annualreport0607 by wanghonghx

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									WORKING BETTER

Annual Report for the year ended 30 June 2007




                                                1
The Department of Labour aims to achieve
productive work and high-quality working lives for
New Zealanders.




Presented to the House of Representatives pursuant to Section 44
(1) of the Public Finance Act 1989




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CONTENTS

Acting Chief Executive’s Overview                                               4
The Labour Market                                                               7
Government priorities, sustainability and Development Goals for
the State Services                                                              8
Outcome, Goals and Achievements                                                11
GOAL 1: Our place in the world: New Zealand will prosper through its
connections with the rest of the world                                         13
GOAL 2: Our workplaces: New Zealand workplaces will lead the world in
maximising the value of work while providing a high-quality working life       20
GOAL 3: Our workforce: The skills of our workers will ensure New
Zealand enterprises are leaders internationally                                27
GOAL 4: Our people: All New Zealanders will be able to grow and develop
through access to well-paid and meaningful employment.                          32
Governance                                                                      35
Capability                                                                      36
Equal Employment Opportunities report                                           39
Effectiveness in reducing inequalities report                                   41
Statement of Management Responsibility                                          45
Audit Report                                                                    46
Statement of objectives and service performance                                 49
Vote Labour                                                                     49
Vote Immigration                                                                67
Vote Employment                                                                 90
Vote ACC                                                                        97
Quality standards for policy advice                                            102
Financial statements                                                           103
Statement of accounting policies                                               103
Statement of financial performance                                             107
Statement of movements in taxpayers’ funds                                     108
Statement of financial position                                                109
Statement of cash flows                                                        110
Statement of commitments                                                       111
Statement of contingent liabilities and assets                                 112
Statement of unappropriated expenditure                                        113
Statement of departmental expenditure and capital appropriations               114
Statement of trust monies                                                      115
Memorandum account – visa and permits                                          116
Notes to the financial statements                                              117
Schedules and statements: non-departmental                                     132
Statement of accounting policies                                               133
Schedule of non-departmental revenue                                           134
Schedule of non-departmental expenses                                          135
Statement of non-departmental expenditure and capital appropriations           136
Schedule of non-departmental assets                                            138
Schedule of non-departmental liabilities                                       138
Schedule of non-departmental commitments                                       139
Schedule of non-departmental contingent liabilities and assets                 139
Notes to Schedules                                                             140
Statement on the adoption of New Zealand equivalents to international
financial reporting standards                                                  143
Appendices                                                                     148
Workplace fatalities in 2006/07                                                148
Migrant Levy collection and allocation                                         152
Where to find us                                                               153
More information                                                               154

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ACTING CHIEF EXECUTIVE’S OVERVIEW


More New Zealanders are in work than ever before; employment numbers are up
and unemployment is lower than any of our principal trading partners. To
maintain this economic growth and to ensure all New Zealanders can aspire to
high-quality, productive working lives, more jobs and better jobs with improved
working conditions are essential.

The Department of Labour’s focus is on enhancing the contribution of workers,
employers and migrants to the economic and social future of New Zealand. In
short, what we are seeking to do is expand the workforce, ensure better work
and encourage working better.

The Department’s work groups align various service-delivery responsibilities with
these outcomes, including greater workforce participation and work/life quality
and improved productivity. By working together in this way the Department is
able to respond to its environment and to New Zealand labour market needs.

Within the Government’s three priorities of economic transformation, national
identity, and families – young and old, the Department’s achievements during the
year have included the following highlights.



Expanding the workforce

The workforce can grow in two ways: by increasing the numbers of New Zealand
citizens or residents entering the labour market or by increasing the numbers of
migrant workers or temporary workers joining the New Zealand workplace. The
Department has undertaken initiatives in both of these areas.

During the year, barriers to entering or re-entering the labour market were
reduced, assuring employers and organisations access to the wider range of skills
and abilities they need.

The Department leads the Government’s work programme on enhancing parents’
and other carers’ choices about work and family arrangements, and the
programme supporting the transition for youth into employment. We have been
instrumental in the development and evaluation of paid parental leave provisions,
which has resulted in more than 20,000 parents accessing government-funded
paid parental leave every year.

The Department has continued to play a key role in ensuring full participation of
disabled people in the labour market, by supporting the passage through
Parliament of the Disabled Persons Employment Promotion (Repeal and Related
Matters) Bill, which was enacted in March 2007.

Managed immigration is also important for the economy. The Government has
taken significant policy, legislative and organisational initiatives to ensure we can
get the migrants we need and control the entry of those we do not. We have
strengthened the legislative framework for immigration through a review and

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redesign of the Immigration Act 1987 and promotion of the Immigration Advisers
Licensing Act 2007.

The Skilled Migrant Category, which provides residence opportunities for skilled
people coming to New Zealand, was reviewed to ensure this country remains well
positioned to attract quality workers in a globally competitive environment. A
noticeable trend for this year was a 19 per cent increase in work application
decisions, reflecting the global trend of an increasingly mobile workforce.

The Department worked closely with a number of Pacific countries to kick-start
the new Recognised Seasonal Employer scheme. When there are no New
Zealand workers available, the scheme gives priority to workers from the Pacific
for seasonal work in the horticulture and viticulture industries in planting,
maintaining, harvesting and packing crops. The initiative addresses seasonal
labour shortages experienced by the horticulture and viticulture sectors, whilst at
the same time boosting the skills and economies of Pacific nations.



Better work

The Department continues to work actively with sector groups and industry on
increasing productivity, and to ensure workplaces are safe and attractive for
workers.

This year the Department of Labour, in collaboration with the New Zealand
Council of Trade Unions and Business New Zealand, launched the ‘Decent Work –
Charting our Progress’ website, which establishes New Zealand as leading in the
promotion of valuable working lives for our workforce. This reflects the
International Labour Organisation’s (ILO) primary goal of decent work for all
workers. i.e. work that is productive and delivers a fair income in conditions of
freedom, equity and security in line with human dignity. In the current
environment of labour and skills shortages, it is important that New Zealand
workplaces are attractive to workers, and this initiative strongly supports that
goal.

The Department met or exceeded all targets across the range of workplace
services it delivers. This includes the provision of information, diagnostic
assessments and enforcement. A high proportion of workplaces met
requirements for practice change, or heard about and saw useful methods and
then changed their practice, through interaction with the Department. The
consequence has been enduring change in workplace practice.

The first pay and employment equity case study was produced by the
Department, and more case studies of productivity and social partnership were
developed. These are used by the Department and by our delivery partners to
demonstrate how to raise the value of work, increase social dialogue, and
improve the quality of all working lives.




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Working better

To develop the skills of New Zealand workers, the Department implemented the
Upskilling Partnership Programme. This was designed to engage employers and
workers in foundation skills training, and improve the evidence base on what
forms of training work best and what the business benefits are from investing in
foundation skills.

For the first time, the Department developed a set of 12 annual in-depth regional
labour market reports. These will improve knowledge of the regional labour
market among strategy and policy-makers, labour market participants and other
stakeholders with an interest in each region’s labour market. The Department
has also contributed to positive progress towards labour market development in
all regions.

Ongoing legislative work includes a suite of proposed changes to the Injury,
Prevention, Compensation and Rehabilitation Act, and ratification of ILO
convention 155 by New Zealand, which provides an opportunity to highlight and
promote our approach to occupational safety and health, both domestically and
internationally.



Working with others

The Department of Labour cannot improve workforce and workplace performance
on its own. To develop our understanding of the labour market, we continue to
work closely with our social partners, the New Zealand Council of Trade Unions
and Business New Zealand. We also liaise with local and regional organisations
and with other government departments and agencies on employment, skills and
workplace needs and trends.

More detail on our achievements in 2006/07 is set out in the pages ahead. A
significant amount of progress has been made, much of it under the leadership of
Dr James Buwalda, who retired as Secretary of Labour in May. I thank all those
within the Department and others who have worked with us for these results.




Graham Fortune
Secretary of Labour (Acting)




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           THE LABOUR MARKET

           Over the year to June 2007:
           • The working age population grew 1.3 per cent, from 3,212,000 people in June
              2006 to 3,254,600 people in June 2007. Among those working age people,
              participation in the labour force increased from 68.7 per cent to 68.8 per cent
              for the same period.
           • The number of people employed increased by 1.5 per cent, from 2,126,000 in
              June 2006 to 2,158,000 in June 2007, while the number of people not in the
              labour force increased by 0.9 per cent, from 1,006,000 in June 2006 to
              1,015,000 in June 2007. The number of people unemployed increased by 1.2
              per cent, from 80,000 in June 2006 to 81,000 in June 2007.
           • Total hours worked in New Zealand increased 0.7 per cent between June 2006
              and June 2007.

           Population and labour market flows as at June 2007
                             Total New Zealand Population
                             4,228,000                                                       Young
                                                                                             people
                                                                                            reaching
                                                                                            working
     Births 61,600 p.a.               Working Age Population                                   age
                                         3,254,600                                           c.62,800
                                                                                                p.a.

  Natural Increase
  33,200 p.a.
                                             Labour Force
                                              2,239,000
       Deaths 28,500 p.a.

                                                                                         c. 84,000 p.a.

                                                                                                          Unemployed
                                                        Employed                                            81,000
    PLT* Arrivals 82,700
                                                       2,158,000                       c. 53,200 p.a.
                                                  c. 268,100




                                                                                                          C 69,800
                                                               c. 266,700




                                                                                                                         C 89,500




Net PLT Migration
                                                                                                          p.a.
                                                  p.a.




10,100 p.a.
                                                                                                                         p.a.
                                                               p.a.




                                                                            Not in the Labour Force
                                                                                    1,015,000
    PLT* Departures 72,600




 NOTES:
 * PLT = permanent and long-term migrants.
 Population: number of people as at 30 June 2007.
 Working age population, not in the labour force, labour force, employed, unemployed: number of people, seasonally
 adjusted average for 3 months to June 2007.
 Flows are number of people moving between labour market states in the year to June 2007 (not seasonally adjusted)
 Figures may not add to total due to rounding.
 The figures for employed, unemployed, and not in the labour force for June 2006 differ to those reported in the
 Department’s Annual Report 2005/06, as Statistics NZ revised these figures in August 2007.
                                                                                                                     7
GOVERNMENT PRIORITIES, SUSTAINABILITY AND
DEVELOPMENT GOALS FOR THE STATE SERVICES

The Department supports the Government’s key priorities of economic
transformation, national identity, and families – young and old. The Department
is also committed to the Government’s focus on sustainability and the
Development Goals for the State Services.

Economic transformation

Our key role in transforming the economy is directed at leading the work focused
on delivering innovative and productive workplaces that are underpinned by high
standards in education, skills and research. This work around high-performing
workplaces and skill shortages is capable of generating the transformative
changes needed for higher productivity, skills and innovation in the economy.
Further support for this work is being provided through an increased focus on
immigration to help meet labour demands and provide a source for skilled
workers. The Immigration Change Programme and its component parts
(including the Immigration Business Transformation project) are one of the
Department’s major drivers contributing to this economic transformation goal.

We are also working to advance this in partnership with businesses and unions,
as well as other local and regional government agencies.

Our work on skills, productivity and participation also links into other initiatives in
priority areas of the Government's economic transformation agenda: building
globally-competitive businesses; improving our infrastructure to ensure a world-
class economic performance (with a particular focus on Auckland City); and
maintaining the integrity of our environment.

National identity

The role of national identity is important for all New Zealanders. The Department
supports the Government’s national identity priority by advising on immigration
policy and managing the immigration programme, which includes settling
refugees and migrants. Doing this effectively leads to improved global
connections, building the population base as well as the labour force, adding to
the richness of New Zealand society, and managing risks to the country’s
security.

Families - young and old

The Department’s work programme for enhancing parents’ and other carers’
choices about work and family arrangements, assisting youth into employment,
enhancing employment for groups under-represented in the labour force, and the
work we undertake jointly with the Accident Compensation Corporation (ACC),
contribute significantly to the Government’s priority of ensuring that all families,
young and old, have the support and choices they need to be secure and to be
able to reach their full potential.



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Implementing and further developing the New Zealand Settlement Strategy
across government contributes to positive outcomes for migrants, refugees and
their families. In particular, the work we do during the initial settlement phase
helps provide the foundations necessary for migrant and refugee families to
participate in the paid workforce, communicate well and access the information
they need to lead healthy, successful lives in their new country.

Sustainability

In July 2005, the Department committed to the Government’s sustainability
programme, Govt3, and developed a Sustainable Practice Action Plan in February
2006. A comprehensive sustainability pilot was then undertaken on one floor in
our National Office in Wellington. A report on this pilot showed the Department
achieved considerable improvements. This report was submitted to the Govt3
Awards and received a ‘Highly Commendable’ award from the Minister for the
Environment in October 2006.

Waste streaming arrangements are now well established on two floors of the
National Office and are progressively being extended to the other floors. A
sustainability forum of interested staff across the Department has been
established, and support services focus on sustainability issues, particularly
regarding waste, office equipment, vehicles and energy.

A range of sustainability measures have been implemented during 2006/07,
including:
•     a national contract for the provision of multi-functional devices across the
      Department - this contract will replace large numbers of printers,
      photocopiers, faxes and scanners with one device, and it will reduce energy
      consumption and paper use
•     a national sustainability and energy management contract that will improve
      energy efficiencies
•     a sustainability audit of the Department’s vehicle fleet, which found that our
      practice is good and made suggestions for further improvements
•     incorporation of sustainability clauses into the Department’s contracting
      templates.

Development Goals for the State Services

The Department leads or contributes to a significant amount of policy advice that
directly relates to the transformation of the State sector, and to the workforce
and workplaces of New Zealand. As part of its work, the Department provides
valuable services to integrate and model these practices internally.

The Development Goals for the State Services are:

•    Employer of Choice
•    Excellent State Servants
•    Networked State Services
•    Accessible State Services
•    Coordinated State Agencies
•    Trusted State Services.

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The Department is contributing to these goals through a range of initiatives. An
example is given in the case study below.

Government Shared Network

Historically, the Department of Labour has been operating across four national IT
networks. Connecting across networks has been problematic, running cross-
Department information systems across the multiple networks has been complex,
network failures have been frequent and fixes have been complicated to manage.

The Department needed a simpler, single, secure network solution that would
enable it to connect well across the Department and with other agencies. The
development of the Government Shared Network (GSN) by the State Services
Commission provided a just-in-time low-risk solution. The Department was
pleased to be a leader in taking up this opportunity and to work with the State
Services Commission in developing this initiative. The Department is a complex
agency with its international footprint, multi-office environment across New
Zealand and tight security requirements, and we are confident that a successful
implementation will encourage other government agencies to join and make the
networked State Services goal a reality.

As a result of this initiative, the Department will have a networked environment
that will enable it to access information more efficiently, to manage its
information more securely and, as more agencies join the GSN, to collaborate
more effectively across government.




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OUTCOME, GOALS AND ACHIEVEMENTS

To achieve the Department’s outcome of productive work and high-quality
working lives, our Statement of Intent 2006/07 set out four long-term goals and
a number of medium-term priorities for each goal. Progress against the four
goals for the year past is detailed below.

                                   Outcome
                 Productive Work and High-Quality Working Lives

                                 Purpose
 To make New Zealand a world leader in workforce and workplace performance


Goals                       Medium-term Priorities

Our place in the world:     Supporting New Zealand’s prosperity through:
                            • an immigration programme that adds to the
New Zealand will               richness of our society
prosper through its         • border security arrangements that manage risk
connections with the        • making migrants feel welcome
rest of the world.          • building relationships and partnering with other
                               nations
                            • support for Pacific nations.


Our workplaces:             Supporting and promoting the transformation of New
                            Zealand workplaces to become high-performing and to
New Zealand                 achieve high-quality working lives by focusing on:
workplaces will lead        • the drivers of workplace productivity
the world in                • skills
maximising the value        • safe and healthy workplace cultures
of work while               • decent work
providing a high-           • excellent employment relationships.
quality working life.

Our workforce:
                            Influencing the supply of skilled labour by:
The skills of our           • better targeting the immigration programme
workers will ensure         • working with industry and education sectors to
New Zealand                     match educational services to the needs of our
enterprises are leaders         workers, employers and the economy.
internationally.

Our people:                 Supporting increased labour market participation by
                            leading the Government’s work programme on:
All New Zealanders will     • enhancing parents’ and other carers’ choices about
be able to grow and             work and family arrangements
develop through access      • assisting transitions for youth into employment
to well-paid and            • enhancing employment for groups under-
meaningful                      represented in the labour force.
employment.




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Each key achievement helped the Department move closer to its stated goals and
the Government’s priorities. Full details of what the Department achieved in
2006/07 are included in the Statement of Objectives and Service Performance
and in the Financial Statements in this report.




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GOAL 1: Our place in the world: New Zealand will prosper
through its connections with the rest of the world

Medium-term priorities
Under this goal, our medium-term priorities were supporting New Zealand’s
prosperity, through:
• an immigration programme that adds to the richness of our society

• border security arrangements that manage risk

• making migrants feel welcome

• building relationships and partnering with other nations

• support for Pacific nations.


Achievements during 2006/07 that contributed to this goal and associated
medium-term priorities include the following:

AN IMMIGRATION PROGRAMME THAT ADDS TO THE RICHNESS OF OUR
SOCIETY


Immigration will become increasingly important to New Zealand. Due to labour
shortages, exacerbated by an ageing population, we need to attract and retain
skilled workers. Skills and investment are needed for economic transformation,
as are tourists and students, and increasing links to international trade and
development. Immigration facilitates all of these.

The nature of immigration is changing, with increasing volumes of people moving
around the world to work. For example, in New Zealand the number of decisions
on temporary entry applications has increased by over 100 per cent in the last 10
years. It is becoming harder to attract and retain the skilled people we need,
security and health risks are increasing, and good settlement is becoming
increasingly important for social cohesion. To meet these challenges, we need to
ensure we have legislation, policies and service delivery that will provide the
skills, security and settlement New Zealand needs.

Global competition for skilled workers is increasing, and new and existing
competitor countries are developing policies and systems to attract and retain
skilled and talented people, and investing in their own immigration security. The
Department’s new initiatives will allow us to compete globally for skilled workers,
while also strengthening our border security.

Immigration Change Programme

To ensure that New Zealand will prosper through its connections to the rest of the
world, the Department has been leading the work on the most significant changes
to immigration in the last 20 years. This multi-year Immigration Change
Programme, covering legislative, policy and delivery change, will ensure that New
Zealand is able to respond and react appropriately to the opportunities and
challenges provided by global migration.



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New legislation

In November 2006, Cabinet agreed to proposals to draft new immigration
legislation to replace the current Immigration Act. Since then, the focus has been
on drafting the Immigration Bill, with the aim of introducing it to Parliament
before the end of 2007. Key changes are proposed in terminology, protection
provisions, deportation, appeals and compliance.

The Immigration Advisers Licensing Act was passed in May 2007. The intent of
the Immigration Advisers Licensing Act 2007 is to create a new framework for the
regulation of individuals providing immigration advice both onshore and offshore.
Under the framework, any individual providing immigration advice will have to be
licensed, meet competency standards, be fit to practise, and be subject to
complaints and disciplinary procedures. A new unit within the Department will be
set up to manage this work during 2007/08.

Policy changes

A new Immigration Policy Framework has been developed to reposition
immigration policy to better support New Zealand’s economic transformation and
sustainable development. Specific policy reviews will include seasonal work, work
to residence, skilled migration, investor policy, family-sponsored policies and
temporary flows.

The changes to the Skilled Migrant Category (SMC) developed during 2006/07
include changing the number of points awarded at the Expression of Interest
(EOI) stage and changes to the Work-to-Residence permits giving migrants more
time to find a job in New Zealand once they arrive. The new Active Investor
policy splits investors into three prioritised sub-categories: Global Investors,
Professional Investors and General (Active) Investors.

New ways of delivering

Work to reposition immigration service delivery to meet the challenges of the
future is underway. Changes need to reposition immigration from reactively
processing applications and responding to security risk, to a service that
proactively attracts and retains the people with the skills and knowledge New
Zealand needs, while keeping out those individuals we don’t want.

Ground work and the preliminary information for the development of a new
service delivery model for immigration was undertaken during 2006/07.
Following direction from Cabinet in November 2006, the Department developed a
Stage-1 Business Case outlining the end-to-end requirements for business
transformation. This has been completed, and will be presented to Cabinet in
2007/08, with a view to developing a Stage-2 Business Case with options for
government to consider.

BORDER SECURITY ARRANGEMENTS THAT MANAGE RISK

During 2006/07, there has been significant work undertaken to reduce any risk to
New Zealand created by the entry of people we don’t want.


