Statement of Intent: 2006/2007 - 2009

Statement of Intent: 2006/2007 - 2009

STATEMENT OF INTENT

2006/2007 - 2009

6. THE MAIN FINANCIAL AND NON-FINANCIAL MEASURES AND STANDARDS BY WHICH THE FUTURE PERFORMANCE OF THE PANEL MAY BE JUDGED

Financial measures

6.1

The main financial measure by which the Panel believes that it may be judged is the achievement of ongoing viability in terms of section 51 of the Crown Entities Act.

6.2

Because of the nature of the Panel's revenue and expenditure it is not appropriate to set more specific goals such as a level of third party income, a return on accumulated funds or a financial break even.

6.3

The Panel is very cost conscious. It uses a minimum number of members and staff on each matter before it. The work programme is closely monitored by the Panel and updated through the year. Most meetings are held by telephone although the Panel has 8 scheduled full meetings a year and formal enforcement meetings are always physical meetings where all parties are present.

6.4

If the Panel's activities appear to be jeopardising its financial viability then, in terms of its Output Agreement with the Minister of Commerce, it would notify the Ministry promptly and seek an appropriate solution, which may entail additional Crown funding.

Non-financial measures

6.5

The Panel is given funding from the Crown on the basis of a range of performance measures and performance standards. These are set out in detail for 2006/2007 in the Panel's forecast Statement of Service Performance included later in this Statement of Intent. The Panel considers that the main non-performance measures by which its performance can be judged over the next three years are:

Proposals for changes to the Code and takeovers law: measured by the extent of acceptance of the Panel's recommendations by the Minister of Commerce; aim is for 95% acceptance of proposals.
Exercising of enforcement powers: measured by the extent to which Panel decisions are challenged in Court and, if challenged, by the degree of endorsement by the Court of the Panel's decisions; aim is to have no challenges to the decisions in Court and, if challenged, to have 100% endorsement by the Court.
Exercising of exemption powers: measured by the extent to which Panel decisions are endorsed or accepted by market participants and the media; aim is for 100% endorsement or acceptance by market participants (through feedback) and for absence of adverse market comment.
Exercising of approval powers: measured by the quality of independent advisers' reports as assessed internally and in published media; aim is to reduce the level of Panel comment on draft reports to two comments per report and to achieve a favourable balance of comments on the reports in the media.
Promoting public understanding of takeover law: measured by the extent to which Panel decisions, law changes and Panel policy statements are communicated effectively to the market; aim is to have information published within one month of the law being changed and within one week of decisions being made.

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