Cabinet Paper - DIGITAL STRATEGY GOVERNANCE

8. The Digital Strategy provides an integrated framework for initiatives that encourage the uptake and effective use of ICT for New Zealand’s economic, social and cultural gain. Achievement of these objectives requires moving forward in parallel in three interdependent outcome areas:

Content – information is available to all New Zealanders, and content is developed that reflects New Zealand’s intellectual strengths in the artistic, cultural, scientific and industrial fields.
Confidence and capability – that New Zealanders will have the necessary skills and confidence to use ICT effectively and that the environment for ICT use will be secure and reliable.
Connection – that affordable universal access to ICT infrastructure will be available now and in the future.

9. The Digital Strategy is multi-faceted. It is a strategic framework led by government, but delivery and success will depend heavily upon the commitment and partnership from New Zealand’s communities, and the private and voluntary sectors. Effective implementation of the strategy will therefore require strong central coordination and appropriate mechanisms to align contributions from these sectors.

10. The final version of the Digital Strategy is near completion. It will be a “blueprint for action”, taking the policy developed and providing a clearer focus on implementation. It will reflect the feedback received from the submission process and will endorse the key direction of the draft strategy. It will also demonstrate progress from the draft phase through a number of projects that are already showing clear benefits for New Zealand, for example Project PROBE, the Advanced Research Network, the National Digital Heritage Archive, Te Ara - the Online Encyclopedia of New Zealand, and the E-government strategy.

11. Consistent with feedback received on the draft strategy, the final version will have a clear focus on people and how technology can assist them. It is an opportunity to present the benefits of a whole-of-government approach. It will be seen as an umbrella under which other government and wider strategies inter-relate, whilst also having some of its own funding for projects with multiple economic, environmental, social, cultural and community outcomes. It will also illustrate New Zealand’s strengths and unique elements to an international audience.

12. In addition to the full final document, an executive summary version will be made available for wider dissemination in May 2005. An accompanying website is also being developed (for launch in May 2005), as, for many, this will be the appropriate medium to present such a strategy.

Funding
13. The Digital Strategy components of the 2005/06 Budget have been agreed amongst Growth and Innovation Framework (GIF) Ministers. The Prime Minister also noted in her February 2005 statement to Parliament that there will be significant Budget initiatives to support the Digital Strategy this year.

14. The Digital Strategy will be launched in mid May 2005. As the launch will precede the budget speech, agreement has been given by the Minister of Finance to include the funding details from the 2005/6 Budget.

15. The tiers of government funding available to support the strategy, in addition to ongoing activities, are reprioritisation within existing baseline, additions to Vote baselines for 2005/6 in some departments, and funding available from the GIF to support Digital Strategy initiatives.

16. The following bids totalling $57 million have been agreed for GIF funding to support Digital Strategy activities:

two contestable funds totaling $45.3 million over four years for partnership-driven activity to:
a enable regional and community initiatives where local partnerships develop ICT capabilities, address issues of confidence in using ICTs, or strengthen community projects through the use of ICTs, and create and digitise distinctive and valuable New Zealand content and harness innovation in design and content ($21.3 million over four years);
b enable affordable high-speed broadband based on competitive open-access principles. ($24 million over four years);
development of the www.biz.org.nz portal that enables businesses to access ICT information that will enhance their capability and lift productivity ($8.4 million);
development of a cultural portal to provide a coordinated online presence for the cultural sector ($3.3 million). The initial focus will be on developing an events portal which will provide online access for both domestic and international audiences;
In addition 2004/05 GIF contingency funding of $1.6 million was made available to fund a small number of initiatives which contributed to fulfilling both GIF ICT Taskforce recommendations and the Digital Strategy. These included initiatives in support of government procurement in ICT and Advanced Research Network capability.

17. A significant level of funding is being provided through existing programmes and activities being continued or proposed by departments under their own budget processes. The final document will show a concerted set of initiatives across government that will address the objectives of the Strategy. Examples include the E-government Programme through Vote State Services, the National Digital Heritage Archive project and a number of other examples through Vote National Library, Vote Arts, Culture & Heritage (providing an impressive demonstration of content development specific to New Zealand), Vote Education and others.

GOVERNANCE AND MANAGEMENT FRAMEWORK
18. The Digital Strategy process to date has been co-ordinated by an inter-departmental Steering Group led by the Ministry of Economic Development (MED), with the oversight of relevant Ministers (“Digital Ministers”). With the publication of the final strategy, it is appropriate to formalise these arrangements.

19. There will need to be a mechanism in place to enable a consolidated view of achievement of Digital Strategy outcomes, including an assessment of the effectiveness of the portfolio of investments in meeting the goals set out in the Digital Strategy.

20. The main purpose of this Digital Strategy governance and management framework should be to provide oversight and strategic co-ordination of initiatives contributing to three parallel outcome areas of the Digital Strategy. This will require accountability across departmental boundaries, (in addition to existing reporting lines) and the ability to integrate initiatives being implemented by the private and community sectors.

21. General principles considered important in designing this framework include:

ensuring a structure that is transparent, robust and streamlined. Clear accountability structures will be needed with a monitoring and evaluation framework.
ensuring it reflects the Digital Strategy’s whole-of-government approach.
reflecting the partnership with New Zealand’s communities, business sector and other stakeholders, through “on-the-ground” involvement in delivery and monitoring.
avoiding duplication of, and maximising the benefits of existing delivery mechanisms, particularly in relation to working with communities and to funding arrangements.
maintaining an overview to ensure a balance of the key outcome areas of the strategy - Connection, Content and Confidence.

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