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The number of people declined boarding under the Advanced Passenger
Processing (APP) system was 23 per cent higher than in 2005/06. However,
fewer people were either refused entry at the border or interdicted offshore
(1,395 people) than in 2005/06 (1,559 people). This shows the continued
success of the APP system, which has moved the border offshore by focusing on
preventing the boarding of people who do not have the legal right to enter New
Zealand.

The new Risk Targeting Programme (RTP) was implemented in September 2006
and has resulted in a 45 per cent reduction in the number of inadmissible
passengers arriving in New Zealand with false documents during 2006/07. The
total number of inadmissible passengers offloaded by RTP was 42, or 82 per cent
of the total number of undocumented arrivals for the year.

The Regional Movement Alert System (RMAS) - formerly the Regional Movement
Alert List (RMAL) - between New Zealand, Australia and the United States was
enhanced in 2006/07, meaning counterfeit and stolen travel documents will be
more readily identifiable. This is expected to be in place by late 2008 and will
further strengthen our border security arrangements.

In 2006/07, 2,035 people were removed, voluntarily departed, issued special
directions, instructed to seek a section 35A permit to legalise their status or
deported.

The Department is strengthening its focus on managing client risk using profiling
as a tool to assist staff to identify risk attributes and better target resources to
mitigate higher risks through increased verification. In line with this risk
profiling, the Immigration Profiling Group has an emphasis on managing the risk
to New Zealand's international reputation through an assessment of an
applicant's connection to high-risk activities such as acts of genocide, war crimes
or gross human rights abuses.

New Zealand’s engagement with the Bali Process on People Smuggling,
Trafficking in Persons and Related Trans-National Crime resulted in the
Department co-hosting a workshop on Enabling the Electronic Exchange of Lost
and Stolen Passport Information, which was held in Wellington in August 2007.

MAKING MIGRANTS FEEL WELCOME

The Department provided settlement strategy leadership and further developed
the New Zealand Settlement Strategy to assist the implementation of strategies
in those regions of New Zealand with significant numbers of migrants.

Settlement achievements

High-level settlement-related work undertaken in 2006/07 included:
•    coordinating the cross-agency Senior Officials Group on Settlement to revise
     the New Zealand Settlement Strategy and develop a Settlement National
     Action Plan including 25 initiatives. Cabinet approved the revised strategy
     and action plan in November 2006

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•    joint leadership of the Auckland Regional Settlement Strategy and the
     development of the Auckland Settlement Action Plan, which was launched in
     January 2007
•    initiating the development of a Wellington Regional Settlement Strategy and
     Action Plan of settlement-related initiatives.

Settlement support

The Department continued to develop and maintain a network of local settlement
support initiatives that provide appropriate information and responsive
mainstream services to support effective settlement in local areas through:
•    Settlement Support New Zealand – implementation of 19 initiatives that
     focus on better coordinated delivery of settlement advice and information at
     a local level.
•    Strengthening Refugee Voices (SRV), including the development, design and
     commencement of the rollout of the SRV initiative.

A review of all settlement products was undertaken in 2006/07, and an
implementation plan was developed to better align product distribution with the
immigration process and better target clients.

International refugee support

In 2006/2007, New Zealand chaired the United Nations High Commissioner for
Refugees (UNHCR) Working Group on Resettlement (WGR) and the Annual
Tripartite Consultations on Refugee Resettlement (ATC). This highlighted our
place as world leaders in refugee protection and enhanced New Zealand’s profile
in the United Nations system.

BUILDING RELATIONSHIPS AND PARTNERING WITH OTHER NATIONS


During 2006/07, the Department continued to engage with other nations in a
variety of ways, including multilateral activity, free trade negotiations and
implementation, and knowledge sharing. These engagements ensure that New
Zealand benefits from international opportunities and knowledge, builds its
international influence and meets its international obligations in the areas of
labour, employment and migration.

Multilateral activity


The Department represents the New Zealand Government at a number of
multilateral forums, including the ILO, Asia-Pacific Economic Cooperation (APEC),
the United Nations and the Organisation for Economic Co-operation and
Development (OECD).

ILO meetings attended by the Minister of Labour, departmental officials and
representatives of our social partners, the New Zealand Council of Trade Unions
and Business New Zealand, include the 14th Asian Regional Meeting (ARM) in
Busan, South Korea and the 96th session of the International Labour Conference
in Geneva. At the conference, Department officials sat on each of the technical
committees, and New Zealand and the Department were honoured to be

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nominated to chair a committee on sustainable enterprises. New Zealand
provided strong leadership throughout, which added significantly to the
discussions and to New Zealand’s reputation.

In promoting New Zealand’s immigration-related interests during 2006/07, the
Department (together with other relevant agencies) carried out numerous
multilateral engagements, including the following:

•   Active participation in meetings and working groups of the International
    Organisation for Migration (IOM) and the International Governmental
    Consultations on Refugees, Asylum and Migration (IGC). New Zealand
    commented on strategic and emerging issues related to migration, security
    and protection and exchanged ideas and learning on new initiatives. In
    October 2006, New Zealand participated in the IGC Technology Working
    Group discussing practical and policy-related biometric technological
    developments and the role of documentation in effective immigration
    systems.

•   Representing New Zealand within the APEC Business Mobility Group (BMG).
    This includes the RMAS and the APEC Business Travel Card (ABTC), both of
    which enhance New Zealand’s border security while facilitating the safe and
    efficient movement of people across national borders.

•   Leading a delegation from New Zealand at the United Nations High-Level
    Dialogue on International Migration and Development in New York. The
    central outcome of these discussions was the formation of the Global Forum
    for Migration and Development, which took place in July 2007 in Brussels.

The Department also worked towards New Zealand’s application of international
standards and multilateral agreements. Achievements during 2006/07 included
acceding to the 1961 United Nations Convention on the Reduction of
Statelessness, which demonstrated New Zealand’s strong commitment to the
international and fundamental principles protecting the world’s stateless people,
and ratifying the ILO Convention concerning Occupational Safety and Health and
the Working Environment (No. 155).

Free trade negotiations and implementation


The Department leads the negotiations and implementation of the labour
components of New Zealand’s free trade agreements and provides input with
regard to immigration-related issues such as temporary entry. During 2006/07,
the Department continued to work on free trade negotiations with the Republic of
China, Malaysia, and with Australia and the Association of Southeast Asian
Nations (ASEAN).

New Zealand has two existing trade-labour arrangements, one with Thailand, and
one with Singapore, Chile and Brunei Darussalam. Under these arrangements,
the Department took part in two workshops in 2006/07, firstly with Thai officials
to exchange information about labour inspectorate systems and workplace
operational practices, and secondly with government, worker, and employer


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representatives of New Zealand, Chile, Singapore, and Brunei Darussalam to
explore effective tripartite relationships and social dialogue.

Knowledge sharing


The Belmont Conference 2006

With low unemployment and high labour force participation, the key challenge
currently faced by New Zealand’s labour market is the potential for shortages of
labour and skill. Many other countries are also experiencing similar challenges,
both domestically and in an increasingly globalised international labour market.

It is important that the Department engages with its counterparts from across the
world to share knowledge and views on these issues and experiences of
addressing them. That was the aim of the 2006 Belmont Conference, a high-level
forum of senior employment and labour officials from New Zealand, Ireland, the
United Kingdom, Australia, the United States and Canada. During 2006/07, the
conference - hosted by the Department of Labour and the Ministry of Social
Development – focused on:

o   boosting labour productivity and the quality of work
o   enhancing labour market participation
o   ensuring a more comprehensive and responsive skills base.

The conference provided an international perspective on the social and economic
issues affecting labour market participation and resulted in an informal and frank
exchange of views on medium to long-term policy developments. The conference
enabled the Department to draw on experience and expertise from a number of
comparable jurisdictions to inform its contribution to the Government’s policy
priorities.



Departmental officials provided constructive input to the 29th meeting of the
APEC Human Resources Development Working Group (HRDWG) in Brisbane in
April 2007. The HRDWG provides an opportunity for knowledge and best practice
sharing in the region and fosters stronger relationships between member
economies. During 2006/07, the Department also coordinated multi-country
research papers on high performance workplace practices for an APEC/New
Zealand conference on this topic, which will be held in 2007.

SUPPORT FOR PACIFIC NATIONS

Efforts to support development in the Pacific region, on both economic
development and security, are an ongoing focus of the Department. Supporting
border security initiatives often occurs through the work of the Pacific
Immigration Directors’ Conference (PIDC). Economic support for the region has
been primarily through programmes such as the Samoan Quota (SQ), the Pacific
Access Quota (PAC) and the new Recognised Seasonal Employer (RSE) scheme
(described further on page 30).




                                                                               18
Samoan Quota and Pacific Access Quota

As with past years, the demand to secure an opportunity to apply under the SQ
and the PAC has remained high. For 2006/07, 27,242 people registered their
interest under the SQ for 1,100 places, and 20,018 people registered under the
PAC for 650 places. The number of people approved under each category for
2006/2007 was 1,106 for the SQ and 1,199 under the PAC. The numbers
approved are higher than the quotas due to timing issues.

Changes to improve the uptake of the SQ and the PAC during 2006/07 saw the
Kiribati and Tuvalu sub-quotas achieved for the first time since the introduction of
the PAC in 2001.

Employer engagement is a key component in achieving quota targets, with a
range of employers recruiting under the SQ and the PAC. For 2006/07, 12
employers travelled to Samoa, four to Tonga and one to Kiribati. A total number
of 225 jobs were offered by visiting employers during 2006/07.

Pacific Immigration Directors’ Conference

In October 2006, the Department became the chair of the PIDC and hosted the
10th Annual PIDC and Management Board meetings. The PIDC encourages
cooperation and collaboration as a ‘one stop shop’ for the discussion,
development and solution of immigration delivery and border security issues in 21
Pacific countries, Australia and New Zealand. The Department has directed
several initiatives through the PIDC to enable a regional and participatory
approach. Recent initiatives include Operation Paradise, which tested the
capability of some PIDC members to locate and remove illegal third country
nationals from the region, and the Pacific Region Immigration Identity Project
(PRIIP), which aims to reduce immigration identity fraud in the Pacific region.




                                                                                 19
GOAL 2: Our workplaces: New Zealand workplaces will lead
the world in maximising the value of work while providing a
high-quality working life

Medium-term priorities
Our medium-term priorities are supporting and promoting the transformation of
New Zealand workplaces to become high-performing and to achieve high-quality
working lives by focusing on:
•    the drivers of workplace productivity
•    skills
•    safe and healthy workplace cultures
•    decent work
•    excellent employment relationships.

Achievements during 2006/07 that contributed to this goal and associated
medium-term priorities include the following:

THE DRIVERS OF WORKPLACE PRODUCTIVITY


Workplace productivity

Workplace productivity is the key to lifting New Zealand's living standards and
wealth. We can increase the value of what we produce by working in different
and better ways. For example, the Department of Labour draws on the expertise
and drive of the Workplace Productivity Reference Group to focus its activities on
awareness raising, development of diagnostic tools, implementation and
research. This group is made up of people who have influence in New Zealand
industry, including unions and business organisations. During 2006/07, this
group was instrumental in delivering a range of awareness raising
programmes, and demonstrating the gains from a tripartite approach to working
on a mutually agreed programme.

Key achievements in 2006/07 include the following:
•    The Department continued to publish case studies of workplaces that have
     changed their workplace practices, particularly in the service sector and in
     businesses with ethnic and gender diversity. These provide excellent
     examples and ideas for employers and business owners.

•    Promoting awareness of productivity improvement through seminars. In
     conjunction with the Chambers of Commerce, a series of workshops have
     been held around New Zealand with employers and business owners.

•    The New Zealand Council of Trade Unions has completed the pilot for
     a proposed two-year Workplace Productivity Education Programme (WPEP),
     funded by the Department of Labour, designed to reach employees (union
     and non-union). It arises from a joint exercise on productivity involving
     business, union representatives and the Government.

•    A self-assessment Snapshot productivity toolkit (a diagnostic survey) has
     been developed to encourage employers to analyse their workplace


                                                                                 20
     practices. The tool was launched in April 2006, distributed through
     networks and is available online.

•    The Department of Labour is working with the State Services Commission
     and the Public Service Association on public sector productivity.

Workplace Change Programme

As an example of public sector productivity, the Workplace Change Programme
within the Department seeks to increase effectiveness and efficiency through the
use of technology, more effective processes, and enhanced structures and
practices. The Workplace Change Programme began as a pilot in April 2006. The
major initiatives in 2006/07 were as follows:
•     The Workplace Services structural realignment has resulted in a new
      regionally-focused approach to the delivery and management of services.
•     A proof-of-concept test site was established in Christchurch to assess new
      intake, filtering, allocation and diagnostic processes as part of the Business
      Process Redesign project.
•     Over 300 Workplace Group staff received information technology training.
      The increased capability will contribute to richer information about local
      operations and overall progress.
•     The Workinfo mobility project has indicated that our effectiveness and
      efficiency will improve as the Department equips our field staff with a mobile
      device and applications supported by pertinent, accurate and timely
      information. This not only provides our clients with consistent and accurate
      information but also reduces our staff’s rework time.

Small Business Information Unit

The Department’s Small Business Information Unit promotes productivity and
quality workplace practices to small to medium enterprises (SMEs) (employing 19
or fewer people) through industry, agency and business support networks.

SMEs are the backbone of the New Zealand economy. In February 2006, 96.4
per cent of enterprises were SMEs, accounting for 29.6 per cent of total
employment and 39 per cent of the economy's total output.1

During 2006/07, the Department engaged with over 4,200 SMEs at forums and
engagement events. Engagements included developing an understanding of
workplace productivity with the Nelson Business Mentors, and improving
employment practice in the kiwifruit industry. In addition, 83 per cent of clients
surveyed were satisfied with the services delivered by the Department, and 58
per cent stated that, as a result of interaction with the Department, they had
changed their practice.




1 SMEs in New Zealand: Structure and Dynamics 2007, Ministry of Economic Development.

                                                                                  21
Social partnership

The ILO, the United Nations’ employment-related agency, is the world body that
oversees tripartite labour negotiations. It is from this basis that the Department
has developed social partnerships with the most representative of the country’s
employer and worker organisations, namely the New Zealand Council of Trade
Unions and Business New Zealand, and the Department has been able to deepen
our understanding of New Zealanders’ interests and to deliver connected
employer, worker and government labour market policies and programmes.

Two key mechanisms for delivering social partnership will continue to deliver
advice on workplace productivity and quality participation. The Workplace
Productivity Reference Group has been refreshed to provide strategic leadership
for the Workplace Productivity Agenda, with additional employer and union
representation. The Quality Participation Leadership Group, established in 2007,
provides a similar mechanism for partnership activities to inspire high-quality
workplace practices to attract and retain talent. Our intention now is to build on
these and to extend them to a wider range of agencies.

Workplace Contact Centre

The Workplace Contact Centre is the front door for the Workplace Group in the
Department. In the past, a person had the option of nearly 20 phone numbers to
call if they wanted workplace-related assistance or information. Over the period
2006/07, the Department has built a more dynamic and innovative contact
centre. The aim is to provide clients with consistent and accurate information,
and resolve 75-80 per cent of calls without referring them on. Currently, the
contact centre is resolving 90 per cent of calls without referring them on. For
2006/07, 240,000 calls were received, and 92 per cent of 521 contact centre
customers surveyed considered overall satisfaction with the Department’s service
to be ‘good,’ ‘very good’ or ‘excellent’.

Metal manufacturing project in Rotorua

The metal manufacturing project started as a Department of Labour initiative and
developed into a joint exercise with ACC, to ensure compliance and reduction in
the number of ACC claims in the metal manufacturing sector. The final project
report achieved outstanding results. The project was first run in 2005/06, with
38 companies in the metal manufacturing sector involved. Follow-up was
completed in 2006/07, with 31 companies involved. A preliminary comparison
suggests an increase in overall compliance and a reduction in both the number
and cost of ACC claims in the metal manufacturing sector over the two years.

The Department has worked with ACC and industry to develop guidelines and
share best practice across other sites and regions.




                                                                                22
SKILLS

Labour market reports

The Department continued its programme of reporting on the dynamics of the
labour market and what this might mean to policy delivery and service delivery
changes. Key reports covered the latest labour market statistics, employment
and unemployment, wage growth and work-related injury claims received by
ACC.

SAFE AND HEALTHY WORKPLACE CULTURES

Pegasus health and safety initiative

The residential building industry is responsible for more injuries than forestry,
agriculture and the metal trades. The Department of Labour is spearheading a
collaborative safety strategy that aims to ensure the new Canterbury township of
Pegasus – to be spread over 340 hectares - is built without any of the builders
suffering a serious harm injury.

Managing health and safety in the new Pegasus township on multiple sites with
multiple employers, contractors and subcontractors has been recognised as a
significant hazard. The Department and ACC are to provide a ground-breaking
educational strategy that will deliver expert health and safety tuition from Site
Safe to the development’s five principal building companies. A series of
workshops will focus on issues such as falls from height; slips, trips and falls
arising from poor house-keeping; and strains and sprains arising from manual
handling of material and equipment, such as lifting timber. Builders who attend
the course will be eligible for a 10 per cent ACC levy discount on application.

Pegasus town will set the benchmark from which best practice in health and
safety could spread to every building site in Canterbury. The strategy will ensure
all the organisations involved in the development of Pegasus will work
collaboratively towards the aim of keeping injuries on the site to a minimum.



Workplace Health and Safety Council

The Workplace Health and Safety Council was set up to advise government on
making workplaces healthier and safer. This is a key action in the Workplace
Health and Safety Strategy. The Council includes government, employer and
employee representatives, and held its first meeting on 22 May 2007. The
Council will provide leadership and coordination, and advice on relevant
legislation, standards and policies.

Other achievements

For the year to June 2007, the Department:
• received over 400,000 hits on the health and safety website, more than two
    and a half times the estimate for the year



                                                                                 23
•    found that 90 per cent of workplaces satisfactorily completed the health and
    safety compliance or enforcement actions required of them in a six-month
    period - well above the target of 75 per cent
•   completed 240 investigations related to the Hazardous Substances and New
    Organisms (HSNO) Act, including 65 emergencies
•   delivered 2,800 forums and information visits, and 3,300 workplace
    assessments related to the HSNO Act
•   produced two case study DVDs on the link between workplace health and
    safety and productivity
•   developed legislation to support a merged Work Account. The merger ensures
    that ACC levies paid by businesses are fairer, based on injury risk rather than
    business structure. The merger also ensures that the levies are more stable,
    for both self-employed and employers.

DECENT WORK


Decent work - charting our progress

The Department of Labour, in conjunction with our social partners, launched a
decent work project, establishing New Zealand as a leader in promoting valuable
working lives for our workforce. This stems from the ILO decent work initiatives,
which aim to encourage productive work that delivers a fair income in an
environment of freedom, equity and security.

Through the development of a website, the project provides a snapshot of
activities carried out by the Department of Labour, other government agencies,
and the social partners that contribute to decent work in New Zealand. In the
current environment of labour and skills shortages, it is important that New
Zealand workplaces are attractive to workers, and the decent work initiative
strongly supports this goal.

Flexicurity

In June 2007, a delegation including the Minister of Labour, an official from the
Department and social partners undertook a study tour to Denmark. They
focused on the Danish system of employment (Flexicurity), which combines a
flexible labour market with generous social security provision and active labour
market policies. Denmark is widely recognised as being an exemplar of this
approach, and the study team assessed the Flexicurity system and examined the
processes used to generate it.

Development of Work-life Balance guide and the Workplace Project

40 per cent of New Zealand workers say they need and want more flexible work
options. The Government has been consulting with employers, employees, and
unions to develop practical ways to introduce Work-life Balance in workplaces.

The Department has been running the Workplace Project over the last two years.
The Department is working with 14 large organisations to help them develop
tailored Work-life Balance initiatives for their workplaces. Learnings to date from
the workplace project have been incorporated into a guide – Work-life Balance:


                                                                                 24
making it work for your business, which was released in August 2007 with the
small business tool.

Development of the small business tool

The Department has developed a tool for small to medium business around
managing flexible work - Managing flexibility: practical ideas for small businesses,
which was released in August 2007. Employers told the Department that they
were interested in doing more around Work-life Balance initiatives but that they
wanted simple tools to help them do it.

The tool is based on real life experiences of workplaces and businesses and
delivered in a way that is based on advice from businesses about what will work
for them. This should help small businesses introduce and manage flexible work
arrangements that work for them and their employees. It will enable businesses
to be more productive, while allowing their employees to experience high-quality
work that allows them to meet other needs in their lives.

