including how they were managed.
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The Chair also raised the bigger issue on the overall culture of the organisation. Te
Manatu Waka had done a review of Maritime NZ’s people capability and culture to which
MNZ had responded there was planning underway to review the People Capability
Strategy and a plan for more expansive reporting to the Board. The Chair would like to
see a broader culture report and not just Health, Safety and Wellbeing and would be
interested to know the structure and timing for that.
The Director responded that ET are looking at a People Capability Strategy refresh and will
have more dialogue around that.
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The Chair would like to discuss what a workplace culture report might look like and the
measures and it would be good to have this fairly soon; a more high-level one could be
provided in the interim before the work on culture and the refresh was completed.
The Chair was mindful that the Covid-19 environment was challenging and there would be
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a lot of angst amongst staff to deal with.
Resolution
The Board resolved to
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a)
note the health safety and wellbeing report.
s 9(2)(a)
joined meeting
4.2
Financial report | January 2022
The financial report was introduced by the DCE OSS and taken as read, noting the two
main aspects of the paper were the results against the Q1 forecast and update of MNZ’s
procurement capability.
The Chief Financial Officer (CFO) advised that we are tracking behind in a number of
expenses which is generally due to Covid-19 disruption. Liquidity funding is the main
reason for the revenue variance but that will likely reverse. There a few debtor issues
starting to emerge which are likely to get worse in the short-term due to the Covid-19
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upheaval. The more high-level strategic Government items will need to be parked a little
longer.
In relation to the procurement update, we are fully aware of all the activity taking place and
Government changes. We are as well placed as we can be but until such time as we are
able to put a little more capacity into that area we will be a bit constrained in terms of uplift.
The Board queried if there were any conditions or issues they should be aware of in
respect of the liquidity funding. The CFO stated there was nothing of particular concern.
In the latest engagement with Te Manatu Waka in respect of the draw down and
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reconciliation processes, they are trying to apply some stricter rules of the Public Finance
Act but this may be an impractical approach so we are working through a practical and
reasonable approach on how to get funding on a timely basis. An example would be
concern that the year-end drawdown does not overfund us but we are in a fortunate
position that the negotiated minimal reserves can carry over for a couple of weeks and we
the
do have levers to deal with it.
The Chair queried if the procurement rules would be hard to follow. The CFO responded
that they are rather lengthy and onerous and the move to Government centralisation is
escalating and there are large volumes of compliance. The Chair would welcome
feedback as requirements should be fit for purpose and not unnecessarily slow the
organisation down from delivering outcomes.
The DCE OSS remarked that there may be engagement forthcoming with the Crown
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Agency Resource Centre Director and Crown Entity Chairs around additional burdens and
expectations that are being placed on particularly smaller Crown Entities.
The Chair sits on the Crown Entity Chairs Group whose meeting has been deferred to May
so any information or insights that management can be provide would be useful in
preparation for that meeting and to understand the implications. The Chair will share the
agenda of that Group with the Director.
The Board asked if the CFO was satisfied with the $1.6m allocated for Search & Rescue
deployment. The CFO confirmed she had checked the status of the additional funding for
that deficit which is due to be confirmed by the Minister of Finance in the next few weeks.
The baseline needs a reset which would normally be addressed as part of the funding
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review but this is delayed. There is no pushback in terms of that additional funding and we
are expecting to receive the funding despite cost pressures.
In conclusion, the Chair expressed appreciation for the Finance Team’s hard work.
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Resolution
The Board resolved to:
a)
note the financial results for the seven months to 31 January 2022;
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b)
note the status of Maritime NZ’s procurement capability as it relates to changes to
Government procurement rules.
4.3
Quarter 2 reforecast
The CFO introduced the report confirming the main message was that we had access to
additional liquidity funding. The main changes in our expense and forecast is the
investment in Te Korowai, and to achieve objectives in relation to the key harm prevention
areas and people and property.
A couple of items not mentioned in the paper were that the forecast does not include the
FX gains and losses that we will need to book on 30 June and the land revaluations in
respect of land where lighthouses stand which we are in the process of commissioning.
Both of these items could potentially slightly veer the final result on 30 June.
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The valuers had suggested site visits for the land revaluations process but MNZ
considered this was not required and have offered an alternative option of providing them
with photos and GIS information to enhance the desktop revaluation. MNZ has 141
lighthouse sites but some of the land is not ours. There are 23 land packages to be
valued.
Resolution
The Board resolved to:
Official
a)
note that Management has completed a Q2 forecast;
b)
note the proposed forecast incorporates an uplift in strategic investment in areas
identified in late 2021 which is offset by additional liquidity funding as agreed in
the
principle by Ministers and Te Manatu Waka;
c)
approve the proposed Q2 forecast surplus of:
i. $0.5m surplus for Maritime NZ (R&C), being a decrease of $0.25m on the
original budgeted surplus of $0.756m;
ii. $0.145m surplus for RCCNZ (an increase of $1.15m on the original budget
due to savings in personnel costs and other cancelled or deferred activity as
a result of COVID-19 disruption).
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iii. $0.611m surplus for OPF which is consistent at a bottom line level to the
original budget.
d)
approve the proposed Q2 capital expenditure forecast of:
i. $3.111m for Maritime NZ (R&C), being an increase of just under $0.1m on
the original budget due to the delivery of aids to navigation projects initiated
(and funded) in the 2020/21 financial year;
ii. $0.300m for RCCNZ being no change to the original budget approved;
iii. $4.276m for OPF being an increase of $1.786m on the original budget of
$2.49m due to carrying forward the balance of $1.1m for dispersant inventory
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and $0.686m from the planned (and funded) capability programme from prior
years.
s 9(2)(a)
left the meeting
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4.4
Quarter 2 Strategic Actions update
The DCE OSS introduced the report on behalf of Rochelle Wengrzik who had tendered her
apologies. The report was taken as read noting that a number of strategic actions are
currently amber and one is red.
Act
The Chair commented that the compliance delivery area was of concern and one that
required focus. Management responded that there was focus on this area both in the short
term and as outlined in Te Korowai and staff were encouraged to put red if that was the
case to highlight where our biggest risk areas might be. Broadly the strategic actions are
at amber reflecting high workloads and dealing with the Covid-19 environment.
The Chair commented it was a useful report for the Board providing the overview and
assurance with good graphics and supporting material.
Resolution
The Board resolved to:
a)
note the status and progress updates on Maritime NZ’s strategic actions for the period
Information
ending 31 December 2021; and
b)
note that the outcomes of Te Korowai o Kaitiakitanga will impact our priorities for
2022/23 (and beyond), and will be aligned to a revised programme of work over the
next four years.
4.5
Statement of Performance Expectations 2022-23
The report was taken as read.
Resolution
Official
The Board resolved to:
a)
note the proposed approach and timelines and the need for out of session meetings to
the
approve draft and final front end SPE and budget before approval;
b)
note Audit NZ recommendations relevant to the development of the SPE; and
c)
note a Statement of Intent will not be developed this year.
4.6
Letter of Expectations
The DCE OSS mentioned that a draft letter from Te Manatu Waka had gone to the Minister
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in early January with no prior engagement with MNZ. It would have been helpful to have
seen a draft and to have had a conversation with them and subsequently for the Board to
have been able to review.
The Director felt it would be difficult to fulfil some of the expectations outlined given the
uncertainty of the funding.
The Board commented that the response to the Letter of Expectations was good and the
pushback justified and respectfully expressed. However, the Chair would like to make
minor edits without changing the context and received confirmation from the Board to do
that.
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Resolution
The Board resolved to:
a)
agree the draft response with minor edits whilst maintaining context;
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b)
note the summary analysis of the Letter of Expectations
5.
Recurring business
Act
5.1
Correspondence
The report was taken as read.
Resolution
The Board resolved to:
a)
note the response to the Letter of Support for the 2020-21 and 2021-22 Financial
Years from the Chair to Hon Minister Wood and Hon Minister Robertson dated 30
November 2021;
b)
note the letter from Peter Hughes, Public Service Commissioner to the Chair dated 2
December 2021 in respect of Kia Toipoto the Public Service Pay Gaps Action Plan
2021-24;
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c)
note the letter from the Chair to the Office of the Auditor-General dated 10 December
2021 in respect of the delays in the completion of the 2020-21 audit of Maritime NZ;
d)
note the letter of response from the Office of the Auditor-General to the Chair dated 14
December 2021; and
e)
note the Letter of Expectations 2022-23 for Maritime NZ from Hon Michael Wood,
Minister of Transport to the Chair dated 14 February 2022
6.
Meeting close
Official
6.1
Any other business
No other business matters were raised.
the
6.2
Meeting review and close
The Chair sought feedback from the Board on whether the meeting had been valuable.
The Board commented as follows:
Worthwhile meeting given the constraints of Zoom which makes it harder to interact in
a way that has continuity but we are doing well. Hope we can get back to face to face
meetings in the near future.
under
Generative discussion was good and like the model that has been put forward.
Enjoyed the Covid-19 team presentation and would like to see team presentations
continue as a structured part of the meeting. It is good for the Board to have an insight
into the work of the rest of the organisation.
Good to see other parts of the organisation and how they are operating so keen for
more team presentations. Face to face meetings are preferred. The generative piece
was very valuable.
The Chair congratulated the Executive Team on doing a great job, they had confidence
and were being well led and looking at the right things. Te Korowai is a huge amount of
work and making the Board aware of the journey and seeking support at the appropriate
time is important.
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Official
the
under
Released
Board minutes
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DATE OF MEETING
21 April 2022
TIME AND VENUE
9:00am | via Zoom
MEETING
Board meeting
Act
AUTHORITY
Jo Brosnahan (Chair), Belinda Vernon, Roy Weaver, Danny Tuato’o, Denis O’Rourke
ATTENDING
Heather Horton (minutes)
EXECUTIVE TEAM
Andrew Saunderson, Kenny Crawford (Acting Director)
APOLOGIES
Kirstie Hewlett, Nigel Clifford, Peter Brunt, Sharyn Forsyth,
s 9(2)(a)
Deb
Despard
GUESTS
Rochelle Wengrzik, s 9(2)(a)
, Brian Cosgriff (item 3.1)
The Board held a closed session prior to the meeting
The following matters were discussed:
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(a) Board Performance Review
The Board discussed the Performance Review reports in more detail and decided on the
following action:
A more meaningful discussion is required around non-financial reporting at Quarterly
Review Time.
The timing of meetings should be reviewed to ensure that this consideration above is
able to happen.
Official
Succession planning is required for the Chair and Board, and for the CE and the
Executive Team.
There would be benefit in the sharing of further reading between meetings, to support
the board in its conversations and decision making, and in terms of the how of
governance. The board had appreciated the material distributed by the Chair prior to
the
this meeting.
Strategic conversations are required around environmental initiatives, including:
o Both international and domestic
o Climate change
o Our role and the initiatives we are undertaking.
More intensive conversations are required around Strategic Planning and Risk – with
the ongoing Strategic Planning programme embedded into the board work programme
– and involving the ET. This has begun.
under
There is a deeper understanding of the resources required for a robust regulatory
regime, the risks of regulatory failure and how to stay on top of this. (Te Korowai is
important here).
The Chair suggested that she would look to refresh the survey format for the next
board review.
(b) Board Values Session
The Chair facilitated a values discussion with the board – to come up with a set of values
for the board itself to guide its own behaviours. It was important that these values were
aligned with those of the organisation, albeit they are additional and for the Board itself.
The following values were developed
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Trust
Servant leadership
Manaakitanga
Whanaungatanga (Belonging)
Listening
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Courage
(c) Listening Skills and Generative Conversations
The Chair made a short presentation with a series of slides and a conversation on listening
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skills and generative conversations.
(d) Board Induction Development
The Board discussed the current induction programme and suggested the following
expansion:
Maori and Pacifica welcome.
Design the induction around the individuals – what do they want to learn, as well
as what we think they should know. Chair and CE to be involved.
A better overview required of the Government landscape (including Customs,
immigration etc).
An understanding of the international perspective and our role vis a vis that of
other Government agencies.
Alignment with the MoT component of the programme:
o Relationship with the Ministry and Minister
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o Understanding of government policy making/ implementation
o Government organisations whom we routinely deal with
o Chair should be involved if possible for interpretation.
An organisational plan with photos and description of role should be attached to
the briefing material sent out.
Individual development plans (IDP’s) should be developed for each board member.
Widening of the G Reg and MNZ modules (all Board members to do these)
Undertaking of the Regulatory Chairs’ G Reg modules
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Te Tiriti/Te Ao Maori
Te Reo (with senior management) – tailored to the needs of the organisation
Governance training if required (ie IOD).
(e) Board Charter Review
the
In relation to Te Ao Maori, a whole of organisational approach should be taken.
Maritime NZ values should be added, in addition to the Board’s own values.
The Chair needs to add a piece on Generative Conversations.
11.3 on Monitoring the Exec – note that this should be through the CE’s Success
Agreement (appropriate wording required)
32 – it was agreed that the Board should undertake a ‘Mind the Gap’ exercise to
ensure that we are able be proactive in having timely input to the Ministry
under
appointment process.
Kenny Crawford, Andrew Saunderson, Rochelle Wengrzik,
s 9(2)(a)
, Brian Cosgriff and
s 9(2)(a)
joined the meeting
1.
Meeting opening and administration
1.1
Chair’s welcome and apologies
The Chair welcomed management to the Board meeting.
2.
Director’s report
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The DCE OSS introduced the Director’s report which was taken as read. The Board were
provided with a brief update on the fatal incident at the Auckland Port on 19 April. As the
incident occurred on a vessel, MNZ would be leading the investigation and working with
WorkSafe and Police as required. MNZ were also working with the Minister’s office to
provide sound and robust advice on any consequences.
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In answer to a queries from the Board on the resumption of cruise ships, the DCE OSS
advised that advice had gone up to Ministers on a three-phase approach in respect of how
and when the maritime border could open.
Act
Under the ‘new technologies’ item, the Board were provided with an update on the
announcement from Ocean Flyer, a newly-established New Zealand transport business, on
their plans to set up a coastal transport network using ‘wing-in-ground craft’ (seagliders).
An order had been placed for 25 of these passenger craft which will operate passenger
services around the country with either 12 or 100 passenger versions. There was also the
potential to expand into Australia and the Pacific in the future.
The Board queried if there were any implications for MNZ in terms of the process for the
‘Enchanter’ incident. Management responded that the incident was under investigation.
Resolution
The Board resolved to:
a)
note the contents of the report.
Information
3.
Organisational reporting
3.1
Draft Statement of Performance Expectations 2022-23 and Draft Budget 2022-23 &
Prospective Financial Statements
The DCE OSS introduced the paper providing the draft Statement of Performance
Expectations (SPE) 2022-23, draft Budget 2022-23 and prospective financial statements
and seeking the Board’s feedback.
The Board were asked to note that for the front end of the SPE, the key focus areas will
Official
change and the foreword would not be included whilst budget decisions were awaited.
Additionally, the key focus areas will need to be revised based on budget bid outcomes.
The Chief Financial Officer, outlined what funding has been assumed would be included in
the budget.
the
The Chair queried whether we would have to re-cast if we did not get some of the budget
bids. Management responded that if there were some critical aspects that were not funded
we would have to reflect on what we could and could not do. A key aspect was the
longevity of funding for any particular reason as surety of funding over time is needed in
support of good regulatory outcomes.
The Chief Financial Officer advised that in terms of the levy impairment, we have assumed
under
that the instability in the supply chain remains and disruption of the cargo side of the
supply chain will continue through to next year. Conservative assumptions have been
used for cruise levy. Also that there still remains a high level of uncertainty related to oil
pollution levies as a result of industry structure changes.
The Board provided feedback on narrative aspects of the draft SPE document for
adjustment in the draft being sent to the Minister including:
Page 2 – the leadership charter values of strength, unity and direction seem to be
there in isolation rather than part of the bigger picture - how do they connect to the
other components we reiterate?
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Page 3 – the graphic that refers to the three core roles does not particularly mention
the regulatory roles referred to previously
Management suggested that some clarity was required in respect of our organisational
values and leadership charter and would look to re-frame so that it links and flows.
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Page 8 – final paragraph, perhaps we could add something in respect of the
challenges with our current funding caused by COVID
Page 9 – third bul et point under the heading ‘Support COVID-19 recovery’ – this is
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very wordy, would suggest splitting up some of the text
Page 11 – query if the emissions reduction plan for MNZ is covered off.
Management confirmed that the emissions reduction was captured under the heading
‘Improve environmental and economic outcomes’ and on page 12 under the heading of
‘Organisational capability and sustainability’. However, we would look to fine tune the
wording.
Page 13 – in terms of building organisation culture, a lot of the metrics monitored and
reported on are activity factors as opposed to success factors which are really
important, for example, staff satisfaction. Suggest that engagement survey results and
diversity and inclusion results be separated out. The Board also queried if reference to
organisational health and capability included wellbeing of the organisation?
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Management commented that this section is included as a statutory obligation; in the
Statement of Intent (SOI), there is a statutory obligation to talk about the key elements
of being a good employer and we also cover this in our Annual Report. The SOI does
highlight those areas and is read in combination with the SPE. The SPE covers more
about how we measure organisational health and capability.
Page 15 – in respect of the reference to the introduction of two non-financial
performance measures, are there similar performance measures concerning capability
for core functions, whether or not the revenue has been affected by COVID-19?
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Page 21 – queried if the references to ‘TBC’ wil be populated.
Management responded that the Q3 results are now available and they will be updated
before the document is sent to the Minister. The final published version will have the
estimated actuals.
the
Page 24 – the Board queried the figures of 4, 16 and 12 for the annual Maritime
Incident Response Team exercises and workshops and why there was a gap.
Management commented that we are estimating three exercises or workshops will be
done each quarter. We have been overreaching the target which has given us the
estimated actual of 16.
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Page 29 – in relation to outputs, the Board queried if we were asking for specific
measures around engagement with groups; is there a specific engagement target for
specific groups, e.g. Maori or is it one generic target?
Management responded that this is kept at an aggregated level. It is something that
can be reviewed for the future as we develop our Te Ao Māori strategy and we can be
more specific around some of those measures/activities.
Page 36 – Performance Reporting Standards – the Chair’s assumption was that any
new targets required by Audit NZ had been included.
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Management advised that there has been an update to the accounting and
performance reporting standards. Treasury has issued some guidance and this is the
first time it has been addressed in this SPE. Advice has been sought from Treasury
and further advice will be sought from Audit NZ. This new Appendix brings a level of
transparency to what we are doing.
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The Board commented that the funding for Search & Rescue appeared to be short
funded, requiring additional funding/top-ups, and queried whether there was any risk of
not getting that.
Act
Management responded that current funding has been locked in for the current
financial year. Funding has always been approved and managed through the March
and October baseline updates. Also that due to the nature of SAR activity and
demand, there will always be some in-year variation and we seek to address
significant variances through funding review activities as we did during the last funding
review.
The Board queried the expiry date of the MEOSAR system and were advised it was
either 2026 or 2027. Management were looking at the procurement approach and
whether the 2026 or 2027 deadline should be extended.
Management highlighted the ‘going concern’ disclosures and that those details will
need to be reviewed and worked through carefully. Any feedback from the Board on
the ‘going concern’ disclosures would be welcomed. The Ministry had been contacted
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in relation to the Letter of Support which it was hoped would be forthcoming through
the budget process.
The Chair queried what timing had been agreed for the funding review and was
advised that no timeline has been formally agreed as yet and it would depend on
budget outcomes.
The Board wished to acknowledge the work done by the team on Accounting &
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Performance Information Standards Update , noting it was very clear and an excellent
job achieved on the explanation.
Resolution
the
The Board resolved to:
a)
note following Budget decisions the SPE foreword and key focus areas will be
reviewed and the letter from the Chair to the Minister will be finalised with the Chair
b)
note that once Budget 22 decisions are known, the SPE budget will need to be re-set,
and
note the Board’s approval for the 2022/23 budget will be sought following
confirmation of Budget 22 decisions in June, refer
Appendix 2
under
c)
note that Management has not yet been formally advised of Budget 22 decisions
d)
note the draft 2022/23 Budget for Maritime NZ (Regulatory & Compliance); the
Rescue Coordination Centre and the Oil Pollution Fund which would result in:
I.
surplus for Maritime NZ (Regulatory & Compliance) of $0.247m;
II.
surplus for the Rescue Coordination Centre of $0.191m;
III.
surplus for the Oil Pollution Fund of $0.621m which will fund the planned
capital programme.
e)
note the draft 2022/23 capital expenditure budget of:
I.
$3.014m for Maritime NZ (Regulatory & Compliance)
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Act
Information
Official
the
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Released
Board minutes
1982
DATE OF MEETING
3 May 2022
TIME AND VENUE
8:30am | via Zoom
MEETING
Board meeting
Act
AUTHORITY
Jo Brosnahan (Chair), Belinda Vernon, Roy Weaver, Danny Tuato’o, Denis O’Rourke
ATTENDING
Kirstie Hewlett, Heather Horton (minutes)
EXECUTIVE TEAM
Andrew Saunderson, Nigel Clifford, Kenny Crawford, Peter Brunt, Sharyn Forsyth, Anne
Greenwood, Deb Despard
APOLOGIES
None
GUESTS
Briar Gill-Michaels (item 3.4), s 9(2)(a)
(item 4.2),
s 9(2)(a)
(Impact Education –
item 7)
DRAFT MINUTES
Information
Board only time was held prior to the meeting
1.
Meeting opening and administration
1.1
Chair’s welcome and apologies
The Chair welcomed Board members and management to the Board meeting and invited
Danny Tuato’o to open the meeting with a karakia.
1.2
Declaration of interests
Official
the
Resolution
The Board resolved to:
(a)
1.3
Confirmation of previous minutes and actions arising
under
The Board reviewed minutes of the previous meetings held on 1 March and 21 April 2022.
The Chair commented that the 21 April 2022 minutes also encompassed the outcomes
from the Board’s closed session.
Board’s performance review – the Chair will discuss with the Director how this can be
accommodated in the Board scheduling for the year.
Board Induction development – quite a few suggestions which the Chair, Director and
Governance Support Coordinator will look to incorporate in the induction process.
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Board Charter review – some recommendations had been made and the Chair, Director
and Governance Support Coordinator will include those and produce a final version of the
Charter for Board approval at their next meeting.
Resolution
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The Board resolved to:
(a)
approve the minutes of the Board meeting held on 1 March 2022 and the ‘out of
session’ Board meeting held on 21 April 2022 as a true and accurate record of the
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meetings; and
(b)
note the actions arising and that any further actions arising from the 21 April 2022
minutes will be captured.
1.4
Board schedule and work programme
The Board reviewed the Board schedule and work programme and discussed logistics and
timetable for a Board visit to Nelson in June. The suggestion was a short Board meeting
on the morning of 20 June with key visits for the remainder of the day and the morning of
21 June. The Board’s preference for engagement was a focus on the fishing industry,
aquaculture and Nelson Port.
Resolution
The Board resolved to:
Information
(a)
note the
Board schedule and work programme and the discussion on the June 2022
visit to Nelson.
2.
Director’s report
The report was taken as read. The Director provided a brief update as follows:
Port health and safety - Maritime NZ is investigating both fatal accidents separately at the
relevant ports and has been working with the ports, stevedoring companies and Unions in
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preparing advice for the Minister. TAIC have also been asked by the Minister to review
both fatalities to ascertain if there are any system lessons.
Maritime NZ and Worksafe are undertaking inspections of the major international
commercial ports focussing on stevedoring risks and their management. The Minister has
the
asked the Port Health & Safety Leadership Group to come up with a set of actions and a
work plan by September which will prevent harm in these areas.
Discussion ensued with the Board on port health, safety and culture. The Board concurred
that more capacity and more effort was needed with the ports to ensure a safe
environment and to lead change. However, it was clear that funding would be required to
resource such a leadership responsibility and it was noted that we had received more
funding in Budget 2022 for work on ports.
under
The Board queried what the timeline expectations were for both the MNZ and TAIC
investigations of the fatalities and any lessons on what happened. Management
responded that these investigations will take time and it would be close to 12 months
before answers/lessons would be forthcoming.
International Shipping and Port Facilities Security Code – this is a code that New Zealand
complies with and the reason we have an SOI with the US Coastguard and UK
Department of Transport is to work out how we can do capability capacity building in the
Pacific and share insights on security risks.
The Board queried if the Pacific states funded their port security work or what magnitude of
funding responsibility did NZ have. Management responded that there is good sustainable
funding in place for the Pacific Maritime Safety Programme where MFaT has committed for
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a number of years. Security work does not work in the same way and
s 6(a)
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Reconnection of cruise – the announcement on the Maritime Border Order was not made
on 28 April as had been anticipated and is likely to be early June with an anticipated
opening of 31 July. The Chair of the Border Executive Board (BEB) has now asked Te
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Manatu Waka with support from MNZ to lead the implementation of the return of cruise
which it is hoped will expedite progress. There has been slow incremental progress, e.g.
the termination of self-isolation for crew change. Testing at the border has also now
finished which is extremely positive.
s 9(2)(g)(i)
Litigation report – the Board noted the spikes in active prosecutions and would like to see
the same data for investigations, and alongside that an understanding of the increase in
both. The Board were also interested in seeing the figures on the anticipated annual
spend on prosecutions and investigations.
Information
Management agreed this information would be provided to the Board.
Resolution
The Board resolved to:
a)
note the contents of the report and the oral update.
