🏢 Industry Capability Network New Zealand

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  1. 
		ISO-ICN History V3 [for] Archives (2016), Robert Murdoch, ONZM.
    2. 
	
  2. 
		Industry Capability Network New Zealand Review – Research, Evaluation and Monitoring Team, Industry and Regional Development Branch, Ministry of Economic Development – December 2007 – Ministry of Business, Innovation and Employment website, http://www.mbie.govt.nz/publications-research/publications/evaluation-of-government-programmes/Archive/Industry%20Capability%20Network%20New%20Zealand%20Review.pdf (accessed 8 January 2018).
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	Establishment



	The Industry Capability Network New Zealand (ICNNZ), originally a proposal from the Manufactures Federation, was formed as the New Zealand Industrial Suppliers Office (NZISO) on 14 October 1991 when Cabinet recommended the establishment of a new Government Purchasing Policy [CAB (91) 341]. NZISO was initially administered within the Ministry of Commerce, and responsible to a Government appointed Management Committee.



	The first appointments of the NZISO Management Committee, made by the Minister of Commerce on 24 July 1991, were:


    
	
  • 
		Rowland Crone, Chairman, Managing Director Ajax Spurway Fasteners New Zealand Limited;
    • 
	
  • 
		John Belgrave, Secretary of Commerce;
    • 
	
  • 
		Colonel Terry McBeth, Director of Support Policy, Headquarters New Zealand Defence Force;
    • 
	
  • 
		Keith Turner, General Manager Design Power New Zealand Limited;
    • 
	
  • 
		Alan Lock, Managing Director Computer Systems Implementation Limited;
    • 
	
  • 
		George Gaw, Managing Director Brendon Interiors Limited;
    • 
	
  • 
		Mike Smith, Education/Research Officer New Zealand Engineers Union.
    • 




	Robert Murdoch was appointed the first Director of the ICNNZ, and Linda Archer was appointed the first Senior Consultant.



	The restructuring of the domestic economy had resulted in Government Departments and state agencies being given responsibility for their own purchasing. The move away from central purchasing meant the disappearance of the centralised repository of information on purchasing requirements and potential suppliers. The Government saw greater local participation in government procurement.



	NZISO joined the Australian Industries Supply Office (AISO) National Network on 27 November 1991 at the ISO National Directors meeting in Melbourne. Other members included:


    
	
  • 
		Victoria New South Wales;
    • 
	
  • 
		South Australia;
    • 
	
  • 
		Queensland;
    • 
	
  • 
		Western Australia;
    • 
	
  • 
		Northern Territory; and
    • 
	
  • 
		National Coordinator based in Canberra.
    • 




	Being fully integrated into the AISO Network gave New Zealand access to Australian Federal and State Government procurement opportunities under the Closer Economic Relations (CER) agreement. It also gave New Zealand manufacturers access to Australian major government projects, including the ANZAC Frigates which were built for the Australian and New Zealand Navies.



	In 1995 the Commonwealth Government of Australia established the Industrial Supplies Office Network (ISONET), a public company to act as coordinator for the ISO Network of which the NZISO was a member. The Board was based in Canberra.



	In 2003 the NZISO changed its name to the Industry Capability Network New Zealand (ICNNZ). This was to keep New Zealand in line with its Australian counterparts who had changed their name to reflect the new direction with greater involvement in major infrastructure projects in locally and internationally.



	Functions and Responsibilities



	The original policy purpose of the Industry Capability Network was to address the perceived information asymmetries which were thought to increase the transaction costs for both government purchasers and potential local suppliers. The programme focused around four primary delivery roles:


    
	
  • 
		facilitating the sale of locally made goods and services to government purchasers;
    • 
	
  • 
		establishing an information base of potential suppliers and helping to make known the requirements of purchasers to potential sellers;
    • 
	
  • 
		establishing linkages with Australian ISOs; and
    • 
	
  • 
		exchanging information on trans-Tasman opportunities.
    • 




	It was established on a trial basis with a view to it being placed on a “user pays” or other private sector funding basis from 1 July 1993. However, in 1993 it became evident that moving the programme to private sector management was precluded by a restraint of trade clause in the Government’s agreement with GSB Supplycorp (the privatised state-owned enterprise known as the Government Supply Brokerage Corporation (New Zealand) Limited). This restraint of trade did not expire until 31 January 1997.



	The Government Electronic Tendering Service (GETS) website was established in the mid-1990’s to provide an electronic platform to list government tenders and notify registered users of opportunities. The GETS website included TenderWatch, an automatic tender notification service that alerts users, via email, to tendered opportunities.



	The ICNNZ was evaluated in 1996 and it was recommended that the government cease funding the programme by the end of that financial year. That review found there was no market failure, i.e. no information asymmetries between purchases and suppliers. There also appeared to be limited demand by purchasers and suppliers alike for the ICNNZ services, no substantiation of a structural bias against New Zealand suppliers and little evidence of value in the ICN Australian connections. Furthermore, because the programme had been ineffective, continuation of the programme on a user pays basis was not considered to be a viable option. The government at the time elected to retain the ICNNZ and to continue to fund it.



