title: Intellectual Capital Reporting by the New Zealand Local Government Sector

authors: Schneider, Annika Barbara Sabine

subjects: intellectual capital

abstract: Sweeping financial management reforms occurred in New Zealand during the late 1980s and early 1990s which radically changed the face of the New Zealand public sector.  These reforms sought to significantly restructure and reorganise local government thereby improving their effectiveness and efficiency and improving their accountability to their stakeholders. The principal vehicle for the discharge of this accountability is the annual report, which must be prepared according to Generally Accepted Accounting Practice (GAAP) and commercial principles.

Organisations in the private sector are beginning to recognise the value of accounting for intellectual capital (IC) (see for example Quinn, 1992; Brooking, 1996; Sveiby, 1997; Edvinsson  Malone, 1997; Bontis, Dragonetti, Jacobsen  Roos, 1999; Guthrie, Petty  Johanson, 2001; Bounfour, 2003). Studies on the measurement, management and reporting of IC have been undertaken internationally in Asia (Abeysekera  Guthrie, 2005; Goh  Lim, 2004; Ordenez de Pablos, 2002), Australia (Guthrie  Petty, 2000), Europe (Bozzolan, Favotto and Ricceri, 2003; Olsson, 2001; Ordenez de Pablos, 2004), United Kingdom (Collier, 2001; Williams, 2001) and Ireland (Brennan, 2001).
 
Despite the significant research interest in the field of intellectual capital internationally, scant attention has been paid to intellectual capital reporting by commercial organisations in New Zealand. An extensive review of the IC literature yielded only two New Zealand based studies (Miller  Whiting, 2005; Wong  Gardner, 2005). Further, no studies to date have addressed intellectual capital reporting by local governments in either New Zealand or internationally. This study aims to fill this gap through the development of an intellectual capital disclosure model that could be applied to local authorities.

The research describes and explains the development of a disclosure index used to measure the extent and quality of current intellectual capital disclosure by local authorities in New Zealand. The index was developed through a consultative process with a panel of local government stakeholders which was used to establish the weightings for each item. The final index comprised 26 items divided into three categories: internal capital, external capital and human capital. The 2004/2005 annual reports of 82 New Zealand local authorities were scored for extent and quality of disclosure against the index. 

The results indicate that intellectual capital reporting by local authorities is varied. Manukau City Council scored the achieved the highest overall score (76%) out of the 82 reports analysed while Whakatane District Council scored the lowest with 33%. The most reported items were joint ventures/business collaborations and management processes. The least reported items were intellectual property and licensing agreements. The most reported category of intellectual capital was internal capital, followed by external capital. The least reported category was human capital. The findings indicate a number of areas of reporting that could be improved in order to meet with stakeholder disclosure expectations. In the internal capital category, intellectual property disclosures could be improved. In the external capital category disclosure concerning ratepayer demographics and licensing agreements could be improved. In the human capital category, disclosure of most items could be improved, in particular, entrepreneurial innovativeness and vocational qualifications.

The study provided an insight into the current level and quality of intellectual capital disclosure by the NZ local government sector. The results indicated that local authorities are disclosing some aspects of intellectual capital in their annual report, however there is no consistent reporting framework, and many areas of IC disclosures are not meeting stakeholder expectations. More research is needed in the area of intellectual capital reporting in the public sector. This study provides a preliminary framework which can be used by local authorities to enhance intellectual capital disclosures in their annual reports.

text: Intellectual Capital Reporting by the New Zealand Local Government Sector Sweeping financial management reforms occurred in New Zealand during the late 1980s and early 1990s which radically changed the face of the New Zealand public sector.  These reforms sought to significantly restructure and reorganise local government thereby improving their effectiveness and efficiency and improving their accountability to their stakeholders. The principal vehicle for the discharge of this accountability is the annual report, which must be prepared according to Generally Accepted Accounting Practice (GAAP) and commercial principles.

Organisations in the private sector are beginning to recognise the value of accounting for intellectual capital (IC) (see for example Quinn, 1992; Brooking, 1996; Sveiby, 1997; Edvinsson  Malone, 1997; Bontis, Dragonetti, Jacobsen  Roos, 1999; Guthrie, Petty  Johanson, 2001; Bounfour, 2003). Studies on the measurement, management and reporting of IC have been undertaken internationally in Asia (Abeysekera  Guthrie, 2005; Goh  Lim, 2004; Ordenez de Pablos, 2002), Australia (Guthrie  Petty, 2000), Europe (Bozzolan, Favotto and Ricceri, 2003; Olsson, 2001; Ordenez de Pablos, 2004), United Kingdom (Collier, 2001; Williams, 2001) and Ireland (Brennan, 2001).
 