9.45am - the Board adjourned for a short break
10.00am – the Board meeting reconvened
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3. Strategic conversations and decisions
3.1 Board strategic uncertainties
The Chair commented that it was important the ‘strategic uncertainties’ were included in the
the
papers for every Board meeting despite noting that it needed an intense refresh.
Management responded that the proposal was to have a further dedicated session
facilitated by the Chief Advisor Strategy to allow for a refresh and more generative
conversations and linking to other work on the decision risk tool that came out of the
November 2021 strategy session.
The Board commented that item 7 – Regulatory Compliance functions - may be more
important than is reflected in the table and may be slightly underestimated as a risk.
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3.2 Budget 2022 outcomes
The Director opened the discussion and provided a brief update on the Budget 2022
outcomes as follows:
MNZ had sought two years funding for the levy shortfall bid for the Maritime Levy and
Oil Pollution Levy, however Cabinet has only agreed to one year of funding.
The HSWA bid was successful as bid.
Cabinet agreed to one year funding on our bid for MARPOL Annex VI, however
ongoing funding is required in order to implement successfully.
The regulatory effectiveness bid was granted.
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Management has engaged with TMW as certainty is required on funding prior to
making an investment in capability. This explores use of surplus liquidity funding from
the MYA for carry forward and use in 2023-24 and use of s9 funding from the National
Land Transport Fund.
The Chair and Director will meet with the Minister on 10 May to discuss the SPE,
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Budget outcomes and the Letter of Expectations (LoE) and will be provided with a full
briefing prior particularly on the Budget outcomes and consequences.
The Board congratulated the Executive Team for their efforts and what had been achieved
in respect of the Budget 2022.
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Resolution
The Board resolved to:
a)
note the oral update on the Budget 2022 outcomes.
3.3 Te Korowai o Kaitiakitanga programme update
The Director introduced the paper providing an update on the Te Korowai o Kaitiakitanga
(TKK) programme and the Board were shown the ‘Director Live’ video from 8 April 2022
where three slides were presented to staff by the Director and DD RSD providing a clear
sense of the direction of TKK. These slides outlined the story of what was trying to be
achieved through TKK, the frame of the organisational strategy we are seeking to fill
through the TKK work and the foundational work streams and projects of TKK that have
emerged to date. The ‘A’ projects represented the first suite of work and the ‘B’ projects
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were those that will commence in the next few months.
The Board commented on the presentation as follows:
Good motivating presentation and congratulations to those who pulled it together.
Hangs together very well overall and using the cloak is very meaningful. There will be
some interesting conversations in the future but a very good start and very well done.
The big question in terms of the ‘A’ and ‘B’ projects is whether any lack of funding
would slow these down. Management responded that none of these will be halted by
the Budget outcomes.
Official
With each of the elements of TKK there is a Maori translation except for ‘Our Levers’
and that should be added.
The Director advised that some of the A3s providing a summary of the outputs from TKK
Phase One for each functional area will be shared with the sector to demonstrate that we
the
have heard their issues and to show how we are addressing them in the short and long
term.
Resolution
The Board resolved to:
b)
note the contents of the report.
under
Briar Gill-Michaels, Special Projects Lead joined the meeting
3.4 MNZ draft emission reduction targets and opportunities
The DCE OSS introduced the report providing a summary and advising the Board that
MNZ was proposing three reduction targets, using a combination of both absolute and
intensity based targets, and were seeking Board insights, observations and agreement on
those targets.
The Board and management discussed the emissions targets and CNGP commented as
follows:
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The emission reduction targets relate solely to MNZ as an organisation and the
activities we undertake. These include emissions relating to SAR operations which are
within Scope 3. Management is discussing the best approach to reporting emissions
relating to SAR with TMW SAR Secretariat and noted there are aligned outcomes
insomuch reduced SAR activity indicates reduced emissions from SAR activities.
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Scope 3 activities related to emergency management are excluded from reductions
requirements.
MNZ industry and sector emissions reductions activities will be in the context of the
Government’s final Emissions Reduction plan which was still awaited and is expected
to be released mid-May 2022.
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The Government has yet to provide direction on offsetting.
There will not be a requirement for offsetting for emergency services, e.g. helicopter
operations for SAR activities. Where we work with other agencies, e.g. the Pacific
Maritime Safety Programme, we would build offsetting costs into those funding
arrangements.
Management commented that tracking and reporting on our GHG emissions will now
be a focus, noting that the 2021 drop of 500 tonnes represented the absence of
international travel due to the COVID-19 pandemic. Regular reporting on how we are
tracking with our GHG emissions will be developed.
The Board noted that achieving the 1.5c degree pathway would require a mix of
components and enquired as to what was an ideal emissions profile? Management
replied that there is not necessarily an ideal mix. It will depend on the type of business
and business operations. Behavioural changes along with thinking on how as an
organisation we will reduce emissions will be required.
Information
In conclusion, the Chair commented that a dashboard tracking progress and showing
milestones would be useful for the Board.
Resolution
The Board resolved to:
a)
note that MNZ has been certified under the Toitū Envirocare carbonreduce
programme;
b)
note that
in order to continue having our emissions audited by Toitū we need to set
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reduction targets and detail emissions reductions opportunities;
c)
note that the CNGP whole of government direction under section 107 of the Crown
Entities Act 2004 has been signed off by Ministers and will come into force shortly
(copy attached in May Correspondence report);
the
d)
note the principles underpinning and approach taken to our reduction efforts;
e)
agree the proposed draft reduction targets set to 2025 to meet Toitū carbonreduce
programme requirements; and
f)
agree the proposed draft reduction opportunities to meet Toitū carbonreduce
programme requirements.
Briar Gill-Michaels left the meeting
under
4. Organisational reporting
4.1 People Health & Capability report
The DCE PC introduced the report drawing attention to the new format which was based
on the lifecycle of employment. The report was taken as read. The Board were advised
that although not recorded in the report, there was quite a proportion of staff (5%) who had
left MNZ but had now returned.
The Board commented as follows:
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The turnover is up to 20%, presumably a one-off but any reason for that? The DCE
PC remarked that across the wider market and public service, the turnover was
reaching historic highs. The DCE PC also commented that the Public Service
benchmark is not available.
The Board noted under incidents over the year, seven out of 30 were violence,
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aggression, etc. Is there any insight into those circumstances and anything the Board
should be concerned about? Management will provide further and more detailed
information on these in the next report to the Board.
It was commented that at first sight the gender pay gap looks relatively good but quite
a disparity in the weighting of genders in particular areas.
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The report mentions that some staff working from home had indicated that their work
station set-ups were not ideal. Management advised that in terms of health and safety,
work station ergonomic assessments have been made available online. Where there
has been a recommendation for equipment this has been fulfilled. However, with the
new orange traffic light setting, staff were being encouraged to return to the office.
The Board asked when the next engagement survey was due and whether there was
consideration of doing a light survey more frequently, say every three months?
Management commented that the main engagement survey is planned for this
financial year but we will be doing a pulse survey, particularly on the diversity and
inclusive elements.
Resolution
The Board resolved to:
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a)
note the report.
s 9(2)(a)
, Chief Financial Officer joined meeting
4.2 Financial report | March 2022
The financial report was introduced by the CFO and taken as read. The CFO provided a
brief summary on the report.
The Board commented as follows:
Official
In respect of domestic historic debtors, is that already covered in our provision for bad
debts or will it be picked up at year end?
The CFO responded that the historic debt is covered in the provisions. The balance on
30 June last year looks relatively consistent. No concern for escalation in the
the
provisions or write-offs but we are monitoring. We normally manage to get our annual
levy invoicing down to under the $100,000 by the end of the year.
Any comment on the reduction in the monthly port visits by foreign vessels and the
impact?
Port visits appear to be down by 8-15% and the size of the vessels were also slightly
smaller than pre-Covid. Very unpredictable at the moment. Lot of uncertainty
particularly in respect of fuel supply.
Resolution
under
The Board resolved to:
a)
note the financial results for the nine months to 31 March 2022.
4.3 Quarter 3 Strategic Actions update
The DCE OSS introduced the report providing the status and progress of MNZ’s key focus
areas which was taken as read.
The Board commented on the report as follows:
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Are management able to expand on the reason for the pause in the delivery of the
certification transformation project? What is the project, what does it intend to achieve
and how long will it take to get it back on track given the capacity limitations?
Management explained the project is designed to look at all aspects of certification
processes in order to build in efficiency and effectiveness. A lot of the systems are
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out-of-date and manual. In order to streamline effectively we need to rely on staff
themselves who know the processes well. Due to staff turnover and thus pressures on
the team this has not materialised. The project has been partly transitioned into the Te
Korowai programme. Unsure of the timing of the next phase of the project as our main
concern is to stabilise the Certification Team in order to work efficiently under current
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conditions.
The Board discussed the challenges with reputation, supporting the industry and what
would ultimately be a ‘red flag’ situation.
Management responded that as an interim measure staff have been seconded from
other parts of the organisation to assist the Certification Team and ultimately the sector
with the backlog and have made some quick changes to processes to expedite
matters. Recruitment is also in progress. Management are having conversations with
the sector and working on trying to resolve issues both short and long term.
What is next on MARPOL?
Management advised that all is on course but clarity will be needed on whether MNZ
can use any surplus MYA funding for the two years.
Resolution
The Board resolved to:
Information
a)
note the status and progress updates on Maritime NZ’s key focus areas for the period
ending 31 March 2022, and
b)
note that the priorities from Te Korowai o Kaitiakitanga are being determined for
2022/23 (and beyond), and are yet to be aligned to a revised programme of work over
the longer term which will be reflected in our reporting framework and regular reporting
to the Board.
5. Recurring business
Official
5.1 Correspondence
The report was taken as read.
Resolution
the
The Board resolved to:
a)
note the letter from the Chair to Hon Michael Wood, Minister of Transport enclosing
MNZ’s Quarter 2 report dated 25 February 2022;
b)
note the response to the Letter of Expectations 2022-23 for MNZ from the Chair to
Hon Michael Wood, Minister of Transport dated 7 March 2022;
c)
note the response from Hon Michael Woods to the Chair regarding MNZ’s Quarter 2
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report 2021-22 dated 22 March 2022;
d)
note the joint letter from Hon Grant Robertson and Hon Chris Hipkins dated 11 April
2022 notifying Crown Agents of a whole of government direction for the Carbon
Neutral Government Programme;
e)
note the letter from the Rt Hon Jacinda Ardern, Prime Minister to Hon Michael Wood
dated 24 March 2022 outlining the Government’s priorities for their term.
6. Meeting close
6.1 Any other business
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Information
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the
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Released
Board minutes
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DATE OF MEETING
20 June 2022
TIME AND VENUE
8:30am | Fairfield Room, The Hotel Nelson, Waimea Road, Nelson
MEETING
Board meeting
Act
AUTHORITY
Jo Brosnahan (Chair), Belinda Vernon, Roy Weaver, Danny Tuato’o, Denis O’Rourke
ATTENDING
Kirstie Hewlett, Heather Horton (minutes)
EXECUTIVE TEAM
Andrew Saunderson, Peter Brunt, Sharyn Forsyth, Deb Despard
APOLOGIES
Nigel Clifford, Kenny Crawford, Anne Greenwood
GUESTS
s 9(2)(a)
(Acting DD SRS), Justin Allan & Kate Weinburg (RCCNZ & Safety
Services), Rochelle Wengrzik (Manager, Planning, Performance & Risk), s 9(2)(a)
(Chief Financial Officer)
DRAFT MINUTES
Information
1.
Meeting opening and administration
1.1
Chair’s welcome and apologies
The Chair welcomed Board members and management to the Board meeting and invited
Danny Tuato’o to open the meeting with a karakia.
1.2
Declaration of interests
The Board reviewed the interests register and noted the deletions and additions as advised
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during the annual review of Board members’ conflicts of interests (as per the
Register of
Interests for Authority Members Policy).
Resolution
the
The Board resolved to:
(a)
note the Register of Interests and that
(i)
s 9(2)(ba)(i)
under
1.3
Confirmation of previous minutes and actions arising
The Board reviewed the minutes of the previous meeting held on 3 May 2022 and actions
arising.
Board induction development – the Chair will discuss with the Director, who will work with
the DCE People Capability and DCE OSS to develop a draft Board member induction
programme for new Board members.
Board strategic conversations and uncertainties – DCE OSS to enable a refresh of the
Board’s strategic uncertainties table at the August 2022 Board meeting in Queenstown or a
future Board meeting.
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Te Ao Māori strategy – Board members agreed that a broader Board discussion on
Te Ao
Māori, including Te Titriti O Waitangi, would be beneficial. Danny Tuato’o confirmed he
could facilitate a session with all the Board. The Chair and Danny Tuato’o wil discuss
timing, etc. and come back to the Board but the August 2022 Board meeting would be
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opportune to start the conversation.
Meanwhile, as a starting point, it was recommended that the Board read some background
material, a selection of which the Chair will share with Board members.
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Te Ao Māori Advisor role – it was suggested that Danny Tuato’o be consulted on the short-
listing process for the Te Ao Māori Advisor role.
Resolution
The Board resolved to:
(a)
approve the minutes of the Board meeting held on 3 May 2022 as a true and accurate
record of the meetings; and
(b)
note the actions arising and the items discussed above.
1.4
Board Charter
The Chair opened the discussion on the final review of the
Board Charter and the Board
provided the following feedback:
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Page 3
Item 1 – the Board agreed to look at how much it uses its Maori name at the next
review of the
Board Charter in February 2023.
Page 4
Remove Clause 8.4 as the MNZ Values are already included in Clause 9.
Clause 10.1 should be amended to read –
stewardship of the regulatory systems for
which Maritime NZ is responsible including the design and implementation of the
regulatory strategy for MNZ.
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Clause 10.5 be amended to read –
ensuring there is sufficient time and priority given to
generative conversations at Board meetings to ensure that the Board is supporting and
developing the strategic direction of the organisation and considering future risks and
the
opportunities using the following generative conversation stages:
Generative (Stage 1)
Sense-making (Stage 2)
Insight to Action (Stage 3)
A high level, open, less bounded
Evidence and analysis based
Management recommendations
conversation covering ‘What if?’
conversations with the Board
put to the Board for review on how
and ‘What is possible’ for Maritime
where management best current
to address a strategic issue.
NZ. The Board is involved in an
thinking can be tested, and
Papers would cover assumptions,
early front end discussion with
potential gaps identified. These
discussion scope and rationale.
under
management including a foresight
discussions are supported by
Example provocation: As Maritime
component (where appropriate).
papers and management
NZ moves to implement
Detailed analysis and option
information to inform options. An
recommended decisions, are they
framing is not required as this
opportunity to highlight risks (and
consistent with the organisation
and Board’s strategic direction?
point.
Example provocation: How
management of those risks),
could we keep Maritime NZ lively
opportunities, considerations and
and agile for the future whilst
constraints that could inform
remaining match fit in the
Maritime NZ choices, trade-offs
present?
and sense-making.
Example
provocation: Where are the gaps
in what we know now that could
be addressed to lead to better
decisions or options for Maritime
NZ?
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Page 6
Remove Clauses 11.3 and 11.4 and replace with a new Clause that reads –
establish
success agreement with the Chief Executive for the implementation of the strategy.
Include in the Board Business Processes table (Appendix A) reference to the Board
including a strategy session at each Board meeting.
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In Appendix A, change the annual review of the
Board Charter to February.
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Under ‘Holding management to account’, add ‘culture’ to the People Health & Capability
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reporting and to the same item under the ‘Addressing Health and Safety’ section.
The Board mentioned the process for non-performing Board members. The Chair advised
that the responsibility for non-performing Board members lay with the Board Chair but
would be something to review in the future.
Resolution
The Board resolved to:
(a)
approve the
Board Charter with the above amendments.
1.5
Board schedule and work programme
The Board reviewed the Board schedule and work programme. The Chair requested that
the schedule and work programme for the next meeting show the roll over to 2023. The
Information
Director commented that ‘generative conversations’ would be expanded in the future work
programme.
The Governance Support Co-ordinator was requested to provide draft 2023 Board and
Audit & Risk Committee meeting dates to the Chair and Deputy Chair for initial review.
Resolution
The Board resolved to:
Official
(a)
note the
Board schedule and work programme and items discussed above.
1.6
Briefing and Q&A on Nelson stakeholder sessions and Queenstown visit
the
The DD CSE opened the discussion with the Board on the visit to Queenstown. The broad
outline suggestions agreed for the team to work through were:
Board members and ET fly into Queenstown prior to 5pm on Sunday
Dinner or breakfast on Monday or Tuesday morning with Ngāi Tahu
Stakeholder engagement
Consider options for a Stakeholder function, including the potential for one on
board
TSS Earnslaw on Monday evening
Board and ET dinner in Queenstown on Monday after stakeholder event or Sunday
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evening
Board meeting on Tuesday
Board and ET fly out of Queenstown on Tuesday afternoon
The Director provided a brief overview of the interactions with the stakeholders in Nelson
outlining any concerns that might be raised. A briefing pack had been circulated with the
Board papers providing information on the visits, attendees, bios and relevant agendas.
Resolution
The Board resolved to:
(a)
note the information provided for interactions with the stakeholders in Nelson;
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(b)
agree the suggestions for stakeholder engagement and Board meeting in
Queenstown.
10.09am - the Board adjourned for a short break
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10.21am - the Board meeting reconvened
2.
Director’s report
The Director introduced the report which was taken as read. The Board were advised that
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a new Code Lead is being appointed to the New Zealand Port & Harbour Marine Safety
Code which presented an opportunity to enhance collaboration.
The Board discussed the item on the Seafarers’ Welfare Board (SWB) funding for the
2022-23 year noting that the amount required to be signed off exceeded the Director &
Chief Executive’s delegation limit. The Board confirmed they were in agreement with MNZ
funding the SWB for the 2022-23 year and authorising the Director & Chief Executive to
sign the contract with the SWB subject to Budget approval.
Resolution
The Board resolved to:
(a)
note the contents of the report;
(b)
agree, subject to Budget approval, to delegate the Chief Executive to sign the contract
Information
with the SWB.
3. Strategic conversations and decisions
3.1 Board strategic uncertainties
The Board considered the current strategic uncertainty table and themes and briefly
discussed the Ukraine/Russian conflict and its impacts. Management advised that the
situation was high on the agenda in International Maritime Organisation (IMO) discussions
and the IMO were addressing the impacts on seafarers, vessels and the environment in the
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Black Sea and Sea of Azov.
As noted earlier Management advised that it was proposed to refresh the Board strategic
uncertainties table and themes at the August Board or a future Board meeting.
the
Resolution
The Board resolved to:
(a)
note that it was proposed to refresh the Board strategic uncertainties table and themes
at the August Board or a future Board meeting.
3.2 Te Korowai o Kaitiakitanga capability/capacity organisational design
under
The Director opened the discussion and provided Board members with a hard copy of the
slide pack on the Te Korowai o Kaitiakitanga (TKK) capability and capacity consultation that
had been shared with staff.
The Director discussed the slide pack with the Board and in particular the aims of the
capability and capacity project to ensure MNZ can deliver on its core functions including
where identified in TKK modifying, extending or clarifying functions, creating new functions
and making structural changes in three areas.
The Director covered feedback from Phase 1 of TKK, the principles for change, shape of the
change including the opportunity to change names of some Groups to better reflect what
MNZ does, adding in new capabilities, e.g. the Notifications and Enquiries Team (NET),
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Harm Prevention and Engagement Team (Sector Partnerships), changes in relation to
operational policy and practice, for example, moving the service design team to focus on
operational policy and setting up a regulatory practice team in CSD (Regulatory Operations
Group), creating a Maritime Inspections team and proposal to add more capacity to a
number of functions aligned to the Budget bids namely, investigations, legal, guidance and
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education, certification/licensing, new regulatory projects team, people capability.
The DD CSE provided a brief overview of the proposed new Sector Partnerships Group
noting the disestablishment of the Sector Engagement & Collaboration team across to the
new Harm Prevention & Engagement team, and moving Ministerial Services into the Act
Communication, Marketing & Media Team.
The DD CSD provided a brief summary of the proposed new Regulatory Operations Group
noting that the proposed new name was simpler and more meaningful for the sector and
reflected the way forward. The new Group would consist of a new Regulatory Planning,
Practice & Notifications function, Regulatory Operations Planning & Performance team,
General Regulatory Operations team, Regulatory Licensing team (formerly the Certification
Team) and an increase in capacity to establish two Investigations teams.
The two Investigations teams will have different areas of focus. One team will specialise in
the ‘front end’ management of investigative work, including triage and working with the
Maritime Officers. The second team will specialise in ‘post investigations’.
The Director summarised the changes in People Capability in particular the two new
manager positions namely Manager, Health & Safety and Capability Systems and Manager
HR Operations. The Director also explained the proposed name change for Safety and
Information
Response Systems to Response, Security and Infrastructure Services and the current
consultation on proposed changes to RCCNZ.
The consultation period on the proposals closes on 6 July and all staff had been encouraged
to provide feedback. Management will come back to the Board with an update on progress
at their 18 July 2022 meeting.
The Board sought assurance from management that staff would be supported throughout
the process which was confirmed by the Director.
Resolution
Official
The Board resolved to:
(a)
note the oral update.
the
s 9(2)(a)
, Justin Allan and Kate Weinberg joined the meeting
4. Organisational reporting
4.1 MPRS capital programme 2016-22 close-out report
The Acting DD SRS introduced the paper and provided some context on the report back on
the year six results for the Oil Pollution Fund (OPF)/Marine Pollution Response Service
(MPRS) capital programme 2016-22 and a high level summary of the success of the
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programme as it comes to a close.
The Board queried the measures in place whilst the workboat was replaced and how MNZ
would tackle building emissions reduction into the purchase of new vehicles. The Acting DD
SRS responded that in respect of the workboat MNZ had boats at its disposal all around
New Zealand. Robust vehicles are needed to get into some areas or to transport items but
this would be worked through in relation to the low emissions policy.
In conclusion, the Chair concurred that the programme was a ‘good news’ story, in particular
for levy payers, and management should endeavour to publicise.
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5
Resolution
The Board resolved to:
(a)
note the update on Year Six (2021-22) of the MPRS capital programme;
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(b)
note the successful, overall outcomes of the 2016-22 capex programme.
4.2 MPRS capital programme 2022-23
Act
The paper outlining the capital purchase programme proposed for 2022-23 and high level
summary of the outcomes of the overall programme was taken as read.
Resolution
The Board resolved to:
(a)
note that the proposed OPF annual budget for 2022/23 includes capital expenditure to
a total of $2,156,000 comprising $906,000 of work carried over from FY 2021/22 and
$1,250,000 for Year One of the proposed capital programme from Year 1 of the
Strategy Implementation Plan;
(b)
delegate to the Chief Executive the discretion to vary the details of the Year One
annual programme within the overall annual total approved by the Board, and
(c)
direct management to report back on any significant variations, and any consequent
Information
changes, to the overall programme in the end-of-year annual update on the
programme.
s 9(2)(a)
left the meeting
4.3 Continued provision of Maritime Distress & Safety Communications Services
s 9(2)(b)(ii)
Official
the
Resolution
The Board resolved to:
(a)
s 9(2)(b)(ii)
under
a.
s 9(2)(b)(ii)
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6
b.
s 9(2)(b)(ii)
(d)
approve the proposed approach to ensure the continued provision of maritime distress
and safety communications services that will:
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a.
s 9(2)(b)(ii)
.
Act
Justin Allan and Kate Weinburg left the meeting and Rochelle Wengrzik and
s 9(2)(a)
joined the meeting
4.4 Statement of Performance Expectations (SPE) 2022-23
The DCE OSS introduced the paper seeking the final approval of the 2022-23 SPE and
advising the Board that their feedback and that of both the Ministry and Audit NZ had been
incorporated into this final version.
The Board discussed the underlying assumptions relating to cruise ships returning to NZ.
Management outlined that Border Executive Board assumptions were used and projections
were conservative at this point given there were further details to be worked through to
completely re-open the maritime border to cruise ships. Management commented that
subject to those regulatory aspects being resolved there was strong interest in resumption of
cruise so the foreign passenger revenue may be higher than budgeted.
Information
The Board pointed out an amendment required on page 13 of the SPE where there was a
repetition of bullet points 3 and 6.
Resolution
The Board resolved to:
(a)
approve the 2022/23 SPE; Official
(b)
note the final budget and prospective financial statements have been circulated
separately for Board approval (Item 4.5); and
(c)
note the Output Class schedule of costs and funding, at Item 4.5 - Appendix 4, will be
the
included in the final SPE statement of performance section.
4.5 Budget and Prospective Financial Statements 2022-23 (linked to 4.4)
The Chief Financial Officer introduced the paper which was taken as read. The Board’s
attention was drawn to management’s efforts to continue to work with Te Manatū Waka in
respect of the funding of the capital asset programme.