Online tool

In March 2007, the holiday online tool was launched to provide guidance on
whether an employee is entitled to a paid public holiday. Between its launch and
the end of May 2007, this tool had 23,524 hits. In its first week, the tool
received over 1,000 hits, which coincided with its launch during Easter.

EXCELLENT EMPLOYMENT RELATIONSHIPS

The Department moved to put information on our website to enhance employer
and business owner access to good information on employment relations. During
2006/07, the Department received over 1 million hits on the employment
relations website, more than two and a half times the estimate for the year.

An important service the Department provides is mediation to help resolve
employment relationship issues. For 2006/07, over 7,000 requests for mediation
services were received and completed.

Partnership Resource Centre

The Department of Labour’s Partnership Resource Centre was established in 2004
to promote positive workplace relations between unions and employers.

Toll Owens, a stevedoring company based at the Port of Tauranga, was formed by
the merger of two existing firms. The company and its unions approached the
Partnership Resource Centre to assist in the creation of a new company culture
for the organisation that had benefits for everyone.

The Partnership Resource Centre established a project to diagnose the current
state of workplace relations. It involved establishing some agreed principles to
guide the work, developing new skills for improved engagement across the
company and negotiating a formal heads of agreement outlining the new
relationship and the parties’ mutual obligations and undertakings.

                                                                                   25
With the support of the Partnership Resource Centre, the development of a new
relationship has progressed very well and the parties have now agreed to tackle
the significant issue of casualisation in the company using a problem solving
approach.




                                                                              26
GOAL 3: Our workforce: The skills of our workers will ensure
New Zealand enterprises are leaders internationally

Medium-term priorities

Under this goal, our medium-term priorities were influencing the supply of skilled
labour by:
• better targeting the immigration programme
• working with industry and education sectors to match educational services to
    the needs of our workers, employers and the economy.

Achievements during 2006/07 that contributed to this goal and associated
medium-term priorities include the following:

BETTER TARGETING THE IMMIGRATION PROGRAMME


In the current environment of high labour demand and a growing trend of
workers moving around the world, the Department decided a record number of
166,340 work application decisions for 2006/07, up 19 per cent from 2005/06.

The Department made changes for temporary workers, such as the RSE scheme,
and implemented changes for skilled migrants wishing to apply for residency. In
2006/07, there were 47,000–52,000 places available under the New Zealand
Residence Programme:
• 28,140 (60 per cent) people were approved under the Business/Skilled
   stream.
• 14,705 (31 per cent) people were approved under the Family Sponsored
   stream.
• 4,119 (9 per cent) people were approved under the
   International/Humanitarian stream.

The SMC is New Zealand’s premier immigration product, providing residence
opportunities for skilled people. This policy was reviewed in 2006/07 to ensure it
is well positioned to attract quality skilled migrants in an increasingly competitive
environment.

Changes were also made to the Work-to-Residence component of the SMC as a
result of this review. People granted Work-to-Residence permits under the SMC
now have nine months instead of six to find a job. Overseas applicants are also
given an additional three months to get to New Zealand before the nine-month
period begins. Another change means that skilled migrants who find a job will no
longer need to work for three months prior to being approved residence. These
changes provide a better balance between giving migrants a decent chance to
prove themselves, while also ensuring they have what is needed by New Zealand
employers.

International students are a significant immigration group, creating important
economic benefit to New Zealand. During 2006/07, research was undertaken on
international students in New Zealand by the Department of Labour and
Education New Zealand. The research examined students' study pathways


                                                                                   27
through the education system and the characteristics of those who transition to
work or residence in New Zealand.

WORKING WITH INDUSTRY AND EDUCATION SECTORS TO MATCH
EDUCATIONAL SERVICES TO THE NEEDS OF OUR WORKERS, EMPLOYERS
AND THE ECONOMY

Upskilling

Key achievements in upskilling the existing workforce over the last year have
been made in two areas: strategic policy; and the implementation of the
Upskilling Partnership Programme.

Strategic policy work has focused on the development of a medium to long-term
strategy to improve the foundation skills (literacy, numeracy and language) of
workers, unemployed people and groups close to the labour market.

Funding for the Upskilling Partnership Programme was granted in Budget 2006,
and the programme had its launch in early 2007. The programme is designed to
improve the evidence base on what works to engage New Zealand employers and
employees in foundation skills training, which forms of training provision work
best in New Zealand workplaces, and what the business benefits are from
investing in foundation skills. Up to 15 partnerships are being established over
three years, involving a mix of employers, unions, training providers and other
parties. After an initial period of engagement with employers, two partnerships
are now up and running (with Works Infrastructure and Fletcher Construction
Company, Engineering Division), and early-stage evaluations are underway.

Horticulture and viticulture engagement

The horticulture and viticulture industries account for approximately $2.4 billion
dollars in exports, but have been facing severe labour and skill shortages that
have put these export-focused industries at risk. During the 2006/07 year,
significant work was undertaken in implementing the seasonal labour strategy
and in linking industry with immigration policy changes. Two key achievements
are Picknz and the RSE scheme.

Picknz is the brand adopted by the horticulture industry as a recruitment tool to
enable people to find seasonal work throughout New Zealand. It follows the
harvest trail for picking fruit, thinning, grape pruning, packhouse positions,
kiwifruit and vegetable produce handling and many more jobs. Refer to
www.picknz.co.nz

The RSE scheme, which also better targets New Zealand’s immigration
programme and provides support for Pacific nations, is described further in the
case study below.




                                                                                  28
Recognised Seasonal Employer scheme

The short-term nature of work in some seasonal industries, such as horticulture
and viticulture, means they have traditionally struggled to find workers from
within New Zealand.

In October 2006, the Government announced a new seasonal work programme -
the RSE scheme - to assist employers in particular industries to attract seasonal
workers. Where there are no New Zealand workers available, the scheme allows
for priority to be given to workers from the Pacific for seasonal work opportunities
in the horticulture and viticulture industries in planting, maintaining, harvesting
and packing crops. A framework has been developed to assist those industries to
recruit workers from the Pacific for short periods when they are unable to recruit
locally.

The initiative addresses both the seasonal labour shortages experienced by the
horticulture and viticulture sectors and responds to the Pacific’s requests for
improved access to the New Zealand labour market, boosting the skills and
economies of Pacific nations while assisting New Zealand’s economic
transformation.

The RSE scheme was officially launched on 30 April 2007, with the first employer
achieving RSE status at the same time. By the end of June 2007, seven
employers had been granted RSE status with, 10 more RSE applications pending
a decision.



Food and beverage

The Department has continued to build effective working relationships with the
industry and other government agencies in implementing the Skills Action Plan.
During 2006/07, the Skills and Training Action Group initiated an industry training
organisation strategic planning process for the food and beverage sector. This
aims to greatly improve the quality of industry training organisation planning,
through strategic support and access to labour market information, including
forecasting information.

In-depth regional labour market reports and website

The Department has improved its labour market reporting to produce a greater
variety of reports focusing on labour market statistics and trends in New Zealand.
Reports in relation to this goal have included in-depth quarterly labour market
reports - Skills in the Labour Market, Labour Market Outlook and Quarterly
Migration Update.

The Department produced 12 annual in-depth regional labour market reports,
which bring together significant amounts of quantitative and qualitative
information that provide detailed pictures of local labour markets. The reports
are the first major publications to use 2006 Census data at a sub-regional level,



                                                                                  29
which means people with an interest in labour markets have access to
information that is both timely and relevant.

As a result of further exploring how to refine the Department’s information
services, a website refresh was undertaken. It is now more user-friendly, with
reports on screen being simpler and clearer, and with more logical navigation
tools.

Regional labour market development

The Department has contributed to positive progress towards labour market
development in all New Zealand regions during 2006/07. Some examples include
the following:
•     The Wellington region produced New Zealand’s first comprehensive labour
      market strategy, which was integrated with the wider regional
      development strategy. This is now in implementation mode.
•     Several regions have taken their first steps in developing a regional labour
      market strategy, such as Canterbury, Southland, Otago, Manawatu and
      Waikato.
•     The Auckland region has instituted a skills work-stream as part of their
      Metro project on regional development.
•     There has been a concentrated effort on supporting implementation of the
      horticulture and viticulture strategy and the RSE scheme, focused on the
      regions where horticulture and viticulture is concentrated (most notably
      Bay of Plenty, Hawkes Bay and Marlborough).

Tertiary Education Commission and the prototype interactive tool

Development and dissemination of an interactive data tool enabled tertiary
providers to access relevant labour market information, such as industry growth
and qualification development data, from the 2006 Census to inform their
regional investment plans. There has been positive feedback from the Tertiary
Education Commission.

Ngāti Awa information tools launch

Ngāti Awa identified a need for labour market information on their workforce to
enable them to take a more strategic and planned approach to their workforce
and broaden their economic development. The Department developed a new tool
to gather and display the information. Ngāti Awa found the tool useful and
combined with positive feedback from government agencies and the Industry
Training Federation, the department further developed the tool. It is now
available through the Department’s website.

Survey of Employers who have Recently Advertised – SERA

To increase its value, the scope of the 2006 SERA was extended to include not
only semi-skilled/elementary occupations but also highly-skilled and skilled
occupations. By broadening the sample base, the Department has enabled the
calculation of skill shortage indicators for most occupational groups. 3,534
interviews with employers or recruitment agencies were conducted. The resulting

                                                                                 30
report - Occupations in Shortage in New Zealand: 2006 - was published in March
2007.

The survey found that shortages existed for all major occupational groups in
2006. Less than half (48 per cent) of all trades worker vacancies were filled with
a suitable candidate, as were only just over half the plant and machine operator
and assembler vacancies. By contrast, clerical occupations (75 per cent) were
only just under the shortage threshold.




                                                                                31
GOAL 4: Our people: All New Zealanders will be able to grow
and develop through access to well-paid and meaningful
employment

Medium-term priorities
Under this goal, our medium-term priorities are supporting increased labour
market participation by leading the Government’s work programme on:
• enhancing parents’ and other carers’ choices about work and family
   arrangements
• assisting transitions for youth into employment
• enhancing employment for groups under-represented in the labour force.

Achievements during 2006/07 that contributed to this goal and associated
medium-term priorities include the following:

ENHANCING PARENTS’ AND OTHER CARERS’ CHOICES ABOUT WORK AND
FAMILY ARRANGEMENTS

A 10-year plan to improve the caring and employment choices available to
parents and carers was announced by the Prime Minister at the EEO Trust Awards
in August 2006 (Choices for Living, Caring and Working). This is a cross-
government piece of work, led by the Department of Labour, and includes
contributions from the Ministry of Social Development (MSD), Ministry of
Education, Ministry of Women's Affairs, Te Puni Kōkiri, the Treasury, Ministry of
Pacific Island Affairs, and the Department of the Prime Minister and Cabinet.

The key achievements in six areas of work have included the following:
•    Workplaces - The Department of Labour undertook consultation on quality
     flexible work, to report to the Minister in February 2007.
•    The first year of life - The parental leave scheme was evaluated in 2006,
     and the report was published in early 2007. The results of the evaluation
     will inform further policy work and provide a basis for developing proposals
     for improving the parental leave scheme further.
•    Children under five - Free early childhood education (ECE) of up to 20
     hours per week for three and four-year-olds in teacher-led services was
     introduced in July 2007. This involves ongoing work on the quality of ECE
     services, such as improving qualifications for staff.
•    School-aged children - MSD and the Families Commission have met with
     parents, children and stakeholders to consult with them on out-of-school
     services. A draft five-year action plan for out-of-school services was
     presented to Cabinet that will improve the quality, availability, affordability
     and accessibility of out-of-school services. The action plan went out for
     consultation during June and July 2007.
•    Caring for adults - MSD and the Carers’ Alliance, with other Choices
     agencies, are developing a Carers’ Strategy. The consultation period for the
     strategy was launched in July 2007.
•    Research - Several key pieces of work have been completed during
     2006/07, which helped inform Choices policy:
     o      Decisions about Caring and Working: A Qualitative Study was
            commissioned in conjunction with the National Advisory Council on the


                                                                                 32
          Employment of Women to identify factors that influence people's
          decisions surrounding paid work, and the decision-making process.
     o    A suite of reports called 45 Plus: Choices in the Labour Market helped
          identify barriers to paid work for those aged 45 and over, and
          understanding around the awareness of career information, advice and
          guidance to enter paid employment. The Department also published a
          discussion paper on ageing workforces and ageing occupations (Ageing
          Workforces and Ageing Occupations: A Discussion Paper).
     o    A monitoring and evaluation framework for the Choices work
          programme was developed to help monitor the effects of existing and
          future initiatives and provide information to support parents, carers
          and employers.
     o    In partnership with Statistics New Zealand, a childcare survey module
          is being developed to monitor key Choices indicators around the use,
          accessibility and affordability of childcare and out-of-school services
          and monitor progress against these Choices goals.

Paid parental leave

In 2006, the entitlement to 14 weeks’ paid parental leave was extended to self-
employed parents. Today, more than 20,000 parents access government-funded
paid parental leave every year.

Pay and employment equity

The Pay and Employment Equity Unit was established by the Department in 2004
to help public sector organisations identify and remedy gender pay and
participation gaps.

The unit has developed tools and resources to guide organisations on how gender
bias affects women in workplaces, some technical and inter-related issues such as
occupational segregation, paid and unpaid work, and how work is valued.

The Pay and Employment Equity Unit is now focusing on adapting its ability to
deal with increased customers as a result of the Government’s agreement to
extend pay and employment equity into the 91 Crown entities and 86 local
government authorities. As a result of its success in developing useful tools, the
unit is now expanding its reach into these Crown entities and local government
authorities.



ASSISTING TRANSITIONS FOR YOUTH INTO EMPLOYMENT

The Government and the Mayors’ Taskforce for Jobs are continuing to work
towards their shared goal that, by 2007, all 15 to 19-year-olds will be engaged in
appropriate education, training, work, or other options that will lead to long-term
economic independence and wellbeing.

Joint commitment to meeting the goal has generated positive results. There has
been a dramatic reduction in the number of young people receiving the


                                                                                 33
unemployment benefit and in the length of time the benefit is paid to young
people.

An updated memorandum of understanding between the Government and
the Mayors’ Taskforce for Jobs was signed on 5 December 2006. The signing was
held at an event that also launched the Our Youth, Our Future toolkit.

ENHANCING EMPLOYMENT FOR GROUPS UNDER-REPRESENTED IN THE
LABOUR FORCE

Repeal of the Disabled Persons Employment Promotion Act 1960

The Department continued to support the passage through Parliament of the
Disabled Persons Employment Promotion (Repeal and Related Matters) Bill, which
was enacted in March 2007. The repeal of the 1960 Act means that people
working in sheltered workshops are entitled to the same working conditions that
other working New Zealanders enjoy. This means that sheltered workshops have
to pay at least the minimum wage, unless individual workers have an exemption,
and provide holiday and sick leave entitlements. Exemptions will only be issued
to individuals who are significantly and demonstrably limited in their work, rather
than a workplace being issued a blanket exemption for all employees. This
means that disabled workers are valued for the work that they do, rather than
the place where they work. The repeal of the Act also strengthens New Zealand’s
commitment to the United Nations Convention on the Rights of Disabled Persons.

The Department has played a key role in ensuring full participation of disabled
people in the labour market. This is reported in the section on reducing
inequalities on pages 41-44.

Ethnic responsiveness

The Department of Labour has worked on achieving outcomes related to the
Ethnic Responsiveness Strategy for 2006/07. This is reported in the section on
reducing inequalities on pages 41-44.

Labour market reports

Reporting in relation to this goal has included annual labour market reports -
Māori Labour Market Outcomes, Female Labour Market Outcomes, Pacific Peoples
Labour Market Outcomes and Older Workers Labour Market Outcomes.




                                                                                  34
GOVERNANCE
Structure

The Secretary of Labour chairs the Strategic Leadership Team, which is the
governance committee for the Department. This team comprises the Secretary
and five Deputy Secretaries, and leads the Department’s strategic direction,
organisational development and capability, and organisation performance and
monitoring. The Strategic Leadership Team works through staff and other
stakeholders to achieve the Department’s purpose.

The team is supported by five sub-committees: Policy Forum; Planning and
Budgeting; Human Resources; Information; and Audit.

The Department is organised into the following groups:
•    Workforce delivers immigration, employment and skills policies to build
     New Zealand’s workforce, as well as managing immigration in New
     Zealand’s best interests.
•    Workplace delivers services related to employment relationships,
     workplace practices, workplace health and safety and safe management of
     hazardous substances to build healthy, productive workplaces.
•    Work Directions focuses on achieving the best labour market outcomes
     possible at a national, regional and sectoral level, through strategic analysis,
     engagement and comprehensive and tailored labour market information and
     insights.
•    Corporate supports the Chief Executive and whole-of-Department capability
     through a range of central services, advice and standards for human
     resources, information technology, communications and marketing, financial
     management, planning and reporting, internal audit and property.
•    Legal and International provides legal services, advice and support to the
     Department and Ministers for legislative reforms, and manages labour-
     related international engagements. The Legal group provides an internally
     independent home for support staff for immigration appeal bodies and the
     newly created Immigration Advisers Authority.

Ministers and Votes

The Minister of Labour is the Responsible Minister for the Department. The
Department administers four Votes and reports to the Ministerial portfolios listed
below.

Minister                                   Vote
Minister of Labour                         Labour
Minister of Immigration                    Immigration
Minister for Social Development and        Employment
Employment
Minister for ACC                           ACC




                                                                                  35
CAPABILITY
The Department is addressing several areas to develop its capability to enable it
to meet key goals and activities.

Foundation Capabilities Change Programme

The Foundation Capabilities Change Programme was designed to upgrade or
replace core elements of the Department’s foundation enabling systems. These
are systems that allow the organisation to manage its resources and
performance, and allow the business to operate effectively and support the
strategic outcomes. This programme also includes initiatives to develop skills
connected with these systems.

Over the past year, the Department has:
•    undertaken a comprehensive analysis of information and communications
     technology (ICT) infrastructure (including the telephony system) and
     secured external funding of $33m to upgrade or replace the outdated
     infrastructure over the next four years
•    established the organisation’s specific requirements for financial
     management and human resources information systems
•    migrated the Department’s onshore wide area network links from a number
     of providers to a single provider (GSN) to achieve a faster, lower cost
     network
•    reviewed and restructured our ICT sourcing practices and contracts to
     enhance service and achieve value for money
•    undertaken a review of current recruitment practices and developed a
     proposal for a Career Centre to improve the efficiency and effectiveness of
     recruitment across the Department
•    undertaken the development of a management skills programme to provide
     all managers with the core skills required for successful management within
     the Department and Public Service
•    commenced work to redevelop the Department’s intranets into a single
     integrated intranet using new technology and to develop an integrated suite
     of websites to provide an effective tool for clients and staff
•    progressed the development of a comprehensive set of departmental
     policies to meet legislative and audit requirements.

People plan

In 2006/07, the Department has been developing a people plan. The plan will be
released in 2007/08 and will set out the commitments that will be made to the
people who work in the Department, using the seven drivers of productivity as a
framework:
•    Building leadership and management capability
•    Creating productive workplace cultures
•    Encouraging innovation and the use of technology
•    Investing in people and skills
•    Organising work
•    Networking and collaborating

                                                                                36
•       Measuring what matters.

People framework

The Department continued to develop an integrated people framework that shows
how the people processes fit together and how the processes can be used to build
people and team capability and the tools that are available. This provides a map
for staff and managers in using the processes to drive their own development and
career development, and sets expectations about how we do things in the
Department. The different stages of the framework are:
•     Recruit
•     Induct
•     Define expectations
•     Manage and reward performance
•     Develop capability
•     Develop potential.

Health and safety

The Department is focused on leading health and safety practices and processes
internally as well as externally. Health and safety training is provided to all
managers and health and safety representatives. An intranet site provides
information on health and safety for all of the Department’s workplaces.

A review of the internal health and safety practices and processes will be
undertaken in the 2007/08 year.

155 events were reported during the 2006/07 year, of which 57 resulted in claims.
The total cost of claims for the 2006/07 year was $43,165 (excluding GST).

        Event type         Total
    Early report            17
    Injury                  40
    Total events            57

The Department has a health and safety administrator who manages the
relationship between the Department and its third party case management provider
and provides support to health and safety representatives and line managers.
Health and safety committees manage local issues and work with regional and
executive committees.

Partnership for Quality

Partnership for Quality is part of a government-wide initiative to enhance the
quality of working lives within the Public Service through an open and cooperative
relationship between the Public Service Association and departmental
management. It involves a continuing commitment by the Public Service
Association to improve quality, and the acceptance by government, employers and
the union as stakeholders with rights and interests in decisions affecting
employees’ work and employment.