	Initially the efforts of the ICNNZ were focused on government procurement. It helped address perceived information gaps between suppliers and purchasers and was intended to allay domestic suppliers’ concerns that government purchasers were reluctant to buy from them. The policy intent was to promote increased competitive import replacement with the effect that the sourcing of domestically manufactured goods and services would advance New Zealand’s business capabilities.



	In 2000 a shift in the emphasis of the ICNNZ activities targeted the major projects market and medium-sized government procurement projects were consigned to the GETS system. Major projects are those that take a number of years to complete (e.g. typically between 18 months to 5 years) and tend to occur in areas of infrastructure (e.g. power generation, defence and hospitals). Often a major project will have a lead project manager who oversees the tendering and construction process. There will also be several key suppliers who provide the core technology. Lead project managers and key suppliers are those whom the ICNNZ sought out and engaged with.



	In 2001, the ICNNZ was moved out of central government (Ministry of Commerce) into Industry New Zealand (INZ), the newly created industry development delivery agency, which in 2003 became New Zealand Trade and Enterprise (NZTE) through integration with Trade New Zealand. The primary rationale for both INZ and NZTE was to promote the development of local industry.



	In 2006, GETS was split out of ICNNZ and returned to the Ministry of Economic Development (as the Ministry of Commerce was renamed in 2000) leaving ICNNZ to focus on major projects and still operating as a unit within NZTE.



	ICNNZ also utilised the jointly developed ICN manufacturers’ capability register (ICN Toolbox) which incorporated an extensive number of validated Australian and New Zealand manufacturing and service companies.



	ICNNZ also jointly developed Project Gateway with the ICN Network which enabled the ICNNZ to obtain detailed procurement information regarding Australia-New Zealand opportunities for local industry. This involved a wide range of major projects including oil and gas, mining, rail, defence, aviation, hospitals, wind farms throughout Australia, New Zealand and internationally.  This also allowed ICNNZ to play a major role in getting local industry involved in global supply chains.



	Disestablishment



	On 30 June 2015, Industry Capability Network New Zealand ceased to become a member of Industry Capability Network Limited in Australia. The Australian Industry Capability Network in Canberra took over the ICN activities and interests in New Zealand.

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Agency

ADLD

1991 ‑ 2015

Central government

CAB (91) 341

The Industry Capability Network New Zealand (ICNNZ), formerly known as the New Zealand Industrial Supplies Office, offered a service to facilitate contact between public sector purchasers and suppliers, about purchasing requirements and domestic industry capabilities. It also liaised with Australian state/territories Industrial Supplies Offices.

Wellington

Show History

Establishment

The Industry Capability Network New Zealand (ICNNZ), originally a proposal from the Manufactures Federation, was formed as the New Zealand Industrial Suppliers Office (NZISO) on 14 October 1991 when Cabinet recommended the establishment of a new Government Purchasing Policy [CAB (91) 341]. NZISO was initially administered within the Ministry of Commerce, and responsible to a Government appointed Management Committee.

The first appointments of the NZISO Management Committee, made by the Minister of Commerce on 24 July 1991, were:

  • Rowland Crone, Chairman, Managing Director Ajax Spurway Fasteners New Zealand Limited;
  • John Belgrave, Secretary of Commerce;
  • Colonel Terry McBeth, Director of Support Policy, Headquarters New Zealand Defence Force;
  • Keith Turner, General Manager Design Power New Zealand Limited;
  • Alan Lock, Managing Director Computer Systems Implementation Limited;
  • George Gaw, Managing Director Brendon Interiors Limited;
  • Mike Smith, Education/Research Officer New Zealand Engineers Union.

Robert Murdoch was appointed the first Director of the ICNNZ, and Linda Archer was appointed the first Senior Consultant.

The restructuring of the domestic economy had resulted in Government Departments and state agencies being given responsibility for their own purchasing. The move away from central purchasing meant the disappearance of the centralised repository of information on purchasing requirements and potential suppliers. The Government saw greater local participation in government procurement.

NZISO joined the Australian Industries Supply Office (AISO) National Network on 27 November 1991 at the ISO National Directors meeting in Melbourne. Other members included:

  • Victoria New South Wales;
  • South Australia;
  • Queensland;
  • Western Australia;
  • Northern Territory; and
  • National Coordinator based in Canberra.

Being fully integrated into the AISO Network gave New Zealand access to Australian Federal and State Government procurement opportunities under the Closer Economic Relations (CER) agreement. It also gave New Zealand manufacturers access to Australian major government projects, including the ANZAC Frigates which were built for the Australian and New Zealand Navies.

In 1995 the Commonwealth Government of Australia established the Industrial Supplies Office Network (ISONET), a public company to act as coordinator for the ISO Network of which the NZISO was a member. The Board was based in Canberra.

In 2003 the NZISO changed its name to the Industry Capability Network New Zealand (ICNNZ). This was to keep New Zealand in line with its Australian counterparts who had changed their name to reflect the new direction with greater involvement in major infrastructure projects in locally and internationally.