Resolution
under
The Board resolved to:
(a)
note the approach, assumptions and uncertainties for the 2022-23 budget;
(b)
note advice from the Oil Pollution Advisory Committee on the draft Oil Pollution Fund
budget;
(c)
approve the 2022-23 Budget for Maritime NZ (Regulatory & Compliance) that
comprises
i) an operating surplus for the year of $1.107 million;
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ii) capital expenditure of $4.874 million; and
iii) an international travel budget envelope (including trans-tasman, Pacific and long-
haul) of $1.081 million;
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(d)
approve the 2022-23 Budget for Rescue Coordination Centre that comprises
i)
an operating surplus for the year of $0.191 million;
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ii)
capital expenditure of $0.105 million; and
iii)
an international travel budget envelope (including trans-tasman, Pacific and
long-haul) of $0.166 million;
(e)
approve the 2022-23 Budget for the Oil Pollution Fund that comprises
i)
an operating surplus for the year of $0.027 million;
ii)
capital expenditure of $2.156 million; and
iii) an international travel budget envelope (including trans-tasman, Pacific and
long-haul) of $0.133 million;
(f)
recommend that the Minister of Transport approves the proposed Oil Pollution Fund
Budget including relevant elements as necessary as required under Section 332(1)
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of the Maritime Transport Act;
(g)
approve amendments to the 2021-22 Forecast for Maritime NZ (Regulatory &
Compliance) that comprises
i)
decrease forecast capital asset expenses by $0.860m resulting in a full-year
forecast of $2.550m recognising these purchases will be deferred to 2021-22 and
included in the 2022-23 budget;
Official
ii)
increase forecast Crown liquidity funding by $1 million to achieve a break-even
forecast position for the year to 30 June 2022;
(h)
approve amendments to the 2021-22 Forecast for the Oil Pollution Fund as follows:
the
i)
decrease forecast capital asset expenses by $0.906m resulting in a full-year
forecast of $2.27m recognising these purchases will be deferred to 2021-22
and included in the 2022-23 budget;
ii)
decrease forecast dispersant inventory purchases by $1.1m noting this
aspect of the 2016-2022 programme has been removed while further
technical research and analysis is completed;
iii) decrease forecast Crown liquidity funding by $0.960 million due to the
under
forecast cash reserves position for the Fund exceeding the agreed $3 million
as a result of the changes above, resulting in a forecast net deficit for the
Fund to 30 June 2022 of $0.349m;
(i)
approve the 2022-23 Prospective Financial Statements subject to final minor
amendments on net taxes payable as advised by the CFO.
The Chair passed on thanks to the Manager Planning, Performance & Risk, the Chief
Financial Officer and their teams for all of their efforts in bringing the SPE 2022-23, Budget
and Prospective Financial Statements to a conclusion.
Rochelle Wengrzik left the meeting
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4.6 Maritime NZ Insurance Programme Renewal 2022-23
The report seeking the Board’s approval to renew the Maritime NZ insurance programme with
effect from 1 July was taken as read. The CFO drew the Board’s attention to the insurance
challenges with securing cyber policies and having secured cover, the conditions and
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changes. In respect of the risk mitigation aspect good progress had been made on resolving
this issue.
Management commented that it was timely for MNZ to more fully consider provision of
insurance brokerage and advice which will be considered in due course.
Act
Resolution
The Board resolved to:
(a)
note the process and proposed coverage for the 2022-23 insurance programme renewal;
(b)
note the current policy writer for cyber-security (CFC Underwriting) has imposed a
number of conditions on the coverage that may not be fully satisfied;
(c)
approve the proposed asset and liability insurance programme with an estimated
premium and associated costs of $520k.
4.7 Monthly Finance Report | May 2022
The paper providing the Board with an update on the financial position for Maritime New
Information
Zealand and related entities for the period to 31 May 2022 was taken as read.
The CFO advised that TMW were keen to get a good resolution in respect of liquidity funding
and Budget 2022 decisions and MNZ were working with them on the final detail.
The Chair and Board congratulated
s 9(2)(a)
on her new appointment and expressed their
thanks for her significant work and wished her every success in her new role with Sport New
Zealand.
Official
Resolution
The Board resolved to:
(a)
note the financial results for the 11 months to 31 May 2022.
the
s 9(2)(a)
left the meeting
4.8 People Health & Capability report
The People Health & Capability report providing an update on Maritime NZ people and
capability metrics and work initiatives was taken as read. The Board commented that it was a
valuable report and they particularly liked the Working Parents Programme initiative.
under
Resolution
The Board resolved to:
(a)
note the report.
5.
Recurring business
5.1
Correspondence
The report was taken as read.
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Information
Official
the
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Board minutes
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DATE OF MEETING
16 August 2022
TIME AND VENUE
8:00am | @Meetingz Function Room, Novotel Queenstown Lakeside, Queenstown and
via Zoom
Act
MEETING
Board meeting
AUTHORITY
Jo Brosnahan (Chair), Belinda Vernon, Danny Tuato’o, Denis O’Rourke and
Roy Weaver
(via Zoom)
ATTENDING
Kirstie Hewlett, Heather Horton (minutes)
EXECUTIVE TEAM
Andrew Saunderson, Peter Brunt, Sharyn Forsyth, Deb Despard
APOLOGIES
Kenny Crawford,
s 9(2)(a)
GUESTS
Rob Warner (item 3.2)
The Board held a closed session prior to the meeting
Information
1.
Meeting opening and administration
1.1
Chair’s welcome and apologies
The Chair welcomed Board members and management to the Board meeting and invited
Danny Tuato’o to open the meeting with a karakia.
The Chair expressed thanks to the team for all the organisation and planning for the
stakeholder engagement, etc. in Queenstown.
Official
1.2
Declaration of interests
The Board reviewed the interests register and no changes were made.
the
Resolution
The Board resolved to:
(a)
note the Register of Interests.
1.3
Confirmation of previous minutes and actions arising
The Board reviewed minutes of the previous meeting held on 20 June 2022.
under
In relation to the item on the
Use of Māori name it was noted that the name change should
align with the Te Ao Māori approach.
Resolution
The Board resolved to:
(a)
approve the minutes of the Board meeting held on 20 June 2022 as a true and
accurate record of the meeting; and
(b)
note the actions arising.
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1.4
Board schedule and work programme
The Board reviewed the Board schedule and work programme 2022-23. They discussed
future conversations on Te Ao Māori following the outcomes of the workshop on the
agenda.
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In assessing the schedule for 2023 the following comments were made:
should be three regional visits per year aligned with where key issues are;
a visit to at least one major port per year e.g. Auckland, Northland, Bay of Plenty;
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monthly Board meetings with every second one online;
the Chair would like a three-year programme of stakeholder engagement
established.
s 9(2)(f)(iv)
The Chair asked that thought be given to how in the Director’s report or at meetings that
any items where the Board’s influence/assistance would be helpful be identified. . This
would enable the Board Chair to be able to raise issues with people like the Minister where
needed.
Resolution
The Board resolved to:
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(a)
note the
Board schedule, work programme and the discussion above.
1.5
Board member draft induction programme
The Board and management discussed the induction programme for new Board members
and agreed this would include:
A session with the Chair, which would cover the Culture, Values and Charter of the
Board and how it operates; Official
The Board induction programme that was attached;
Sessions on
o the role of the Minister, Te Manatu Waka, the Board and the Director;
o Te Korowai o Kaitiakitanga
o MNZ’s strategic funding, different funding streams, the current Multi-Year
the
Appropriation and potential challenges and opportunities.
o key stakeholders
All of the above sessions would be open for any Board member to attend.
Thought would be given to how the new Board members could meet and greet and
socialise with the Chair and other Board members.
The Chair mentioned that there would also be a farewell for those Board members whose
under
term would be expiring.
2.
Director’s report
The report was taken as read. The Board and Director discussed progress on the current
major recruitment drive. The Board were advised that Te Korowai o Kaitiakitanga
(TKK)
‘Weaving the Cloak’ workshops had been undertaken with all staff covering values, Te Ao
Māori and diversity, sustainability and connection. The outcomes of the sessions would be
framed into a set of organisational values and ways of working and presented at the Staff
Conference in December 2022.
In relation to the litigation report, the Board discussed the
Nord Yilan prosecution decision
and the feasibility of guidance to change or replace the 30 minute rule. It was noted there
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is currently no stevedoring Code of Practice. Such a Code would provide consistent
standards for stevedoring and would have addressed the
Nord Yilan case.
Resolution
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The Board resolved to:
(a)
note the contents of the report.
10.05am - the Board adjourned for a short break
Act
10.21am – the Board meeting reconvened
3. Strategic conversations and decisions
3.1 Te Ao Māori workshop/discussion
Danny Tuato’o led a Te Ao Māori
workshop with the Board and management covering:
Te Ao Marama
Whakapapa
Te Tiriti
Kāwanatanga including –
o Te Reo: mihimihi, karakia, pepeha, signage, documentation, waiata
o Wānanga + noho marae, Matariki, Te wiki o te reo Māori
o Health and Wellbeing: resilience
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o Recruitment
o Leadership, training, development and physical environment
o Tikanga marae
o Relationship marae including a visit to a marae
At the conclusion of the workshop, the Chair thanked Danny for his insightful and
informative workshop, discussion and presentation and proposed that ongoing
commitment to upskilling in Kawanatanga should form part of Board agendas. Further
dialogue and commitment to Te Ao Māori
would ensue and it was proposed that a visit to a
marae should be included in the Board’s schedule.
Official
R
ob Warner joined the meeting
3.2 Board strategic uncertainties
the
The report, seeking feedback from the Board on Maritime NZ (MNZ) strategic uncertainties
and next steps in scheduling its own strategic uncertainties discussion, was taken as read.
It was noted that given the pace of change in the global environment, it was important that
the MNZ strategic uncertainties table was updated which would take place as part of the
Board’s November strategy session.
Resolution
under
The Board resolved to:
(a)
note that strategic uncertainties have been a standing discussion item on Board
agendas since early 2021;
(b)
note its previous discussions on the need to update and refresh this work;
(c)
note the proposed, updated draft of the Maritime NZ strategic uncertainties table
(Appendix 1), using a 7 megatrend framework developed by CSIRO.
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There was some concern expressed that this did not fully cover the specific uncertainties
which the Board needed to address. It was agreed that the Board would have another
session on this at the strategy session in November.
Rob Warner left the meeting
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4. Organisational reporting
4.1 Annual Report 2021-22
Act
The DCE OSS introduced the paper seeking the Board’s insights and direction into the
development of key performance story themes for the 2021-22 Annual Report and proposed
approach and key steps in its production.
The Board discussed the themes and noted that the wellness aspect of ‘Weaving the Cloak’
would also be incorporated in the Annual Report.
In response to a query from the Board on management’s assessment of the Kia Maatara
campaign, they were advised that this was a three-year campaign but so far it had been
encouraging and was tracking as planned.
Resolution
The Board resolved to:
Information
(a)
note the proposed approach to developing the 2021/22 Annual Report;
(b)
note the key dates in the production of the 2022/22 Annual Report; and
(c)
agree the proposed performance story key themes.
4.2 Financial end of year report June 2022
The financial year end report was introduced by the DCE OSS and taken as read.
Management responded to queries on persistent and non-persistent oil, confirmed the
Official
methodology on end of year doubtful debts and the discussion required with Audit NZ on
software as a service arrangement.
Resolution
the
The Board resolved to:
(a)
note the financial results for the twelve months to 30 June 2022
4.3 People Health & Capability report
The People Health & Capability report providing an update on Maritime NZ people and
capability metrics and summary of work initiatives was taken as read. The Board
under
commented that they liked the comprehensive report and the improvement in the gender
profile and staff turnover was encouraging.
Resolution
The Board resolved to:
(a)
note the report.
5. Recurring business
5.1 Correspondence
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Information
Official
the
under
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Board minutes
1982
DATE OF MEETING
13 September 2022
TIME AND VENUE
2:00pm | via Zoom
MEETING
Board meeting
Act
AUTHORITY
Jo Brosnahan (Chair), Belinda Vernon, Roy Weaver, Danny Tuato’o
ATTENDING
Kirstie Hewlett, Heather Horton (minutes)
EXECUTIVE TEAM
Andrew Saunderson
APOLOGIES
Denis O’Rourke
GUESTS
Item 3.1 |
s 9(2)(a)
(Chief Financial Officer), Rochelle Wengrzik (Planning
Performance & Risk Manager) & Brian Cosgriff (Senior Advisor Planning & Reporting)
Item 3.2 | Dave Whiteridge (Chief Legal Advisor)
1.
Meeting opening and administration
Information
1.1
Chair’s welcome and apologies
The Chair welcomed Board members and management to the Board meeting and noted
an apology for the meeting from Denis O’Rourke.
The Chair invited Danny Tuato’o to open the meeting with a karakia.
The Chair acknowledged the passing of Her Majesty Queen Elizabeth II and her life of
service.
Official
1.2
Confirmation of previous minutes and actions arising
The Board reviewed the previous minutes and actions arising. The Chair had identified
items for strategic conversation within the Annual Report and would work with the Director
to have these added to the Board work plan for the coming year.
the
The Chair also remarked that greater clarity was needed around the role of the Board in Te
Korowai o Kaitiakitanga and what level of reporting around it was required.
It was suggested that discussion on how Board members could contribute either
individually or collectively with organisational areas should be included on the agenda for
their strategy session.
Resolution
under
The Board resolved to:
a)
approve the minutes of the Board meeting held 16 August 2022 as a true and
accurate record of the meeting; and
b)
note the actions arising.
2.
Director’s report
The report was taken as read and the Director further updated the Board as follows:
There will be a more detailed report back to the Board on the phishing incident.
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The IMSAS audit commenced on 12 September. The audit results will be shared by
the IMO with the government but will not be publicly released. Any recommendations
arising from the audit will be worked through with the Board.
The draft Letter of Support was sighted by Audit NZ and advice sought prior to the
draft being shared with the Board Chair.
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Investigation work is underway in respect of the Kaikoura incident on 10 September, to
establish the cause of the accident.
A documentary on the
Enchanter fishing boat tragedy will be screened on TV Three
on 20 September. DCE, Response, Security & Safety Services was interviewed for
the documentary.
Act
Referring to the Port Health & Safety work, the Chair queried if the survey to Port workers
had been mindful of the large workforce of Maori/Pasifika. The Director responded that the
survey, which had been provided in many different languages, had been both brief and
easy to complete.
Resolution
The Board resolved to:
a)
note the contents of the report.
3.
Organisational reporting
3.1
Draft Annual Report 2021-22 review
Information
The Manager Planning Performance & Risk introduced the paper seeking the Board’s
feedback on the draft 2021-22 Annual Report and Financial Statements.
The Chief Financial Officer advised that MNZ were working with Audit NZ to bring the
timeline forward to enable the Board to sign off at their November Board meeting which our
Audit Director would be present for. This would enable the Annual Report to be printed
and lodged in the House in time.
The Board provided the following comments on the draft Annual Report:
Official
Page 4,
Our year in review – recommended that some further aspirational thoughts be
included in the introduction, e.g. reflections on the last year and mention of climate change.
Page 6, Compliance – clarification was provided on whether the percentage of 84% and
number of 30 successful prosecutions amounted to the same.
the
Page 7 – useful to see where the economic figures have come from.
Page 11 – agreed a photo of the Executive Leadership Team should also be included.
Page 15 – appears to be overuse of jargon, suggest it be simplified. Should there be a drill
down on the information.
Page 16 – in discussing the trend information it was agreed that this would be further
reviewed.
Page 20 – clarify if the paragraph following the final bullet point is related or separate.
There is a word missing in penultimate paragraph. Suggest review the wording on the way
the requests from the Minister is expressed.
under
Page 22,
Six year fatality stats – suggest the second sentence of the first paragraph would
be stronger if the word ‘how’ was removed. Referring to the fourth paragraph, the Board
queried if investigations were ongoing into why. In the paragraphs following perhaps some
clarity on the groups is needed.
Dave Whiteridge joined the meeting
Page 23 – suggest it would be useful to add when MOSS was first introduced. In
penultimate bul et point include the word ‘commercial’ before operators.
Page 24 – in second paragraph suggest the translation be added for ‘Kia Mataara’.
Page 27 – MNZ does stakeholder engagement well, suggest this should be elaborated.
Page 28 – typo in fifth paragraph.
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Page 56 – MNZ is doing well in the Pacific Maritime security field and suggest this should
be elaborated.
Page 50 – suggest the fishing vessel story is unpicked and simplified to make it more
compelling.
Page 55 – incorrect spelling of Te Manatu Waka in final paragraph.
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Page 63 – suggest mention is made of the Chair and Director’s involvement in WISTA.
Page 65 - appears to be a disconnect between the graphics.
Page 76 – suggest it is not necessary to have two decimal points in the tables, these
should be rounded up.
Page 53, Financial Instruments, Appendix 2 – typo in heading.
Act
Arising from the discussion of the Annual Report, the Board discussed the following items
on which they would like to have more information/dialogue during ongoing Board strategic
conversations.
designing and delivering shared solutions in partnership with iwi and the maritime
sector in preventing harm;
review of Maritime Rules on Navigation Safety (Part 91)
would like to have sight of the
MARPOL Annex VI brochure;
MARPOL and ballast water implementation, MARPOL Annex VI implementation,
Emissions reduction plan;
an update at the next Board meeting on the RCCNZ structure review;
a briefing on the status of the review of the Maritime Transport Act.
In conclusion, the Chair and Deputy Chair acknowledged the huge amount of work that
Information
had been undertaken by the team to produce what was an excellent Annual Report.
Resolution
The Board resolved to:
a)
approve the draft financial statements for submission to Audit NZ;
b)
note and
agree the next steps and timelines.
Rochelle Wengzrik,
s 9(2)(a)
and Brian Cosgriff left the meeting
Official
3.2
Standing Power of Attorney for safety infrastructure & other agreed transactions
The Chief Legal Advisor introduced the paper seeking the Board’s approval to delegate a
limited standing Power of Attorney (PoA) authority to the Chief Executive to enable the
the
Chief Executive to:
authorise transactions involving the siting of safety infrastructure (e.g. aids to
navigation) on land and which fall within approved financial delegations; and
execute leases and associated documentation in relation to office space, where this
relates to transactions that have been previously approved by the Board and fall within
approved financial delegations.
under
The Board discussed the frequency the PoA might be used and the regularity of reporting
back to the Board on the use of this and any other PoA. It was acknowledged that
reporting in real time was more beneficial than waiting until the end of the year and that
including in the quarterly litigation reports would address this.
It was noted that there was duplication in the first bullet point of Schedule 1 pertaining to
deed of renewal of lease which should be corrected.
Resolution
The Board resolved to:
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Information
Official
the
under
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These minutes are a true and accurate record of the meeting
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Jo Brosnahan
31 October 2022
Chair, Maritime New Zealand
Date
Act
Information
Official
the
under
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5
Board minutes
1982
DATE OF MEETING
31 October 2022
TIME AND VENUE
11.15am | Ruma Korimako, TAIC, Level 7, 10 Brandon Street, Wellington
MEETING
Board meeting
Act
AUTHORITY
Jo Brosnahan (Chair), Belinda Vernon, Roy Weaver, Denis O’Rourke, Danny Tuato’o
(via Teams)
ATTENDING
Kirstie Hewlett, Heather Horton (minutes)
EXECUTIVE TEAM
Sharyn Forsyth, Andrew Saunderson, Kenny Crawford, Anne Greenwood, Deb Despard
(via Teams)
APOLOGIES
Nigel Clifford, Peter Brunt
GUESTS
Item 3.2 | Stuart Day & Rob Warner
Item 3.4 | Briar Gill-Michaels & s 9(2)(a) Toitu Envirocare)
Caroline Gall, Juanita Fraser, Megan Adamson & Sonia Edney (MNZ Education &
Guidance Team)
Information
Item 4.4 | Brent Healy, Rochelle Wengrzik & Brian Cosgriff
DRAFT MINUTES
The Board held a closed session prior to the meeting
1.
Meeting opening and administration
1.1
Chair’s welcome and apologies
Official
The Chair welcomed Board members and management to the Board meeting and invited
Danny Tuato’o to open the meeting with a karakia.
The Chair acknowledged this would be the last MNZ Board meeting for Belinda Vernon
and Denis O’Rourke but noted they would both attend the Board strategy day on 28
the
November 2022.
1.2
Declaration of interests
The Board reviewed the interests register and no changes were made.
Resolution
The Board resolved to:
under
(a)
note the Register of Interests.
1.3
Confirmation of previous minutes and actions arising
The Board reviewed the minutes of the previous meetings held on 13 September and 4
October 2022.
The Board reviewed the actions arising and commented that the use of the Māori name
should align with the Te Ao Māori approach and will be the responsibility of the Board.
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1
Resolution
The Board resolved to:
(a)
approve the minutes of the Board meeting held on 13 September 2022 and the ‘out of
1982
session’ Board meeting held on 4 October 2022 as a true and accurate record of the
meetings; and
(b)
note the actions arising as discussed above.
1.4
Audit & Risk Committee resolutions
Act
The ARC reviewed the
Financial delegations, Risk management policy & framework and
Business travel & expenses policies at their meeting immediately prior to the Board
meeting.
Resolution
The Board resolved to:
a)
approve the
Financial delegations policy as endorsed by the ARC;
b)
approve the Risk management policy & framework incorporating the changes
proposed as endorsed by the ARC; and
c)
approve the
Business travel & expenses policy as endorsed by the ARC.
Information
1.5
Board schedule and work programme
The Board reviewed the Board schedule and work programme 2022-23. The Chair
advised that an extensive Board induction programme was being established for new
members. This would be circulated to current Board members allowing them to select any
aspects they would also like to participate in.
It was noted that Board engagement would be discussed at the Board strategy day and
visits finalised following review. Official
2.
Director’s report
The report was taken as read with the Board observing it was a helpful and succinct
summary.
the
The Board:
Commented it would be beneficial for Board members to be invited to more
stakeholder events. The Director agreed and confirmed that Board stakeholder
engagement was on the agenda for discussion at the Board strategy day.
In discussing the Staff Conference on 12 December, the Chair requested that the
Director think about any future opportunities where the Board can connect with
under
employees.
Queried the scale of the certification back-log. The DCE RO explained that there had
been a back-log of over 1,000 applications which had now reduced to 12. This was
largely due to the impact of employing permanent staff.
Would like to be involved in the review of the Maritime Transport and Maritime Security
Acts.
Discussed the Budget 2023 and Funding Review, remarking that the bids could be
enhanced with reference to what has driven the baseline i.e. a summary of how we got
to where we are now. To address this, add a couple more bullet points in the
Context
section.
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Resolution
The Board resolved to:
a)
note the contents of the report; and
1982
b)
approve the Funding Review Terms of Reference, while noting the comments and
recommendations made.
12.45pm – the Board adjourned for lunch
Act
1.10pm – the Board meeting reconvened and Rob Warner and Stuart Day joined the
meeting
3.
Strategic conversations and decisions
3.1
Strategic uncertainties
Resolution
The Board resolved to:
(a)
note the strategic uncertainty themes as at October 2022; and
(b)
note that these strategic uncertainty themes will be refreshed at the Board strategy
day in November.
Information
3.2
MNZ outcomes – Te Korowai generative session
The paper providing context to an initial conversation, to review and refresh MNZ’s
Purpose, Vision, Role, Outcomes and Principles that over time will provide the strategic
direction and connection for the Te Korowai programme was taken as read.
The Board embarked on an open conversation on potential outcome statements to
describe what success could look like for the Safe, Secure, Clean and Sustainable aspects
of MNZ’s operation in the future. Official
Resolution
The Board resolved to:
the
a)
note that work stream 1 of the Te Korowai o Kaitiakitanga is progressing, including
a specific project to review and refresh Maritime NZ’s Purpose, Vision, Role,
Outcomes and Principles (as per
Appendix 1);
b)
note that two initial workshops have been held with ELT, prior to this conversation,
to help kick start the generative phase of the work;
c)
note that the output of generative discussions with the Board will help inform and
shape iteration of the Te Korowai o Kaitiakitanga strategic frame.
under
2.16pm – Rob Warner and Stuart Day left the meeting and Briar Gill-Michaels and s
, Toitū Envirocare joined the meeting
9(2)
(a)
3.3
Carbon Neutral Government Programme (CNGP) expectations and progress
The Special Projects Lead introduced the paper providing an update on progress towards
the CNGP requirements that apply to Crown Agents from 1 December 2023 and provide
clarity on the public sector expectations to achieve carbon neutrality from 2025.
Discussion ensued on the emission reduction terminology as it related to the programmes
MNZ participates in namely, the Toitū Envirocare carbonreduce programme and CNGP,
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3
and its own terminology. It was noted that there are currently not global definitions for
many of the terms.
s 9(2)(a)
a specialist with Toitū Envirocare discussed with the Board the key
expectations, challenges and observations common to the public service.
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Resolution
The Board resolved to:
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a)
note the progress to date and that MNZ is well positioned to meet the required
CNGP milestones1 by 1 December 2023;
b)
note that we have three years of GHG emissions now audited. Our 2019/20 base
year emissions have successfully achieved Toitū certification and our FY2020/21
and FY2021/22 GHG emission audits are complete, with certification expected in
November;
c)
note that further engagement with the Board will occur in early 2023 to establish our
2030 reduction targets so we can complete our CNGP target setting requirements;
d)
note that the public service still await Ministerial direction on carbon offsetting whilst
CNGP is still undertaking significant policy work in this area and further report backs
to Cabinet are expected by early 2023;
e)
note that MNZ will report on progress in the 2021/22 Annual Report, a year ahead of
the requirement to do so, as has been agreed by the Board.