                                                                                  37
The Department and Public Service Association set out an annual work plan of
initiatives under the direction of a Partnership for Quality Steering Group.

Pay and employment equity

The Department's Pay and Employment Equity Review and Response Plan were
completed in August 2006. Where pay equity could be measured accurately, 70
per cent of female staff had equity. However, there was evidence of occupational
segregation and inequity for single incumbent roles. The pay equity ratio
(median) moved from 90.9 per cent at 30 June 2006 to 91.7 per cent at 30 June
2007.

Risk management framework


The Department of Labour has developed a Department-wide internal assurance
and risk management framework modelled on the Australian/New Zealand Risk
Management Standard (AS/NZS 4360:2004). It builds on the established risk
policy, promotes quality standards and notes the developing linkages between
internal assurance and risk management and other key systems, notably
planning, reporting, audit, legislative compliance, project management and
finance. A Department-wide risk forum has been established to help with
implementation of the framework and the risk management toolkit for managers
that is being developed.

Influenza pandemic planning


In response to a possible pandemic, the Department has now established an
overall crisis management capability and governance. This is supported by a
crisis plan, essential services plan, human resources and ICT and property
guidance. Walkthroughs by the management teams have confirmed and
improved these plans. This work mirrors the planning concepts of the Ministry of
Health and World Health Organisation. It constitutes the basis for further
development of more generic business continuity and crisis management
planning.




                                                                               38
EQUAL EMPLOYMENT OPPORTUNITIES REPORT

The equal employment opportunities (EEO) focus through to 2010 is to ensure
that the Department’s staff profile closely reflects the proportion of EEO groups in
the labour force. The Department asks new appointees to voluntarily provide
EEO information, and 88.5 per cent of staff have responded.

The Department’s ethnic distribution is illustrated in the following chart.


         Department of Labour's Ethnic Composition 30 June 2007

                               Not recorded,
               Middle
                                  14.2%               NZ European,
            Eastern/Latin
            American/Afri                                35.8%
             can, 0.6%

             Asian, 16.1%                                 NZ Maori,
                                                           6.3%
                 Pacific
               People, 6.9%        Other            Other ethnic
                                 European,            groups,
                                   8.2%                11.9%



Women
Currently 60 per cent of staff are women, which represents a steady increase
since 2001 when women made up 55.1 per cent of staff.

43 per cent of women work in client/field roles, which is where 48.3 per cent of
the men work. 47 per cent of managers are women, a percentage which has
been increasing steadily. Women hold 57.1 per cent of the technical/professional
roles within the Department and represent 83 per cent of the support roles.

The median salary for women in the Department is 91.7 per cent of the male
median salary. The difference is because of the occupational distribution of
women in jobs where the female median salary is below the Department’s median
salary. The current figure is an increase on that for last year which was 90.9 per
cent.

Māori
The EEO focus to 2010 is to ensure that Māori will increasingly comprise a critical
mass in the Department, in order to build Public Service capability. This critical
mass is seen to be about 15 per cent of staff.

Currently, with Māori representing seven per cent of onshore staff, or 6.3 per
cent of all staff, the Department is below the target and is developing a Māori



                                                                                  39
strategy to address the matter. Māori staff work predominantly in the Workforce
and Workplace Groups. 69 per cent of Māori staff at the Department are women.

Māori staff work in three main roles - client/field job (48.7 per cent),
technical/professional (14.9 per cent) and support (14.9 per cent). 21 Māori staff
are managers, representing 7.4 per cent of managers. The under-representation
of Māori in policy roles (1.5 per cent of policy staff) continues to be a matter of
concern.

Pacific peoples
The EEO focus to 2010 is to ensure that the proportion of Pacific staff more
closely reflects the proportion of Pacific peoples in the labour force. The
Department estimates this to be about seven per cent.

Currently, 6.3 per cent of the Department’s staff are Pacific peoples, a decrease
from 9.4 per cent in 2001. The Workforce Group employs almost all the Pacific
staff (79 per cent). 77 per cent of Pacific staff are women.

The majority of Pacific staff (61.7 per cent) are in client/field roles, with a further
18 per cent in support roles and 9.8 per cent in technical/professional roles. 12
Pacific peoples are managers, representing 5.4 per cent of managers. Less than
one per cent of policy staff are Pacific peoples.

Other ethnic groups
Currently, 35.4 per cent of the Department’s staff are from ethnic groups other
than Māori, Pacific or Pākehā/European. The number of Department staff from
other ethnic groups has been increasing steadily. The Workforce Group employs
over two-thirds of staff from other ethnic groups. 62 per cent of staff from other
ethnic groups are women, one percent more than last year.

The largest group of staff from other ethnic groups (43.1 per cent) is in
client/field roles, with a further 24 per cent in technical/professional roles. 70 are
managers, representing 26.5 per cent of managers. About 32.5 per cent of policy
staff are from other ethnic groups.

People with a disability
The EEO focus to 2010 is to have the proportion of staff with a disability reflect
the proportion of people with a disability in the workforce. The Department
estimates this at about 12 per cent.

Currently, 3.7 per cent of staff have told us they have a disability. This is a
smaller percentage than 2001, when the comparable figure was 6.9 per cent.
Just under half of those with a recorded disability are women.

81 per cent of staff with a disability are aged 40 or over, a slight increase on last
year’s 80 per cent. 43 per cent of staff with a disability are in client contact/field
roles, and 20.8 per cent are in technical/professional areas, while 11.1 per cent
are in support roles. 21 per cent are in management.




                                                                                     40
EFFECTIVENESS IN REDUCING INEQUALITIES REPORT

Women

The Department of Labour produced a new annual report detailing labour market
outcomes for women. It shows:
•    labour market disparities between women and men have decreased in the
     last five years
•    female wages have been increasing faster than male wages, leading to a
     reduction in the gender pay gap from 15.9 per cent in June 2001 to 13.6 per
     cent in June 2006
•    disparities between women of different ethnic groups have generally
     declined over the last five years with participation and unemployment rates
     converging
•    the disparity between male and female qualification levels has been
     reducing over the last 20 years and is likely to continue to decrease further
     as young women are more highly skilled than their male counterparts
•    New Zealand compares favourably with other OECD countries in terms of
     female unemployment, participation and wages.

However, wages for women remain considerably lower than those for men, and
the majority of women work in semi-skilled occupations that lead to a lower
overall skill level occupational profile than for men. In addition, there has been
higher growth in semi- and low-skilled jobs for women than men.

The Department will use this information and analysis to support the continuing
development of policies and programmes to support women in the labour market.

See pages 33 and 38 for further information on pay and employment equity.

Māori

The Department has been evaluating the impact of specific Māori initiatives (e.g.
event participation) and taking a more strategic approach to these initiatives.
Event participation in 2006/07 was targeted at raising awareness on base
workplace rights, and events were targeted that reached the large cohort of Māori
youth about to enter the workforce. These included Te Matatini and the ASB
Polyfest.

The Department is undertaking work around vulnerable workers, with numbers of
Māori fitting into this category. This is described further under the Pacific peoples
section on page 42.

The Small Business Information Unit has continued to work with umbrella groups
and networks with a high proportion of Māori.

The Department of Labour produces a report on Māori labour market outcomes.
This six monthly update focuses on changes in the past six years and gives an
indication of near-term prospects.




                                                                                     41
It shows labour market conditions continue to be favourable for Māori workers
with the participation rate for Māori at a historical high for the year to June 2007
at 67.6 per cent. Robust economic growth in New Zealand over the last six years
has seen more Māori in work, fewer unemployed and fewer outside the labour
force; while average wages have risen in real terms. The unemployment rate for
Māori fell for the year to June 2007 reaching 7.6 per cent. This is the lowest
annual average rate recorded since the Household Labour Force Survey (HLFS)
began in 1986, and is down from 8.5 per cent a year earlier and 18.6 per cent for
the year to June 1999.

Disparities in Māori labour market outcomes have generally declined. However, it
is unclear whether this represents a fundamental move towards more equal
employment prospects between Māori and non-Māori, or whether it simply
reflects a temporary high demand for labour.

Labour market conditions for Māori men remain stronger than for Māori women,
but the gap may be narrowing. The participation rate for Māori women has risen
more than for Māori men in the past decade.

The Department has been working with Ngāti Awa to develop information tools
that meet their needs. Further information is on page 30.

Pacific peoples

The Department has done a lot of work to understand the level of knowledge
Pacific people have about workplace rights through surveys and interviews at
Pacific oriented events. The information gathered has fed into the development
of printed material containing targeted information and plans to further enhance
the key information so it is more accessible to Pacific peoples. Like the work with
Māori, event participation in 2006/07 was aimed at awareness raising on base
workplace rights, and events were targeted that reached the large cohort of
youth about to enter the workforce.

The Department’s Workplace Pacific Advisory Group actively engage with Pacific
communities by participating in regional Pacific events including Pasifika Festival,
ASB Polyfest in Auckland, Pacifically Wellington, and Pacific Festival in
Christchurch. The Department also collaborated with organisations and networks
such as Young Pacific Leaders Network Auckland, Wellington and Christchurch,
and Hutt Intersectorial Pacific Steering Group, in addition to attending a number
of Pacific community forums throughout the country.

The Small Business Information Unit has continued to work with umbrella groups
with a high proportion of Pacific peoples. Workplace health and safety staff
undertook the inspections/assessment for the health and safety award at the
Pacific Business Trust, Pacific Business Awards.

The Department’s focus on better understanding who our vulnerable workers are
has indicated there are a significant amount of Māori and Pacific people working
in high-risk industries, such as manufacturing, construction and the voluntary
sector. Māori and Pacific peoples may therefore experience a disproportionately
high number of work-related disease and injury incidents.

                                                                                  42
These groups will receive more focused intervention to improve their safety. The
Department of Labour is building partnerships with other agencies, such as Injury
Free Counties Manukau, ACC, Council of Trade Unions Komiti Pasifika, Pacific
Business Trust and Ministry of Pacific Island Affairs, to develop resources and
increase awareness about workplace health and safety for Māori and Pacific
workers. The Department is also looking at engaging with Pacific churches to
help with communicating key health and safety messages using appropriate and
effective means.

As part of the Departments work on Choices for Living, Caring and Working,
described further on page 32, we will work to understand the needs and priorities
of Pacific peoples with caring responsibilities to ensure that services and policies
meet their needs, and people are able to improve the balance between their work
and family lives.

The Department of Labour produces a report on Pacific peoples’ labour market
Outcomes. This is the second annual report. It focuses on changes for Pacific
peoples in the past five years. The report shows:
•    Pacific peoples have benefited from robust economic conditions and have
     enjoyed above average employment growth over the last five years with an
     average at 3.6 per cent per annum since June 1999
•    the unemployment rate for Pacific peoples has fallen from 14.0 per cent for
     the year to June 1999 to 6.9 per cent recorded in June 2007
•    the disparity in unemployment rates between Pacific and non-Pacific peoples
     has reduced considerably - the gap fell to 2.8 percentage points in
     December 2006 (6.4 per cent for Pacific Peoples compared to 3.6 per cent
     for non-Pacific Peoples) from 4.5 percentage points in December 2001 (9.6
     per cent for Pacific Peoples compared to 5.1 per cent for non-Pacific
     Peoples)
•    wage growth for Pacific peoples has been above average over the last five
     years
•    Pacific peoples participation in industry training and tertiary education is
     above average.

Other ethnic groups

The Department of Labour has worked on achieving outcomes related to the
Ethnic Responsiveness Strategy for 2006/07. Achievements include the
following:
•     The Settlement Support Strategy was approved by Cabinet in November
      2006 for launch in July 2007. The strategy includes a new vision and high-
      level goals, amendments to the intermediate-level goals and approval for
      the Settlement National Action Plan as the basis for further interagency
      activity to enhance settlement outcomes in New Zealand.
•     The National Settlement Refugee Forum has been changed from a six-
      monthly to an annual meeting to allow regional forums to be organised in
      the main refugee resettlement areas, reflecting the importance of regional
      responsiveness as well as providing an opportunity for local governments to
      participate on an ongoing basis.


                                                                                  43
•    The development of a new Welcome to New Zealand booklet that directs all
     newcomers to the appropriate sources of local information and services that
     will assist their settlement post-arrival. This will be launched in the first
     quarter of 2007/08.

One section of the Department’s annual in-depth regional labour market report
looks specifically at the workforce and asks the question: to what extent do
different types of people participate in the labour force? It is useful to
understand how participation varies across people of different skills, sex, age,
ethnicity and migrant status because it increases understanding of the labour
offered by the labour force, and the types of people who are under-represented in
the labour market.

People with a disability

The Department has played a key role in ensuring full participation of disabled
people in the labour market. We do this through:
• providing strategic advice and information about the role the labour market,
   and intervention in the labour market, can play in the economic
   transformation of New Zealand and improving outcomes for families, including
   those of groups under-represented in the workforce, such as people with
   disabilities
• providing policy, purchase and monitoring advice that contributes to reducing
   injury in New Zealand workplaces, assisting those who are injured to return to
   work, and vocational rehabilitation to assist people who are unable to return
   to their pre-injury occupation
• supporting increased labour market participation by leading the Government’s
   work programme on enhancing employment for groups under-represented in
   the workforce
• improving its own capability, policies and practices in relation to disability
   awareness, both for people with disabilities employed by the Department and
   people with disabilities who are clients of the Department.

The Department led the development of the Our Youth, Our Future toolkit on
behalf of central government and the Mayors’ Taskforce for Jobs. The intention
was to empower mayors and council CEOs with the information they needed in
order to challenge negative assumptions and stereotypes in their communities. It
focused on key actions and initiatives to encourage youth employment, including
young people with disabilities as employees. This group, one of three chosen, is
over-represented in statistics that indicate higher transition needs.

The Department also contributed to reducing inequalities for people with a
disability by supporting the passage of the Disabled Persons Employment
Promotion (Repeal and Related Matters) Bill through Parliament, which
is described further on page 34.




                                                                                44
STATEMENT OF MANAGEMENT RESPONSIBILITY
In terms of the Public Finance Act 1989, I am responsible, as Acting Chief
Executive of the Department of Labour, for the preparation of the Department’s
financial statements and the judgements made in the process of producing those
statements.

I have the responsibility of establishing and maintaining, and I have established
and maintained, a system of internal control procedures that provide reasonable
assurance as to the integrity and reliability of financial reporting.

In my opinion, these financial statements fairly reflect the financial position and
operations of the Department for the year ended 30 June 2007.




                                           Countersigned by:
Graham Fortune                             Meaw-Fong Phang
Secretary of Labour (Acting)               Director of Finance
26 September 2007                          26 September 2007




                                                                                      45
AUDIT REPORT
TO THE READERS OF THE DEPARTMENT OF LABOUR’S
FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION
FOR THE YEAR ENDED 30 JUNE 2007

The Auditor-General is the auditor of the Department of Labour (the
Department).

The Auditor-General has appointed me, H C Lim, using the staff and resources of
Audit New Zealand, to carry out the audit on his behalf. The audit covers the
financial statements, and statement of service performance and schedules of non-
departmental activities included in the annual report of the Department for the
year ended 30 June 2007.

Unqualified opinion

In our opinion:

•    The financial statements of the Department on pages 103 to 131:
     •     comply with generally accepted accounting practice in New Zealand;
           and
     •     fairly reflect:
           •      the Department’s financial position as at 30 June 2007; and
           •      the results of its operations and cash flows for the year ended on
                  that date.
•    The statement of service performance of the Department on pages 49 to
     102:
     •     complies with generally accepted accounting practice in New Zealand;
           and
     •     fairly reflects for each class of outputs:
           •      its standards of delivery performance achieved, as compared with
                  the forecast standards outlined in the statement of forecast
                  service performance adopted at the start of the financial year;
                  and
           •      its actual revenue earned and output expenses incurred, as
                  compared with the forecast revenues and output expenses
                  outlined in the statement of forecast service performance adopted
                  at the start of the financial year.
•    The schedules of non-departmental activities on pages 132 to 142 fairly
     reflect the assets, liabilities, revenues, expenses, contingencies,
     commitments and trust monies managed by the Department on behalf of
     the Crown for the year ended 30 June 2007.

The audit was completed on 26 September 2007, and is the date at which our
opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the
responsibilities of the Chief Executive and the Auditor, and explain our
independence.
                                                                                 46
Basis of opinion
We carried out the audit in accordance with the Auditor-General’s Auditing
Standards, which incorporate the New Zealand Auditing Standards.

We planned and performed the audit to obtain all the information and
explanations we considered necessary in order to obtain reasonable assurance
that the financial statements and statement of service performance did not have
material misstatements, whether caused by fraud or error.

Material misstatements are differences or omissions of amounts and disclosures
that would affect a reader’s overall understanding of the financial statements and
the statement of service performance. If we had found material misstatements
that were not corrected, we would have referred to them in our opinion.

The audit involved performing procedures to test the information presented in the
financial statements and statement of service performance. We assessed the
results of those procedures in forming our opinion.

Audit procedures generally include:

•    determining whether significant financial and management controls are
     working and can be relied on to produce complete and accurate data;
•    verifying samples of transactions and account balances;
•    performing analyses to identify anomalies in the reported data;
•    reviewing significant estimates and judgements made by the Chief
     Executive;
•    confirming year-end balances;
•    determining whether accounting policies are appropriate and consistently
     applied; and
•    determining whether all financial statement and statement of service
     performance
•    disclosures are adequate.

We did not examine every transaction, nor do we guarantee complete accuracy of
the financial statements or statement of service performance.

We evaluated the overall adequacy of the presentation of information in the
financial statements and statement of service performance. We obtained all the
information and explanations we required to support our opinion above.

Responsibilities of the Chief Executive and the Auditor

The Chief Executive is responsible for preparing financial statements and a
statement of service performance in accordance with generally accepted
accounting practice in New Zealand. The financial statements must fairly reflect
the financial position of the Department as at 30 June 2007 and the results of its
operations and cash flows for the year ended on that date. The statement of
service performance must fairly reflect, for each class of outputs, the
Department’s standards of delivery performance achieved and revenue earned
and expenses incurred, as compared with the forecast standards, revenue and

                                                                                 47
expenses adopted at the start of the financial year. In addition, the schedules of
non-departmental activities must fairly reflect the assets, liabilities, revenues,
expenses, contingencies, commitments and trust monies managed by the
Department on behalf of the Crown for the year ended 30 June 2007. The Chief
Executive’s responsibilities arise from sections 45A, 45B and 45(1)(f) of the Public
Finance Act 1989.

We are responsible for expressing an independent opinion on the financial
statements and statement of service performance and reporting that opinion to
you. This responsibility arises from section 15 of the Public Audit Act 2001 and
section 45D(2) of the Public Finance Act 1989.

Independence
When carrying out the audit we followed the independence requirements of the
Auditor-General, which incorporate the independence requirements of the
Institute of Chartered Accountants of New Zealand.

In addition to the audit we have carried out assignments during the reporting
period in the areas of Post implementation review of Workinfo Project phase 4
and Observation of the Proof of Concept (POC) exercise for Workinfo Project
phase 5. These assignments are compatible with those independence
requirements. Other than the audit and these assignments, we have no
relationship with or interests in the Department.



H C Lim
Audit New Zealand
On behalf of the Auditor-General
Wellington, New Zealand


Matters relating to the electronic presentation of the audited financial statements

This audit report relates to the financial statements of the Department of Labour
for the year ended 30 June 2007 included on the Department of Labour’s web
site. The Secretary for Labour is responsible for the maintenance and integrity of
the Department of Labour’s web site. We have not been engaged to report on the
integrity of the Department of Labour’s web site. We accept no responsibility for
any changes that may have occurred to the financial statements since they were
initially presented on the web site.

The audit report refers only to the financial statements named above. It does not
provide an opinion on any other information which may have been hyperlinked
to/from these financial statements. If readers of this report are concerned with
the inherent risks arising from electronic data communication they should refer to
the published hard copy of the audited financial statements and related audit
report dated 26 September 2007 to confirm the information included in the
audited financial statements presented on this web site.

Legislation in New Zealand governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.


                                                                                   48
STATEMENT OF OBJECTIVES AND SERVICE
PERFORMANCE

Performance reporting
This section provides detailed information about the specific outputs provided and
the activities carried out during 2006/07 that contributed to the Department’s
long-term goals and medium-term priorities.

The goals are those set out in the Department’s Statement of Intent for 2006/07.