Despite the significant research interest in the field of intellectual capital internationally, scant attention has been paid to intellectual capital reporting by commercial organisations in New Zealand. An extensive review of the IC literature yielded only two New Zealand based studies (Miller  Whiting, 2005; Wong  Gardner, 2005). Further, no studies to date have addressed intellectual capital reporting by local governments in either New Zealand or internationally. This study aims to fill this gap through the development of an intellectual capital disclosure model that could be applied to local authorities.

The research describes and explains the development of a disclosure index used to measure the extent and quality of current intellectual capital disclosure by local authorities in New Zealand. The index was developed through a consultative process with a panel of local government stakeholders which was used to establish the weightings for each item. The final index comprised 26 items divided into three categories: internal capital, external capital and human capital. The 2004/2005 annual reports of 82 New Zealand local authorities were scored for extent and quality of disclosure against the index. 

The results indicate that intellectual capital reporting by local authorities is varied. Manukau City Council scored the achieved the highest overall score (76%) out of the 82 reports analysed while Whakatane District Council scored the lowest with 33%. The most reported items were joint ventures/business collaborations and management processes. The least reported items were intellectual property and licensing agreements. The most reported category of intellectual capital was internal capital, followed by external capital. The least reported category was human capital. The findings indicate a number of areas of reporting that could be improved in order to meet with stakeholder disclosure expectations. In the internal capital category, intellectual property disclosures could be improved. In the external capital category disclosure concerning ratepayer demographics and licensing agreements could be improved. In the human capital category, disclosure of most items could be improved, in particular, entrepreneurial innovativeness and vocational qualifications.

The study provided an insight into the current level and quality of intellectual capital disclosure by the NZ local government sector. The results indicated that local authorities are disclosing some aspects of intellectual capital in their annual report, however there is no consistent reporting framework, and many areas of IC disclosures are not meeting stakeholder expectations. More research is needed in the area of intellectual capital reporting in the public sector. This study provides a preliminary framework which can be used by local authorities to enhance intellectual capital disclosures in their annual reports.

year: 2006

title: It's a jungle out there: Presentism, surrogate entities and Meinongian ontology

authors: Young, Benjamin David

subjects: Philosophy of time

abstract: Suppose that presentism accepts: (1) that only present objects exist; (2) that truth supervenes on being; and (3) that there are true propositions about the past. If past objects do not exist and truth supervenes on being, then no truth-maker exists to make a past-tense proposition true. There seems to be no way for the presentist to accept all three claims. Call this the ‘central problem’. In response to the central problem, some presentists have recommended that presently existing surrogate entities, such as Lucretian properties or thisnesses, stand in place for the missing truth-makers. Thus, a past-tense proposition has as its truth-maker a presently existing surrogate. This resolves the central problem for the presentist because surrogates will act as the truth-maker of past-tense propositions and will exclude any reference to past non-existent entities. Whilst I do not want to challenge the introduction of surrogate entities into the presentist’s universe, I would like to consider a consequence such an introduction has on the presentist’s ontology. If the presentist admits surrogate entities into their ontology, then they are ontologically committed to something that stands in place for non-existent wholly past objects; something that populates an alternative mode of being. Moreover, I show how problematic it is for the presentist to conflate once-actual objects, such as Julius Caesar, with never-actual objects, such as unicorns, and, thereby, force the presentist to admit non-existent objects into their ontology by distinguishing between the modes of nonbeing that these different kinds of objects occupy. To maintain a commitment to (1)-(3), the presentist must be prepared to accept a bloated Meinongian ontology, a consequence that they may find very unpalatable.

text: It's a jungle out there: Presentism, surrogate entities and Meinongian ontology Suppose that presentism accepts: (1) that only present objects exist; (2) that truth supervenes on being; and (3) that there are true propositions about the past. If past objects do not exist and truth supervenes on being, then no truth-maker exists to make a past-tense proposition true. There seems to be no way for the presentist to accept all three claims. Call this the ‘central problem’. In response to the central problem, some presentists have recommended that presently existing surrogate entities, such as Lucretian properties or thisnesses, stand in place for the missing truth-makers. Thus, a past-tense proposition has as its truth-maker a presently existing surrogate. This resolves the central problem for the presentist because surrogates will act as the truth-maker of past-tense propositions and will exclude any reference to past non-existent entities. Whilst I do not want to challenge the introduction of surrogate entities into the presentist’s universe, I would like to consider a consequence such an introduction has on the presentist’s ontology. If the presentist admits surrogate entities into their ontology, then they are ontologically committed to something that stands in place for non-existent wholly past objects; something that populates an alternative mode of being. Moreover, I show how problematic it is for the presentist to conflate once-actual objects, such as Julius Caesar, with never-actual objects, such as unicorns, and, thereby, force the presentist to admit non-existent objects into their ontology by distinguishing between the modes of nonbeing that these different kinds of objects occupy. To maintain a commitment to (1)-(3), the presentist must be prepared to accept a bloated Meinongian ontology, a consequence that they may find very unpalatable.