Information
2.47pm - Briar Gill-Michaels and s 9(2)(a)
left the meeting and Caroline Gall, Juanita
Fraser, Megan Adamson and Sonia Edney from the Education & Guidance Team joined
the meeting
4. Presentation from the MNZ Education & Guidance Team
The Education & Guidance Team provided the Board with a presentation explaining they
were now part of the new Partnerships group formed from Te Korowai, their purpose,
their function under Legislation, what the team were seeking to achieve and their
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challenges. The Team also gave the Board examples of both their completed and
current work.
The Board thanked the Education & Guidance Team for their informative and insightful
presentation.
the
3.19pm – the Education & Guidance Team left the meeting and
s 9(2)(a)
, Rochelle
Wengrzik and Brian Cosgriff joined the meeting
5.
Organisational reporting
5.1
IMSAS post audit briefing
The DCE TAS introduced the paper providing the results of the recent IMO Member State
under
Audit Scheme (IMSAS) audit of New Zealand and the next steps in responding.
The Chair queried how MNZ had compared with other organisations that had undertaken
the audit and the DCE TAS responded that the observations were consistent with other
organisations.
The Chair requested that this paper be included as an attachment to provide a cross
reference when submitting the ‘Corrective Action Plan’ for review by the Board.
1 CNGP required by 1 December 2023 that MNZ: are measuring, verifying and reporting
organisational GHG emissions; have set reduction targets in line with a 1.5C pathway; created a
reduction plan to reduce your emissions.
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4
Resolution
The Board resolved to:
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a)
note the findings and observations arising from New Zealand’s first mandatory IMSAS
audit;
b)
note the next steps and indicative timetable for responding to the audit;
c)
note the executive’s initial high level thinking on the response to the findings that fall to
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Maritime NZ; and
d)
note that the executive wil return to the Board with a draft ‘Corrective Action Plan’ and
comms approach in the coming months.
5.2 Financial report | September 2022
The finance report for the three months to September 2022 was introduced by the Chief
Financial Officer and taken as read. It was noted that the expectation was for cruise
revenue to increase.
Resolution
The Board resolved to:
a)
note the financial results for the three months to 30 September 2022.
Information
5.3 People Health & Capability report
The People Health & Capability paper was introduced by the DCE PC and taken as read.
Resolution
The Board resolved to:
Official
a)
note the report.
5.4 Annual Report
The Manager Planning Performance & Risk introduced the report which provided the
the
Board with a near-final draft of the 2021-22 Annual Report. The key steps for approval
and publishing were recapped, noting that the final Annual Report 2021-22 would be
presented at the November 2022 Board meeting for Board approval.
Resolution
The Board resolved to:
under
a)
note the near-final draft of the 2021-22 Annual Report non-financial sections; and
b)
note the progress update and key dates of the final audit and production of the
Annual Report.
3.31pm –
s 9(2)(a)
, Rochelle Wengrzik and Brian Cosgriff left the meeting
6.
Recurring business
6.1 Correspondence
The correspondence report was taken as read.
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Act
Information
Official
the
under
Released
Board minutes
1982
DATE OF MEETING
29 November 2022
TIME AND VENUE
8.30am | Runanga Room, Kumutoto Venue, PWC Centre, 10 Waterloo Quay,
Wellington
Act
MEETING
Board meeting
AUTHORITY
Jo Brosnahan (Chair), Roy Weaver, Danny Tuato’o and Annabel Davies
(via Teams)
ATTENDING
Kirstie Hewlett,
s 9(2)(a)
(minutes) & Jane Wallace (minutes)
EXECUTIVE TEAM
Sharyn Forsyth, Andrew Saunderson, Kenny Crawford,
s 9(2)(a)
, Deb Despard,
Peter Brunt
APOLOGIES
Mike Purchase, Lesley Haines,
s 9(2)(a)
GUESTS
Item 3.3 | Rob Warner & Stuart Day
Item 4 | NZSF representatives
Item 5 | Paul Craven, Steve Peters & Louise Curtis
Item 6 |
s 9(2)(a)
(Audit NZ),
s 9(2)(a)
& Rochelle Wengrzik
Information
The Board held a closed session prior to the meeting
1.
Meeting opening and administration
1.1
Chair’s welcome and apologies
The Chair welcomed Board members and management to the Board meeting and invited
Danny Tuato’o to provide a karakia to open the meeting.
The Board noted apologies from Mike Purchase and Lesley Haines.
Official
1.2
Declaration of interests
The Board reviewed the interests register.
s 9(2)(ba)(i)
the
Resolution
The Board resolved to:
(a)
note the Register of Interests and that
s 9(2)(ba)(i)
under
1.3
Confirmation of previous minutes and actions arising
The Board reviewed the minutes of the previous meeting held on 31 October 2022.
The Chair noted that the Board were well served by the information provided by the ELT.
Maritime NZ was an excellent organisation that needed to enhance its brand.
Resolution
The Board resolved to:
(a)
approve the minutes of the Board meeting held on 31 October 2022 as a true and
accurate record of the meeting; and
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(b)
note the actions arising.
1.4
Board schedule and work programme
The Board reviewed the Board schedule and work programme 2022-23, noting that this will 1982
be further developed following the Board strategy day discussions and dialogue on Board
engagement.
1.5
Board induction programme
Act
In discussing the proposed Board induction programme, the Chair confirmed that she will
mentor new Board members until the end of February 2023 and new members will then
have a separate Board buddy. A full induction pack will be loaded into the Diligent Boards
resource centre including a full briefing, orientation dates, learning modules etc. Plans
were also underway to shape a full induction day on 28 February 2023.
2.
Director’s report
The report was taken as read. Discussion ensued on Port Health & Safety noting that a lot
of effort had been put in by MNZ staff but the Ports and companies had collaborated
bringing a lot of spin-off benefits, including relationship building, increased trust, etc. One
outcome of the trust building had been the Ports wanting the regulator to hold data by
building a data lake.
It was noted that the Fatigue Risk Management System Good Practice Guidelines are to
Information
shortly be released. One of the challenges ahead would be developing the Approved
Code of Practice on Stevedoring.
Following discussions with the Board, ELT, Managers and staff on values, a group of staff
have worked on synthesising information to come up with a set of organisational values to
be shared and discussed at the Staff Conference on 12 December.
The Board will be provided with a deep dive on Weaving the Cloak (Whiria te tangata) at
their February 2023 meeting.
Official
It was noted two new budget bids have been submitted seeking additional funding for
Maritime Security, seafarer welfare and MARPOL.
Resolution
the
The Board resolved to:
a)
note the contents of the report.
The Board adjourned for morning tea and reconvened after 15 minutes
3.
Strategic conversations and decisions
3.1
Briefing for visit from New Zealand Shipping Federation (NZSF)
under
The DCE, Partnerships introduced the paper providing the Board with a briefing on the visit
from the New Zealand Shipping Federation.
Resolution
The Board resolved to:
(a)
note the briefing.
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3.2
People Health & Capability report
The DCE, People & Capability introduced the report informing the Board that there had
been a large amount of recruitment activity in connection with Te Korowai and the calibre
of applicants was very good.
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Change support was in place for any impacts of Te Korowai. There was good feedback
from staff on the culture and enthusiasm about the future. The Staff Conference on 12
December was an excellent opportunity to bring staff together.
Act
The Board queried the external feedback on the size and growth with the Te Korowai
programme. Management responded that there had been buy-in but it was essential that
Maritime NZ was clear on its plans.
In regard to aggressive ‘phone cal s, the Board were interested to know how staff were
supported and how complaints were captured. Management responded that there was
proactive training on how to handle aggressive ‘phone calls and EAP was available to all
staff. The calls themselves were logged in the Vault recording system. Contact was also
made with external parties advising them that aggressive ‘phone cal s were not acceptable.
Resolution
The Board resolved to:
(b)
note the report.
Information
Rob Warner, Chief Advisor Strategy and Stuart Day, Chief Advisor Regulatory Policy
joined the meeting
3.3
Maritime NZ outcomes and principles
The Board were provided with a presentation from the Chief Advisors Strategy and
Regulatory Policy briefing them on progress with refining, refreshing and renewing
Maritime NZ’s principles and outcomes and seeking input to progress to a draft strategic
frame for sign-off by the Board. Official
Discussion ensued with the Board on the definitions of Safe, Secure, Clean and
Sustainable, if any outcomes or principles were missing, could be changed or could be
enhanced.
the
The Board all agreed that Safe Secure and Clean remain along with the new outcome
Sustainable made sense as MNZ’s top line outcomes. There were suggested changes to
the 9 intermediate outcome. For example the Board though the reference to the Tier 1
Ships under the Tokyo agreement was too narrow, the workforce outcome could add
attractive and thriving as descriptors of the sector, and there was an absence of the
readiness and response aspect of Maritime Work.
The Board also provided feedback on the five principles. They suggested Deliberate be
replaced by Intentional, and dependable by trusteed and credible. The Board also wanted
under
more leaderful language and for foresight and horizon language to be used.
In summing up, the Board were advised that management would come back by the end of
Q3 with a draft strategic frame for their approval.
The Chair thanked both Rob Warner and Stuart Day for their presentation and opportunity
to discuss and also expressed thanks to Rob Warner for his work on the Board strategy
day agenda and documentation.
Resolution
The Board resolved to:
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(a)
note the presentation.
Rob Warner and Stuart Day left the meeting
3.4
Funding Review consultation document
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The DCE, Organisational Strategy & Systems (OSS) introduced the presentation providing
an overview of the consultation document for the Funding Review 2022-23. The DCE,
OSS and DCE, Regulatory Frameworks (RF) talked through the various proposals with the
Board.
Act
The Board noted the next steps of a draft Cabinet paper and Consultation Document about
the proposals being shared with Te Manatu Waka. This would be followed by the first draft
going up to the Minister by 16 December which would be shared with the Board noting the
tight timeframes.
Resolution
The Board resolved to:
(a)
note the presentation.
s 9(2)(a)
Information
4.
Presentation from the New Zealand Shipping Federation (NZSF)
The Chair welcomed representatives from NZSF and invited them to give a presentation
to Board members.
The NZSF presentation covered their Strategic Plan 2021-25, emissions reduction plans,
workforce issues, Port infrastructure and Rules and Regulatory compliance. The Board
and the NZSF discussed environmental issues in depth, and considered the relationship
Official
between port infrastructure and safety and environmental outcomes. Discussion also
covered cross-industry work in relation to building competent and capable workforces,
and how Maritime and the industry could and did work together on such issues. The
NZSF noted that they were supportive of the work being undertaken through the Te
Korowai o Kaitiakitanga programme, and were appreciative of work underway to ensure
the
that operational policies were appropriately targeted to areas of risk.
In conclusion the NZSF acknowledged their valuable relationship with Maritime NZ.
The Chair thanked the NZSF representatives for their time, insightful presentation and
opportunity to discuss challenges and opportunities and invited them to join the Board
members and ELT for lunch and further discussion.
12.45pm – the Board adjourned for lunch with the NZSF
under
1.15pm – the Board meeting reconvened
Paul Craven, General Manager Regulatory Licensing, Steve Peters, Manager Operators
and Louise Curtis, Manager Workflow & Administration and Jane Wallace (minutes)
joined the meeting
5.
Presentation from Maritime NZ Regulatory Licensing team
The DCE, Regulatory Operations introduced members of the Regulatory Licensing team
noting that this was a team that were under pressure with a heavy workload ultimately
impacting on delivery. However, this was a success story despite not quite overcoming
all challenges.
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The General Manager Regulatory Licensing introduced Steve Peters and Louise Curtis
and led the meeting through the presentation that outlined:
Who the team were - regulatory decision makers with support and front facing portion
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of MNZ that do a wide range of work.
The challenges, pressures and opportunities moving forward.
The importance of the team, outlining an example of failure with a shipping disaster
and the many checks that the team does trying to prevent these situations i.e. MTOCs,
crew, surveyor, ship checks.
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History and impacts.
Progress made to date and looking to build capability/training element for new staff.
The next phases and how improvement will be measured.
The Chair and Deputy Chair thanked the team for a very succinct presentation and the
progress being made.
Paul Craven, Steve Peters and Louise Curtis left the meeting
s 9(2)(a)
(Audit NZ),
s 9(2)(a)
and Rochelle Wengrzik joined the meeting
6.
Organisational reporting
6.1
Annual Report 2021-22
The Chair welcomed
s 9(2)(a)
, Audit NZ to the meeting. The DCE, OSS
Information
introduced the paper seeking the Board’s approval to the Maritime NZ Annual Report and
Financial Statements for 2021-22.
The DCE, OSS commented that there had been challenges last year in getting the
Annual Report audited and able to be approved by the Board by the statutory timelines
and expressed thanks for the team effort which had culminated in the current position.
s 9(2)(a)
confirmed that Audit NZ have completed the Audit with an unmodified
Annual Report. Audit NZ are comfortable with both the Maritime NZ and OPL
Official
performance. Audit NZ commented that there are paragraphs in both sets of financials
which talk to Covid-19 pressures and revenue around levies.
The areas of focus have been closed out and Audit NZ are comfortable with the
disclosures around Covid-19, processes recognising levy revenues and comfortable with
the
financials.
Performance reporting – systems and processes have been reviewed with minor
recommendations.
Final audit – reviewed the results and a sample of measures and comfortable with them
and associated disclosures.
Software as a service – this is a change but content with judgements made in that space
under
from the Ministry.
Audit NZ were currently in the process of drafting the final management report and any
recommendations would be communicated through that. The formal management report
would be considered at the Board meeting early in 2023 and meanwhile Matthew
Geddes commented that Maritime NZ had been very helpful with the process.
The Chair thanked Audit NZ for their efforts and understood the pressure they were
currently under and appreciated that with the audit complete, Maritime NZ could this year
meet its statutory obligations.
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Resolution
The Board resolved to:
a)
approve the Annual Report 2021/22 and statements of performance (
Appendix 1)
1982
including the financial statements (
Appendix 2), for the year ended 30 June 2022 for
Maritime NZ and for the NZ Oil Pollution Fund;
b)
note the content of the management representation letters to the Board from the Chief
Executive and Chief Financial Officer, at
Appendix 5 and 6;
Act
c)
note the content of the going concern assessment from the Chief Financial Officer, at
Appendix 9;
d)
note the content of the letter of comfort from Ministers of Finance and Transport, at
Appendix 10;
e)
approve the content of the representation letter from the Board to Audit NZ at
Appendix 3 and 4, and
authorise the Chair and Deputy Chair to sign the letter on
behalf of the Board (by electronic signature);
f)
approve the Statements of Responsibility for the financial statements and statements
of performance for Maritime NZ and for the NZ Oil Pollution Fund and authorise the
Chair and Deputy Chair to sign the statements for and on behalf of the Board (by
electronic signature);
g)
note the timeline for presentation and publication of the Annual Report; and
h)
note that the management letter from Audit NZ will be advised and reported to the
Information
Board in early 2023.
s 9(2)(a)
, Audit NZ left the meeting
6.2
Q1 Forecast for FY 2022-23
The Chief Financial Officer introduced the paper noting that this was the first forecast for
the year - there were usually two forecasts per year – October/November and
February/March. From a high level perspective, there was nothing notably different from
previous months.
Official
The Board noted:
Revenue – rebound of cruise industry, full agenda for cruise season with an uplift of
approx. $7m balanced off by drop in liquidity fund. Foreign cargo still has a lower
the
revenue month on month equating to about $1.8m per year due to lower port visits.
Expenses – the major areas were outlined in the paper. Personnel made up 60% of
costs. There was focus on how we track against forecasted FTE and contractors. Will
continue to track progress.
Travel – approx. $2.6m in travel costs and need to manage how we weigh off against
increasing prices and be mindful of carbon commitments. At the moment we are just
under
tracking carbon and reporting. The current spend is consistent with budget. Consultancy
is also tracking and there will be a watch on this over the coming months.
Capital programme – steady start to year with spend of $1.1m so far and no adjustment
at present. Predominantly in the IT area. Mid-way through refurbishment of the National
Office in Grey Street plus some regional work.
Cost and liquidity funding – Strong cash balance with no concerns. We will see this on a
monthly basis as cruise revenue increases.
Overall there was a forecast decrease in surplus. Balancing against liquidity fund and Te
Manatu Waka are comfortable with Maritime NZ’s position - it is not causing any
concerns.
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The Chair enquired as to how air travel was impacting Maritime NZ’s CNGP targets.
Management responded that there was no concern at the moment on the reductions
planned on emissions. Current focus is on international travel and Maritime NZ has
commenced quarterly reporting on emissions which means we will be better placed to
1982
report back to the Board in 2023.
Resolution
The Board resolved to:
Act
a)
note the Quarter One forecast for 2022-23 has been completed which incorporates
Te Korowai o Kaitiakitanga capability & capacity changes;
b)
note the proposed forecast surplus, or an adjusted surplus following decisions in the
ELT meeting, being:
i.
$0.722m surplus for Maritime NZ, being a decrease of $0.385m on the
budgeted surplus of $1.107m
ii.
$0.153m surplus for the Rescue Coordination Centre of NZ, being a decrease
of $0.038m on the budgeted surplus of $0.191m
iii.
$0.051m surplus for the Oil Pollution Fund, being an increase of $0.024m on
the budgeted surplus of $0.027m
Information
c)
note the capital expenditure forecast of $7.135m which remains unchanged from
budget;
d)
note the financial results for the four months to 31 October 2022
s 9(2)(a)
and Rochelle Wengrzik left the meeting
6.3
Annual Legislative Compliance Survey results
The DCE RF introduced the item noting that the outcomes were relatively good in terms of
Official
responses and thanking the Board for their participation.
Partial compliances which are listed at page 3 are essentially items captured under other
projects, e.g., incorporation by reference, public records (focus response) and various
other items and of most interest is the HSWA activity which will now drop into H&S internal
the
processes.
In summary:
Good level of response.
Generally giving a good level of compliance.
Some items being picked up and being undertaken by current processes in play.
s 9(2)(g)(i)
under
Management agreed to research the use of DocuSign and report back.
Resolution
The Board resolved to:
a)
note the results of this annual legislative compliance survey;
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1982
Act
Information
Official
the
under
Released
Board minutes
1982
DATE OF MEETING
27 February 2023
TIME AND VENUE
9.15am | Meeting Room 3.4, Level 3, MNZ, 1 Grey Street, Wellington
MEETING
Board meeting
Act
AUTHORITY
Jo Brosnahan (Chair), Roy Weaver, Danny Tuato’o, Mike Purchase, Lesley Haines,
Annabel Davies
ATTENDING
Kirstie Hewlett, Heather Horton (minutes)
EXECUTIVE TEAM
Sharyn Forsyth, Andrew Saunderson, Kenny Crawford,
s 9(2)(a)
, Deb Despard,
Peter Brunt, Shelley Tucker
APOLOGIES
GUESTS
Item 3.1 | Rob Warner & Stuart Day
Prior to the opening of the Board meeting Danny Tuato’o led a mihi whakatau for the
Information
new Board members Lesley Haines, Mike Purchase and Annabel Davies and
concluded with a karakia to close off the whakatau and open the Board meeting
1.
Meeting opening and administration
1.1
Chair’s welcome
The Chair welcomed Board members and in particular the newly appointed Board
members and management to the Board meeting and thanked Danny Tuato’o for the mihi
whakatau.
Official
1.2
Declaration of interests
The Board reviewed the interests register.
the
Resolution
The Board resolved to:
(a)
note the Register of Interests.
1.3
Confirmation of previous minutes and actions arising
under
The Board reviewed the minutes of the previous meeting held on 29 November 2022.
Resolution
The Board resolved to:
(a)
approve the minutes of the Board meeting held on 29 November 2022 as a true and
accurate record of the meeting; and
(b)
note the actions arising.
1.4
Board meeting schedule and work programme
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The Board reviewed the Board schedule and work programme 2022-23 noting the
inclusion of the strategic deep dives in the work programme.
The Chair acknowledged that Lesley Haines had agreed to take on the role of Audit & Risk
Committee (ARC) Chair and further that it was the ARC’s Chair intention to appoint an
1982
independent adviser to the ARC.
The Chair outlined the format of the meetings and invited Board members to work with her
on areas where they would like further involvement. If there were no other major agenda
items for the virtual Board meetings other than the Director and Finance reports then those
Act
particular reports could be circulated via e-mail and the meeting cancelled.
1.5
Board Charter review
The Chair introduced the review of the Board Charter which included the mark-ups from
the Chair and Chief Executive.
The Board discussed:
the amendment to Clause 21 in relation to the independent powers of the Director and
by way of explanation for the change in the clause, some examples of such
independent decisions;
the Māori translations and correct use of words in respect of the Values and principles
and whether it was better in some cases to just use English. Management commented
that sometimes these were not intended to be a direct translation but rather the English
Information
and te reo words were to go together to frame a concept;
the Board business processes section is being reviewed at a later date.
The Board commented that this was a good document for new Board members.
Resolution
The Board resolved to:
a)
approve the
Board Charter as amended noting any Māori translations for the Values
Official
and principles section will automatically be amended.
2.
Director’s report
The Chief Executive introduced the report which was taken as read. The Board were
the
advised that most of the Ports had coped well during the recent Cyclone Gabrielle but the
main issue now lay with getting goods to Ports with the huge impact on supply chains
around the coast that could potentially result in job losses.
s 9(2)(g)(i)
.
At the request of the Police, MNZ took over as the SAR (Search and Rescue) coordinating
authority for all SAR aviation assets. This is not a usual function for MNZ, but we were
under
eager to support the system given pressures on it and the fact it was a National
Emergency. We have an integrated strategy for response but have some lessons resulting
from the last two weeks. There is a general internal review of response services underway
but a post-evaluation review of the response to Cyclone Gabrielle will also take place with
a view to capturing improvements and recommendations. The outcome of these reviews
will be communicated to the Board.
In response to queries from the Board on whether the scope of response would increase
organisational resilience and potential weaknesses, they were advised that the business
continuity policies were currently being refreshed and will be coming to the Board in due
course.
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In respect of staff impacted by the Cyclone, the Board queried if all staff had a PLB. The
Board were advised that some staff do have one and that there was a supply of satellite
‘phones available.
The Board were advised that the first discussion with the new Associate Minister took
1982
place on 9 February which was very positive.
s 9(2)(f)(iv)
s 9(2)(ba)(i)
In
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respect of KiwiRail, it was noted that conditions have been imposed on the Kaitaki whilst
inspections of its maintenance programme and vessels get underway.
In respect of the potential extension of Maritime NZ’s Health & Safety at Work designation
from ship and ship to shore to the Port gate, the Cabinet paper is nearing completion with
an announcement likely in April. The Cabinet paper seeks additional funding to undertake
this role and if funding is not forthcoming then Maritime NZ will not take on the function.
s 9(2)(f)(iv)
In response to a general query on the morale of the organisation, management informed
the Board that there were a number of people already tired early in the year but there was
also positivity off the back of growth and the journey Maritime NZ was taking. Staff were
responding well to the ‘Deliberate and Disciplined’ thinking.
Information
Resolution
The Board resolved to:
a)
note the contents of the report;
b)
note that the Board will be kept up-to-date on lessons and recommendations from the
incident response and any response services reviews;
Official
c)
note that the Board will be provided with the date for the formal opening ceremony of
Level 11 in CHQ.
The Board adjourned for morning tea and reconvened after 15 minutes and Stuart Day,
the
Chief Advisor Regulatory Policy and Rob Warner, Chief Advisor Strategy joined the
meeting
3.
Strategic conversations and decisions
3.1
Maritime NZ outcomes
The Chief Executive introduced the report providing some context and seeking finalisation
of the Maritime NZ Outcomes subject to any final feedback from the Board. Once finalised
under
the implementation phase will commence.
The Board were led through a short presentation on the proposed Outcomes set of four
high level Outcomes: Safe, Secure, Clean and Sustainable and the eight supporting
intermediate Outcomes and concepts. The Board provided feedback that the incorporation
of the feedback from engagement sessions has resulted in more purposeful and clearer
Outcomes. The question was asked how these would be measured and what would
external reporting look like. The response to this was that now the outcomes are agreed
measures will be designed to sit underneath them and will be tracked through reporting
and the SPE.
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A questionnaire was tabled at the meeting seeking views on a proposed Vision, with three
options. The Board feedback was that any vision needs to represent our domain, be
dynamic and future focussed. The Board were invited to send any further comments back
to management via the Governance Support Coordinator.
1982
In concluding the discussion, the Chair recognised the work done thus far by Stuart Day
and Rob Warner.
Resolution
Act
The Board resolved to:
a)
note that, as a result of feedback provided by the Board at its November 2022 Board
meeting, and from further staff engagement late in 2022, Maritime NZ’s Outcomes
have been updated into the final draft set attached as
Appendix 1 to the Board paper.
b)
agree that subject to
any final feedback the Board has at this meeting on the final draft
set of Maritime NZ’s Outcomes, those Outcomes should be finalised.
c)
note that once agreed, the Outcomes
wil be used to prioritise and align Maritime NZ’s
work for the 23/24 FY (and beyond)
d)
note that implementing our Outcomes will involve activities such as building them into
planning frameworks and accountability documents over time, and presented using
various forms of collateral alongside other aspects of the strategic frame (Vision,
Principles and Values).
Information
Rob Warner and Stuart Day left the meeting and Sarah Bailey, Vicky Robson, Briar Gill-
Michaels and Paula Evans joined the meeting
3.2
Strategic Focus Area: Values, Principles and Weaving the Cloak (Whiria te tengata)
3.2.1
Introduction
The Chief Executive led the Board through the presentation on Principles, Values and
Official
Weaving the Cloak explaining the history and story of the Cloak, where the Principles and
Values have landed, an outline of the Weaving the Cloak work and engagement with the
Board on each of the pillars under the Cloak.