•    Our place in the world: New Zealand will prosper through its
     connections with the rest of the world.
•    Our workplaces: New Zealand workplaces will lead the world in
     maximising the value of work while providing a high-quality working
     life.
•    Our workforce: The skills of our workers will ensure New Zealand
     enterprises are leaders internationally.
•    Our people: All New Zealanders will be able to grow and develop
     through access to well-paid and meaningful employment.

In this section similar outputs are grouped into output classes within each of the
four Votes: Labour, Immigration, Employment, and ACC. There is no simple one-
to-one relationship between the Votes and output classes, and the long-term
goals and the medium-term priorities associated with them. Each Vote and
output class may have contributed to more than one goal. The medium-term
priorities that a particular output class contributed to are listed under each output
class in the Vote sections in this part of the Annual Report.




                                                                                  49
Vote Labour

Summary financial performance

 Year ended 30 June 2007                                      Variance
                                      Actual      Voted 2     Fav/(Unfav)
                                      $000        $000        $000

 Revenue Crown (GST excl)
 Policy advice – labour                 13,484      13,484                   -
 International services                    947          947                  -
 Services to promote and support        25,088      25,088                   -
 fair and productive employment
 relationships
 Services to promote and support        27,994      27,994                   -
 safe and healthy people and
 workplaces
 Services to promote and support         4,509        4,509                  -
 the safe management of
 hazardous substances in the
 workplace and amusement
 devices
 Sub total                             72,022      72,022                   -
 Revenue Department (GST
 excl)
 Policy advice – labour                      50          54               (4)
 International services                      13          10                 3
 Services to promote and support           142          152              (10)
 fair and productive employment
 relationships
 Services to promote and support           274          294              (20)
 safe and healthy people and
 workplaces
 Services to promote and support             15          16               (1)
 the safe management of
 hazardous substances in the
 workplace and amusement
 devices
 Sub total                                 494         526              (32)




2 Voted figures include adjustments made in the Supplementary Estimates and transfers
under the Public Finance Act 1989.

                                                                                    50
 Year ended 30 June 2007                                         Variance
                                      Actual       Voted 3       Fav/(Unfav)
                                      $000         $000          $000

 Revenue Other (GST excl)
 Policy advice – labour                      84              8             76
 International services                        5             -              5
 Services to promote and support           172          206              (34)
 fair and productive employment
 relationships
 Services to promote and support           203          318             (115)
 safe and healthy people and
 workplaces
 Services to promote and support             34              1             33
 the safe management of
 hazardous substances in the
 workplace and amusement
 devices
 Sub total                                 498          533             (35)
 Total                                 73,014       73,081              (67)
 Departmental Output
 Expenses
 (GST excl)
 Policy Advice – labour                 13,326       13,546               220
 International services                    949          957                 8
 Services to promote and support        24,947       25,446               499
 fair and productive employment
 relationships
 Services to promote and support        27,916       28,606               690
 safe and healthy people and
 workplaces
 Services to promote and support         4,595        4,718               123
 the safe management of
 hazardous substances in the
 workplace and amusement
 devices
 Total                                 71,733       73,273             1,540




3 Voted figures include adjustments made in the Supplementary Estimates and transfers
under the Public Finance Act 1989.

                                                                                    51
 Year ended 30 June 2007                                      Variance
                                      Actual       Voted 4    Fav/(Unfav)
                                      $000         $000       $000
 Non-Departmental Revenue
 (GST excl)
 Employment Court, Employment              184          193               (9)
 Relations Authority and
 Employment Tribunal fees
 Recovery of remuneration                  216          250              (34)
 authority costs of setting local
 authority members’
 remuneration
 Health and safety in                   35,950       39,305           (3,355)
 employment levy
 OSH fees and licences                       33          33                  -
 Infringement notice fines                   10         247             (237)
 Total                                 36,393       40,028           (3,635)
 Output Expenses Supplied by
 Other Parties (GST excl)
 Employment Relations Education
 Contestable Fund                        1,894        3,035            1,141
 Health and safety in                      869          869                  -
 employment levy - collection
 services
 Pay and Employment Equity
 Contestable Fund                          788        1,376               588
 Sub total                              3,551         5,280            1,729
 Other Expenses to be
 Incurred by the Crown (GST
 Excl)
 Bad debt expense                              1         15                14
 Employment relations authority          2,776        3,080               304
 members’ salaries and
 allowances
 International Labour                      952          952                  -
 Organisation
 Joint Equal Employment                    943          943                  -
 Opportunities Trust
 New Zealand Industrial Relations
 Foundation                                  15          15                  -
 Sub total                              4,687         5,005              318
 Total                                  8,238       10,285             2,047




4 Voted figures include adjustments made in the Supplementary Estimates and transfers
under the Public Finance Act 1989

                                                                                    52
Output class: Policy advice

This output class includes policy advice and facilitation of policy implementation
through developing and delivering tools and resources, research and evaluation
about the labour market and workplace practices. The output class also includes
ministerial servicing and administrative and advisory support to the National
Advisory Council on the Employment of Women (NACEW) and the National
Occupational Health and Safety Advisory Committee (NOHSAC).

For New Zealand to become a world leader in workforce and workplace
performance, it is important that workplace participants understand and
demonstrate excellent workplace practices. Through setting minimum standards,
defining decent workplace practice, providing information and operating
enforcement services, poor practice will be reduced.

The Department’s research and evaluation increases knowledge about labour
market trends, informing policy development and enabling sectors and regions to
identify and act on labour market constraints and opportunities.

Developing advice and policy around workplace practices and obligations, in
particular those relating to Work-life Balance, enables New Zealand workplaces to
better understand how to balance employers’ and employees’ needs and
interests.

Contribution to the long-term goals

These services contribute to the Department’s long-term goals:
Our workplaces: New Zealand workplaces will lead the world in maximising the
value of work while providing a high-quality working life.
Our people: All New Zealanders will be able to grow and develop through access
to well-paid and meaningful employment.

Contribution to the medium-term priorities

These services contribute to supporting and promoting the transformation of New
Zealand workplaces to become high-performing workplaces, and to achieve high-
quality working lives by focusing on the drivers of workplace productivity,
including skills, safe and healthy workplace cultures, decent work and excellent
employment relationships.

Activities

We do this by:
•   advising on workplace best practice, regulation, issues and gaps, and
    interventions that will support the Government’s labour market,
    employment relations, and workplace health and safety goals
•   carrying out research and evaluation to understand labour market trends,
    international developments, identify issues and gaps, and assess the
    effectiveness of the Department’s interventions
•   supporting pay and employment equity in the public sector
•   providing administrative, advisory and research services to NACEW and
    administrative support for NOHSAC
•   providing ministerial servicing.




                                                                                 53
Performance information

Performance standard                         Performance to 30 June 2007
The Minister is satisfied with the quality   The Minister rated the quality of advice
of the Department’s policy advice.           for 2006/07 at an average of 4.18 out
Page 102 sets out the quality standards      of 5 (where 3 is average, 4 is good and
for policy advice.                           5 is excellent).

The policy process and advice is             In the second quarter, the Department
assessed as good quality through             informed Ministers of the results of the
external and internal review of specific     review carried out by the New Zealand
projects.                                    Institute of Economic Research (NZIER)
                                             to assess the quality of policy advice
                                             papers produced in 2005/06.

                                             The Department has joined the Policy
                                             Benchmarking Club hosted by NZIER.
                                             The club consists of agencies using
                                             NZIER services to undertake external
                                             policy advice quality reviews.

The Minister is satisfied with the quality   The Minister rated the quality of the
of the Department’s ministerial              Department’s ministerial servicing for
servicing.                                   2006/07 at an average of 4.18 out of 5
                                             (where 3 is average, 4 is good and 5 is
                                             excellent).

The NACEW and NOHSAC are satisfied           NACEW members gave the support
with the quality of the Department’s         services provided by the Department a
support services.                            rating of 8 on a scale of 1 to 9 (with 9
                                             being the highest) for 2006/07.

                                             NOHSAC members gave the support
                                             services provided by the Department a
                                             rating of 9 on a scale of 0 to 9 (with 9
                                             being the highest) for 2006/07.

Policy advice and ministerial servicing      The Minister rated the quality of policy
will be delivered as agreed with the         advice and ministerial servicing for
Minister of Labour as detailed in the        2006/07 at an average of 4.18 out of 5
Department’s Output Plan for 2006/07.        (where 3 is average, 4 is good and 5 is
                                             excellent).


Financial performance Figures are GST exclusive

 Year ended               Actual        Main         Supp.      Actual as a %
 30 June 2007                      Estimates     Estimates           of Supp.
                           $000         $000          $000          Estimates
 Revenue:
       Crown             13,484        15,203       13,484            100.0%
       Department            50            54           54             92.6%
       Other                 84             -            8          1,062.5%


 Total Revenue           13,618        15,257       13,546            100.5%
 Total Expenses          13,326        15,257       13,546             98.4%


                                                                                    54
 Net                        292             -            -                  -
 Surplus/(Deficit)

The decrease in appropriation of $1.711 million in the Supplementary
Estimates was primarily due to a fiscally neutral adjustment to reflect a
new cost allocation methodology established across the Department.

Output class: International services

This output class involves managing the Department’s multilateral, bilateral and
regional engagement and influencing international labour and related
employment issues. The Department represents New Zealand’s interests
internationally by:
• proactively building and enhancing relevant domestic and international
  relationships

• ensuring New Zealand is seen to meet its international obligations

• identifying international best practice

• profiling New Zealand’s best practice overseas

• ensuring Ministers are advised of relevant international labour-related issues.

The output class includes responsibility for managing the government’s
obligations and interests through the International Labour Organisation, the
negotiation of the labour components of free trade agreements and closer
economic partnerships, and implementing the labour component of these
agreements once they enter into force.

Participation in and influencing international labour institutions ensures that New
Zealand’s voice is heard, with the Department contributing to the setting of
relevant and effective international standards. The provision of international
best-practice information assists the development of New Zealand’s standards.
Involvement in the negotiation and implementation of bilateral and multilateral
trade initiatives creates ongoing international relationships to benefit New
Zealand.

Contribution to the long-term goals

These services contribute to the Department’s long-term goal:
Our place in the world: New Zealand will prosper though its connections with the
rest of the world.

Contribution to the medium-term priorities

These services contribute to supporting New Zealand’s prosperity through:
• building relationships and partnering with other nations

• support for Pacific nations.

Activities

We do this by:
• leading the negotiation of the labour component of New Zealand’s free trade
  and closer economic partnership agreements

• leading the implementation of the labour component of New Zealand’s free
  trade and closer economic partnership agreements
                                                                                  55
 • providing advice and support to Ministers on relevant international labour
    issues

 • participating in and influencing international labour institutions/forums on
    labour and employment issues

 • managing Asia-Pacific Economic Cooperation (APEC), United Nations and
    Organisation for Economic Cooperation and Development (OECD)
    commitments and obligations related to the labour portfolio

 • managing the Department of Labour international visitors’ strategy

 • managing Australian bilateral relations as they relate to the labour portfolio

 • ensuring New Zealand meets its International Labour Organisation (ILO)
    reporting obligations by providing regular reports on New Zealand’s compliance
    in law, policy and practice with ILO Standards, and by consulting with
    designated organisations of employers and workers on such reports

 • reporting to Parliament on the text of newly-adopted ILO standards as required
    by the ILO constitution

 • coordinating inter-departmental advice to Ministers on the implications of
    ratifying ILO Conventions

 • coordinating the Department’s input to ILO Pacific capability building

 • developing and coordinating the Department’s process for managing technical
    assistance requests from other countries (particularly the Pacific)

 • administering and coordinating the tripartite steering group and officials
    working group developing New Zealand’s Decent Work: Charting our Progress
    project.

 Performance information

Performance standard                         Performance to 30 June 2007
The Minister is satisfied with the quality   The Minister rated the quality of advice for
of policy advice provided on                 2006/07 at an average of 4 out of 5 (where
international labour issues relating to      3 is average, 4 is good and 5 is excellent).
the labour portfolio. Page 102 sets out
the quality standards for policy advice.

The Department manages and/or                Forums attended in 2006/07 include the
provides representation of New               ILO’s 14th Asian Regional Meeting (ARM),
Zealand’s labour interests in                ILO Governing Body sessions, the
multilateral forums, communicating           International Labour Conference in Geneva,
domestic best practice internationally       APEC Human Resources Development
and building on our reputation.              Working Group meetings, and an ILO skills
                                             meeting in Japan.

                                             The Department of Labour and Ministry of
                                             Social Development jointly hosted the
                                             Belmont Conference in November 2006.
                                             Participants reported that they were very
                                             satisfied with the organisation of the event,
                                             enjoyed the attention to detail, and achieved
                                             much in terms of knowledge, insights and

                                                                                      56
Performance standard                     Performance to 30 June 2007
                                         collaboration.

New Zealand will be seen to meet its     Twelve reports under Article 22 (ratified
obligations under Articles 13, 19, 22    conventions) were managed by the
and 23 of the ILO Constitution, which    Department, and the tripartite partners were
provide reporting requirements and       consulted on their content. These reports
obligations for tripartite engagement.   were completed by agreed deadlines.

                                         Twelve further Article 22 reports were
                                         consulted on with the tripartite partners and
                                         will be submitted for the Minister of Labour’s
                                         approval, before being sent to the ILO within
                                         agreed deadlines.

                                         Two Declaration reports on unratified core
                                         ILO Conventions were submitted to the ILO
                                         by the agreed deadline.

                                         One report under Article 19 (unratified
                                         conventions) was submitted to the Minister
                                         of Labour and sent to the ILO in April 2007.

                                         Surveys on changes to the scope and
                                         functioning of the employment relations
                                         system and on work in the fishing sector
                                         were also completed. The tripartite partners
                                         were consulted on the development of the
                                         questionnaire responses.

The level of international interest in  The Department received 20 requests for
New Zealand law, policy and practice as international visits during 2006/07, 19 of
examples of best practice,              which were actually held.
demonstrated through formal requests
for bilateral participation, visits,
assistance or advice, will be reported
on quarterly.


 Financial performance Figures are GST exclusive


  Year ended               Actual        Main        Supp.    Actual as a %
  30 June 2007                      Estimates    Estimates         of Supp.
                            $000         $000         $000        Estimates
  Revenue:
        Crown                947          817          947          100.0%
        Department            13           10           10          130.0%
        Other                  5            -            -                -


  Total Revenue              965          827          957          100.8%
  Total Expenses             949          827          957           99.2%
  Net                          16            -            -                -
  Surplus/(Deficit)




                                                                                     57
-     The increase in appropriation of $0.130 million in the
Supplementary Estimates was for travel relating to the Doha
Development Round and Closer Economic Partnership (CEP) / Free Trade
Agreement (FTA) negotiations ($0.229 million). This was offset by a
decrease in appropriations due to a fiscally neutral adjustment to reflect a
new cost allocation methodology established across the Department
($0.099 million).

Output class: Services to promote and support fair and productive
employment relationships

This output class includes the provision of information, guidance, investigation,
mediation and decision-making regarding employment rights and upholding
minimum standards. This includes the support services provided to employment
relations institutions.

For New Zealand to become a world leader in workforce and workplace
performance, it is important that workplace participants understand and
demonstrate excellent workplace practices. Through a mix of public pressure,
regulation and commercial pressure, we will reduce undesirable behaviours that
may have been tolerated in the past.

The following elements will be required to achieve high-performing workplaces:
•    Parties having a shared understanding of the factors that lead to workplace
     productivity and agreement on goals.
•    New Zealand workplaces are better able to effectively balance employers’
     and employees’ needs and interests through access to tailored, targeted and
     useful information and tools about good employment practices. This is
     supported by investigating complaints and enforcing minimum standards
     and the provision of mediation services.
•    A regulatory environment that supports productivity by encouraging an
     inclusive view of workplace issues, encouraging and rewarding best practice,
     and providing sanctions for breach of minimum standards.
•    Interventions that focus on addressing underlying causes rather than
     symptoms, both at the strategic and sector level and at the firm level.
•    Sectors and industry being supported to step up to lead and encourage best
     practice.

Contribution to the long-term goals

These services contribute to the Department’s long-term goals:
Our workplaces: New Zealand workplaces will lead the world in maximising the
value of work while providing a high-quality working life.
Our people: All New Zealanders will be able to grow and develop through access
to well-paid and meaningful employment.

Contribution to the medium-term priorities

The drivers of productivity include investing in skills, safe and healthy workplace
cultures, decent work and excellent employment relationships. By focusing on
these workplace productivity drivers, the services provided in this output class
contribute to transforming New Zealand workplaces into high-performing
workplaces and to achieving high-quality working lives for New Zealanders.

Activities

We do this by:


                                                                                  58
•    providing information and tools about good employment practices that help
     employers and employees prevent or reduce the frequency and impact of
     employment relationship problems
•    supporting union and employer relationships
•    providing mediation services that help resolve employment relationship
     issues
•    investigating complaints and enforcing minimum standards
•    providing support services to the Employment Relations Authority and
     Remuneration Authority
•    administering the Employment Relations Education Fund for developing and
     running training courses that aim to increase employees’ and employers’
     understanding of employment relations, and health and safety.

Performance information

Performance standard                      Performance to 30 June 2007
The percentage of workplaces              Workplace Contact Centre
improving workplace practices following   75% of the 521 clients surveyed stated
a Departmental intervention.              that, as a result of their contact with
                                          the Workplace Contact Centre, they
                                          had made or were intending to make
                                          changes in their workplace, or that
                                          contact with the Department confirmed
                                          what they already knew or were
                                          already practising.

                                          Workplace Services
                                          48% of 572 clients surveyed stated
                                          that, as a result of their contact with
                                          the Department, they had taken or
                                          observed a change in workplace
                                          practice.

                                          Of these, only 22 responses received
                                          related specifically to the labour
                                          inspectors, with 59% of respondents
                                          stating that they had taken or observed
                                          a change in workplace practice.

                                          61 responses received related
                                          specifically to mediation services, with
                                          44% surveyed stating that, as a result
                                          of their contact with the Department,
                                          they had taken or observed a change in
                                          workplace practice.

The percentage of customers satisfied     Workplace Contact Centre
with the Department’s services,           92% of 521 Contact Centre customers
information and tools. Standard: 80%.     surveyed considered overall satisfaction
                                          with the Department’s service to be
                                          ‘good’, very good’ or ‘excellent.’

                                          Workplace Services
                                          78% of 572 clients surveyed considered
                                          overall satisfaction with the
                                          Department’s service to be ‘good’, ‘very
                                          good’ or ‘excellent.


                                                                                    59
Performance standard                      Performance to 30 June 2007
                                          Of these, 22 responses received related
                                          specifically to the labour inspectors,
                                          with 81% of those respondents rating
                                          the Department’s services as ‘good’ to
                                          ‘excellent’.

                                          61 responses received related
                                          specifically to mediation services, with
                                          82% considering overall satisfaction
                                          with the mediation service to be ‘good,’
                                          ‘very good’ or ‘excellent.’

                                          Small Business Information Unit
                                          Five focus groups were convened to
                                          evaluate the services provided by the
                                          Small Business Information Unit. A
                                          high level of satisfaction was expressed
                                          with the relationships made and
                                          services delivered as being informative,
                                          useful and engaging. Respondents
                                          found the online tools helpful, but that
                                          the volume and targeting of information
                                          could be more refined.

                                          A formal review of the Small Business
                                          Information Unit is scheduled for the
                                          next financial year 2007/08.

The Chief of the Employment Relations     The Chief of the Employment Relations
Authority and Remuneration Authority      Authority rated performance and
Chair are satisfied with the              satisfaction at 3 (on a 1 to 5 scale, with
Department’s support services (scale      5 being the highest) for the period 1
1–5). Standard: 4 or higher.              July to 31 December 2006, and also at
                                          3 for the period 1 January to 30 June
                                          2007.

                                          The Chair of the Remuneration
                                          Authority rated the support and
                                          services provided by the Department at
                                          4 (on a 1 to 5 scale, with 5 being the
                                          highest) for the period 1 July to 31
                                          December 2006, and at 5 for the period
                                          1 January to 30 June 2007.

Percentage of investigations into         86% of investigations were completed
complaints regarding breaches of          within six months.
minimum standards of employment
legislation completed within six months
of receipt. Standard: 90%.

Percentage of renewal investigations of   100% of minimum wage exemptions
minimum wage exemptions completed         were completed within one month
within one month of expiration of the     before the previous exemption expired.
exemption. Standard: 100%.

Percentage of forums and workplace        The proportion that targeted priority
visits provided by the Department that    areas for the year was 82%, with 437

                                                                                 60
Performance standard                       Performance to 30 June 2007
target priority areas. Standard: 80%.      of 531 forums and visits targeting
                                           priority areas. However, more than
                                           360 priority engagements were
                                           delivered (target of 90% of 400).