year: 2019

title: Lessons learned from the MV Rena: Reimagining maritime and resource management law

authors: Paul, Adrienne Joy

subjects: Resource Management Law - New Zealand

abstract: The main research question in this thesis is what lessons can Aotearoa New Zealand learn from the MV Rena grounding accident? This research is an historical account of the legal framework existing at the time of the MV Rena grounding. In addition, the thesis will outline the surrounding marine environment to examine the relevant regulatory system.
In the early morning of 5th October 2011, the MV Rena vessel struck Ōtāiti (Astrolabe Reef).  Initially, the accident concerned a response to the safety of the crew on board the MV Rena. However, the seriousness of the damage to the hull with part of Ōtāiti reef protruding through the keel, presented issues concerning the recovery strategy for the vessel and cargo from the coastal marine area.  The MV Rena grounding released oil, cargo, and equipment into the surrounding marine environment of Ōtāiti. The oil, cargo and equipment travelled by the ocean currents, spreading across large areas of the ocean. This caused environmental effects across the coastal marine area in the Bay of Plenty region. The grounding was the “worst maritime environmental disaster” Aotearoa New Zealand had ever seen. 

The government of the day and the MV Rena owner are committed to international obligations for preparing and responding to maritime disasters and marine pollution. However, the government of Aotearoa New Zealand was not a party to international obligations addressing groundings relative to bunker oil. In addition, when responding to environmental effects from the grounding the legal processes regulating the maritime and resource management system, caused distress to the local community in the Bay of Plenty region. Specifically, the people of Motiti Island (“Motiti”), relative to preserving and protecting their cultural and spiritual relationship with Ōtāiti and Motiti.

An analysis of maritime and resource management law at the international level and domestic level is explored in this thesis. Such as, marine pollution, and indigenous peoples’ rights (iwi Māori) in connection with the Maritime Transport Act 1994, the Resource Management Act 1991, the Waitangi Tribunal process and related planning and policy instruments.  The research concludes that, had the government of the day ratified relevant conventions prior to the MV Rena grounding incident, the outcome of the location of the ship may have been a completely different result, such as a full wreck removal, without opposition. Additionally, the research concludes that the gap in the laws regulating marine environments did not equip iwi Māori with protecting their interests, resulting in a spiritual injustice to the people of Motiti. This research reveals that maritime and resource management law still has a long way to go with supporting the indigenous people’s voice in Aotearoa New Zealand for sustainable marine solutions. This thesis conclude with recommendations directed at better maritime and resource management regulations and indigenous peoples’ involvement.

text: Lessons learned from the MV Rena: Reimagining maritime and resource management law The main research question in this thesis is what lessons can Aotearoa New Zealand learn from the MV Rena grounding accident? This research is an historical account of the legal framework existing at the time of the MV Rena grounding. In addition, the thesis will outline the surrounding marine environment to examine the relevant regulatory system.
In the early morning of 5th October 2011, the MV Rena vessel struck Ōtāiti (Astrolabe Reef).  Initially, the accident concerned a response to the safety of the crew on board the MV Rena. However, the seriousness of the damage to the hull with part of Ōtāiti reef protruding through the keel, presented issues concerning the recovery strategy for the vessel and cargo from the coastal marine area.  The MV Rena grounding released oil, cargo, and equipment into the surrounding marine environment of Ōtāiti. The oil, cargo and equipment travelled by the ocean currents, spreading across large areas of the ocean. This caused environmental effects across the coastal marine area in the Bay of Plenty region. The grounding was the “worst maritime environmental disaster” Aotearoa New Zealand had ever seen. 

The government of the day and the MV Rena owner are committed to international obligations for preparing and responding to maritime disasters and marine pollution. However, the government of Aotearoa New Zealand was not a party to international obligations addressing groundings relative to bunker oil. In addition, when responding to environmental effects from the grounding the legal processes regulating the maritime and resource management system, caused distress to the local community in the Bay of Plenty region. Specifically, the people of Motiti Island (“Motiti”), relative to preserving and protecting their cultural and spiritual relationship with Ōtāiti and Motiti.

An analysis of maritime and resource management law at the international level and domestic level is explored in this thesis. Such as, marine pollution, and indigenous peoples’ rights (iwi Māori) in connection with the Maritime Transport Act 1994, the Resource Management Act 1991, the Waitangi Tribunal process and related planning and policy instruments.  The research concludes that, had the government of the day ratified relevant conventions prior to the MV Rena grounding incident, the outcome of the location of the ship may have been a completely different result, such as a full wreck removal, without opposition. Additionally, the research concludes that the gap in the laws regulating marine environments did not equip iwi Māori with protecting their interests, resulting in a spiritual injustice to the people of Motiti. This research reveals that maritime and resource management law still has a long way to go with supporting the indigenous people’s voice in Aotearoa New Zealand for sustainable marine solutions. This thesis conclude with recommendations directed at better maritime and resource management regulations and indigenous peoples’ involvement.

year: 2022