The Board were complimentary of the
Māori proverbs. However, under the courage/kia
the
maia value, questioned if this could include reference to having the courage to be wrong.
The Board noted that Danny Tuato’o and the Chief Executive would discuss Māori
translations offline.
3.2.2
Diversity, Equity and Inclusion (DEI)
Vicky Robson and Sarah Bailey introduced their presentation on the overview of the DEI
pillar including the Purpose, link to MNZ Principles and Values, the proposed approach,
under
progress to date and work over next three months, challenges, risks and opportunities,
measures and Board support.
In discussing the presentation the Board commented as follows:
Is leadership quality tested at the recruitment stage? –
there are some constraints on
data gathering.
The ultimate outcome should be the sense of belonging.
The terminology of ‘best person for the job’ should be eliminated in order to achieve
diversity.
What is the connection between this area and that of Connect? –
the Connect value is
well aligned to DEI work and will inform the work programme.
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Does Maritime NZ have frameworks/pathways to raise issues? –
confirmed there is an
open culture that encourages staff to raise issues and support for staff is available.
Pleased with the work and proposed strategic approach, it looks really good and look
forward to further engagement on the work programme.
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3.2.3
Internal emissions reduction plus inaugural carbon emissions deep dive report
Briar Gill-Michaels introduced and led the Board through the CNGP/Environmental
Sustainability Pillar covering the linkages to Maritime NZ’s Principles and Values,
approach, progress to date challenges, risks and measures.
Act
The Board noted that it was the intention of Maritime NZ to write to the Minister in respect
of the barriers and risk SAR activity presents in achieving CNGP requirements and there
would be future opportunities for the Board to feed into the Environmental Sustainability
Strategy.
Carbon Neutral Government Programme (CNGP) 2030 target setting
The report seeking feedback and the Board’s approval to the proposed 2030 emission
reduction target was taken as read.
The Board commented that they were comfortable with separating out the SAR component
from the target. Management advised that a draft broader strategy had been prepared and
there will be engagement with the Board, hopefully by the end of the financial year, in
agreeing that to set the long-term targets.
Information
Resolution
The Board resolved to:
a)
approve the 2030 emission reduction target;
b)
note that we are not setting emission intensity targets for 2030 at this stage;
c)
note that further engagement with the Board will be needed to set our long-term
Official
targets;
d)
note that MNZ intends to take a ‘no surprises’ approach by writing to our Minister to
flag the challenges and risks our Search & Rescue activity has on MNZ not being to
meet an absolute emission reduction in line with CNGP requirements.
the
3.2.4
Connectivity
Paula Evans introduced the Connected pillar overview outlining the work over the next
three months, the challenges, risks and opportunities and the proposed approach.
The Chair commented that online relationships were not covered in the overview, i.e. how
to socialise online and maintain connection. It would be beneficial to include hybrid
working.
under
The Board mentioned that onboarding was also integral and meeting value proposition and
also queried if thought had been given to external focus.
The Chair thanked all the staff for their presentations and good work.
1.15pm – the Board adjourned for lunch
1.40pm – the Board meeting reconvened and Wayne Rhodes, Mary Sinclair Jones, Tere
Scotney and Rob Warner joined the meeting
3.2.5
Te Ao Māori
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Wayne Rhodes introduced the Te Ao Māori pil ar overview. The strategy wil align with the
overarching organisational strategy and supports and adds value to the Crown, Māori
relationship. The intention is to build our capacity and capability to work confidently with
Māori. Staff are eager for cultural awareness and Te Reo Māori and establishing an
Advisory Group will assist in delivery of a capability plan but such a plan will require
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funding.
Success would mean that Maritime NZ is seen as an organisation who is culturally
sensitive, that Te Ao Maori is part of BAU and MNZ is self-sufficient in Te Reo Māori.
There is a big role for the Board and ELT in leadership, culture and an empowered Act
organisation. We should demonstrate cultural competence and understanding of the
significance of Te Tiriti o Waitangi for Maritime NZ.
The Board agreed that the values and strategic pillars are fine but were interested in how
we intend to engage with Māori. Danny Tuato’o confirmed that he is committed to help
with the Te Ao Māori journey wherever he can.
The Chair commented that she would like to see all Board members have their own
commitment to Te Ao Māori both as individuals and as a Board.
The Board queried if there was a plan to breakdown what success would look like.
Management confirmed that this breakdown was outlined in the Vision through a Te Ao
Māori strategy document.
The Chair confirmed that the Board wil sign off the Te Ao Māori Strategy.
3.2.6
Growing our People
Information
s 9(2)(a)
introduced the Growing our People overview and led the Board
through the purpose, objectives, scope, progress to date, challenges, risks and measures.
3.2.7
Internal Health & Safety
In her capacity as Chair of the Health & Safety Committee, the Chief Executive led the
Board through the Health & Safety pillar presentation and outlining what support
management would like from the Board and conversely asked what support the Board
would like on health and safety. Official
Following a staff workshop, Maritime NZ is changing its philosophy on health and safety to
focus on the critical risks in the organisation. Three critical risks have been identified and a
process by which a lead for each risk is appointed. As noted in the presentation, a review
of the Health, Safety and Wellbeing (HSW) Committee and its membership will be
the
undertaken and appropriate training provided to HSW members on risk management and
bow ties. The workshop also culminated in the formation of a HSW plan.
The Chief Executive raised a question on whether the critical risks should be put up as part
of the enterprise risks discussed at ARC and taken out of People Capability; and discussed
the use of SafePlus as opposed to internal audit to get an ‘on the ground’ read out.
The Chief Executive also suggested that the Board might want to meet with the HSW
under
representatives and that this could be built into the Board’s Health & Safety Charter.
The Chair commented that the Board’s Health & Safety Charter needed to be reviewed
and renewed.
It was agreed that (1) management would place the minutes from the HSW
Committee and the Security Committee meetings into the Board’s resource centre
and (2) a review of the Board’s Health & Safety Charter would be put on the agenda
for the April meeting.
The Chair thanked all the staff for their presentations and good work.
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In summary, the Board agreed that they would like to see, on a quarterly basis, an update
on the A3s presented at this meeting in order to track progress. They appreciated staff
members presenting to them which worked well.
3.3
Board Strategy Day follow-up: Leadership, Influence
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The DCE Regulatory Frameworks introduced the paper summarising the areas the Board
identified as priorities for strategic leadership and influence over the longer term by
Maritime NZ and seeking input on any other areas the Board would like to influence.
Act
The Board commented as follows:
should we be considering the sea level rise impact for the Ports;
the major themes are what we agreed on and where to put our effort but we need to
have a constant awareness of the environment;
we should not lose sight of the other conversations we have and should find a way of
capturing these, perhaps under ‘strategic uncertainties’.
The Board also commented that perhaps we should check if we were in sync globally.
Resolution
The Board resolved to:
a)
note the key themes identified at the Board Strategy Day where the Board wishes to
build strategic influence as opportunities allow; Information
b)
note the progress made to date in these areas.
The Board adjourned for afternoon tea and reconvened after 15 minutes. Rob Warner
joined the meeting
3.4
Strategic uncertainties
The Chief Advisor Strategy introduced the paper and led the Board through an emerging
strategic uncertainties discussion with reference to the CSIRO mega trend framework
Official
included in the paper and previously shared at the November 2022 strategy session.
The Board noted the growing importance of considering emerging disruptions and changes
in both Maritime NZ’s contextual and transactional operating environments, with this
highlighted by recent cyclone related events and the pace/extent of disruptive change
the
facing all organisations.
The Board agreed that it should schedule a dedicated session to workshop strategic
uncertainties as part of its 2023 Work Programme. The Chair noted that Board would be
comfortable for the Chief Advisor, Strategy to develop a suitable approach. This should
include framing some initial questions to, and collecting feedback from Board members
about: their views on specific strategic uncertainties over various time horizons
(now/near/next) for Maritime NZ operations; how they would like conduct strategic
under
uncertainty conversations going forward, and; their perspectives on how to ensure topics
are kept at the right level of relevance for governance decision making and risk
management (i.e. less Global, more local).
The Chair thanked the Chief Advisor, Strategy for his continuing support around strategic
foresight and futures thinking, and acknowledged the Board was fortunate to have this
level of specialist capability/expertise to assist it with its anticipatory governance role.
Resolution
The Board resolved to:
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a)
note that strategic uncertainties have been a standing discussion item on Board
agendas since early 2021;
b)
note that the Maritime NZ strategic uncertainties table (Appendix 1) was updated late
last year using a 7 megatrend framework developed by CSIRO, and was included as
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part of the pre-reading information provided to the Board for the November 2022
strategy workshop;
c)
agree a dedicated (i.e. generative) session be scheduled as part of its 2023 work
programme to ful y refresh the strategic uncertainties table content including ‘What;
Act
So What; Now What’ aspects for Maritime NZ.
Rob Warner left the meeting and Rachel Butler, Matt Patterson & Bonita Gestro joined the
meeting
4. Presentation from the Research, Analysis & Intelligence (RAI) team
The Chair welcomed Rachel Butler, Matt Patterson and Bonita Cooper to the meeting who
introduced themselves and the wider team and their purpose in providing analytical
expertise to generate and share insights that guide and inform harm prevention and
regulatory decision-making.
The main components of the presentation to the Board were about the team’s journey,
what they do, the work enabling them to do it and the challenges and opportunities. The
presenters explained their work programme and how the intelligence programmes build an
understanding of the drivers of harm for different sectors, inform intervention design
Information
decisions and help and direct frontline operational activity. The presenters also discussed
the challenge of using and having access to all available data and information and the
tools to undertake analytical functions.
The Chair thanked the RAI team for their attendance at the Board meeting and the
interesting and insightful presentation.
Resolution
Official
The Board resolved to:
(a)
note the presentation.
Rachel Butler, Matt Patterson & Bonita Gestro left the meeting
the
5.
Organisational reporting
5.1 Finance report
The report providing an update on the financial results and other financial matters for
Maritime NZ, Rescue Coordination Centre and the Oil Pollution Fund for the seven
months to 31 January 2023 was introduced by the DCE Organisational Strategy and
Systems (OSS).
under
The Board noted that Te Manatu Waka will provide a capital injection to cover the costs
for the recent SAR activities.
Resolution
The Board resolved to:
a) note the financial results for the seven months to 31 January 2023
Rochelle Wengrzik joined the meeting
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5.2 Statement of Performance Expectations (SPE) - approach
The Manager Planning Performance & Risk introduced the paper outlining the proposed
approach and timelines for developing the 2023-24 Statement of Performance
Expectations (SPE). The Board were asked to note that the first draft of the SPE
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including budget will be presented at the 17 April 2023 Board meeting.
Resolution
The Board resolved to:
Act
a)
note the approach and timelines to develop the 2023-24 SPE;
b)
note a Statement of Intent will be developed in 2024
.
Rochelle Wengrzik left the meeting
5.2 People Health & Capability report
The DCE People Capability introduced the report, providing the Board with an update on
Maritime NZ people and capability metrics and summary work initiatives. A large tranche
of recruitment has been completed and despite the labour market still being tight,
Maritime NZ has managed to attract a good calibre of staff.
The Board congratulated management on the gender balance achievement which was
hugely positive.
Information
Resolution
The Board resolved to:
a) note the report.
5.3 Whanganui Board stakeholder engagement
Official
The DCE Partnerships introduced the paper outlining the proposed focus for the
forthcoming visit to Whanganui and seeking the Board’s comments on the proposal and
input based on their own networks, connections and areas of focus.
The Board commented as follows:
the
should thought be given through engagement with stakeholders to understanding staff
health and safety issues and risks and observing their contexts;
engagement with councils should be at the Councillors and Senior Executive level.
The Board asked to receive regular information about events that they may be interested
in attending. The Board were also encouraged to visit the regional offices.
under
For the New Plymouth engagement, Roy Weaver offered to assist the Partnerships team
with their plans/contacts.
Resolution
The Board resolved to:
a)
confirm the ‘Board engagement overview’ document with the addition of reference to
understanding stakeholders’ staff health and safety issues and risks;
b)
agree the proposed programme and stakeholders noting that engagement with
councils should be at a senior level;
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Act
Information
Official
the
under
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Board minutes
1982
DATE OF MEETING
17 April 2023
TIME AND VENUE
11.00am | Whanganui
MEETING
April 2023 Board meeting
Act
AUTHORITY
Jo Brosnahan (Chair), Roy Weaver, Danny Tuato’o, Mike Purchase, Lesley Haines,
Annabel Davies
ATTENDING
Kirstie Hewlett and Lizzy Cohen (minute taker)
EXECUTIVE TEAM
Sharyn Forsyth, Andrew Saunderson, Kenny Crawford, Deb Despard, Peter Brunt, Shelley
Tucker
APOLOGIES
s 9(2)(a)
GUESTS
Rob Warner | Item 4.1, Rochelle Wengrzik | Item 5.1,
s 9(2)(a)
| 5.4, Carolyn
Leatherby / Renee Randall | Item 5.5
Information
The Board opened the meeting with a karakia.
1.
Meeting opening and administration
1.1
Chair’s welcome
The Chair welcomed Board members and the Executive Team. Lizzy Cohen is providing
interim Board support and was introduced to Board members.
1.2
Declaration of interests
Official
The Board reviewed the interests register.
1.3
Confirmation of previous minutes and actions arising
the
The minutes of the previous meeting held on 27 February 2023 were reviewed by the
Board. The Board:
approved the minutes of the Board meeting held on 27 February 2023 as a true and
accurate record of the meeting.
Jo Brosnahan and Danny Tuato’o
(carried)
1.4
Actions arising report
under
noted the actions arising report.
1.5
Audit and Risk Committee resolutions
Audit & Risk Committee Charter
a) adopted the Audit & Risk Committee Charter with agreed changes.
Organisational policies review
(a)
adopted the Reserves Policy
(b)
adopted the Internal Assurance and Framework policy;
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(c)
adopted the Fraud, Bribery and Corruption policy
(d)
noted that the minutes from the 20 March 2023 meeting will be presented at the next
Board meeting for Board approval.
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Lesley Haines and Roy Weaver
(carried)
1.6
Board meeting schedule and work programme
The Board reviewed the Board schedule and work programme 2022-23. The Chief Act
Executive/Director noted that staff plan to refresh the work programme which will be
presented back to the Board for their review at an upcoming Board meeting.
2.
Chair’s Report – verbal update
The Chair provided a verbal update to Board members on key topics and activities since
the last Board meeting. The Board:
noted that the Chair sent a letter to the Associate Minister of Health, Hon Kiri Allan
regarding the funding review 2023/24 which highlighted some concerns to this year’s
process and timing, the potential impact on the delivery of our work and the need to give
the sector more certainty on levies. Subsequent to the letter, the Chair was asked to meet
with the Associate Minister of Health, Hon Kiri Allan regarding the funding review for
2023/24.
Information
noted that the Chief Executive/Director and staff had their regular meeting with Minister
Allan to provide further detail on the efficiency and effectiveness programme. Staff are
working with the Ministry of Transport on a revised Cabinet paper on the funding review
2023/24 which is expected to go to Cabinet in May in order to meet the 1 July deadline.
Staff noted that there is a potential risk with election year and the uncertainty post-election.
noted the recent cabinet decision on HSWA designation extension, which will be
discussed in the Director’s report.
Official
3.
Director’s report
The Chief Executive/Director introduced the report which was taken as read. The Board
noted the report and discussed the following topics:
the
Sector workforce issues
s 9(2)(g)(i)
under
Emergency vessel towage capability
s 9(2)(f)(iv)
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s 9(2)(f)(iv)
noted that there is increased media attention on this topic.
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Media
noted that the recent Paihia ferry collision which has raise the issue of skipper licensing,
an issue Maritime NZ has raised in advice to Ministers before. Staff intend to include this in
the weekly report to the Minister
Act
noted the recent decision by the Chief Ombudsman regarding the MIQ settings for NZ
seafarers during COVID-19 lockdown. Staff noted, as reflected in the Ombudsman’s
findings, that Maritime NZ provided clear advice to MBIE on the MIQ settings, which was
not included. The Ombudsman has ruled that MBIE must formally apologise. Staff are also
working with MBIE to plan for if there was another outbreak
noted the recent OIAs from
s 9(2)(a)
on MIQ settings for seafarers and that staff are
responding to provide him with the above information to provide clarity on Maritime NZ’s
advice and role in the development of the settings
noted that staff will consider how we best inform Board members on key messages in
relation to issues of interest in the media.
IMSAS Interim Audit Report and Corrective Action Plan
Information
noted that the IMSAS Audit report and corrective action plan will be presented to the
Board at the next meeting.
Use of DocuSign
noted that DocuSign, an electronic signature solution, is on the ICT roadmap which is
being prioritised against other ICT technology initiatives
noted that staff intend to share the ICT roadmap with the Board at an upcoming Board
Official
meeting.
The Board adjourned for lunch and reconvened at 1.11pm.
the
4.
Strategic conversations and decisions
4.1
Overview of Maritime NZ risks, assurance and monitoring
The Board were provided with some supporting material; Board focus areas table, and the
risk, assurance and monitoring diagram, and an overview from the Chief
Executive/Director to support the Board discussion on the next item, Strategic
Uncertainties.
4.2
Strategic uncertainties
under
At the February Board meeting, it was agreed that a workshop should be held to
refresh/update the information the Board uses to track/monitor/update strategic
uncertainties for Maritime NZ going into 2023. To assist with the workshop, the Board
members provided feedback prior to the meeting to identified strategic uncertainties Now
(present/short term); Near (soon/around the corner); and Next (later/longer term).
The Board discussed the key strategic uncertainties impact (‘so what’) and the mitigations
(‘now what’).
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noted that staff will capture the information from this workshop which will inform a report
back to the Board at the June Board meeting to inform further discussion on strategic
uncertainties.
4.3
‘Safe’ Strategic deep dive
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At the February 2023 Board meeting, the Board agreed on the Maritime NZ Outcomes for
2023/24, which are Safe, Secure, Clean and Sustainable. The Board’s strategic
conversation for this meeting was centred on the ‘Safe’ Outcome. The Executive team
prepared material to support Board discussion on the key work areas that we are Act
progressing within ‘Safe’, which are; ports and harbours and oceans, other domestic
maritime transport operators and seafarers, foundational/cross-sector issues, readiness
and response and recreational craft. The Board discussed the current context, risks and
opportunities for each area.
Recreational craft
The Board discussed the opportunities open to Maritime NZ, noting the changing strategic
context for recreational craft currently. Leadership discussions are happening across the
water safety sector, and Te Manatū Waka are considering taking up a role as government
steward for this sector. The Board were keen to see Maritime NZ continue to work at a
strategic leadership level for recreational craft, and to explore how our “on” the water role
might support “in and around” the water outcomes too. This should include an increased
focus on our value add as a regulator (with regional councils) and in exploring alignment
between recreational and some commercial activities.
Information
In terms of risks, the Board discussed the relative lack of profile of Maritime NZ in this
sector compared with some other organisations, and asked management to consider how
our profile and value be made more apparent.
s 9(2)(f)(iv)
Ports, Harbours and Oceans
The Board noted that this is a key focus area for MNZ. They discussed the current issues
Official
and safety concerns such as insufficient crew, high demand for vessels, and deferred
maintenance during COVID-19 leading to poor quality vessels and errors which results in
higher acute and catastrophic harm incidents and near misses as well as contributing to
ongoing serious injury and fatality risks in loading and unloading vessels. With regards to
risks for Maritime NZ, detentions are up after the Maritime Inspections team was put in
the
place, however inspections are down due to intensive work on Maersk and Inter-islander
ferries, in addition to the need to training new staff. Our team are working long hours which
is a fatigue and health and safety risk and a potential staff retention risk.
The Board noted Maritime NZ’s positive work with the sector through PHMSC and Port
Health and Safety Leadership Groups, fora that we can use to progress our work and tell
our story. It was noted that we have made a case for more resources to support this work.
The HSWA designation extension is a good example of what we can do with funding
available
and if done well, provides an opportunity to also increase presence on ports with
under
benefits on both sea and land and delivery of outcomes. Staff noted that we will provide
updates on implementing the HSWA designation in the Director Report.
Foundational / Cross-Sector Issues
The Board recognise that a Regulator’s core activities must be well maintained and
invested in. Maritime NZ’s approach, guided by the work done in the Te Korowai o
Kaitiakitanga workstream, has been to build a robust Operational Policy and Practice
Framework to guide the activities of our frontline. The Board discussed the opportunities to
improve our practice in terms of consistency and quality, and noted that we are bringing
together a set of policies, processes, practice tools and guidance to bring about improved
results. This will also offer greater levels of clarity and accountability for regulated parties.
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The Board noted, in respect of our 3rd party areas (those that do work on our ‘behalf’), that
this is an area that is of importance to Maritime NZ. In terms of risks, ‘regulatory failures’
have occurred because regulators did not have the understanding or the resource to be
able to conduct appropriate oversight of 3rd parties.
s 9(2)(g)(i)
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The Board noted that the Te Korowai o Kaitiakitanga Program surfaced improvement
opportunities with Maritime NZ systems for managing enquiries and notifications. A
notifications and enquiries team (NET) has been introduced to enhance ‘user experience’,
Act
manage notifications and improve decision-making in respect to those notifications. This
function will enhance credibility with the sector and stakeholders. The information that is
received by the NET will allow us to more easily pick-up trends and common issues,
enabling improved response choices. Enquiries will be managed and monitored to facilitate
more efficient and effective turnaround. In turn, this creates some relief for the front line
who will no longer need to be distracted by matters that are not technically their core role.
Readiness and response
A core role of Maritime NZ is incident response in the maritime domain. This requires a
system approach with investment in capability, capacity, planning, processes, systems,
working with a range of partners. MNZ is also part of the National Security System,
supporting all-of-government responses to events like the Christchurch terrorist attack,
COVID-19, severe weather events (e.g. Cyclone Gabrielle).
The Board noted that the readiness and response approach, across government generally,
Information
tends to be reactive and focused on response and recovery (with some reduction and
readiness activities that may be “biased” towards the most recent event or highlighted risk),
rather than being intelligence led and future focused.
MNZ currently has different structures for different types of incidents and we need to do
more work to be integrated, for both readiness and response (otherwise we risk having
silos, duplication of effort, inconsistency and not enough clarity about how different
functions in a maritime incident will work together – SAR, oil recovery, salvage etc).
The Board discussed the opportunities to support investment in our vision in integrated
Official
readiness and response from all levels of leadership and all parts of MNZ. The Board
supported the opportunity to continue to build a flexible framework that can adapt to the
changing environment, and to be more proactive than reactive – requiring linkages with
harm prevention, regulatory operations, intelligence-led.
the
Staff agreed to report back to the Board to provide an overview of roles and responsibilities
including the Board’s role and the lessons learnt from recent incident responses.
Other Domestic Operators and Seafarers
The other Domestic Operators and Seafarers sector is a high diverse one. The Board
noted that Maritime NZ was earlier on in its harm prevention journey with this group of
Operators; but work is beginning now on a new harm prevention programme. Opportunities
are also emerging to look at our approaches in areas like MOSS and the application of
under
HSWA. Workforce and certification are critical for this sector; and Maritime NZ is likely to
need to look for ways to assist here.
Staff noted that they are developing measures for ‘Safe’, and wil report back to the board
on the areas they were interested in through the Directors Report.
The Board noted
that the next strategic conversation will be on the ‘Clean’ Outcome
scheduled for the June Board meeting.
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5.
Organisational reporting
5.1
Statement of Performance Expectations (SPE) – approach
The purpose of this paper is to provide the Board with the draft 2023/24 Statement of
1982
Performance Expectations (SPE) to be provided to the Minister for consideration by 30
April 2023 to meet statutory timelines. The Board:
reviewed and provided feedback to staff on the draft 2023/24 SPE (non-financial
sections)
Act
noted that the draft SPE 2023/24
has been prepared without guidance from the
Minister’s Letter of Expectations (LoE) which has not yet been received, however staff
are expecting to receive one soon
noted that staff have reframed the SPE to align with Te Korowai
noted that due to uncertainties regarding funding review, Budget 23 decisions and
HSWA designations, a final draft budget for FY2023/24 has not yet been prepared. The
draft budget and financial statements will be presented to the Board at a later date once
budget decisions are known
noted following Budget decisions the SPE foreword and key focus areas will be reviewed
and the letter from the Chair to the Minister will be finalised with the Chair
agreed that without a Cabinet decision on the next steps of funding review, including an
Information
extension of a letter of support, the Board cannot authorise the SPE or prospective
financial statements
noted that Management has considered changes to the Accounting and Performance
Reporting standards and incorporated where appropriate within the SPE
noted that Deloitte and the Ministry will be asked to provide feedback on the draft which
will be considered and reflected in the final version
Official
noted the draft SPE will be presented to the Minister for review on 28 April
noted that due to Board meeting cycles further iterations of the SPE may require out of
session treatment prior to submitting to Board for approval
the
noted the final 2022/23 Budget and SPE will be presented to the Board at the 19 June
Board meeting for approval.
Jo Brosnahan and Roy Weaver
(carried)
5.1 Finance report
The report providing an update on the financial results and other financial matters for
Maritime NZ, Rescue Coordination Centre and the Oil Pollution Fund for the nine months
under
to 31 March 2023 was introduced by the DCE Organisational Strategy and Systems
(OSS). The Board:
noted the financial results for the nine months to 31 March 2023.