                                           The labour inspectors and mediators
                                           operate as part of the joined-up team,
                                           so their contribution to forums and
                                           information visits is not accounted for
                                           separately.

Percentage of employment relation          71% of employment relations problems
problems settled before or at              were resolved before or at mediation.
mediation. Standard: 75%.                  The movement of mediators during the
                                           year has impacted on the resolution
                                           rates as well as timeliness.


Financial performance Figures are GST exclusive


 Year ended              Actual          Main        Supp.    Actual as a %
 30 June 2007                       Estimates    Estimates         of Supp.
                          $000           $000         $000        Estimates
 Revenue:
       Crown             25,088         21,744      25,088           100.0%
       Department           142            152         152            93.4%
       Other                172            202         206            83.5%


 Total Revenue           25,402         22,098      25,446            99.8%
 Total Expenses          24,947         22,098      25,446            98.0%
 Net                        455              -            -                 -
 Surplus/(Deficit)

The increase in appropriation of $3.348 million in the Supplementary
Estimates was primarily due to funding for compliance support for the
Temporary Work Policy: RSE scheme ($0.232 million), a transfer of funding
from 2005/06 to 2006/07 for the re-direction of funding to high priority
new initiatives ($0.272 million), and a fiscally neutral adjustment to reflect
a new cost allocation methodology established across the Department
($2.840 million).

The $0.455 million actual surplus includes an approved in-principle transfer
of funding of $0.100 million to 2007/08 in respect of compliance support
for the Temporary Work Policy: RSE scheme.


Output class: Services to promote and support safe and healthy people
and workplaces

This output class includes the provision of information, education and support for
workplaces regarding effective workplace health and safety practice, and
enforcement action to promote compliance with the Health and Safety in
Employment Act.



                                                                                 61
Improving workplace practices and conditions promotes sustainable employment
and increased participation in the workforce. Through encouraging and
influencing employers and employees to demonstrate excellent workplace
practices, New Zealand can lead the world in workforce and workplace
performance. Past undesirable behaviours that may previously have been
tolerated will be reduced through a mix of public pressure, regulation and
commercial drivers.

The following elements will be required to achieve high-performing workplaces:
•    Parties having a shared understanding of the factors that lead to workplace
     productivity and agreement on goals.
•    Access to tools and tailored, targeted and useful information and services
     around employers’ and employees’ obligations regarding good health and
     safety practices.
•    Investigation of complaints and enforcement of minimum standards to
     reduce occupational injuries and disease.
•    A regulatory environment that supports productivity by encouraging an
     inclusive view of workplace issues, encouraging and rewarding best practice,
     and providing sanctions for breach of minimum standards.
•    Interventions that focus on addressing underlying causes rather than
     symptoms, both at the strategic and sector level and at the firm level.
•    Sectors and industry being supported to step up to lead and encourage best
     practice.

The Department targets specific hazards and issues, industry sectors, and
occupational activities and processes associated with the highest rates of illness
or injury, or that have a potential for catastrophic failure. The priorities include
airborne substances; workplace vehicles; manual handling; slips, trips and falls;
and psychosocial work factors.

Contribution to the long-term goals

These services contribute to the Department’s long-term goals:
Our workplaces: New Zealand workplaces will lead the world in maximising the
value of work while providing a high-quality working life.
Our people: All New Zealanders will be able to grow and develop through access
to well-paid and meaningful employment.

Contribution to the medium-term priorities

Safe and healthy workplace cultures are one of the productivity drivers. By also
investing in workers’ skills, providing decent work and maintaining excellent
employment relationships productivity is increased. The services provided by this
output class support and promote high-quality working lives for New Zealanders
and the transformation of places of work to become high-performing workplaces.

Activities

We do this by:
•   influencing societal attitudes on the benefits of good workplace health and
    safety practice
•   raising awareness of workplace participants’ rights and obligations under the
    Health and Safety in Employment Act 1992 (HSE Act)
•   leading the development of national workplace health and safety initiatives
    across government and industry sectors, and working with industry sector
    organisations and other agencies to develop and promote workplace health
    and safety



                                                                                   62
•    providing information and advice to help individuals, workplaces and
     industry sectors understand the legislation and apply best practice health
     and safety
•    assessing workplace health and safety performance, responding to
     notifications, complaints, incidents and fatalities
•    identifying breaches and taking appropriate compliance or enforcement
     action to reduce deliberate or serious breaches of the HSE Act minimum
     standards.

Performance information

Performance standard                      Performance to 30 June 2007
Percentage of workplaces improving        Workplace Contact Centre
workplace practices following a           75% of 521 clients surveyed stated
Departmental intervention.                that, as a result of their contact with
                                          the Workplace Contact Centre, they
                                          had made or were intending to make
                                          changes in their workplace, or that
                                          contact with the Department confirmed
                                          what they already knew or were
                                          already practising.

                                          Workplace Services
                                          48% of 572 Workplace Services clients
                                          surveyed stated that, as a result of
                                          their contact with the Department, they
                                          had taken or observed a change in
                                          workplace practice.

                                          Of these, only 137 responses received
                                          related specifically to health and safety
                                          services, with 58% stating that, as a
                                          result of their contact with the
                                          Department, they had taken or
                                          observed a change in workplace
                                          practice.

Percentage of customers satisfied with    Workplace Contact Centre
the Department’s services, information    92% of 521 Contact Centre customers
and tools. Standard: 80%.                 surveyed considered overall satisfaction
                                          with the Department’s service to be
                                          ‘good’, ‘very good’ or ‘excellent.’

                                          Workplace Services
                                          78% of 572 Workplace Services clients
                                          surveyed considered overall satisfaction
                                          with the Department’s service to be
                                          ‘good’, ‘very good’ or ‘excellent.

                                          Of these, only 137 responses received
                                          related specifically to health and safety
                                          services, with 83% considering that
                                          their overall satisfaction with the
                                          service delivered was be ‘good’, ‘very
                                          good’ or ‘excellent.’

Percentage of forums and workplace        70% of forums (2,634 of 3,778)
visits provided by the Department that    targeted priority areas. The variation is

                                                                                  63
Performance standard                        Performance to 30 June 2007
target priority areas. Standard: 90%.       primarily a result of incorrect recording.
                                            Improvements to the recording
                                            processes are being implemented for
                                            2007/08.

Percentage of investigations completed      91% of investigations were completed
within five months of notification of the   within five months of notification of the
event. Standard: 90%.                       related event.



Financial Performance Figures are GST exclusive


 Year ended               Actual        Main        Supp.     Actual as a %
 30 June 2007                      Estimates    Estimates          of Supp.
                           $000         $000         $000         Estimates
 Revenue:
       Crown             27,994       27,806       27,994           100.0%
       Department           274          624          294            93.2%
       Other                203          300          318            63.8%


 Total Revenue           28,471       28,730       28,606            99.5%
 Total Expenses          27,916       28,730       28,606            97.6%
 Net                        555             -             -                -
 Surplus/(Deficit)

The decrease in appropriation of $0.124 million in the Supplementary
Estimates was due to a fiscally neutral adjustment to reflect a new cost
allocation methodology established across the Department ($0.563
million) and savings due to the EnergySafe enactment of the Energy
Safety Bill not occurring before 30 June 2007 ($0.305 million). This is
offset by an increase in appropriation primarily due to a transfer of
funding from 2005/06 to 2006/07 only for the re-direction of funding to
high priority new initiatives ($0.751 million).

The $0.555 million actual surplus is primarily due to timing of expenditure
on projects and some delays in recruitment.


Output class: Services to promote and support the safe management of
hazardous substances in the workplace and amusement devices

This output class includes provision of information, education and enforcement
services relating to the safe management of hazardous substances in the
workplace, and the registration and inspection of amusement devices.

For New Zealand to become a world leader in workforce and workplace
performance, workplace participants need to understand and demonstrate
excellent workplace practices. Through a mix of public pressure, regulation and
commercial pressure, we will reduce undesirable behaviours that may have been
tolerated in the past.

The following elements will be required to achieve high-performing workplaces:
•    Parties having a shared understanding of the factors that lead to workplace
     productivity and agreement on goals.

                                                                                   64
•    Access to tools and tailored, targeted and useful information and services
     around employers’ and employees’ obligations regarding the safe
     management of hazardous substances.
•    Investigation of complaints and enforcement of minimum standards to
     reduce occupational injuries and disease.
•    A regulatory environment that supports productivity by encouraging an
     inclusive view of workplace issues, encouraging and rewarding best practice,
     and providing sanctions for breach of minimum standards.
•    Interventions that focus on addressing underlying causes rather than
     symptoms, both at the strategic and sector level and at the firm level.
•    Sectors and industry being supported to step up to lead and encourage best
     practice.

The Department targets specific hazards and issues, industry sectors, and
occupational activities and processes associated with the highest rates of illness
or injury, or that have a potential for catastrophic failure. Interventions are
aimed at bringing about significant medium to long-term improvements.

This output class is closely related to the previous one, as they are both focused
on enabling people to take responsibility for achieving safe and healthy
workplaces. Activities within this output class will sometimes be carried out
alongside activities under the previous output class.

Contribution to the long-term goals

These services contribute to the Department’s long-term goal:
Our workplaces: New Zealand workplaces will lead the world in maximising the
value of work while providing a high-quality working life.

Contribution to the medium-term priorities

By focusing on the workplace productivity drivers, including safe and healthy
workplace cultures and decent work, these services contribute to supporting and
promoting the transformation of places of work to become high-performing
workplaces and to achieve high-quality working lives for New Zealanders.

Activities

We do this by:
•   raising awareness of workplace participants’ rights and obligations under the
    Hazardous Substances and New Organisms Act 1996 (HSNO Act)
•   collaborating with industry sector organisations and agencies to develop and
    promote safe management of hazardous substances
•   providing information and advice to help individuals, workplaces and
    industry sectors understand legislation and apply best practice health and
    safety
•   assessing the management of hazardous substances in the workplace,
    declaring emergencies and ensuring satisfactory management, and
    responding to and investigating notifications, complaints, incidents and
    fatalities
•   identifying breaches and taking appropriate compliance or enforcement
    action under the HSNO Act
•   advising the Environmental Risk Management Authority (ERMA) and the
    Ministry for the Environment
•   carrying out delegated approvals on ERMA’s behalf, managing contracts with
    territorial authorities or delegated parties for the provision of HSNO
    compliance activities
•   registering and inspecting amusement devices.


                                                                                 65
Performance information

Performance standard                         Performance to 30 June 2007
Percentage of customers satisfied with       The HSNO measure is included within
the Department’s services, information       the health and safety service figure (in
and tools. Standard: 80%.                    the preceding output class), as most
                                             clients do not distinguish between the
                                             receipt of these services by output
                                             class.

                                             78% of 572 clients surveyed considered
                                             overall satisfaction with the
                                             Department’s service to be ‘good’, ‘very
                                             good’ or ‘excellent.

                                             Of these, only 137 responses received
                                             related to health and safety services,
                                             with 83% considering that their overall
                                             satisfaction with the service delivered
                                             was ‘good’, ‘very good’ or ‘excellent.’

The Environmental Risk Management            The Environmental Risk Management
Authority is satisfied with the quality of   Authority completed a survey for the
the Department’s support services.           July 2006 to June 2007 period. The
                                             support services provided by the
                                             Department were rated at between 3
                                             and 3.5 on a 1 to 5 scale (with 5 being
                                             the highest).



Financial performance Figures are GST exclusive

 Year ended               Actual         Main        Supp.    Actual as a %
 30 June 2007                       Estimates    Estimates         of Supp.
                            $000         $000         $000        Estimates
 Revenue:
       Crown               4,509        4,164        4,509          100.0%
       Department             15           16           16           93.8%
       Other                  34            -            1        3,400.0%


 Total Revenue             4,558        4,180        4,526           100.7%
 Total Expenses            4,595        4,180        4,718            97.4%
 Net                        (37)             -        (192)                 -
 Surplus/(Deficit)

The increase in appropriation of $0.538 million in the Supplementary
Estimates is primarily due to a fiscally neutral adjustment to reflect a new
cost allocation methodology established across the Department ($0.345
million) and a technical accounting adjustment that relates to prior year
revenue ($0.192 million).




                                                                                   66
Vote Immigration
Summary financial performance

 Year ended 30 June 2007                                          Variance
                                      Actual       Voted 5        Fav/(Unfav)
                                      $000         $000           $000

 Revenue Crown (GST excl)
 Services to increase the capacity        54,128       54,128                   -
 of New Zealand through
 immigration
 Services to position New                 14,834       14,834                   -
 Zealand as an international
 citizen with immigration- related
 interests and obligations
 Sub total                               68,962       68,962                    -
 Revenue Department (GST
 excl)
 Services to increase the capacity         1,173         1,139                34
 of New Zealand through
 immigration
 Services to position New                    988         1,006              (18)
 Zealand as an international
 citizen with immigration- related
 interests and obligations
 Sub total                                2,161         2,145                 16
 Revenue Other (GST excl)
 Services to increase the capacity        83,824       88,300            (4,476)
 of New Zealand through
 immigration
 Services to position New                    827           764                63
 Zealand as an international
 citizen with immigration- related
 interests and obligations
 Sub total                               84,651       89,064            (4,413)
 Interest – non NZDMO (GST                   112             11             101
 n/a)
 Total (incl interest)                 155,886       160,182            (4,296)




5 Voted figures include adjustments made in the Supplementary Estimates and transfers
under the Public Finance Act 1989

                                                                                    67
 Year ended 30 June 2007                                          Variance
                                      Actual       Voted 6        Fav/(Unfav)
                                      $000         $000           $000

 Departmental Output
 Expenses (GST excl)
 Services to increase the capacity      142,655       145,528             2,873
 of New Zealand through
 immigration
 Services to position New                 15,971       16,591                620
 Zealand as an international
 citizen with immigration- related
 interests and obligations
 Total                                 158,626       162,119              3,493
 Crown Revenue (GST excl)
 Migrant levy                             11,364       11,528              (164)
 Other receipts7                           5,002              -           5,002
 Total                                   16,366       11,528              4,838
 Other Expenses to be
 Incurred by the Crown (GST
 Excl)
 RRB, RRA and RSAA members’                  607           644                37
 salaries and allowances
 Total                                       607          644                 37



Output class: Services to increase the capacity of New Zealand through
immigration

Services in this output class are aimed at increasing New Zealand’s capacity for
prosperity by growing the number of people coming to New Zealand, on either a
permanent or a temporary basis, who are able to contribute to our economy and
our society.

The globalisation of labour markets and the increased mobility of skills and people
world-wide require New Zealand, as a small and distant country, to strategically
connect in attracting talent to build a world-class productive workforce. Access to
global talent is crucial if New Zealand is to attract and retain people with the right
skills to achieve the goal of economic transformation. New Zealand’s prosperity
is also enhanced by people coming to New Zealand as tourists, students and
temporary workers. At the same time, there is a need for protection of our
border to ensure security and safety. New Zealanders need to have confidence
that we have the ability to keep out those people we do not want, while attracting
and retaining people with the skills and talent we require to increase New
Zealand’s economic growth and prosperity. This output class enables these
things to occur.




6 Voted figures include adjustments made in the Supplementary Estimates and transfers
under the Public Finance Act 1989
7 Crown Revenue Other receipts comprise of immigration visitor bonds, immigration bonds
forfeited and prepaid ESOL tuition fees forfeited.

                                                                                    68
Contribution to the long-term goals

These services contribute to two of the Department’s long-term goals:
Our place in the world: New Zealand will prosper through its connections with the
rest of the world.
Our workforce: The skills of our workers will ensure New Zealand enterprises are
leaders internationally.

Contribution to the medium-term priorities

These services contribute to supporting New Zealand’s prosperity through:
• an immigration programme that adds to the richness of our society
• border security arrangements that manage risk.

They also influence the supply of skilled labour by:
• better targeting the immigration programme.

Activities

We do this in three main ways:
• Advising government on immigration and workforce policy.
• Increasing the size and quality of New Zealand’s workforce to support
   economic growth, by facilitating quality people coming to New Zealand to
   meet our labour market needs and by delivering a fair and effective
   immigration process.
• Facilitating travel and managing risk as people move in and out of New
   Zealand, so that New Zealanders are confident of the security of the border.

The activities, performance measures and forecast standards for each of these
three activity groups are set out below.

Advising government on immigration and workforce policy

Advice is aimed at ensuring policy and legislation fits with and drives the
achievement of New Zealand’s workforce goals, which include skilled migration to
increase capacity. By ensuring policy development is based on information and
analysis of national and international workforce trends, we provide continually
improving frameworks for decision-making, resulting in better outcomes for New
Zealand. The global immigration environment is changing, presenting
opportunities and challenges. Some of the key drivers of change are the
increasing circulation of people within a globalised world; increasing competition
from existing and new competitor countries for talent and skills, in the face of
ageing populations and falling fertility; a more diverse population as an outcome
of immigration; and increased risks requiring better border management. To
reposition the immigration system to face these challenges requires a strong
legislative foundation and a repositioned and sound, future-focused policy
framework.

The key activities are:
•    advising on delivering positive economic advantages for New Zealand
     through immigration
•    advising on immigration legislation, regulation and policy that enhances New
     Zealand's workforce
•    advising on policy settings to attract and retain skilled migrants
•    developing policies and strategies to encourage skilled New Zealanders
     working offshore to return here
•    research and data collection to provide high-quality evidence-based policy
     advice on immigration and the workforce


                                                                                  69
•    research and evaluation about migrant labour market participation,
     migration trends and statistics
•    research and evaluation to determine the success of interventions and their
     impact on the business sector and the economy
•    providing ministerial servicing and advice.

Performance information

Performance standard                       Performance to 30 June 2007
The Minister of Immigration is satisfied   The Minister rated the quality of advice
with the quality of the Department’s       for 2006/07 at an average of 3.14 out
policy advice. Page 102 sets out the       of 5 (where 3 is average, 4 is good and
quality standards for policy advice.       5 is excellent).

The Minister of Immigration is satisfied   The Minister rated the quality of the
with the quality of the Department’s       Department’s ministerial servicing for
ministerial servicing.                     2006/07 at an average of 3.14 out of 5
                                           (where 3 is average, 4 is good and 5 is
                                           excellent).

The policy development process and         The New Zealand Institute of Economic
resultant advice provided is assessed as   Research (NZIER) is currently
high quality through external and          undertaking a review of the quality of
internal review of projects.               policy advice provided to the
                                           departmental Ministers. It is expected
                                           to be completed in September 2007.

                                           Policy papers follow a standard advice
                                           process with a clear procedure for
                                           quality assurance. All policy papers
                                           were reviewed internally, and Cabinet
                                           papers were subject to external agency
                                           review.

Policy advice and ministerial servicing    Policy advice and ministerial servicing
will be delivered as agreed with the       were delivered as agreed with the
Minister of Immigration and as detailed    Minister of Immigration and as detailed
in the Vote Immigration Output Plan.       in the 2006/07 Vote Immigration
                                           Output Plan.


Increasing the size and quality of New Zealand’s workforce to support
economic growth

By facilitating people who can meet our labour market needs to come to New
Zealand, and delivering a fair and effective immigration process, we aim to
increase the supply of skilled labour. With an increasing international demand for
skilled labour, New Zealand must work hard to attract suitably skilled people in
the short term, and retain them in the long term. Skill and labour shortages are
a major issue for many New Zealand businesses, and we aim to meet those
workforce shortages by both temporary and permanent migration. Business
migration provides business expertise and investment capital to contribute to
economic growth. Visitors and students contribute to the growth of New
Zealand’s tourism and international education industries, which in turn support
economic growth. This work is directed by the annual immigration programme.

As we work to increase the size and quality of New Zealand’s workforce, we are
undertaking an immigration change programme focused on skills, security and

                                                                                 70
settlement. The new business model involves a key change in where immigration
decisions are made. The existing model of decentralised decision-making, with
many decisions made offshore by non-New Zealanders, will change so that
decisions are made onshore by New Zealanders. The new model also changes
the way in which services are delivered. This includes an information system,
strongly linked to intelligence information, which assists decision-makers to make
better judgements. It will enable New Zealand to facilitate the entry of high-
value, low-risk people, thus increasing the size of the New Zealand workforce
with positive economic and social benefits.

The key activities are:
• bringing in skilled migrants to increase New Zealand’s workforce capacity
• meeting New Zealand's acute labour needs through temporary immigration
• facilitating student and visitor entries to support New Zealand’s tourism and
   education industries
• bringing in investment capital and entrepreneurial capacity through business
   migration
• encouraging skilled expatriates to return to New Zealand
• facilitating family reunification for migrants
• providing ministerial servicing and advice.

