User Preferences

The results of recent survey information as set out below provides an interesting picture of how New Zealanders currently think about accessing government services via the Internet. At the same time it needs to be regarded cautiously. There is a case to be made for people's perception of the usefulness of Internet access to government (and private sector) information and services being moderated over time by their experience.

In the private sector, Internet banking is a good example of this. Uptake has been incrementally increased as customers become more aware of the availability of the service, confident in its security provisions, and familiar with its functionality. Similarly, it is likely that as familiarity with technological services increases, so too will user demand and therefore preferences for accessing government services via the Internet will change over time.

The current picture in New Zealand [2003]

Poor access to technology, and consequently to the Internet, is a major influencing factor in determining people's channel preferences when dealing with government organisations. A recent survey by the Department of Statistics [Department of Statistics (NZ), The Digital Divide - Reference Reports: What Its About, 5 March 2004] indicates that the following groups have poor access to the Internet:

• 1 person households
• 1 parent households with dependent children
• 1/3 of no children households
• Older age groups
• West Coast and Gisborne areas (25%)
• Households situated in minor urban areas are least likely to benefit from opportunities associated with Internet access (only 25% connected).

Levels of access to the Internet are in fact quite unevenly distributed throughout the country both geographically, and demographically. The following groups were reported to have the highest levels of access:

• Wellington and Auckland
• Asian and pakeha
• Those with a higher than $50,000 household income [There was a significant increase in households with less than $30,000 income between 2002 and 2003]
• Equal distribution for males and females
• 20 - 49 years old.

NZ compares favorably with other countries (31) surveyed with regard to government service access [Government Online: A National Perspective 2003 (NZ)] . Forty-five percent (45%) of those living in New Zealand have used the Internet to access government services (global average = 30%). Of those who have used the Internet to access government services:

• 38% seek information
• 16% download forms for later posting
• 9% participated in consultation
• 11% have completed transactions that involved bankcard or credit card, and
• 10% have provided personal details.

These figures need to be considered carefully in drawing conclusions about usage patterns. The majority of users' access government online services to obtain information, but this may be moderated by the fact that many departments only have informational services available online. Where transactional services are available and being used, they may only be available to small groups of the population (e.g. business owners) for specific services (e.g. GST payments) that are only required occasionally.

Survey results indicate that the most preferred channel to contact government to find information is by website/email (48%); to deal with a problem is by phone (56%) [non-online total 87%]; and to book facility or make an appointment is also by phone (58%) [non-online total 79%]. Wellington region is the only exception to the latter. There are more people online in the Wellington region and more households are likely to have an income over $50,000. Where the household income is less than $30,000 p.a. in any region, people are most likely to prefer face-to-face interactions (27%).

Face-to-face interactions are most preferred for applying for a grant/benefit (48% - non online total 78%), and for paying for a service (53% - non online total 79%). Maori and older people are most likely to prefer face-to-face (70%) contact with government officials. Those people with the highest education levels combined with the highest income levels are more likely to prefer online transactions.

International comparisons

Information from overseas jurisdictions on users' channel preferences for interacting with government is patchy, but nonetheless a number of common themes are apparent. For those people who are familiar with the Internet, online access is the preferred means of interacting with government. Typically, users gather information via the Internet, and use face-to-face channels for complex interactions. [National Office for the Information Economy (NOIE), E-Government Benefit Study, Australian Government, April 2003] [Erin Research Inc., citizens first 3, The Institute for Citizen Centred Service & The Institute of Public Administration of Canada, January 2003] [Office of E-Government, E-Government Information Gathering Summary Report, Department of the Premier and Cabinet, Government of Western Australia, October 2003] Like the information available in New Zealand however, it is difficult to ascertain if this is because options for electronic interaction for more complex transactions are not yet available to people online, or whether they have a genuine preference for face-to-face interaction and would choose to meet with officials to process complex transactions regardless of the availability of other options.

Research indicates that having government services (both information and transactions) available online saves customers money because they are faster, easier, more convenient, less time consuming, and in some cases can involve less direct costs for the service. However, uptake is dependent on perceptions by members of the public that their privacy will be protected, and their interactions with government are secure. Public expectations of a quality service are also high. Both Canadian and Australian user surveys showed a public expectation that agency boundaries are transparent and integrated. [See also, Building Capacity to Accelerate Service Transformation and e-Government, Canada Country Report, September 2003]

Patterns of usage of e-government services also appear to be reasonably constant across jurisdictions. People less than 30 years old, and those with higher education and higher incomes are those who are the highest users of the Internet, and who are expecting to have government services available online. There are also clear cost and efficiency benefits to both businesses and government agencies to having regulatory functions and transactions available online.

These user patterns provide a guide to where the future development of government e-services might best be targeted to maximise uptake and ensure a return on investment for government agencies. Australian research (NOIE) indicates that financial benefits of government online services are expected to accrue to agencies from improved business processes, reduced cost of services, and cross-agency collaboration.