5.2 People Health & Capability report
The DCE People Capability introduced the report, providing the Board with an update on
Maritime NZ people and capability metrics and summary work initiatives. The Board:
noted that the next quarterly report to the Board will include more information on
‘weaving the cloak’ work.
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5.3 Maritime Distress & Safety Communications Services project update
The Board were provided with an update on the progress of the maritime distress and
safety communications services project. The Board:
1982
noted
s 9(2)(f)(iv), s 9(2)(b)(ii)
noted
s 9(2)(f)(iv), s 9(2)(b)(ii)
Act
noted that staff have briefed Te Manatū Waka Ministry of Transport and they did not
raise any concerns with this approach
approved
s 9(2)(b)(ii), s 9(2)(f)(iv)
approved the Maritime NZ Procurement Exemption attached to this report
noted that regular updates on the progress of negotiations will be presented to the
Board.
Mike Purchase and Danny Tuato’o
(carried)
Information
5.4 Whanganui Board stakeholder engagement
The DCE Partnerships introduced the paper outlining the proposed focus for the
forthcoming visit to Whanganui. The Board:
noted the briefings provided by staff in preparation for the stakeholder visits on Tuesday
18 April
noted that Horizon Horizons Regional Council were unable to meet with the Board on
Official
this occasion.
6. Recurring business
the
6.1 Correspondence
The purpose of this report is to present incoming and outgoing correspondence to the
Board as dispatched since the previous Board meeting.
The correspondence report was taken as read. The Board:
(a)
noted the letter from the Maritime NZ Chair to Hon Kiri Allan providing the Maritime NZ
Quarter 2 report
under
(b)
noted the letter from Peter Hughes, Public Service Commissioner to Maritime NZ
Chair relating to political neutrality in the Public Service
(c)
noted the letter from the Maritime NZ Chair to Hon Kiri Allan in regarding Maritime
NZ’s Funding Review
(d)
noted the letter from the Maritime NZ Chair to Audrey Sonerson, Secretary for
Transport & Chief Executive, Te Manatū Waka.
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7
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Act
Information
Official
the
under
Released
Maritime NZ May 2023 Board
Meeting Minutes
Date of meeting:
22 May 2023
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Time and venue:
11.51am | Virtual
Meeting:
May 2023 Board meeting
Act
Board members:
Jo Brosnahan (Chair), Roy Weaver, Danny Tuato’o, Lesley Haines, Annabel Davies
Attending:
Deb Despard and Lizzy Cohen (minute taker)
Executive team:
Sharyn Forsyth, Andrew Saunderson, Kenny Crawford, Peter Brunt, Shelley Tucker and
Esther Livingston
Apologies:
Mike Purchase and Kirstie Hewlett
Guests:
Mark Leeming and Richard Cromie | Item 4.1 and 4.2, Michael Whitham and Briar Gills-
Michaels | Item 4.4, Chris Barber | 4.5
1.
Meeting opening and administration
1.1
Chair’s welcome
Information
The Chair welcomed Board members and the Executive Team.
It was noted that Board member, Lesley Haines will leave the meeting at 12.40pm.
1.2
Confirmation of previous minutes and actions arising
The minutes of the previous meeting held on 17 April 2023 were reviewed by the Board.
The Board:
Official
approved the minutes of the Board meeting held on 17 April 2023 as a true and accurate
record of the meeting.
Jo Brosnahan and Danny Tuato’o
(carried)
the
Out-of-cycle Board papers
National Office future property options
approved by Board members 15 May 2023
Strategic Context
under
noted that Maritime NZ has a future property objective to accommodate all its Wellington
CBD staff in one location
noted that future realistic planned growth will result in high density challenges with our
current footprint
noted that with Board approval in 2022 Maritime NZ entered into a new lease for 1 Grey
Street
s 9(2)(b)(ii)
noted
s 9(2)(b)(ii)
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1
Current State is across two locations
noted Maritime NZ have long operated within Government office accommodation
guidelines and objectives and have set in place a long-term solution at Grey Street to late
2037, with option to exit Customhouse Quay in mid-2025.
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The Opportunity to consolidate into a single location
noted
s 9(2)(b)(ii)
Act
noted
s 9(2)(b)(ii)
noted
s 9(2)(b)(ii)
noted that management have engaged property consultants TwentyTwo Ltd to carry-out
due diligence and lead initial engagement / negotiations with the Landlord
noted
s 9(2)(b)(ii)
noted the preferred option as it relates to the exit of Level 1, 99 Customhouse Quay (in
Information
accordance with current lease terms).
Considerations
noted that Government Property Group will need to endorse any office accommodation
acquisition
agreed
s 9(2)(b)(ii)
Official
agreed
s 9(2)(b)(ii)
delegated
s 9(2)(b)(ii)
the
Maritime NZ: Q3 Report for Board review and feedback
reviewed and provided feedback to management on the Q3 Report
endorsed on 17 May 2023, subsequent to inclusion of Board feedback, for the Q3 report
to be circulated to the Minister.
under
1.3
Actions arising report
noted the actions arising report
agreed that the action in relation to the use of Maritime NZ’s Māori name wil be
considered and actioned through the implementation of Tā Mātou Ruataki Māori, and
removed from the Board Actions arising report.
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1.4
Audit and Risk Committee resolutions
approved the minutes of the 20 March 2023 Audit and Risk Committee meeting, reviewed
by the Committee at the May meeting.
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Lesley Haines and Danny Tuato’o
(carried)
2.
Chair’s Report – verbal update
There were no key topics and activities since the last Board meeting.
Act
3.
Director’s report
The Chief Executive/Director introduced the report which was taken as read. The Board
noted the report and discussed the following topics:
Funding review
noted that the Minister has indicated they are comfortable with the revised cabinet paper
which will be presented to Cabinet on 7 June
Stakeholder Engagement
noted the positive engagements with key stakeholders as detailed in the report
Maritime Incidents
noted the impact on MNZ staff time and wellbeing in response to recent incidents and that
there is a plan in place to help manage staff fatigue Information
noted that the Shiling, a Singapore flagged vessel, is being towed to Wellington harbour.
MNZ staff have done everything that is required of them in relation to the Shiling vessel
incident. There are still some unknowns as to what went wrong on the water and we are
considering third party risks
Statement of Performance Expectations (SPE) 2023/24
noted the letter from Minister Allan providing feedback on MNZ’s draft SPE 2023/24. Staff
are incorporating aspects of the feedback into the narrative of the draft SPE and a
Official
response letter is being prepared to send to the Minister which will accompany the draft
SPE including the financial statements, due with the Minister on 24 May
noted that staff will consider expanding the narrative regarding other regulatory risks to
better articulate what they are
the
noted that the final draft SPE will be presented to the Board at their June Board meeting
Legal update
noted the legal update as at 3 May 2023.
4.
Organisational reporting and accountability
4.1
Finance report
under
This report provided an update on the financial results and other financial matters for
Maritime NZ, Rescue Coordination Centre and the Oil Pollution Fund for the ten months
to 30 April 2023. The Board:
noted the financial results for the ten months to 30 April 2023
noted that operating activities are tracking lower than forecast. This is partly due to an
ambitious work programme and staff availability to undertake activities while managing
events that have occurred towards the end of this financial year such as the Cyclone
Gabrielle response, and response to recent maritime incidents.
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4.2
Budget 2023/24
The purpose of this paper was to seek Board approval for the Maritime NZ (including
RCCNZ) and OPF budgets. The Board:
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noted staff efforts to pull together the 2023/24 budget not knowing the outcome of the
funding review
noted that, in recent years, MNZ completed a efficiencies and effectiveness review as a
cost saving exercise
Act
approved, subject to further costs breakdown and explanations to be provided by staff,
the 2023/24 budget for Maritime NZ (including RCC) that comprises:
i) revenue of $89.89 million, expenditure of $89.88 million and an operating surplus
for the year of $0.01 million; and
ii) capital expenditure of $3.755 million.
noted that the Chair will coordinate input from Board members with regards to budget
explanations and has the authority to approve the budget
approved the 2023/24 budget for the Oil Pollution Fund that comprises:
i) revenue of $8.88 million, expenditure of $7.41 million and an operating surplus for
the year of $1.47 million; and
Information
ii) capital expenditure of $1.405 million
recommended that the Minister of Transport approves the proposed Oil Pollution Fund
Budget including relevant elements as necessary, as required under Section 332(1) of
the Maritime Transport Act
noted that MNZ anticipates receiving a letter of support from the Ministers of Finance
and Transport to enable MNZ and the Oil Pollution Fund to satisfy the going concern
basis
Official
noted in relation to the international travel budget, that while our emissions are trending
down for Q1 to Q3, the cost of ticket prices are increasing. The Board will receive
updates on these trends through regular reporting.
Jo Brosnahan and Roy Weaver
(carried)
the
4.3
MPRS Capital Programme 2023/24
This paper provided the Board with a report back on Year One results for the Oil Pollution
Fund (OPF) / Marine Pollution Response Service (MPRS) Capital Programme and the
proposed capital purchase programme for Year Two. The Board:
noted the update on Year One (2022/23) of the MPRS capital programme
under
endorsed the proposed budget for Year Two
noted
s 9(2)(g)(i)
approved delegation to the Chief Executive to authorise expenditure for any programme
related purchases that are beyond standing financial delegation limits.
Jo Brosnahan and Roy Weaver
(carried)
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4.4
SG Fleet Master Lease Agreement
The purpose of this paper was to obtain board approval to enter into a Master Lease
Agreement between SG Fleet and Maritime NZ as it is anticipated that the costs are
greater than Director Delegations. This decision enables MNZ to continue the transition
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to Electric Vehicles as part of the Emissions Reduction Plan and government
requirements. The Board:
noted that our transition to electric vehicles represents a fleet carbon footprint reduction
of almost 75% by 2025
Act
noted
s 9(2)(b)(ii)
noted that we have undertaken a procurement process to identify a vehicle fleet provider
and have identified SG Fleet as the preferred provider
noted that the terms of the Master Lease agreement have been oversighted by Maritime
NZ Legal
noted there is no minimum dollar amount or fixed term period associated with the Master
Lease Agreement and the individual lease vehicle agreements will be in line with the
Financial Delegations policy
approved to delegate authority to the Chief Executive to approve and sign the agreed
SG Fleet Master Lease Agreement document in accordance to the board guideline and
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signatory process.
Jo Brosnahan and Danny Tuato’o
(carried)
4.5
IMSAS Audit Findings
This paper was presented for the Board’s consideration and feedback on the Corrective
Action Plan that responds to the results of the International Maritime Organization
Member State Audit Scheme (IMSAS) audit of New Zealand, and to lay out the next
Official
steps of the audit process. The Board:
noted the findings and observations arising from New Zealand’s first mandatory IMSAS
audit
the
noted the Corrective Action Plan, which sets out New Zealand’s response to the final
audit interim report
noted the next steps and indicative timetable for responding to the audit
noted that staff will present back to the Board with information on Maritime New
Zealand’s approach towards implementing the Corrective Action Plan
agreed that
the audit recommendations will be incorporated into the audit framework
under
which is regularly updated and monitored by the Audit and Risk Committee
noted the executive team will consult with the Board prior to the proactive release of the
Corrective Action Plan and audit report. The Board noted the importance of framing this
with the broader context of the Te Korowai programme and more broadly MNZ’s
role/remit.
Jo Brosnahan and Danny Tuato’o
(carried)
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1982
Act
Information
Official
the
under
Released
Maritime NZ June 2023 Board
Meeting Minutes
Date of meeting:
19 June 2023
1982
Time and venue:
8:30am | New Plymouth
Meeting:
June 2023 Board meeting
Act
Board members:
Jo Brosnahan (Chair), Roy Weaver, Danny Tuato’o and Lesley Haines
Attending:
Kirstie Hewlett and Lizzy Cohen (minute taker)
Executive team:
Deb Despard, Sharyn Forsyth, Andrew Saunderson, Kenny Crawford, Peter Brunt and
Esther Livingston
Apologies:
Annabel Davies and Shelley Tucker
Guests:
Rob Warner | Item 4.1, Wayne Rhodes | Item 4.3, Mark Leeming | Item 5.1, Mark
Leeming and Rochelle Wengrzik | Item 5.2, Mark Leeming and Dorothy Lee | Item 5.3,
Mark Leeming | Item 5.4, Shelley Tucker | Item 5.5, Carolyn Leatherby | Item 5.7
Directors Only
Information
Board annual evaluation
The Chair presented the 2022/23 Board evaluation report and discussed the collective Board
responses with Board members.
s 9(2)(g)(i)
Official
The Board Chair will review the survey questions to identify any updates for next year’s annual
the
evaluation questionnaire.
The Chair agreed to discuss the ELT Board evaluation responses with the Director/Chief Executive.
The following actions were agreed as a result of the survey:
Question 1.7 to be reworded to single out international conventions/audits.
The Board would like reassurance around how management engages with other Government
agencies and to consider for future Board meetings in Wellington whether there is the
under
opportunity to engage with key government stakeholders.
More work needs to be undertaken on reflecting in an accessible way individual regulatory
risks as part of risk and assurance (including through enterprise risk management traffic light
reporting, directors report and other performance reporting).
Could management please pull together key measures and benchmarking around efficiency
and effectiveness where possible.
The Board would like more opportunities to engage with staff, both through meetings and out
in the field or through engagements. Consider this as part of Board forward work programme.
Add Board reflection time into the end of meetings.
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1
Redo 4.3, 4.4 and 11 and 12 questions for next survey and address concerns with the “phrase
optimal”.
Check in on Director/Chief Executive success agreement once a quarter and include Chief
Executive revised position description in the resource centre.
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Ensure Board and ARC papers have a context section to show how they relate to the
Maritime NZ vision and organisational strategy.
Consider how we can get feedback on how we engage and circulate the User Experience
Act
findings.
Circulate the development opportunities for Board members and the Board Chair to work with
Board members on Individual Development Plans.
Ensure Minister’s report is circulated to Board Members.
Continue to progress conversations with Te Manatū Waka on Board fees and also to raise the
issue with Ministers.
Director/CE success agreement
The Chair noted that she met with the Director/Chief Executive for the 2022/23 Annual Performance
discussion. The Director/Chief Executive will present an updated success agreement to the Board.
Karakia led by Danny Tuato’o.
Information
1.
Meeting opening and administration
1.1
Chair’s welcome
The Chair welcomed Board members and the Executive Team.
Independent advisor for ARC
The Chair noted that, in Directors Only time, the Board:
discussed and
agreed to appoint s 9(2)(a)
as an independent Advisor on the MNZ
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Board’s Audit and Risk Committee for a 12 month term
noted s 9(2) will likely join for the next Audit and Risk Committee meeting in July.
( )
Jo Brosnahan and Danny Tuato’o
(carried)
the
1.2
Apologies
Annabel Davies, Future Director.
s 9(2)(ba)(i)
.
under
The Chair noted that, as she is traveling in July, the Deputy Chair, Roy Weaver will Chair
the July Board meeting. It was noted that only 3 board members will be present.
Staff agreed to confirm with the Chair the running of Board business and the quorum of the
Board now that membership numbers are four.
1.3
Declaration of interests
Board members disclosed the following updates to the interests register.
s 9(2)(ba)(i)
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1.4
Confirmation of previous minutes
The minutes of the previous meeting held on 22 May 2023 were reviewed by the Board.
The Board:
1982
approved the minutes of the Board meeting held on 22 May 2023 as a true and accurate
record of the meeting.
Jo Brosnahan and Danny Tuato’o
(carried)
Act
1.5
Actions arising report
The Chief Executive presented the status update on the actions presented in the actions
arising report. The Board:
noted the actions arising report
noted that staff aim to present a report back to Board on key lessons learnt from recent
incident responses in August, not July as reflected in the report.
1.6
Board meeting schedule and work programme 2023
The Board:
noted that Roy Weaver, Deputy Chair will not be available to attend in person for the
Information
October and November meetings, however he can be available to join remotely, by
videoconference.
noted that the next regional Board visit is in Whangarei.
noted that staff will discuss engagements with local iwi with the Chair and Board Director,
Danny Tauto’o.
2.
Chair’s Report – verbal update
Official
No other items.
3.
Director’s report
the
The Chief Executive/Director introduced the report. The Board noted the report and
discussed the following topics:
Funding review
Cabinet have agreed the funding review discussion document, with release of the
document subject to Minister of Finance and Associate Minister of Transport approval.
under
Staff expect to have approval from the Minister of Finance and the Minister of Transport on
the funding review discussion paper on 25 July. Once Ministerial approval is received, then
MNZ has the authority to go out for public consultation, at which point, staff will move
quickly to conduct webinars with the sector and present back to DEV before the election.
This will enable MNZ to provide funding arrangements to stakeholders who need to pass
on any costs (ie levies) and enable MNZ to meet the cost recovery model by 1 July 2024
deadline.
The Board Chair noted that, although we won’t need a letter of support should the funding
review go through, we are not comfortable to confirm we don’t need the letter until we have
final confirmation of the funding review. This will mitigate risk to the organisation should the
funding review not go through.
Staff will circulate the consultation document and messaging to Board members.
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Media
Staff noted that Kiwirail and MNZ have been in the media in the last week regarding the
safety management of inspections in relation to Kiwirail. Subsequent to this, MNZ have
received a large number of OIA’s.
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Approach for media
Staff presented an approach for Board reporting on media issues, which will involve an
update in the Director’s Report on key media themes and will also provide an overview of
Act
OIA’s and ministerials. The Board supported this approach, provided that this is not too
much burden on staff time.
Seafarer Welfare Board
It was noted that the Seafarer Welfare Board are in discussions about their role. This is
due to the board’s focus changing to service delivery instead of oversight, an impact of
COVID-19 requirements. As such, there are discussion options for both a service delivery
group and a Board oversight group.
Niagara wreck
It was noted the recent attention on the Niagara wreck and the lack of funding to progress
with options to assess the wreck.
s 9(2)(g)(i)
Ocean going tugs
s 9(2)(f)(iv)
.
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International visits
The Director/Chief Executive provided an overview of her recent international visits with
stakeholders in Singapore and the UK. Key highlights were:
The high levels of automation at the Singapore Port (autonomous electric container
movers, cranes loading vessels operated from a control centre, drones undertaking
maintenance onshore and under the water). However, despite the efficiencies, health
and safety and human factors will still need to be a continued focus. Also, Singapore
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are training their workforce now for the future.
Learnings from response issues – meeting with contractors who advise in the event of
a significant maritime incident; the industry body for protection and indemnity insurers;
administrators of the International Oil Pollution Compensation Funds; and the Oil Spill
the
Response Limited (which is like MPRS). Our relationships remain strong, which is
particularly important post COVID-19 and with some of the issues we are seeing
around our coast so we can connect with these organisations to support a maritime
incident response. Emerging global challenges were also discussed ie plastics and
green fuels.
Green fuels and corridors – working towards and influencing internationally on the
emissions reduction goals and preparing our ports and country to support green
under
shipping with the aim of protecting the security of supply chains that bring critical
goods to New Zealand.
Signing the Cape Town Convention –to improve the standards for the design and
construction of fishing vessels. A big milestone.
Maritime Women’s Day – discussion centred around women sharing their stories of
working in maritime and how we continue to encourage women, and other diverse
participation in the maritime sector.
3.1
Funding and Priorities
The Board agreed to discuss this paper after lunch.
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4.
Strategic conversations and decisions
4.1
Strategic uncertainties
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This paper frames/reflects the Board’s ongoing strategic uncertainties discussions,
capturing the items raised during the April 2023 meeting for the Board’s review and
comment and provides the Board with an opportunity to explore and discuss the ‘What?’,
‘So What?’ and ‘Now What’ aspects for Maritime NZ of these, and any emerging new,
strategic uncertainties. The Board:
Act
noted that the output from the Board’s strategic uncertainties workshop held in
Whanganui in April 2023 has been collated into a draft table for reference
noted that the Board’s ongoing strategic uncertainties conversations are ‘generative’
insofar as they help to provide context for considering ‘what if?’ and frame Maritime NZ’s
strategic choices and responses
noted that any strategic risk that becomes more certain and requires controls will become
a risk as part of Maritime NZ’s enterprise risk management framework and process
considered and
reviewed changes to the content and format of strategic uncertainties
table to best support the Board’s anticipatory governance conversations
discussed the following issues which are manifesting locally, regionally, and/or globally,
with a view to updating and tracking them in the strategic uncertainties table:
Information
disinformation, particularly AI enabled, and the risk of people’s declining trust in the
government and government agencies and, the potential threat to democracy by
malicious actors
the fight for the oceans (emerging strategic risk) – there is more desire pressure to
use the ocean domain for a range of economic purposes them e.g. Windfarms.
Security of shipping supply chains – the risk that industries are moving and New
Official
Zealand is not keeping up. Te Manatū Waka are developing a freight strategy,
however the Board acknowledged the importance of implementation.
Failure of the shipping system – the impact on our regulatory delivery if the quality of
ships coming to New Zealand is poor. There is also an international risk for New
the
Zealand if our maritime regulatory regime looks slow, unresponsive, and/or too
expensive for shipping companies.
Disruptive Tech – the risk that we do not have the resources (i.e. capability and
capacity) and/or an adaptive regulatory framework to respond. Wing in Ground effect
craft (e.g. Seagliders) are a good test case for us – it is clear Maritime NZ is the
regulator.
Rate or pace of change – this continues to accelerate, testing New Zealand’s ability to
under
look over the horizon and respond. As a country we don’t do that wel at this (election
cycle) because planning is so long. Some other countries (ie Nordic countries), use
cross-party coalitions and dedicated foresight teams to address this issue.
Workforce – need a future ready maritime workforce and a strategy to address this. A
line item will be added to the enterprise risk framework relating to institutional
arrangements to mitigate with this risk.
Break for lunch.
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3.1
Funding and priorities
The Director/Chief Executive presented a report for the Board’s information and to support
discussion on MNZ’s funding and priorities. The report included an “”on a page” overview
of our organisational strategy and work programme, outlined where MNZ’s funding goes
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and the prioritisation that has occurred over the last two years around our capacity,
focussed on achieving good regulatory performance; and provides for an opportunity for
the Board to test whether there is anything in the prioritisation the Board has issues with or
would like further conversation around. It also outlined the lack of flexibility in our funding
movement, given our different funding sources. The Board:
Act
noted and
discussed this report which provides an overview of the Maritime NZ
organisational strategy and work programme and the funding and prioritisation that has
occurred in the last couple of years
noted that, in addition, staff are reflecting on the last Board meeting and how to better and
more simply portray for the Board how our risk and assurance programme relates to our
organisational strategy, Te Korowai o Kaitiakitanga, and how we can provide more
streamlined performance reporting to the Board on our work. Staff are also refining how we
do this internally as a leadership team
noted that staff intend to, over the next few months, present different types of reporting to
see if they meet the Board’s need and reflect this in the forward work programme
noted that with Crown Funding, staff expect this to taper off from 1 July 2024
Information
noted that this report provides a useful overview, particularly for the larger pieces of work
that MNZ have submitted budget bids for.
4.2
‘Clean’ Strategic Deep Dive
In February 2023, the Board agreed on the Maritime NZ Outcomes for 2023/24, which are
Safe, Secure, Clean and Sustainable.
The Board’s strategic conversation for this meeting was centred on the ‘Clean’ Outcome.
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The Executive team prepared a presentation on: the history of “clean” in the maritime
world, understanding our current mandate through legislation, a table to identify other
agencies’ ‘Clean’ roles in the marine domain, and information on what is occurring
internationally.
The Board discussed the current context, risks and opportunities to address marine plastic
the
litter – a significant emerging environmental issue.
The Board discussed the issue of the increasing amount of plastics off ships (primarily
fishing gear) and that currently it is not possible to identify if plastics are international or
domestic. We would like to be able to hold people to account, however there appears to be
no prevention, liability and response to enable this.
The Board noted more broadly that internationally, there is an opportunity to consider if we
under
have enough presence and influence. The Board acknowledged the importance of
partnering with other countries, such as Australia, to work with them to influence on an
international (IMO) level. The ‘Pacific voice’ wil also help and they are currently working on
agreeing the priorities ie plastics.
It was noted that currently, with existing resources, we don’t think about the cumulative
harms of plastics in our readiness and response work. Staff believe that we could quantify
plastics as more of an issue than oil. There is an opportunity for our prevention and
response to be an integrated maritime response (responding to all hazards), however is it
currently not set up to cover dangerous goods, plastics etc. Staff noted that the internal
review they are conducting on our response Security and Safety Services is expected to
highlight what is required to enable this. It was noted that legislative reform will help to
drive this change.
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The Board acknowledged that this is a complex, emerging issue which we need a plan to
respond to. This review will help inform our response, then we need to maximise our input
for what we can do.
The Board noted that there is a risk of doing too much with too little, however agreed that
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this is important to do for New Zealand.
The Board noted
that the next strategic conversation will be on the ‘Secure’ Outcome
scheduled for the August Board meeting.