Performance information

Performance standard                      Performance to 30 June 2007
Percentage of people approved             95% or 9,910 of the 10,400 people
residence under the skilled stream        issued with a residence visa offshore in
overseas in the 2005/06 year that take    2005/06 had arrived in New Zealand by
up residence in New Zealand by 30         30 June 2007. This is similar to
June 2007. Standard: 95%.                 2004/05 when 96% of people approved
                                          in 2004/05 had arrived by 30 June
                                          2006.

                                          Arriving in New Zealand and taking up
                                          residence is a prerequisite for migrants’
                                          ability to contribute to New Zealand’s
                                          capacity.

Percentage of skilled migrant principal   83% of skilled migrant principal
applicants who have jobs or job offers.   applicants approved had jobs or
Standard: 60%.                            relevant job offers. This is higher than
                                          in 2005/06, when 77% had jobs or
                                          relevant job offers. This reflects the
                                          changes to the Expression of Interest
                                          (EOI) selection point which, targets
                                          people with higher points and people
                                          with jobs or job offers. To lodge an
                                          application under the Skilled Migrant
                                          Category, the EOI must be selected
                                          from the pool and an Invitation to
                                          Apply (ITA) issued.

                                          Employment in an occupation in which
                                          the applicant is experienced or has a
                                          related qualification is an indicator of
                                          skill transfer and utilisation in New
                                          Zealand.




                                                                                 71
Performance standard                      Performance to 30 June 2007
Percentage of skilled migrant principal   94% of skilled principal applicants were
applicants in employment within six       employed 12 months after approval, if
months of arrival or, if onshore, from    onshore, or after arrival in New
time of approval. Standard: 75%.          Zealand. The results were taken from
                                          Life in New Zealand: Settlement
                                          Experiences of Skilled Migrants, results
                                          from the 2005 survey, which was
                                          published in February 2006.

                                          The preliminary results for the 2006
                                          survey indicates that, at 6 months after
                                          approval, if onshore, or arrival in New
                                          Zealand, over 75% of skilled principal
                                          applicants are employed.

Minimum percentage of migrant             60% of the 46,964 people approved for
approvals under the business/skilled      residence were approved under the
stream. Standard: 60%.                    Skilled/Business stream.

                                          The following number of people were
                                          approved for residence:
                                          •   28,140 (60%) people were
                                              approved under the Business/Skilled
                                              stream
                                          •   14,705 (31%) people were
                                              approved under the Family
                                              Sponsored stream
                                          •   4,119 (9%) people were approved
                                              under the
                                              International/Humanitarian stream.

                                          In 2006/07, there were 47,000–52,000
                                          places available under the New Zealand
                                          Residence Programme.

Percentage of businesses established      31 businesses established under the
under the Long-Term Business              Long-Term Business Category became
Category operating according to their     eligible for their nine-month renewal
business plan at the end of the nine-     assessment during 2006/07.
month renewal period. Standard: 75%.
                                          90% were assessed as operating
                                          according to their business plan and
                                          accordingly were granted a permit for
                                          the balance of three years.

                                          Three months was allowed for the
                                          renewal application processing time.

Proportion of work permits and talent     27% or 11,300 of the 41,782 work
visa granted in known skill shortage      applications where the occupation was
areas. Standard: Greater than             recorded were approved for
2005/06.                                  occupations in known skill shortage
                                          areas. This is similar to the 26%
                                          recorded in 2005/06.

                                          The number of work permits and talent

                                                                                 72
Performance standard                       Performance to 30 June 2007
                                           visas decided by the Department is
                                           demand driven.

Report on initiatives undertaken to        Education
build and maintain positive                The Department continued to support
relationships with educational             the promotion of New Zealand as an
institutions and tourism bodies.           educational destination by providing
                                           assistance to institutions attending
                                           education fairs and expos.

                                           Offshore branches continued to work
                                           closely with New Zealand Trade and
                                           Enterprise to support their education
                                           initiatives. The Department also
                                           worked closely with Education New
                                           Zealand and student agents in Saudi
                                           Arabia and Pakistan on their respective
                                           student programmes.

                                           The Department provided training for
                                           new student agents and attended agent
                                           seminars to provide support to existing
                                           agents.

                                           Two educational institutions were
                                           successful in their applications to
                                           become online partners via Students
                                           Online.

                                           Tourism
                                           The Department worked at the Tourism
                                           New Zealand What’s On campaign
                                           launch in Sydney in July 2006. The
                                           Department was also involved in
                                           Tourism New Zealand’s week-long
                                           promotion in India, with presentations
                                           being made to top-selling agents in the
                                           market.

                                           The Department worked with Air New
                                           Zealand prior to and after the launch of
                                           their direct flights between Auckland
                                           and Shanghai. This included expediting
                                           visas for their Chinese trainees needing
                                           to undertake a New Zealand-based
                                           training programme. To support the
                                           introduction of this service,
                                           departmental staff attended the
                                           refresher training held by Tourism New
                                           Zealand for the Approved Destination
                                           Status (ADS) travel agents, prior to the
                                           official launch.

Percentage of customers satisfied with     The timing of the 2006/07 customer
the quality of the Department’s service.   satisfaction survey means that the
                                           results are not yet available.



                                                                                 73
Performance standard                           Performance to 30 June 2007
Expected number of temporary visa              436,488 temporary visa and permit
and permit decisions. Number:                  decisions were made during the year.
444,000.                                       The number of temporary entry
                                               decisions made for the following
                                               application types were:
                                                  •   Visitor: 173,675
                                                  •   Student: 96,473
                                                  •   Work: 166,340

                                               Compared to 2005/06, more temporary
                                               entry decisions were made. This was
                                               due to work decisions that were 19%
                                               higher and visitor decisions that were
                                               9% higher. The number of decisions
                                               made is outside the Department’s
                                               control as this is demand driven.

Number of employers accredited and             During the year:
corresponding talent visas issued will            •   67 employers were newly
be monitored:                                         accredited
• Employers accredited
                                                  •   353 employers renewed their
• Talent visas issued.
                                                      accreditation for another year
                                                  •   1,764 talent visas and permits
                                                      were issued to accredited
                                                      employers.

Number of expected residence                   27,939 residence decisions were made
decisions (by stream). Number:                 in 2006/07. Of these:
24,975.                                           •   13,477 were made under the
                                                      Business/Skilled stream
                                                  •   12,477 were made under the
                                                      Family Sponsored stream
                                                  •   1,985 were made under the
                                                      International/Humanitarian
                                                      stream.

Number of Expressions of Interest              18,679 new Skilled Migrant Category
received. Number: 15,755.                      Expressions of Interest were received
                                               during the year.8

The number of Expressions of Interest          17,933 Skilled Migrant Category
decided. Number: 13,090.                       Expressions of Interest were decided
                                               during the year after being selected
                                               from the pool.9
The number of Invitations to Apply             14,007 Skilled Migrant Category
issued will be monitored.                      Invitations to Apply were issued during
                                               the year.10


8 The number of new Expressions of Interest received is defined as the number submitted
to the pool for the first time and appropriate payment received, thereby making them
available in the pool for selection.
9 The number of Expressions of Interest decided during the year do not necessarily relate
to the Expressions of Interest selected in 2006/07, but may include those selected in
previous years.
10 Invitations to Apply issued during the year do not necessarily relate to the Expressions

                                                                                         74
Performance standard                           Performance to 30 June 2007
Number of Skilled Migrant Category             12,478 Skilled Migrant Category
decisions. Number: 12,088.                     decisions were made during the year.

Percentage of visa and permit decisions        98% of temporary entry and residence
decided in accordance with critical            decisions were made in accordance
elements of Government policy.                 with critical elements of Government
Standard: 95%.                                 policy. This is calculated by checking a
                                               random sample of temporary entry and
                                               residence decisions made at each
                                               branch on a monthly basis.

Number of Removal Review Authority             During 2006/07:
appeals received and processed.                   •   166 appeals were received
Number: 375-400.
                                                  •   128 were referred to members
                                                      for decision
                                                  •   154 appeals were finalised.

                                               As at 30 June 2007, there were 98
                                               appeals on hand, 34% fewer than at 30
                                               June 2006.

                                               The number of appeals to the Removal
                                               Review Authority is outside the control
                                               of the Department and is demand
                                               driven.

Number of Residence Review Board               During 2006/07:
appeals received and processed.                   •   360 appeals were received
Number: 350-375.
                                                  •   370 were referred to members
                                                      for decision
                                                  •   432 appeals were finalised.

                                               As at 30 June 2007, there were 153
                                               appeals on hand, 41% fewer than at 30
                                               June 2006.

Numbers of ministerial appeals                 During 2006/07:
reducing i.e. the number of appeals               •   2,615 appeals were received
referred to the Minister are less than in
                                                  •   2,935 responses were completed.
2005/06. Number: 3,000–4,000.

                                               In 2006/07, 20% fewer appeals were
                                               received than in 2005/06.

Removal Review Authority members’              A survey of the Removal Review
satisfaction with the quality of the           Authority members returned an overall
Department’s services. (Scale 1-5).            rating of 4.96 out of 5.
Standard: >3.75.

Residence Review Board members’                A survey of the Residence Review
satisfaction with the quality of the           Board members returned an overall
Department’s services. (Scale 1-5).            rating of 4.81 out of 5.
Standard: >3.75.


of Interest selected in 2006/07, but may relate to those selected in previous years.

                                                                                       75
Facilitating travel and managing risk as people move in and out of New
Zealand, so that New Zealanders are confident of the security of the
border

In facilitating travel into New Zealand, we need to make the entry of people with
a legal right to be here as smooth and fast as possible. In managing risk, we
need to ensure that people with no legal right to be in our country are denied
entry. This balance between facilitating travel and managing risk is aided by
good decision-making based on excellent verified information, and cooperation
with other New Zealand government and international agencies. Participation in
regional and international security groups further develops our knowledge and
processes in achieving this balance, and the use of technology and international
agreements enables us to prevent the boarding and arrival of people who pose
security risks or have inadequate documentation. Detecting and removing people
in New Zealand who no longer have legal status, and detection of people who
may have entered illegally, is enhanced by increased investigation of immigration
fraud and improved detection of fraudulent documentation.

The key activities are:
•    advising on border facilitation and security issues
•    maintaining and continually developing border security and facilitation
     systems
•    authenticating migrants
•    encouraging and, where required, enforcing compliance with immigration
     law
•    contributing to, and influencing, national and international security
     initiatives and intelligence
•    expanding and strengthening our reach through information-sharing
     alliances
•    strengthening and supporting immigration services in the Pacific
•    providing ministerial servicing and advice.

Performance information

Performance standard                     Performance to 30 June 2007
Number of migrants taking up             The memorandum of understanding for
emergency income support benefits        the annual data match with the Ministry
within two years of arrival.             of Social Development is currently
                                         being negotiated. The data match
                                         began in September 2007.

                                         The match this year will cover the same
                                         benefits as the previous two matches
                                         and have point in time estimates as at
                                         30 June for the years 2001–2007.

Report on initiatives undertaken to      The Risk Targeting Programme was
manage risks in respect of border        successfully implemented and is staffed
security and non-compliance with         by the Advance Passenger Screening
immigration requirements.                Support Office.

                                         The Regional Movement Alert List
                                         (RMAL) was renamed the Regional
                                         Movement Alert System (RMAS). RMAS
                                         was redeveloped to provide ‘positive
                                         validation’ so that travel document
                                         authenticity will be confirmed by

                                                                               76
Performance standard                     Performance to 30 June 2007
                                         validation against all passport records.
                                         This enhancement means counterfeit
                                         travel documents can be more readily
                                         identified.

                                         The Regional Liaison Officer (Pacific)
                                         position was established in January
                                         2007 to be responsible for ensuring
                                         effective delivery of Workforce
                                         (Immigration) risk management
                                         outcomes by strengthening New
                                         Zealand's border security capability in
                                         the Pacific.

                                         The intelligence analyst was relocated
                                         from the Central Verification Unit to
                                         Compliance Operations to strengthen
                                         intelligence collection and analysis in
                                         the compliance activity.

                                         An Immigration Intelligence Unit
                                         analyst worked as an Airline Liaison
                                         Officer at Shanghai Airport from
                                         November 2006-February 2007 to
                                         coincide with the commencement of the
                                         direct Air New Zealand flight service
                                         from Shanghai to Auckland in
                                         November 2006.

                                         Site visits were conducted in south
                                         China, with the information gathered
                                         being shared within the Department
                                         and entered into the Client Risk
                                         Methodology (CRiSM) system. CRiSM is
                                         a tool that assists with the assessment
                                         of client risk during application
                                         processing.

                                         Launch of Recognised Seasonal
                                         Employer (RSE) compliance
                                         initiative
                                         During the first half of 2007 a number
                                         of joint departmental compliance
                                         operations were conducted in the
                                         horticulture and viticulture industries.
                                         Operations were carried out in
                                         conjunction with Workplace in the
                                         Waikato/Bay of Plenty, Hawkes
                                         Bay/Gisborne, Nelson/Blenheim and
                                         Canterbury/Otago areas. The focus of
                                         the operations was to ensure
                                         compliance with immigration and labour
                                         policy and law prior to the
                                         implementation of the RSE scheme.

Report on initiatives undertaken to      The compliance processes were
facilitate entry of persons with legal   implemented for the RSE scheme after

                                                                                77
Performance standard                              Performance to 30 June 2007
right to enter New Zealand.                       the policy was operationalised during
                                                  the June 2007 quarter.

                                                  The Department met with the
                                                  healthcare industry to discuss an
                                                  approach for dealing with
                                                  workplace/labour market checks and
                                                  labour shortages.

                                                  A Department-wide initiative for
                                                  Northland occurred in May 2007 which
                                                  was seeking to address the region’s
                                                  seasonal labour issues.

                                                  The Department realigned its border
                                                  compliance operational activities and
                                                  focuses to better support the outcomes
                                                  relating to high-risk areas of work.

Level and composition of the overstayer           An estimation exercise took place on
population and the rate of overstaying            31 October 2006. It shows the number
against overall arrivals.                         of overstayers was 17,364, a decrease
                                                  of 1,727 since April 2006.

                                                  The rate of overstaying in comparison
                                                  to the number of temporary arrivals is:
                                                  0.11%. The countries with the highest
                                                  numbers of overstayers are Samoa
                                                  (3,582), China (2,584), Tonga (2,136)
                                                  and Great Britain (1,034).

                                                  A second sample was taken in April
                                                  2007. The report will be published
                                                  when it has been completed.

Percentage reduction compared to the              During 2006/07, 51 undocumented
previous year in the number of                    passengers arrived in New Zealand,
undocumented passengers arriving in               40% fewer than the 85 that arrived in
New Zealand. Standard: 10%.                       2005/06.

Percentage of new failed refugee                  In 2006/07, 50% of new failed refugee
claimants who depart or are removed               claimants11 were removed or departed.
during the year. Standard: 50%.

Percentage of enforcement activities              97% of enforcement activities were
conducted in accordance with critical             conducted in accordance with critical
elements of Government policy.                    elements of Government policy.
Standard: 95%.

Detection and removal due to a data               As a result of the data match with the
match with the Department of                      Department of Corrections, 22 persons
Corrections.                                      were removed or deported during the
                                                  year.




11 Entered   into the system as failed since 1 July 2006.

                                                                                          78
Performance standard                         Performance to 30 June 2007
The number of investigations and             2,035 investigations and removals,
removals, deportations, section 35A          deportations, section 35A permits and
permits and voluntary departures.            voluntary departures took place,
Number: 1,600-1,800.                         comprising:
                                               •   970 people were removed
                                               •   925 people voluntarily departed
                                               •   2 special directions were given in
                                                   relation to granting a visa/permit
                                               •   121 people were advised to seek
                                                   a section 35A permit to regularise
                                                   their status
                                               •   17 people were deported.

                                             60 ministerial interventions also
                                             occurred.

The number of:                               212 failed refugee claimants12 were
• failed refugee claimants removed           removed with a further 151 failed
                                             refugee claimants departing voluntarily.

•   non-genuine refugee cancellations        43 non-genuine refugee cancellation
                                             decisions were made.

•   detentions                               Four people were received into the
                                             Auckland Central Remand Centre (a
                                             Corrections facility).

•   Open and secure accommodations           34 people were held in open and secure
                                             accommodation.

•   community based accommodations           17 people were released, on conditions,
                                             into community-based accommodation.

•   prosecutions                             33 prosecutions were completed.

•   temporary and resident revocations       The following permit revocations were
                                             completed:
                                               • 60 residence permits
                                               • 112 student permits
                                               • 85 visitor permits
                                               • 360 work permits.

•   deportations                             17 people were deported.

• Compliance-related employers site          Staff conducted 65 employer site visits
visits                                       to encourage compliance with the
                                             Immigration Act 1987.

•   Court proceedings (cases received)       63 new cases were received.




12 They are not all new failed refugee claimants as some may have been unlawfully in New
Zealand since prior to 1 July 2006.

                                                                                     79
Performance standard                         Performance to 30 June 2007
• declined boarding requests under           838 boarding requests were declined
APP                                          under the Advanced Passenger
                                             Processing (APP) system. This is
                                             significantly higher than the 680
                                             boarding requests that were refused in
                                             2005/06.

•     interdiction programme                 67 people were interdicted offshore.

•     persons refused entry at border.       1,328 people were refused entry at the
                                             border.



Financial performance Figures are GST exclusive


    Year ended             Actual        Main         Supp.   Actual as a %
    30 June 2007                    Estimates     Estimates        of Supp.
                            $000         $000          $000       Estimates
    Revenue:
          Crown           54,128         50,469     54,128          100.0%
          Department       1,173          1,076      1,139          103.0%
          Other           83,824         88,428     88,300           94.9%


    Total Revenue        139,125     139,973       143,567           96.9%
    Total Expenses       142,655     139,924       145,528           98.0%
    Net                  (3,530)            49      (1,961)                -
    Surplus/(Deficit)

-        The increase in appropriation of $5.604 million in the
Supplementary Estimates is primarily due to funding for compliance
support and core processing for the Temporary Work Policy: RSE scheme
($0.589 million); funding from the 2006/07 migrant levy unallocated
revenue for Immigration Research and Evaluation ($0.395 million) –
short-term surveys for Understanding pre-settlement information needs
and the transition from temporary to permanent residence, and for
Migrant youth: Integration and social networks, a transfer of funding from
2005/06 to 2006/07 for the redirection of funding to high priority new
initiatives ($0.899 million), funding implementation costs for the
Immigration Act Review ($0.142 million), funding further development of
the Immigration Business Transformation business case ($1.980 million),
funding the Migrant and Refugee Settlement Action Plan Development:
Enhancing Regional Responsiveness to Settlement ($0.426 million), a
fiscally neutral adjustment to reflect a new cost allocation methodology
established across the Department ($0.348 million), a fiscally neutral
adjustment to reflect favourable foreign exchange variations on third
party funded immigration services, which also unfavourably impacts on
the expenditure incurred overseas ($1.803 million), forecast changes to
recognise the allocation of funds from the Pacific Security Fund and the
Bilateral Fee Waiver Scheme ($0.161 million), and a forecast change to
reflect changes in the mix of forecast transactions and cost structures
across various markets, which results in a net revenue decrease and a
net cost increase ($0.138 million).

Decreases in appropriations in 2006/07 from the prior year were the
result of delayed programmes ($1.015 million). Also funding was
                                                                                    80
transferred for fees, salaries and allowances for members of the
Residence Review Board, the Removal Review Authority and the Refugee
Status Appeal Authority to a new Non-Departmental Other Expense
($0.309 million).

The $3.530 million actual deficit was primarily due to lower than expected
immigration fees in Revenue Other.

Expenditure incurred up to 31 March 2007 on fees, salaries and
allowances for the Residence Review Board, Removal Review Authority
and the Refugee Status Appeal Authority is outside the scope of the
appropriation ($0.882 million).


Output class: Services to position New Zealand as an international citizen
with immigration-related interests and obligations

Services in this output class are aimed at enhancing settlement of migrants and
refugees; meeting our international obligations, particularly to Pacific Island
countries and the United Nations High Commissioner for Refugees (UNHCR); and
promoting New Zealand’s immigration and related security interests by building
relationships with multilateral organisations and other nations.

Contribution to the long-term goals

These services contribute to the Department’s long-term goal:
Our place in the world: New Zealand will prosper through its connections with the
rest of the world.