Functions and Responsibilities

The original policy purpose of the Industry Capability Network was to address the perceived information asymmetries which were thought to increase the transaction costs for both government purchasers and potential local suppliers. The programme focused around four primary delivery roles:

  • facilitating the sale of locally made goods and services to government purchasers;
  • establishing an information base of potential suppliers and helping to make known the requirements of purchasers to potential sellers;
  • establishing linkages with Australian ISOs; and
  • exchanging information on trans-Tasman opportunities.

It was established on a trial basis with a view to it being placed on a “user pays” or other private sector funding basis from 1 July 1993. However, in 1993 it became evident that moving the programme to private sector management was precluded by a restraint of trade clause in the Government’s agreement with GSB Supplycorp (the privatised state-owned enterprise known as the Government Supply Brokerage Corporation (New Zealand) Limited). This restraint of trade did not expire until 31 January 1997.

The Government Electronic Tendering Service (GETS) website was established in the mid-1990’s to provide an electronic platform to list government tenders and notify registered users of opportunities. The GETS website included TenderWatch, an automatic tender notification service that alerts users, via email, to tendered opportunities.

The ICNNZ was evaluated in 1996 and it was recommended that the government cease funding the programme by the end of that financial year. That review found there was no market failure, i.e. no information asymmetries between purchases and suppliers. There also appeared to be limited demand by purchasers and suppliers alike for the ICNNZ services, no substantiation of a structural bias against New Zealand suppliers and little evidence of value in the ICN Australian connections. Furthermore, because the programme had been ineffective, continuation of the programme on a user pays basis was not considered to be a viable option. The government at the time elected to retain the ICNNZ and to continue to fund it.

Initially the efforts of the ICNNZ were focused on government procurement. It helped address perceived information gaps between suppliers and purchasers and was intended to allay domestic suppliers’ concerns that government purchasers were reluctant to buy from them. The policy intent was to promote increased competitive import replacement with the effect that the sourcing of domestically manufactured goods and services would advance New Zealand’s business capabilities.

In 2000 a shift in the emphasis of the ICNNZ activities targeted the major projects market and medium-sized government procurement projects were consigned to the GETS system. Major projects are those that take a number of years to complete (e.g. typically between 18 months to 5 years) and tend to occur in areas of infrastructure (e.g. power generation, defence and hospitals). Often a major project will have a lead project manager who oversees the tendering and construction process. There will also be several key suppliers who provide the core technology. Lead project managers and key suppliers are those whom the ICNNZ sought out and engaged with.

In 2001, the ICNNZ was moved out of central government (Ministry of Commerce) into Industry New Zealand (INZ), the newly created industry development delivery agency, which in 2003 became New Zealand Trade and Enterprise (NZTE) through integration with Trade New Zealand. The primary rationale for both INZ and NZTE was to promote the development of local industry.

In 2006, GETS was split out of ICNNZ and returned to the Ministry of Economic Development (as the Ministry of Commerce was renamed in 2000) leaving ICNNZ to focus on major projects and still operating as a unit within NZTE.

ICNNZ also utilised the jointly developed ICN manufacturers’ capability register (ICN Toolbox) which incorporated an extensive number of validated Australian and New Zealand manufacturing and service companies.

ICNNZ also jointly developed Project Gateway with the ICN Network which enabled the ICNNZ to obtain detailed procurement information regarding Australia-New Zealand opportunities for local industry. This involved a wide range of major projects including oil and gas, mining, rail, defence, aviation, hospitals, wind farms throughout Australia, New Zealand and internationally.  This also allowed ICNNZ to play a major role in getting local industry involved in global supply chains.

Disestablishment

On 30 June 2015, Industry Capability Network New Zealand ceased to become a member of Industry Capability Network Limited in Australia. The Australian Industry Capability Network in Canberra took over the ICN activities and interests in New Zealand.


  1. ISO-ICN History V3 [for] Archives (2016), Robert Murdoch, ONZM.
  2. Industry Capability Network New Zealand Review – Research, Evaluation and Monitoring Team, Industry and Regional Development Branch, Ministry of Economic Development – December 2007 – Ministry of Business, Innovation and Employment website, http://www.mbie.govt.nz/publications-research/publications/evaluation-of-government-programmes/Archive/Industry%20Capability%20Network%20New%20Zealand%20Review.pdf (accessed 8 January 2018).





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Searching within Agency Industry Capability Network New Zealand (3 Related Series)

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🌀 R25618688 R25618688
New Zealand Industrial Supplies Office folder - NZISO Information Pamphletⓘ

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[2]

Item Inquiry — Reading Room Pre-Orders

🌀 Archives NZ / CC BY 2.0

1992Wellington 		1992 Wellington

  >  Corporate Planning and Reporting records

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Item Inquiry — Reading Room Pre-Orders

🌀 Archives NZ / CC BY 2.0

1995Wellington 		1995 Wellington

  >  Board of Management Minutes

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🌀 Archives NZ / CC BY 2.0

1991 ‑ 1996Wellington 		1991 ‑ 1996 Wellington

Archives NZ results via API under CC BY 2.0 license