Act
4.3
Tā Mātou Rautaki Māori
This paper sought Board endorsement of the proposed Te Ao Māori strategy “Tā Mātou
Rautaki Māori”. The Board:
noted that Kaihautū Māori has lead the development of Tā Mātou Rautaki Māori
noted our obligations to Te Tiriti o Waitangi sit across all the work that we do and Tā
Mātou Rautaki Māori provides a framework for how we will deliver on our obligations which
sit within the Weaving of the Cloak Pillar in Te Korowai o Kaitiakitanga
noted that staff intend to develop a Capability Plan to support the delivery of the objectives
outlined in this strategy.
noted that the delivery will be subject to resources and funding availability. Staff intend to
create MNZ staff working groups with a spread of staff from across the organisation to
Information
progress the actions, and the Terms of Reference for these working groups will provide the
focus for the groups
agreed that the Board will discuss individual and collective board accountabilities and, with
staff support, will look at training and development opportunities
noted that they can see that this strategy is already embedded in the MNZ organisational
strategy and that the principles in Tā Mātou Rautaki Māori will help to guide us. The
strategy works with our values and how we want to work with each other
Official
endorsed Tā Mātou Rautaki Māori.
Danny Tuato’o and Jo Brosnahan
(carried)
the
5.
Organisational reporting and accountability
5.1
May Financial Report
This report provided an update on the financial results and other financial matters for
Maritime NZ (incl. Rescue Co-Ordination Centre) and the Oil Pollution Fund for the
eleven months to 31 May 2023.The Board:
under
noted the financial results for Maritime NZ and the Oil Pollution Fund for the eleven
months to 31 May 2023
noted that based on current run-rate there will be reduced draw-down of approximately
$1.5m liquidity funding than anticipated through our February forecast.
noted that significant events have drawn on our resource which has impacted our
progress and ability to spend, which has resulted in an underspend
noted that the MNZ reserves provide for a risk mitigation for potential delays in the
funding review
noted that MNZ has a healthy budget allocation for staff training. This is hard to prioritise
Released when staff are under pressure, however, staff have a plan in place for next year, in
particular for HSWA.
5.2
Final Draft Maritime NZ 2023/24 Statement of Performance Expectations
This report sought Board approval of the final draft Maritime New Zealand 2023/24
Statement of Performance Expectations (SPE) and Financial Statements. The Board:
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noted the summary of changes since last Board review on 17 April and 22 May
noted that MNZ are unlikely to receive a Letter of Expectation from the Minister for
2023/24, however the Minister has reviewed the draft MNZ 2023/24 SPE which outlines
our plans for the coming year
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noted the specified amount able to be drawn down from liquidity funding in 2023/24 is
$18.5m
noted that, provided the funding review proceeds in accordance with our expected
timeframe, then it is anticipated that a letter of support will not be required beyond 2023/24
agreed that, as also discussed as part of the Directors Report item, the Board Chair would
like this proviso to be included in the prospective financial statements – if the funding
review stalls at all, the letter will be required.
approved the 2023/24 SPE and Prospective Financial Statements.
Jo Brosnahan and Lesley Haines
(carried)
5.3
Maritime NZ Insurance Programme Renewal 2023/24
Information
This paper sought to obtain Board approval to renew the Maritime NZ insurance
programme with effect from 1 July 2023. The Board:
noted the process and proposed coverage for the 2023-24 insurance programme
renewal
noted that proposed insurance programme costs are a 15% increase over prior year
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noted that in some cases final proposals are not yet received (MNZ are not the only clients
experiencing delays) and have been estimated based on brokers advice
approved the proposed asset and liability insurance programme, with an estimated
premium and associated costs of $597k. An increase of $1k since the report was written to
the
reflect the increase in the Fire Service Levy
requested confirmation on the amount allocated for Directors Liability cover to ensure
adequate cover for board directors
agreed to
delegate to the Director/Chief Executive to approve the overarching 2023/24
Insurance Programme costs once received, subject to staff’s confirmation on the directors
liability cover.
under
Danny Tauto’o and Roy Weaver
(carried)
5.4
Audit Proposal Letter and Engagement Letters for MNZ and OPF
The Deloitte audit engagement letters and audit proposal for the 2023 and 2024 financial
years were presented for Board consideration and approval. The Board:
noted that the Audit and Risk Committee met the auditors in May and discussed key
aspects of the upcoming audit
discussed and
approved the audit proposal letter and the two audit engagement letters
for Maritime NZ and the Oil Pollution Fund
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noted that, as mentioned at the May Audit and Risk Committee meeting, Deloitte have
honoured the Audit NZ fees.
Lesley Haines and Danny Tauto’o
(carried)
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5.5
Massey University Contract Renewal
This paper sought Board approval for Maritime New Zealand (Maritime NZ) to renew a
contract with Massey University (the University) for the provision of preparedness and
response capabilities to assist oiled wildlife in the event of a marine oil spill. The Board:
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noted that Maritime NZ has maintained a contract with Massey University for the provision
of a wildlife response capability since 1998
noted that this contract provides valuable training and monitoring in the event of an oil (or
other chemical) spill and the impact on wildlife
requested, for their interest, that staff provide an overview of the number of spills that
impact wildlife
noted that the services under the contract are deemed by Management to be a critical
component of Maritime NZ’s overal marine oil spill response capability
noted that the current contract was signed in 2020 with a three-year term and the option to
renew the contract for a further three years
Information
noted that since the proposed renewal covers the period 1 July 2023 to 30 June 2026 at a
total cost of
s 9(2)(b)(ii)
over three years,
s 9(2)(b)(ii)
the total
amount is outside the Chief Executive’s standing financial delegation
delegated the authority to sign the contract extension to the Chief Executive Maritime NZ.
Roy Weaver and Danny Tuato’o
(carried)
5.6
People and Capability Report Official
This paper provided an update to the Board on Maritime NZ people and capability metrics
and a summary of People and Capability work initiatives. The Board:
discussed and
noted this report providing an update on People Capability key metrics
and work initiatives the
noted that staff are reviewing Maritime New Zealand metrics and reporting to reflect the
new Office of the CE and People Capability Group structure and the culture and
capability reporting within the Weaving of the Cloak of Te Korowai o Kaitiakitanga
noted the recent decision for health and safety reporting to be presented and discussed at
the Audit and Risk Committee. However, the Board wants assurance that the Board are
still meeting its health and safety obligations, as set out in the Board Charter and Board
Health and Safety Charter.
under
5.7
Agenda and Briefings on New Plymouth stakeholder visits 19/20 June
noted the briefings and agenda for Monday night and Tuesday local stakeholder
engagement
noted that staff will consider and discuss engagement with local iwi for regional visits
with Board members.
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Act
Information
Official
the
under
Released
Maritime NZ July 2023 Board
Meeting Minutes
Date of meeting:
17 July 2023
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Time and venue:
12:17pm | Virtual
Meeting:
July 2023 Board meeting
Act
Board members:
Roy Weaver (Deputy Chair), Danny Tuato’o and Lesley Haines and Annabel Davies
Attending:
Kirstie Hewlett and Lizzy Cohen (minute taker)
Executive team:
Sharyn Forsyth, Andrew Saunderson, Shelley Tucker, Peter Brunt and Esther Livingston
Apologies:
Jo Brosnahan, Deb Despard and Kenny Crawford
Guests:
Mark Leeming | Item 4.1, Brian Cosgriff and Saul Simmonds | Item 4.2
Directors Only
The Board Chair has recently engaged with Public Service Commission and completed a process to
review the Director/Chief Executive’s remuneration. The Board discussed and approved the
recommended changes to the Director/Chief Executive’s remuneration with effect from 1 July 2023.
Information
1.
Meeting opening and administration
1.1
Chair’s welcome
The Chair welcomed Board members and the Executive Team.
1.2
Apologies
Jo Brosnahan, Deb Despard and Kenny Crawford.
Official
1.3
Declaration of interests
Board members disclosed the following updates to the interests register.
s 9(2)(ba)(i)
the
1.4
Confirmation of previous minutes
The minutes of the previous meeting held on 19 June 2023 were reviewed by the Board.
The Board:
approved the minutes of the Board meeting held on 19 June 2023 as a true and accurate
under
record of the meeting.
noted that the CE’s success agreement is being updated post the June performance
discussion which will be brought back to the Board along with their position description in
August.
Danny Tuato’o and Lesley Haines
(carried)
1.5
Audit and Risk Committee Recommendations – 22 May 2023 meeting
This paper provided an overview to the Board of Audit and Risk Committee (ARC) meeting
held on 22 May 2023 and present any recommendations from the ARC to the Board. The
Board:
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noted that the Board Chair has provided written feedback on the minutes prior to this
meeting
approved the minutes of the Audit and Risk Committee meeting held on 22 May 2023,
subject to updates provided by the Board Chair
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endorsed the internal assurance programme 2023-25 which was reviewed and endorsed
by the Committee at its 22 May 2023 meeting.
Danny Tuato’o and Lesley Haines
(carried)
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1.6
Actions arising report
The Chief Executive presented the status update on the actions presented in the actions
arising report. The Board:
discussed the status of the actions in the actions arising report
noted that there are a lot of actions in the report from the June meeting and agreed that
the Board will clarify which actions are required by management to ensure it is not too
onerous for staff.
1.7
Board meeting schedule and work programme 2023
The Board:
Information
noted the 2023 work programme
noted that Board members and ELT will travel the night before regional Board visits to
ensure staff are not too tired and to minimise impacts to Board engagements and business
due to travel delays.
1.8
Redesigned Board Annual Agenda and 2024 meeting dates
This paper presented proposed 2024 Board meeting dates and locations for Board
discussion and agreement and a proposal to redesign the Annual Board Agenda and
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Board meeting agenda to focus on key governance activities. The Board:
discussed and
agreed the redesigned Annual Board Agenda template
noted that once the Board has endorsed the Annual Board Agenda template, staff will
the
populate the agenda to reflect 2024 regular Board reporting, focused strategic discussions
and Board stakeholder engagement opportunities
discussed and
agreed the proposed 2024 Board meeting dates and that staff would
further engage with the Board on meeting locations.
Danny Tauto’o and Lesley Haines
(carried)
under
2.
Chair’s Report – verbal update
The Board Chair noted the upcoming Crown entities panel discussion with Te Manatū
Waka regarding how the monitoring agency works best with Boards and asked for Board
member input on key points for Lesley to raise, who is attending on behalf of the Maritime
NZ Board. Key points made by the Board were:
Better engagement with the Board - a desire for the Ministry to engage with the Board
at a strategic level, with the appropriate senior Ministry staff and on key strategic topics
i.e. the freight strategy or emissions reduction plan.
Transport Sector Board Forum – that this forum facilitates a two way discussion rather
than just information from the Ministry to Board’s, i.e. a discussion on what are the
Released challenges Transport Boards are facing and how can the Ministry support.
Board members are valued and respected – Board members are valued for their
experience, wisdom, value and contributions. The Ministry is engaged and supports an
efficient and effective Board membership appointment process including strategic
conversations with Board Chair’s on membership terms and succession planning. That
Board members are compensated appropriately for their time, noting that the Cabinet
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fees framework was updated in 2022 and engagement with
s 9(2)(g)(i)
The Ministry’s monitoring role – a suggestion that the Ministry asks themselves what is
their monitoring role? How does this flow into meetings with the Minister – governance
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versus management.
3.
Director’s report
The Director/Chief Executive introduced the report which, in the spirit of Matariki, was
themed around things to celebrate and reflect on. The Board noted the report and
discussed the following topics:
Celebration of the benefits of change: Maritime Inspections team - since the establishment
of the Maritime Inspections team, Maritime NZ is receiving notable attention with key
stakeholders commenting positively about the work that has been done and the changes
made. In particular ports and unions who recognise the risks that poorly maintained ships
create. With the recent big vessel issues around our coast, the Board discussed the team’s
wellbeing. The Board would like to pass on their thanks to the team.
Information
Shiling vessel – the vessel has left Wellington harbour to make the journey back to
Singapore. The Board noted the teams work particularly on the negotiations of the
conditions for the Shiling to leave New Zealand waters.
Media – the Kaitaki’s loss of power in January 2023 (the release of the preliminary TAIC
report occurring during the month). Staff are responding to OIA requests and will be
releasing information between Maritime NZ and Kiwirail regarding individual deficiencies
which were found on vessels and our work with Kiwirail to address them. The information
for release also includes correspondence between Maritime NZ and Kiwirail highlighting,
more broadly, issues on maintenance and health and safety culture on vessels and our
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conversations with other regulators about these issues. It was also noted that Maritime NZ
are currently investigating the Kaitiaki incident.
s 9(2)(f)(iv)
the
Funding review – staff provided a verbal update to the Board on the Funding review. MNZ
has received agreement from Ministers and staff are working hard to go out to consultation
on the funding review in an effort to meet the 1 July 2024 timeframe. Consultation will be
open from Wednesday, 19 July to Wednesday, 16 August 2023. It was noted that
consultation and advice to Ministers will pause during the election and be picked back up
under
in the New Year. Staff agreed to provide a copy of the consultation document and key
messages to the Board and the Audit and Risk Committee.
The Board discussed the timing of the publication of our 2023/24 Statement of
Performance Expectations (SPE). The Board:
agreed that we publish the 2023/24 SPE once we have received the agreed and signed
Letter of Support.
Lesley Haines and Danny Tuato’o
(carried)
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4.
Organisational reporting and accountability
4.1
Snapshot Maritime NZ Financial Result to 30 June 2023
This report provided an update on the financial results and other financial matters for
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Maritime NZ (incl. Rescue Co-Ordination Centre) and the Oil Pollution Fund for the
eleven months to 31 May 2023. The Board:
noted the draft financial results for the Full year to 30 June 2023
Act
noted that the results are close to forecast and expectations at May month end
noted that we have spent significantly less liquidity funding than budget largely due to
higher revenue than expected and will have $18m remaining in the liquidity fund at the
end of the financial year. Our forecast had predicted the balance at year end would be
$13.8m
noted that we have received Crown revenue for our work in the Cyclone Gabrielle
response
noted final adjustments are still being completed and that a more fulsome report will be
provided to the Board at the next meeting, which will have in-depth analysis and
commentary.
4.2
Maritime NZ 2022/23 Annual Report
Information
The paper and presentation by staff outlined the proposed approach and key steps in the
production of the 2022/23 Annual Report, and sought the Board’s views and insights into
the development of key performance story themes to be used. The Board:
noted the proposed approach and considerations to developing the 2022/23 Annual
Report
noted the key dates in the production of the 2022/23 Annual Report
discussed and
agreed the proposed performance story key themes, including
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highlighting the high trust and confidence feedback from the sector that we are a good
and effective regulator (and examples of where we have gone beyond our mandate) and
that we are visible and engaged with our stakeholders (i.e. Board and ELT regional visits
and stakeholder engagement). It was noted that staff are considering the option to
the
conduct a stakeholder engagement survey, and that this can be challenging for a
regulator but could provide useful feedback. Other suggestions from the Board were; our
approach to risk management, partnering as a delivery model (i.e. Massey University
contract), commitment to CNGP, and digitalisation journey
noted that sustainability will be covered in next year’s Annual Report.
Danny Tuato’o and Lesley Haines
(carried)
under
5.
Meeting close
5.1 Any other business
No other business matters were raised.
5.2 Meeting review and close
The Chair thanked staff for their work and openness is appreciated by the Board and the
meeting was closed with a karakia led by Danny Tuato’o.
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Act
Information
Official
the
under
Released
Maritime NZ August 2023 Board
Meeting Minutes
Date of meeting:
15 August 2023
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Time and venue:
8:50am | in Whangārei
Meeting:
August 2023 Board meeting
Act
Board members:
Jo Brosnahan (Chair), Roy Weaver, Danny Tuato’o and Lesley Haines and Annabel
Davies (joined on Zoom due to illness)
Attending:
Kirstie Hewlett and Lizzy Cohen (minute taker)
Executive team:
Deb Despard, Sharyn Forsyth, Andrew Saunderson, Shelley Tucker, Peter Brunt and
Esther Livingston
Apologies:
Kenny Crawford
Guests:
Vicky Robson, Sarah Bailey, Wayne Rhodes, Briar Gill-Michaels | Item 4.1, Rob Warner
| Item 4.3, Natasha Hallett and Alexis Bannister | Item 4.4 Mark Leeming | Item 5.1
Directors Only Discussion
Director/Chief Executive success agreement and professional development proposal
Information
The Director/Chief Executive presented an updated success agreement and a professional
development proposal for Board approval. The Board:
s 9(2)(a)
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.
the
1.
Meeting opening and administration
Karakia lead by Danny Tuato’o.
1.1
Chair’s welcome
The Chair welcomed Board members and the Executive Team.
under
The Chair thanked staff for organising engagements with local stakeholders on Monday 14
August, acknowledging the work that goes into the regional visits. They hope that the
depth of these conversations will benefit the organisation. The Chair noted the opportunity
the visits provide to hear from the ground, locally and nationally, with some themes from
Whangārei being – climate change, port safety and security, poverty, racial tensions,
opportunities for the maritime industry, sustainable freight movement and the importance
of road and rail connectivity to the Port.
1.2
Apologies
Kenny Crawford.
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1.3
Declaration of interests
Board members noted the interests register.
1.4
Confirmation of previous minutes
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The minutes of the previous meeting held on 17 July 2023 were reviewed by the Board.
The Board:
approved the minutes of the Board meeting held on 17 July 2023 as a true and accurate
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record of the meeting.
Roy Weaver and Danny Tuato’o
(carried)
1.5
Audit and Risk Committee Recommendations – 17 July 2023 meeting
This paper provided an overview to the Board of Audit and Risk Committee (ARC) meeting
held on 22 May 2023 and present recommendations from the ARC to the Board. The
Board:
approved the updated Capital Expenditure Policy which was reviewed by the ARC at the
July meeting and endorsed for Board approval
noted that the minutes of the Audit and Risk Committee meeting held on 17 July 2023 will
be presented
to the Board once endorsed by the ARC at their next meeting on 30 October
2023.
Information
Lesley Haines and Roy Weaver
(carried)
1.6
Actions arising report
The Chief Executive presented the status update on the actions presented in the actions
arising report. The Board:
discussed the status of the actions in the actions arising report which will be updated
accordingly.
Official
1.7
Board meeting schedule and work programme 2023
The Board:
the
noted the 2023 work programme which will be rolled into next year while the new work
programme template is being populated by staff. This will come back to the Board for
review, input and approval
agreed with staff’s recommendation to move the September short, virtual Board meeting
on 18 September to a short in person meeting on 28 September when members are in
Wellington for World Maritime Day function.
under
2.
Chair’s Report – verbal update
The Chair noted that they have been working with Te Manatū Waka on potential
candidates for the vacant Board Director positions, which were expected to be presented
to cabinet last week, so we should hear this week. Once the Chair is notified, they will
advise the Board and staff will arrange their induction.
3.
Director’s report
The Director/Chief Executive introduced the report. The Board noted the report and
discussed the following topics:
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New Associate Minister of Transport
After providing a Briefing to Incoming Minister, staff recently met with the newly appointed
Associate Minister of Transport, Hon Damien O’Connor, following a request by staff for an
introductory meeting and to discuss the advice on the Niagara and Emergency Towage
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Capabilities. It was agreed that staff will meet with the Minister on an issue by issue basis
due to the House rising and the lead up to the election and workload pressures.
During the Board meeting, at 10:10am, the Letter of Comfort arrived by email from the
Ministers of Finance, Transport and Associate Transport to the Board Chair. It confirms
Act
funding left in the Multi-Year Appropriation could be used in the 2024/25 year.
The Board
agreed to publish the 2023/24 Statement of Performance Expectations, now
that the Letter of Comfort has been received.
Jo Brosnahan and Danny Tuato’o
(carried)
Emergency response and Te Korowai o Kaitiakitanga – Integrated Readiness and
Response and Security Refresh
The Director/CE noted that the team has been very busy responding to vessel issues,
most recently Achilles Bunker, while maintaining and managing good relationships. Recent
events have demonstrated the importance of the availability of emergency ocean response
capabilities (towage).
The Board noted that the Integrated Readiness and Response and Security Refresh has
Information
been completed.
Te Korowai o Kaitiakitanga – Health and Safety at Work at (HSWA) designation
The Director/CE noted that the HSWA designation is a very large piece of work; however,
we have a good programme manager and we are making progress. It was noted that
WorkSafe NZ are going through some challenging financial times which has meant that our
staff are doing a lot of the work on this.
Collective bargaining
Official
The Board noted the update from staff that collective bargaining has now completed.
World Maritime Day
The Board noted the theme for this year’s World Maritime Day is ‘MARPOL at 50 – Our
the
commitment goes on’ and staff’s outline of the World Maritime Day function which has a
‘Clean’ element. They noted that Kenny Crawford will lead the function and wil talk to the
transition that has happened post Rena, Dr Rob Carr of the Climate Change Commission
will also speak, and the Board Chair will provide the introduction.
TAIC preliminary report - Enchanter
The Board noted the recently published TAIC preliminary report, into the fatal Enchanter
capsizing.
s 9(2)(g)(i)
under The recommendations from the report have gone to Te
Manatū Waka.
s 9(2)(g)(i)
Funding Review
The Board noted that the Funding Review consultation closes on Wednesday 16 August.
Staff will provide an update to the Board and Minister, once submissions have been
analysed.
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Property Update on 1 Grey St
The Board noted the update from staff that negotiations
s 9(2)(b)(ii)
are going
well.
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Legally privileged and in confidence – Legal update as at 2 August 2023
The Board noted the regular legal update from staff. They suggested that staff consider
how this report is presented in future so that is provided as more of a summary ie workload
has increased due to more and complex investigations etc.
Act
Workforce
s 9(2)(g)(i)
Maritime NZ is working with a
group of people within the sector to address workforce pressures. While many of the
solutions are in the hands of the sector, Maritime NZ is undertaking actions where we have
levers to continue to look at how to improve Workforce settings.
4.
Strategic conversations and decisions
4.1
Weaving of the Cloak Pillars Update
This paper provided an update to the Board on the work underway on four pillars that are
part of the Weaving the Cloak programme and progress since the last update to the Board
in February 2023. It also included MNZ’s Environmental Sustainability strategy for the
Board’s endorsement. The Board:
Information
Weaving the Cloak Pillars update
discussed and
noted this report providing an update on four of the Weaving the Cloak
(Whiria te tangata) pillars, being:
Diversity, Equity and Inclusion (DEI)
Te Ao Māori
Connection & National Office Project
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Environmental Sustainability
noted that staff are refocusing the Growing our People pillar to focus on organisational
capability and employee experience.
the
noted the overview given at the meeting from each of the pillar leads on the key
opportunities, focus areas, and risks associated with the work programmes:
Te Ao Māori – now that Tā Mātau Rautaki Māori has been approved, the main focus is
the development of the capability plan, which is being developed in conjunction with Te
Amokura and which will be our action plan. Success, as defined by the pillar lead, is
when staff feel comfortable in Te Ao Māori, which wil happen over time and with the
support of the capability plan activities.
under
DEI – staff noted that the outputs of the programme will be measured once staff are
surveyed to determine things like; how inclusive are we, do staff feel like they belong?
The pillar leads noted that their goal is that DEI is considered as business as usual – it is
built in to how we work.
Connection – leadership of this pillar is a key focus as the current staff member leading
this work programme is not continuing in the role. This pillar was established to look at
addressing silos across the organisation and to support staff to work well across the
organisation. The Director/CE noted that it is likely this will be a shorter term work
programme.
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Environmental sustainability – the new organisational values have enabled a clear story
for how our identity is linked to environmental sustainability and there has been a lot of
staff engagement. There are some clear themes emerging from the data collected so far
and the new analytics staff member is bringing some of this data to life. The data
collected is measurable and auditable.
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noted that while there is a lot of work to be done across these programmes, significant
progress has been made over a short period of time, the leads feel supported, and the
establishment of the staff engagement/working groups will help drive progress. It was
noted that we have had broad engagement from staff across the organisation to join and
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be part of these staff engagement/working groups, which has been very positive to see.
noted that Health and Safety as agreed previously by the Board is being reported
through the Audit and Risk Committee and work is underway to revise reporting which
staff are planning to discuss with the Board in October
Environmental Sustainability Strategy
endorsed our Environmental Sustainability Strategy
noted the organisation’s commitment to environmental sustainability predates the CGP
reporting requirements. This has meant that we have a good data base which can be
audited to an international standard. It was noted that our focus has largely been on
emissions due to responding to CGP. Staff believe we are tracking well to meet our
targets and are currently finalising an action plan to 2025. Future reporting to the Board
will provide visibility of the action plan. Recent reporting from the CNPG for August 2023
Information
identified Maritime New Zealand as the best performing agency.
noted the great progress made by staff which provides Board comfort in this work
programme
noted when considering the Board’s role in contributing to environmental sustainability,
their aspiration to be a sustainable influencer – promoting good practice and also
stimulating discussion more broadly e.g. the recent stakeholder discussions on ‘Clean’,
specifically plastics. While it is not MNZ’s core responsibility, as a future focused
regulator it is important to have these discussions with stakeholders in an effort to
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influence positive change.
Danny Tuato’o and Roy Weaver
(carried)
the
Annabel left the meeting.
Break for lunch.
4.2
Briefing to Incoming Minister
Staff presented potential key themes for the BIM to the Board for their feedback and input.
The Board:
under
noted their support of the key themes as presented by staff:
Enhancing resilience and response
Supporting and enabling growth and productivity
Operation of safe, secure and efficient supply chains
Reducing inefficiency, complexity and cost
noted their desire to have front end story in the BIM to highlight: the story around MNZ’s
role, the breadth of its role and the investment it has made into its capability and value for
money; the 'burning platform' Maritime sector issues that are here now and need to be
addressed (ie green shipping / new technologies, the need to build integrated transport
links for ports), and the consequences of not doing so, now and into the future.
noted that staff will present a draft BIM to the Board.
