6. Future Performance

Measuring Performance

There are a range of measures that assess Customs’ performance.

Results-based measures such as processing times for transactions and travellers, inspections and seizures, and revenue obtained, all give ongoing quantifiable measures about our core operations. These can be compared internationally and overall our performance is currently good. Continuing to address key capability issues will be central to our ability to sustain our performance in view of trends in demands and complexities.

As already noted, Customs’ success increasingly depends on working effectively with others. Other indicators of Customs’ effectiveness include process measures about developing and maintaining these working relationships and results attributable to this work, such as the trade agreements and treaties that are subsequently concluded.

Customs compiles comprehensive "client centred" feedback about our performance and the value Customs adds to clients. We obtain this feedback through properly designed and resourced surveys which helps to inform our ability to improve performance.

Beyond assessing current performance, the strategic question is: how well Customs will perform in future… and based on what assumed capabilities?

Strategic Investments

Joint Border Management System

The Joint Border Management System (JBMS) is the major strategic initiative within the portfolio seeking significant new capital investment.

The JBMS will manage all flows of people, goods and craft crossing New Zealand’s border. It will also deliver wider services, including biosecurity, and better support the needs of other government agencies. As the proposed core border management system in the future, it is being jointly developed with other border sector agencies. JBMS also incorporates part of the overall Trade Single Window project, a project that will reduce industry costs by providing a single point of entry for transactions into all relevant government information systems in order to fulfil all import and export regulatory requirements.

Both Customs and the Ministry of Agriculture and Forestry (MAF) are already due to replace their existing operation systems (CusMod and Quantum). Various other agencies also need to enhance their systems to support changing operational demands. The opportunity exists to coordinate those investments to minimise the total cost to Government, while at the same time building necessary new capabilities and services.
 
A Stage 2 Business Case for JBMS is being developed and will be completed in mid 2009. Subject to funding approval, over the next 5 years the cost of developing and implementing JBMS is expected to total around $100 million in Vote Customs with a further $20 million for the MAF component. It is proposed to implement the system in full by 2012.

The benefits of JBMS include:

• ability to leverage more advanced technologies (easier to maintain, extend and interface with other agency systems)
• improved risk management, data sharing and information management capabilities
• flexibility to allow new services to be provided to travellers, exporters and importers
• support for the border service requirements of other agencies such as the NZ Food Safety Authority and Department of Labour.

The JBMS programme builds on previous work carried out separately by Customs and MAF.
 
Automated Passenger Clearance

A range of passenger facilitation projects are underway, these include technology and non-technology solutions to reduce border management operating costs, free up resources, and speed up passenger processing.

Customs is currently evaluating the SmartGate automated passport-reading passenger clearance system developed and owned by the Australian Customs Service. SmartGate works off facial biometric data encoded in passports. Along with other options, the SmartGate system is being evaluated as part of identifying what automated passport clearance system(s) might best suit New Zealand’s needs.

New Head Office Building

A further capital item will be the costs of completing and occupying Custom’s new head office building in 2010.

Following government approvals in 2006 and 2007, Customs contracted a 12-year lease for new purpose-built head office premises. The building is currently being constructed on the Wellington waterfront by CentrePort Ltd and will be ready for occupation in late 2010. It will house 300 staff, be open plan, and will meet the highest standards for the built environment – ie, hold a 5 Green Star rating. The expected costs of fit-out will be around $8 million. Fit-out costs have been funded through a combination of capital injection and capital reserves from the Departmental Balance Sheet. Our current head office building is leased until 2014, and arrangements will be made to minimise these costs after 2010 by on-leasing.

Public Interest Issues

Customs interacts with businesses and the public tens of thousands of time a day. The sheer volume and diverse nature of Customs transactions means that issues may arise anytime and perhaps generate widespread media interest.

We also have statutory responsibilities to report on the use of specific search and investigation methods such as powers in relation to detention and search and the use of tracking devices. We are working with the Law Commission in reviewing some aspects of these powers.