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4.3
Strategic uncertainties
This paper frames/reflects the Board’s ongoing strategic uncertainties discussions,
capturing the items raised during the April 2023 meeting for the Board’s review and
comment and provides the Board with an opportunity to explore and discuss the ‘What?’,
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‘So What?’ and ‘Now What’ aspects for Maritime NZ of these, and any emerging new,
strategic uncertainties. The Board:
noted that the output from the Board’s strategic uncertainties workshop held in New
Plymouth in June 2023 has been collated into a draft table for reference
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considered and
discussed updates or changes to the content of strategic uncertainties
table to reflect the Board’s best current thinking
noted any specific strategic risks identified by the Board (flowing from these strategic
uncertainties) that have become realised (i.e. Now risks), as per our risk approach, have
been included in Maritime NZ’s enterprise risk management framework and process
discussed the following issues which are manifesting locally, regionally, and/or globally,
with a view to updating and tracking them in the strategic uncertainties table:
Future ready workforce – there is currently no future strategy for workforce in NZ; however
there are good examples of this globally ie Singapore and India.
s 9(2)(g)(i)
Staff noted that there is a group working
on a pathway to addressing workforce issues and staff will update the Board as the work
Information
progresses.
Geostrategic shock – feedback from the shipping sector that NZ are seen as distant and
expensive. Lack of clarity as a country on what good looks like and how we position NZ for
the future i.e. green shipping lanes – low carbon supply chains. Increased geo political
positioning at IMO and the need for agencies to send the right people to get ‘our voice’
(and the Pacific’s voice) heard. It is essential that MNZ maintains a suitable international
engagement and intelligence sharing posture to stay on top of developments.
Disinformation – we monitor through social media channels, however more likely to come
through RSSS channels. We receive regular intelligence updates..
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Fight for the oceans – NZ lacks a coherent overarching approach to oceans, but we have
set some principles as part of our agency role - MNZ our strategic outcomes set out our
contribution. ..
the
Radical market, supply chain or maritime industry failure – noted the link to earlier
conversation around NZ being seen as distant and expensive as how we respond to that.
Staff stress, finite capacity and fatigue in responding to events will be ongoing (something
highlighted in earlier BIM discussion). Increasing public expectation that agencies are able
to respond and respond well to events, yet overall resilience could be dropping due to the
impact of consecutive events.
Climate change effects – have heard from local Whangārei stakeholders the impact locally
under
of climate change with disruption to rail and road links and the subsequent impact on ports
and the ability of the maritime sector to operate effectively. Acknowledged previous
discussions on highlighting this to Ministers.
What else? – Physical events/Natural hazards (escalating risk) i.e. catastrophic floods,
earthquake or tsunami – the probability of an occurrence is increasing. These should be
considered separately to climate change effects.
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4.4
‘Secure’ strategic discussion
In February 2023, the Board agreed on the Maritime NZ Outcomes for 2023/24, which
are Safe, Secure, Clean and Sustainable.
The Board’s strategic conversation for this meeting was centred on the ‘Secure’
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Outcome. The Acting DCE, Response Security and Safety Services and staff presented
to the Board on; Maritime NZ’s strategic framework and “Secure”, why is maritime
security important, a recap on our strategic and legislative framework and Maritime NZ’s
responsibilities and key areas of focus, and our work programme’s challenges and
opportunities.
Act
5.
Organisational reporting and accountability
5.1
June 2023 YTD Financial Results
This report provided an update on the financial results and other financial matters for
Maritime NZ (incl. Rescue Co-Ordination Centre) and the Oil Pollution Fund for full year
end 30 June 2023. The Board:
noted the financial results for the full year to 30 June 2023
noted that the oil pollution levy revenue and volumes have changed with industry
changes that have occurred due to the closure of Marsden Point Oil Refinery and
departure of the two domestic coastal oil tankers. Staff agreed to provide a comparison of
Information
these changes in the next financial report to the Board.
5.2
People and Capability Report
This paper provided an update to the Board on Maritime NZ people and capability metrics
and a summary of work initiatives. The Board:
discussed and
noted this report providing an update on People Capability key metrics
and work initiatives
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noted that work is underway to review this reporting as the new structure becomes
operational, which will include aligning with the Weaving the Cloak pillars reporting.
6.
Recurring business
the
6.1 Correspondence
The Board noted that during this Board meeting, the Board Chair has received the
following correspondence:
15 August 2023 - Letter of Support from the Ministers of Finance, Transport and Associate
Transport to the Board Chair, Jo Brosnahan
under
15 August 2023 – Letters of appointment from Minister O’Connor to two new Board
members, Parke Pittar and Ross Wilson, copied to the Board Chair.
7.
Any other business
The Board noted a verbal update from the DCE, Partnerships that staff have been
approached by the Fair Go television show for comment on the complaint by a person
injured in Southland. The complainant is questioning the level of fines given ($200) by the
local council and if this was appropriate and has raised concerns around the lack of
licensing of recreational craft. MNZ staff noted that local councils can choose to prosecute
under section 65 of the Maritime Transport Act.
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Information
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Maritime NZ September 2023
Board Meeting Minutes
Date of meeting:
28 September 2023
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Time and venue:
1:15pm | Wellington
Meeting:
September 2023 Board meeting
Board members:
Jo Brosnahan (Chair), Roy Weaver, Danny Tuato’o and Lesley Haines, Ross Wilson,
Act
Parke Pittar and Annabel Davies
Attending:
Kenny Crawford (Acting Director/CE) and Lizzy Cohen (minute taker)
Executive team:
Deb Despard, Andrew Saunderson, Shelley Tucker and Esther Livingston
Apologies:
Kirstie Hewlett Sharyn Forsyth and Peter Brunt
Guests:
Brian Cosgriff and Mark Leeming | Item 4.1, Mark Leeming | Item 4.2
Mihi whakatau for new Board members
Danny Tuato’o led a mihi whakatau for the new Board members, Ross Wilson and Parke Pittar.
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Directors Only Discussion
The Audit and Risk Committee (ARC) membership is made up of all Board members. The two new
Board members, Ross Wilson and Parke Pittar will therefore become members of the ARC.
1.
Meeting opening and administration
Karakia lead by Danny Tuato’o. Official
1.1
Chair’s welcome
The Chair welcomed Board members and the Executive Team.
1.2
Apologies
the
Kirstie Hewlett, Sharyn Forsyth and Peter Brunt.
1.3
Declaration of interests
Board members noted the interests register which has been updated to include the
interests of the new Board members, Ross and Parke.
The Chair noted that it is a timely reminder of the process for interests – if the Board
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members have an interest that they feel might be a conflict to raise this before the Board
meeting, if possible, so it can be managed.
1.4
Confirmation of previous minutes
The minutes of the previous meeting held on 15 August 2023 were reviewed by the Board.
The Board:
approved the minutes of the Board meeting held on 15 August 2023 as a true and
accurate record of the meeting
Jo Brosnahan and Roy Weaver
(carried)
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1.5
Actions arising report
The Acting Chief Executive presented the status update on the actions presented in the
actions arising report. The Board:
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noted the verbal update by staff on the action relating to the number of spills that impact
wildlife, an outcome of the Massey University Contract Renewal. Staff noted that there are
relatively low numbers of incidents (and therefore impacts to wildlife have also been
limited) and that this information is captured in specific incidents rather than a total across
all incidents. Some specific examples were referenced. Staff agreed to keep the Board
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updated on the success of the investment with the Massey University contract.
MNZ is currently monitoring and supporting the response to a Tier 2 diesel spill in banks
peninsular as a result of a 25m grounded fishing vessel, which occurred on 24 September.
The crew have been winched to safety and MNZ Regulatory Operations has commenced
an investigation. It is believed the bad weather has helped disperse any diesel spilled
which has lowered the risk to local wildlife which is being monitored by Environment
Canterbury (ECAN) who is the lead for this event.
On 26 September, a dumb barge “Pohonui” grounded on the western sea-wall of the river
mouth in Ōpōtiki harbour due to the strong river flow. Four workers were lifted off by
helicopter. There is currently evidence of an oil spill.
discussed the status of the actions in the actions arising report which will be updated
accordingly.
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1.6
Board meeting schedule and work programme 2023
The Board:
noted the 2023 work programme which will be rolled into next year while the new work
programme template is being populated by staff
noted that the 2024 meeting dates have been set and a draft work programme will be
included in the October Board meeting pack.
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2.
Chair’s Report – verbal update
None.
the
3.
Director’s report
The Acting Director/Chief Executive introduced the report. The Board noted the report and
discussed the following topics:
Funding review update
The Board noted the summary of submissions from public consultation, which closed on 15
August. These were largely supportive from the sector which demonstrates collaborative
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leadership – something to highlight in our next Annual Report.
s 9(2)(g)(i)
Budget 2024
s 9(2)(f)(iv)
Briefing to Incoming Minister (BIM)
Released The Board noted the progress update from staff on our BIM and agreed to consider a short
virtual meeting to discuss the draft BIM once circulated for their review.
Review of MNZ’s OIA function
The Board noted that the OIA review, undertaken by Info by Design, provides an
opportunity to address some capability gaps and process and procedural efficiencies. A
work programme will be developed to address the recommendations from the review
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report. Staff will consider if this is a potential internal audit for our audit programme once
processes have been updated, implemented and in use. The Board are interested in an
update on the outcome of the review, once completed.
The Board noted that there seems to be a lot of incidents and investigations at the
moment, some of which TAIC are also investigating, and the impact on staff’s time. Act
Embedding our organisational design changes
The Board noted that new RSSS Group structure will take effect on 30 October.
The Board noted that the challenge to recruit a Chief Advisor Health and Safety is likely
due to timing however staff are looking at criteria to help attract candidates.
Our External Facing Harm prevention programmes
The Board noted an update on our three programmes. They requested from staff a copy of
the Litmus Community Research report, the Safer Boating Forum Recreational Craft
Strategy and the Safer Boating Forum October agenda to support the consideration of
Board member attendance.
Audit and Risk Committee (ARC) Chair – Audit fraud risk questionnaire
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The ARC Chair noted that our external auditors, as part of the regular external audit
process, have requested the completion of a fraud enquiry questionnaire relating to fraud
mitigation and other controls. To the question ‘what is the views of those charged with
governance on fraud risk activity?’ the Board responded – not concerned.
The ARC Chair raised the matter of regulatory corruption and fraud (not specifically
captured in the fraud enquiry questionnaire) and it was noted that our fraud, bribery and
corruption policy and procedures sets out principles in relation to fraud, bribery and
corruption, and expectations for the prevention, detection and response to fraud, bribery
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and corruption incidents including non-financial fraud matters. Management agreed to
include an item on our fraud, bribery and corruption controls to support a conversation on
non-financial fraud at the next ARC meeting.
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4.
Organisational reporting and accountability
4.1
Draft 2022/23 Annual Report including Financial Statements
The purpose of this report was to provide the draft 2022/23 Annual Report, draft Financial
Statements, and going concern assessment, for Board review and feedback. The Board:
discussed the draft annual report and provided feedback to staff to incorporate into the
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final draft report. High level feedback included:
Opportunities to align key themes from our BIM with the Annual Report as a way to
consistently tell our story.
Further work on our case studies. In particular, the harm prevention case study to
better reflect and quantify the pressure on MNZ with the increased use of
recreational craft.
The theme of innovation is missing from the report – while this report looks back at
the year just been, MNZ is always looking to the future (ie NZ is a signatory to the
Clydebank Declaration to support the establishment of green shipping corridors).
Highlight what we are focussed on and how we are contributing to the work by
Government and the sector.
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Minutes of the Maritime NZ
October 2023 Out-of-Cycle Board
Discussion
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Date of meeting:
16 October 2023
Time and venue:
3:30pm | Zoom discussion
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Meeting:
Out-of-cycle Board discussion – October 2023
Board members:
Jo Brosnahan (Chair), Danny Tuato’o, Lesley Haines and Parke Pittar
Attending:
Kirstie Hewlett, Peter Brunt, Sean Cooper and Lizzy Cohen (minute taker)
Apologies:
Roy Weaver, Ross Wilson and Annabel Davies
1.
Meeting opening and administration
Karakia lead by Danny Tuato’o.
1.1
Chair’s welcome
The Chair welcomed Board members and staff to a short meeting to discuss the draft
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Briefing to the Incoming Minister. The Chair noted the written feedback provided by email
from members which will be considered as part of the discussion.
The Chair noted the permanent appointment of the Principal Advisor Governance, Lizzy
Cohen and congratulated her on her appointment.
1.2
Apologies
Roy Weaver, Ross Wilson and Annabel Davies.
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2.
Draft Briefing to the Incoming Minister
The Deputy Chief Executive - Regulatory Frameworks introduced the draft Briefing to the
Incoming Minister (BIM) to the Board, presented for their early input and discussion. This
the
follows an earlier discussion with the Board at the August Board meeting on the themes for
the BIM.
The Board noted the timeframes that management are working towards; early engagement
with the Board on the draft BIM this week, then socialising the BIM with Te Manatū Waka,
and Board input on the final draft of the BIM at the October Board meeting. It was
acknowledged that these timeframes may change depending on the formation of the
government.
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The Board noted the draft BIM and provided the following feedback to management.
A desire for the section on ‘who we are’ to be at the front of the Briefing and to utilise
diagrams to best explain our role.
Highlight the pressing issues for the Minister up the front of the Briefing, for example:
o the Funding review and the sustainability to take the sector forward to address
the opportunities and challenges and to fund the proposals for change
identified by the sector
o progress on Te Korowai o Kaitiakitanga – how we have modernised ourselves
to be an efficient regulator
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Maritime NZ October 2023 Board
Meeting Minutes
Date of meeting:
30 October 2023
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Time and venue:
12:00pm | Wellington
Meeting:
October 2023 Board meeting
Board members:
Jo Brosnahan (Chair), Danny Tuato’o and Lesley Haines, Ross Wilson, Parke Pittar and
Act
Annabel Davies
Attending:
Kirstie Hewlett and Lizzy Cohen (minute taker)
Executive team:
Sharyn Forsyth and Peter Brunt, Deb Despard, Andrew Saunderson, Shelley Tucker and
Esther Livingston
Apologies:
Roy Weaver and Kenny Crawford
Guests:
Rob Warner | Item 4.1 and 4.2, Blair Simmons and Briar Foster | Item 4.3, Vicky
Robson | Item 5.2 and 5.3
Directors Only Discussion
Information
1.
Meeting opening and administration
Karakia led by Danny Tuato’o.
1.1
Chair’s welcome
The Chair welcomed Board members and the Executive Team.
1.2
Apologies
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Roy Weaver and Kenny Crawford.
1.3
Declaration of interests
the
Board members noted the interests register.
1.4
Confirmation of previous minutes
The minutes of the previous meeting held on 28 September 2023 were reviewed by the
Board. The Board:
approved the minutes of the Board meeting held on 28 September 2023 as a true and
accurate record of the meeting
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Jo Brosnahan and Danny Tuato’o
(carried)
1.5
Actions arising report
The Chief Executive presented the status update on the actions presented in the actions
arising report. The Board:
discussed the status of the actions in the actions arising report which will be updated
accordingly.
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1.6
Board meeting schedule and work programme 2023 and 2024
The Board:
noted the 2023 work programme
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noted that the 2024 meeting dates have been set and a draft work programme is included
in the October Board meeting pack
agreed to the addition of a regional stakeholder engagement visit in April 2024 with the
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suggestion of Southland for the Executive to potentially consider
agreed to a regional visit to Tauranga to align with the Safer Ports Programme (extension
of the HSWA designation)
noted the discussion at the October Audit and Risk Committee (ARC) meeting regarding
the desire to move the October 2024 ARC meeting to September to allow for sufficient time
to sign off the Annual Report and Financial Statements, which will be reflected on the
Annual Board Agenda and the Annual ARC Agenda.
1.7
Audit and Risk Committee Recommendations – October meeting
The ARC met on 30 October, prior to the Board meeting. The ARC Chair provided a verbal
update to the Board from that meeting, highlighting the following key points. The Board:
noted the minutes of the Audit and Risk Committee meeting held on 17 July 2023,
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included in the Board pack
noted that the ARC:
met with external auditors from Deloitte
endorsed the final draft 2022/23 Annual Report and the end of year Audit
documentation which is presented for Board approval at the October 2023 Board
meeting (refer to Agenda Item 5.1)
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endorsed the representation letter from the Board to Deloitte for signature by the
Board Chair and ARC Chair on behalf of the Board
endorsed the statements of responsibility for the financial statements and
statements of performance for MNZ and the NZ oil pollution fund and recommend
that the Board authorise the Chair and ARC to sign the statements on behalf of the
the
Board
reviewed the external audit open recommendations and agreed to the closure of
seven audit recommendations
reviewed and discussed the enterprise risk report
reviewed and discussed the health and safety report and noted the progress on
our Critical Risks
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reviewed the Legislative Compliance Survey results and the corrective actions
underway
endorsed two polices (Insurance Policy and the Treasury, Funding and Reserves
Policy) to be approved by the Board at the November 2023 Board meeting.
2.
Chair’s Report – verbal update
The Chair noted that she had been asked to speak at the Te Manatū Waka Board
induction session on 31 October, which Ross Wilson and Parke Pittar are attending.
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3.
Director’s report
The Director/Chief Executive introduced the report. The Board noted the report and
discussed the following topics:
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Funding review
s 9(2)(f)(iv)
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Safer Ports Programme
Staff are making steady progress on the Safer Ports Programme (HSWA designation
extension).
The Safer Ports Programme work streams (attached to this report) provide a high level
overview for the Board. The Director/Chief Executive noted that each work stream includes
detailed plans and provided an overview of each of the work streams to Board members.
The Board expressed a desire to be kept up to date with how the work streams are
tracking and the Director/Chief Executive noted that the Independent Quality Assurance
(IQA) will provide oversight of what we expect to have in place by 1 July 2024 and after 1
July. Additional Crown funding of $1.2m was provided for designation transition work
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during 2023/24 and additional Working Safer Levy funding of $2.0m commences in
2024/25.
TAIC report
s 9(2)(g)(i)
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Letter to the Security for Transport & CE, Te Manatū Waka
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The Director/Chief Executive provided the Board with a copy of a letter to the Secretary for
Transport & Chief Executive, Te Manatū Waka regarding the NZSAR Council and the
Recreational Safety and Search and Rescue Review. The Board agreed with the
opportunity to highlight MNZ’s operational role to lead and deliver on our role in SAR.
Our External Facing Harm prevention programmes
Seafarers Welfare Board – last meeting went well so work to clarify the role and activities
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of the board appear to be improving.
The Board acknowledge the work of the MNZ staff in their contribution to develop and
finalise the Safer Boating Strategy.
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4.
Strategic conversations and decisions
4.1
Strategic uncertainties
The Board discussed specific strategic uncertainties and:
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noted that the output from the Board’s last strategic uncertainties discussion (in August
2023) has been collated into a draft table for reference
considered and
discussed updates or changes to the content of strategic uncertainties
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table to reflect the Board’s best current thinking, and how these uncertainties may interact
to shape Maritime NZ’s strategic and operating context
noted that any specific strategic risks identified by the Board (flowing from these strategic
uncertainties) will feed into Maritime NZ’s enterprise risk management framework and
process
noted that an update on Te Korowai o Kaitiakitanga at the November annual Board
strategy meeting may result in deeper understanding and discussion on assurance of
strategic risks
discussed the following issues which are manifesting locally, regionally, and/or globally,
with a view to updating and tracking them in the strategic uncertainties table:
climate change effects – to what extent are the impacts of climate change limiting our
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ability to operate, recognising that various downstream effects are distributed through a
number of the strategic uncertainties headings. Management will consider if any specific
risks are captured, or should be captured, in our enterprise risk management framework
Digititisation – the recognition of the potential positive impacts of AI and the opportunities
that come with this i.e. smart shipping, maritime autonomy, and port operations
Future ready sector workforce – recent reports which have found that people intend to
work past the age of 65 and the challenges and opportunities an aging workforce creates
for organisations
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Radical market, supply chain or maritime industry failure – although this may be
predominantly a commercial issue and for ‘the market’ to address, aging port
infrastructure, lack of larger vessel reception facilities, and the possibility of the increasing
presence of poor quality ships in New Zealand waters all could have major ripple effects
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for Maritime NZ delivery (as the regulator) and national supply chain resilience overall
Physical events & natural disasters – if one of more key New Zealand ports get knocked
out through a major natural disaster (e.g. volcanic activity in Auckland) then the flow of
freight will be disrupted, with longer term recovery efforts required. Our ability to scale up
coastal shipping (in the event road and rail freight transportation is affected through a
physical event) is quite limited without more investment in infrastructure and the maritime
mode.
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4.2
Post Government preparedness
The Board noted a revised version of the MNZ Briefing to the Incoming Minister (BIM)
presented for Board feedback. The Board:
agreed that overall the draft BIM is shaping up well and provided some detailed feedback
to Management to include in the next iteration of the BIM.
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4.3
Readiness and Response presentation
The Maritime Incident Strategy and Systems team, Blair Simmons and Briar Foster, joined
the Board meeting to present an overview of:
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the roles and responsibilities in maritime incident response, including the Board’s
role in maritime which is largely related to financial delegations
the journey to implement an integrated maritime response structure
the lessons identified and applied during recent maritime incident responses
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This presentation responds to actions from previous Board meetings. Staff noted that
today, 30 October is the first day of the new team structure.
Management noted the importance of being able to call on international relationships for
advice and resources during an incident.
The Board acknowledged the work of the team, particularly with an increase in incident
responses and the impact on staff involved in responding to incidents.
5.
Organisational reporting and accountability
5.1
Final Draft 2022/23 Annual Report including Financial Statements
The purpose of this report was to provide the draft 2022/23 Annual Report, draft Financial
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Statements, and going concern assessment, for Board review and feedback. The Board:
noted that Deloitte have completed the audit of Maritime NZ and the New Zealand Oil
Pollution Fund for the year ended 30 June 2023
noted that the Audit and Risk Committee met with Deloitte at the October meeting to
discuss the findings and recommendations from the audit
approved the Annual Report 2022/23 and statements of performance (Appendix 1)
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including the financial statements, for the year ended 30 June 2023 for Maritime NZ and
for the NZ Oil Pollution Fund
approved the content of the representation letter from the Board to Deloitte (Appendix 2
and 3), and
authorised the Board Chair and Audit and Risk Committee Chair to sign the
the
letter on behalf of the Board (by electronic signature)
noted the content of the management representation letters to the Board from the Chief
Executive and Chief Financial Officer
noted the content of the Deloitte Report to the Authority
noted that a going concern assessment and current letter of comfort was provided to the
Board at the September meeting
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approved the Statements of Responsibility for the financial statements and statements of
performance for Maritime NZ and for the NZ Oil Pollution Fund and authorise the Board
Chair and Audit and Risk Committee Chair to sign the statements for and on behalf of the
Board (by electronic signature)
noted the timeline for presentation and publication of the Annual Report
noted and thanked the MNZ staff for their work to finalise the 2022/23 audit.
Lesley Haines and Jo Brosnahan
(carried)
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5.2
Health and Safety Charter review discussion
noted that the Board last reviewed its Health and Safety Charter (the Charter) in April
2021, and that since then:
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Maritime NZ has reviewed its organisational strategy, vision, outcomes, principles
and values
progress has been made by Maritime NZ in relation to Health and Safety
these changes, and other external developments, may impact whether the current
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Board Health and Safety Charter continues to reflect the Board’s position in
relation to health and safety at Maritime New Zealand.
discussed amendments to the Health and Safety Charter (the Charter), in light of all of the
above, in particular that the Charter:
is the statement of reality, linking it to actual commitments of the Board to ensure
that it discharges its legal responsibilities but also engages in the appropriate way
to ensure that the health and safety requirements are being maximised as much
as possible e.g. Board members engage with staff on critical risks and to ensure
they are aware of any issues
should reflect best practice (ie Better Governance guidance) including that we aim
to be exemplary in health and safety
is time bound
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reflects the desire to proactively monitor health and safety. The Board reconfirmed
their previously agreed approach that health and safety critical risks are governed
with other enterprise risks to provide a Board oversight total risk profile and
enable reassessment of health and safety critical risks, if (when) other enterprise
risks change
is updated to incorporate Te Korowai o Kaitiakitanga – our strategy, vision,
outcomes, principles and value (including a good health and safety culture)
agreed to ongoing capability development in health and safety at a governance level
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agreed that Management revise the Charter to reflect the Board’s discussion and then
present back to the Board for further discussion and input.
5.3
MNZ Workforce Metrics report
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This paper provided an update to the Board on workforce metrics. The Board:
noted that this report has evolved from the People and Capability report to a Workforce
Metrics report, to recognise that the organisational culture reporting now sits within Te
Korowai, Weaving the Cloak reporting which is a regular report to the Board
discussed the report and
noted that work continues to review this reporting as the new
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Group structure is operationalised
noted that Management expect to have identified a fit for purpose staff engagement
survey tool and the frequency of surveying staff (engagement survey or pulse surveys) by
early to mid 2024
agreed that the metrics report is updated to include staff turnover by group
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Document Outline