Contribution to the medium-term priorities

These services contribute to supporting New Zealand’s prosperity through:
• making migrants feel welcome
• building relationships and partnering with other nations
• support for Pacific nations.

Activities

We do this in two main ways:
• Providing services to enhance settlement and fulfil international obligations.
• Pursuing New Zealand’s international immigration and related security
   interests.

The activities, performance measures and forecast standards for these two
activity groups are set out below.

Providing services to enhance settlement and fulfil international
obligations

Migrants’ ability to participate in the workforce and in New Zealand society
requires them to be well settled within a supportive environment. Activities
which support and enhance settlement occur across government agencies. The
Department of Labour is responsible for facilitating these responsive services to
help migrants and refugees settle well and integrate into communities. The
Department is also responsible for the provision of appropriate information to
assist settlement. This activity is outlined in the New Zealand Settlement
Strategy.


                                                                                    81
Fulfilling New Zealand’s international obligations is an essential aspect of being a
good international citizen and includes providing a safe haven for refugees and
responding to humanitarian crises. Refugees mandated by the United Nations
High Commissioner for Refugees (UNHCR) are provided with protection and
resettlement services. We also provide safe haven and settlement support where
appropriate to spontaneous asylum seekers during the determination process.
Provision of a fair and effective immigration process includes the right of appeal
and services to support the Refugee Status Appeals Authority.

New Zealand has a specific focus on supporting Pacific nations, and the
Department links with Pacific nations regarding immigration, workforce and
security issues. The Samoan Quota and the Pacific Access Category are
components of the international stream of the annual immigration programme.

The key activities are:
• implementing the New Zealand Settlement Strategy
• providing appropriate information to potential migrants offshore and new
   migrants onshore to support settlement
• coordinating with other government departments and agencies
• receiving and resettling UNHCR mandated refugees and determining claims
   for asylum
• providing support services to the Refugee Status Appeals Authority
• contributing to and influencing international initiatives to resolve refugee
   issues
• responding to, and maintaining, our preparedness to respond to humanitarian
   crises
• enhancing bilateral relationships between New Zealand and Pacific nations
   through the Samoan Quota and the Pacific Access Category
• identifying and responding to Pacific immigration and settlement issues
• identifying and responding to Pacific security issues.

Performance information

Performance standard                       Performance to 30 June 2007
Appropriate and coordinated                The streamlining of the provision of
information services are provided to       information for the Settlement Support
potential migrants (offshore) and new      New Zealand initiative will be
migrants (onshore).                        implemented in the first quarter of
                                           2007/08. This includes a new
                                           ‘Welcome to New Zealand’ booklet
                                           directing users to the appropriate
                                           sources of local information and
                                           services to assist their settlement post-
                                           arrival in New Zealand.

                                           The www.nzrecruitme.co.nz website
                                           was implemented by the Auckland
                                           Chamber of Commerce, which now
                                           provides a further channel for providing
                                           information to offshore potential
                                           migrants.

Services facilitating settlement of        The Department manages nine
migrants, refugees and their families      settlement programmes contracts that
will be effective and their key            provide local community-based
achievements will be reported six-         settlement support and employment
monthly.                                   services. These settlement
                                           programmes provided information via

                                                                                  82
Performance standard                        Performance to 30 June 2007
                                            orientation sessions, websites, tailored
                                            sessions, and answers to telephone
                                            enquiries. The New Kiwis employment
                                            website provided links between
                                            businesses and job seekers, as well as
                                            providing information on how to job
                                            search in New Zealand and providing
                                            job search assistance and advice.

                                            Good progress has been made for the
                                            first six months of the year, with more
                                            detailed updates to be provided in the
                                            next round of reporting, as annual
                                            reports were produced by service
                                            providers in July 2007, and are being
                                            assessed by the Department.

                                            The Settlement Support New Zealand
                                            initiative was introduced into the last
                                            nine areas. The initiative has created a
                                            national network of migrant resource
                                            services to improve access to
                                            settlement information and advice for
                                            migrants and refugees, and strengthen
                                            the responsiveness of local agencies to
                                            their settlement needs.

The progress of the whole-of-               Progress reports were presented to
government approach to implementing         joint Ministers in July 2006 and April
the New Zealand Settlement Strategy is      2007. The July 2006 report focused on
reported to the Minister of Immigration     the implementation of the Ethnic
six monthly.                                Responsiveness Strategies by central
                                            government agencies and development
                                            of National Settlement Action Plans,
                                            and outlined the results of a survey of
                                            the National Settlement Structure and
                                            Settlement Secretariat.

                                            The April 2007 report noted that
                                            Cabinet had agreed to a new vision and
                                            high-level goals, and that the
                                            Settlement National Action Plan be the
                                            basis for interagency activities to
                                            enhance settlement outcomes. It also
                                            noted that most of the initiatives were
                                            on track, and a brief overview of the
                                            achievements was provided.

Participating agencies assess as            A survey was undertaken in July 2007,
satisfactory the Department’s services      with the results not yet available.
provided through the Settlement
Secretariat annually.

Settlement Support New Zealand              The draft Evaluation of Settlement
initiative will undergo a full evaluation   Support New Zealand report was
with a report due on 30 June 2007.          received in July 2007. The final report
                                            is expected in the first quarter of

                                                                                  83
Performance standard                     Performance to 30 June 2007
                                         2007/08.

                                         The preliminary findings of the
                                         Settlement Support New Zealand
                                         evaluation shows that it offers some
                                         key structures that are designed to
                                         make it easier for migrants and
                                         refugees to access information and
                                         services, and provides better
                                         coordination of the service providers.
                                         This has created a good foundation for
                                         an effective settlement support system,
                                         particularly in smaller centres where
                                         there were no pre-existing networks or
                                         limited networks.

                                         The main findings of the research are
                                         that key aspects of the Settlement
                                         Support New Zealand programme are
                                         improving access to information for
                                         migrants and refugees.

The Samoan Quota and Pacific Access      1,106 people were approved under the
Category components of the               Samoan Quota, and 1,199 people were
Immigration Programme will be filled.    approved under the Pacific Access
                                         Category. This includes people
                                         approved under previous years’ quotas
                                         and their respective residual policies.

                                         The number of residence places
                                         available each year for applicants (and
                                         their partners and families) is 1,100 for
                                         Samoa, 250 each for Tonga and Fiji,
                                         and 75 each for Kiribati and Tuvalu.
                                         Extra places were allocated under the
                                         Residual Places Policy.

International standards relating to      The United Nations High Commissioner
refugee processing, assessment and       for Refugees (UNHCR) reviewed 30
detention procedures will be met as      decisions made by the Refugee Status
assessed annually by the UNHCR.          Branch, with 24 meeting UNHCR
                                         criteria. Six cases did not meet UNHCR
                                         criteria, primarily as a result of
                                         differences in UNHCR and New Zealand
                                         refugee jurisprudence.

                                         All UNHCR comments were reviewed
                                         and provided to staff. No systematic
                                         changes were made as a result of the
                                         feedback.

Consultation on the composition of the   The composition of the refugee quota
Refugee Quota that takes into account    has been drafted for 2007/08, taking
settlement factors and infrastructure    into account all submissions from
impacts will be completed and reported   stakeholders. Consultation with key
annually.                                stakeholders will continue until the
                                         2007/08 quota composition is finalised.

                                                                                84
Performance standard                       Performance to 30 June 2007
A quarterly survey of a sample group of    The survey of Refugee Quota Branch
refugees to confirm the appropriateness    customers resulted in an annual
of security arrangements and support       satisfaction rating of 4.32, compared
provided. (Scale 1-5). Standard:           with a rating of 4.54 in 2005/06.
>3.75.
                                           The survey of the Refugee Status
                                           Branch was sent to all approved
                                           refugee claimants and resulted in an
                                           annual satisfaction rating of 4.92,
                                           compared with a rating of 4.65 in
                                           2005/06.

Quarterly reports on Department            The Department continued to
activities that contribute to developing   contribute to the UNHCR project to loan
international protection systems and       staff to assist with the refugee
resolving refugee issues in the region.    determination process in Papua New
                                           Guinea. Staff on secondment to the
                                           UNHCR assisted the Papua New Guinea
                                           government with amending the existing
                                           legislation, development of refugee
                                           status determination, documentation
                                           and registration of refugees, and held
                                           workshops with government officials in
                                           border areas.

                                           The Department worked on a UNHCR
                                           initiative to focus on alleviating regional
                                           pressures identified by them,
                                           particularly within India, Thailand and
                                           Malaysia. This involved taking quota
                                           refugees from refugee camps within
                                           those countries.

The number of UNHCR-mandated               Five refugee intakes have taken place –
refugees travelling to New Zealand         in July, September and November
provided with initial settlement           2006, and March and May 2007.
services. Number: 675-825.
                                           696 refugees have arrived in New
                                           Zealand and have been provided with
                                           resettlement services. Numbers are at
                                           the lower end of forecasts (675-825)
                                           due to logistical difficulties including
                                           higher than expected positive TB cases
                                           which required treatment prior to
                                           travelling to New Zealand, and exit
                                           permit difficulties.

The average age of undecided refugee       As at 30 June 2007, the average age of
status claims on hand. Standard: 20        undecided refugee claims on hand was
weeks.                                     15 weeks.

Refugee Status Appeals Authority           A survey of the Refugee Status Appeals
members’ satisfaction with the quality     Authority members returned an overall
of the Department’s services. (Scale 1-    rating of 4.67 out of 5.
5). Standard: >3.75.




                                                                                   85
Performance standard                      Performance to 30 June 2007
Number of required determinations of      During the year:
refugee status claims. Number: 500.          •   244 claims were received
                                             •   278 claims were determined.

                                          As at 30 June 2007, there were 63
                                          claims on hand, fewer than the 99
                                          claims on hand at 30 June 2006.

Number of new Refugee Status Appeals      During the year:
Authority appeals and cancellations          •   171 appeals were received
received and processed. Number: 250-
                                             •   304 appeals have been referred
275.
                                                 to members
                                             •   191 appeals were finalised.

                                          As at 30 June 2007, there were 110
                                          appeals on hand, fewer than the 165
                                          claims on hand at 30 June 2006.
Annual report on activities in response   Events such as the Honiara riots in the
to international humanitarian crises in   Solomons, riots in Tonga and the Fiji
the region.                               coup continued to pose significant
                                          challenges for the Department during
                                          the year. Crisis teams were activated
                                          to support business continuity and
                                          manage risks during these events.

The average age of cases on hand with     As at 30 June 2007, the average age of
the Refugee Status Appeals Authority      appeals on hand with the Refugee
will be monitored.                        Status Appeals Authority was six
                                          months and 13 days, compared to five
                                          months and 16 days as at 30 June
                                          2006.


Pursuing New Zealand’s international immigration and related security
interests

By building relationships with multilateral organisations and other nations, New
Zealand enhances its ability to not only provide immigration and border security,
but also to contribute to New Zealand’s international presence and influence. The
Department represents New Zealand’s immigration-related interests offshore,
alongside other relevant government departments. While there are clear systems
for the international flow of goods and capital, this is not the case for people
flows, which are becoming increasingly complex. In 2005, there were nearly 200
million migrants globally, compared with 82 million in 1970. Globally, there is a
tendency towards temporary or even circular migration, instead of permanent. At
the same time, there is an enhanced focus on security in the wake of
international terrorism, with the balance between security and facilitation
becoming a key issue for successful migration management. The activities we
undertake internationally not only benefit New Zealand by increasing
understanding and cooperation in migration management, but also enable us to
build key relationships with other countries, providing long-term benefits for both
parties in terms of sustainability and security.




                                                                                86
The key activities are:
• participating in multilateral security and law and order initiatives to advance
   New Zealand's immigration-related interests
• participating in the negotiation of bilateral trade agreements and closer
   economic partnerships to ensure the movement of labour accords with New
   Zealand's interests and immigration legislation
• coordinating with other government departments and agencies.

Performance information

Performance standard                        Performance to 30 June 2007
The Minister of Immigration is satisfied    The Minister rated the quality of the
with the quality of the Department’s        advice for 2006/07 at an average of
policy advice. Page 102 sets out the        3.14 out of 5 (where 3 is average, 4 is
quality standards for policy advice.        good and 5 is excellent).

Quarterly reports on participation and      In October 2006, the Department
assistance given to others to participate   became the chair of the Pacific
in multilateral initiatives to promote      Immigration Directors’ Conference
New Zealand’s trade, security and law       (PIDC) and hosted the 10th Annual
and order immigration-related               PIDC and Management Board meetings.
interests.                                  New Zealand also took over chair of the
                                            UNHCR Working Group on Resettlement
                                            and the Annual Tripartite Consultations
                                            in Refugee Resettlement.

                                            The Department also participated in
                                            various meetings and working groups
                                            of the International Organisation for
                                            Migration (IOM) and the International
                                            Governmental Consultations on
                                            Refugees, Asylum and Migration (IGC).
                                            This enabled the Department to
                                            comment on strategic and emerging
                                            issues related to migration, security
                                            and protection, and provide an
                                            opportunity to exchange ideas and
                                            learn about new initiatives. In October
                                            2006, the Department participated in
                                            the IGC Technology Working Group
                                            which, discussed practical and policy-
                                            related biometric developments and the
                                            role of documentation in effective
                                            immigration systems.

                                            The inaugural meeting of the Australia
                                            New Zealand Immigration Forum
                                            (ANZIF) was held in Canberra. It
                                            provided an opportunity for closer
                                            engagement and constructive exchange
                                            between the two countries.

                                            The Department hosted the Australian
                                            Ministerial Council on Immigration and
                                            Multicultural Affairs (MCIMA) and its
                                            Standing Committee (SCIMA). The
                                            Department attended MCIMA as

                                                                                    87
Performance standard                      Performance to 30 June 2007
                                          observers and held a bilateral meeting
                                          with Australian officials where Pacific
                                          and refugee issues were discussed.

                                          In September 2006, the Department
                                          led a New Zealand delegation to the
                                          United Nations High-Level Dialogue on
                                          International Migration and
                                          Development. The discussions at the
                                          meeting and its round tables focused
                                          on the multidimensional aspects of
                                          international migration and
                                          development, and identifying the
                                          appropriate ways and means to
                                          maximise development and minimise
                                          its negative aspects. As a result, the
                                          Global Forum for Migration and
                                          Development was formed.



Financial performance Figures are GST exclusive

 Year ended             Actual         Main          Supp.     Actual as a %
 30 June 2007                     Estimates      Estimates          of Supp.
                          $000         $000           $000         Estimates
 Revenue:
       Crown            14,834        15,732         14,834           100.0%
       Department          988         1,006          1,006            98.2%
       Other               827           762            764           108.2%


 Total Revenue          16,649        17,500         16,604           100.3%
 Total Expenses         15,971        17,487         16,591            96.3%
 Net                       678             13            13                  -
 Surplus/(Deficit)

- The decrease in appropriation of $0.896 million in the Supplementary
Estimates was due to a fiscally neutral adjustment to reflect a new cost
allocation methodology established across the Department ($1.304 million),
and a fiscally neutral adjustment transferring funding for fees, salaries and
allowances for members of the Residence Review Board, the Removal Review
Authority and the Refugee Status Appeal Authority to a new Non-
Departmental Other Expense ($0.335 million).

Appropriation increases were also received to cover inter-departmental travel
relating to the Doha Development round and CEP/FTA negotiations ($0.076
million) and for facilitative measures for the Temporary Work Policy: RSE
scheme ($0.665 million).

The $0.678 million actual surplus includes an approved in-principle transfer of
funding of $0.175 million to 2007/08 in respect of Pacific facilitation funding
for the Temporary Work Policy: RSE scheme.

Expenditure incurred up to 31 March 2007 on fees, salaries and allowances for
the Residence Review Board, Removal Review Authority and the Refugee


                                                                                  88
Status Appeal Authority is outside the scope of the appropriation ($0.935
million).




                                                                            89
Vote Employment
Summary financial performance

 Year ended 30 June 2007                                             Variance
                                       Actual        Voted 13        Fav/(Unfav)
                                       $000          $000            $000

 Revenue Crown (GST excl)
 Labour market information                  9,713         9,713                  -
 Policy, research and evaluation            5,050         5,050                  -
 Sub Total                                14,763        14,763                   -
 Revenue Department (GST
 excl)
 Labour market information                      31              92            (61)
 Policy, research and evaluation                29              75            (46)
 Sub Total                                      60         167             (107)
 Revenue Other (GST excl)
 Labour market information                      85              1               84
 Policy, research and evaluation                38               -              38
 Sub Total                                    123               1             122
 Total Revenue                            14,946        14,931                 15
 Departmental Output
 Expenses
 (GST excl)
 Labour market information                  8,896         9,806               910
 Policy, research and evaluation            4,923         5,125               202
 Total                                    13,819        14,931             1,112
 Non-Departmental Revenue
 (GST excl)
 Programme recoveries14                         22               -              22
 Total                                          22               -             22



Output class: Labour market information

This output class involves the provision and analysis of labour market
information, analysis and validation of regional labour market information,
participation on regional and sector labour market focused groups, and making
connections back to and across government to inform and influence the national
perspective.

The Department will identify the opportunities and constraints within New
Zealand’s labour market and work with key stakeholders to identify, broker and

13 Voted figures include adjustments made in the Supplementary Estimates and transfers
under the Public Finance Act 1989.
14 Community employment activities were repositioned to the Ministry of Social
Development in 2005/06. Revenue relating to prior year contracts was still collected and
will be returned to Vote Social Development.

                                                                                      90
facilitate local and sector ownership of the best response to these opportunities
and constraints.

Contribution to the long-term goals

These services contribute to all of the Department’s long-term goals:
Our place in the world: New Zealand will prosper through its connections with the
rest of the world.
Our workplaces: New Zealand workplaces will lead the world in maximising the
value of work while providing a high-quality working life.
Our workforce: The skills of our workers will ensure New Zealand enterprises are
leaders internationally.
Our people: All New Zealanders will be able to grow and develop through access
to well-paid and meaningful employment.

Contribution to the medium-term priorities

These services contribute to the following medium-term priorities:

Supporting and promoting the transformation of New Zealand workplaces to
become high-performing workplaces, and to achieve high-quality working lives by
focusing on the drivers of workplace productivity, including skills, safe and
healthy workplace cultures, decent work, and excellent employment relationships.

Influencing the supply of skilled labour by:
• better targeting the immigration programme
• working with industry and education sectors to match educational services to
    the needs of our workers, employers and the economy.

Supporting increased labour market participation by leading the Government’s
work programme on:
• enhancing parents’ and other carers’ choices about work and family
   arrangements
• assisting transitions for youth into employment
• enhancing employment for groups under-represented in the labour force.

Activities

We do this by:
• collecting, integrating and analysing a range of qualitative and quantitative
   data and information to provide a profile of New Zealand’s labour market at
   the national, regional, industry and sector levels, now and into the future
• reporting on employment (including occupations) and labour market trends at
   the national, regional and sector level, as well as responding to requests for
   tailored labour market information
• translating information to a regional/local and/or sector level to ensure local
   knowledge informs policy and appropriate interventions are designed, and
   feeding this information to decision-makers so that local knowledge can
   inform policy
• progressively building an up-to-date knowledge and understanding of New
   Zealand’s labour market dynamics, including forecasting of future trends,
   opportunities and risk areas at a local, regional, sector and national level to
   inform the Department’s ongoing service delivery
• building relationships with sector bodies such as industry training
   organisations, employee associations, employer associations, economic
   development agencies and local government




                                                                                    91
•   developing an understanding of sector/region needs and opportunities and
    providing contextual and comparative information on their labour market,
    including providing knowledge about similar labour markets
•   working with key players to identify issues impacting on the operation of the
    labour market at a national, regional and sectoral level and working with them
    to design responses
•   ensuring the Department’s service delivery is aligned to its authoritative
    labour market information base
•   providing ministerial servicing.


Performance information

Performance standard                      Performance to 30 June 2007
Customers and stakeholders are            The Department undertook research
satisfied with the Department’s           with clients and stakeholders to explore
information on labour market issues at    the value of the Department’s labour
national, sector and regional levels.     market information and identify
Customers will be surveyed during         opportunities to improve our
2006/07. Results from 2006/07 will be     performance.
used to inform a baseline measure for
future years.                             The research told us that, in terms of
                                          our aspirations to be a sector leader
                                          and an exceptional and respected
                                          knowledge trader, we are starting from
                                          a good base. To further this work, we
                                          started exploring how to refine our
                                          information services and products to
                                          provide what is of most value.

The Department communicates the           The Department has increased its
labour market story at a national,        activity in this area over the 2006/07
sector and regional level through a       year, as reported in other sections.
variety of media to a variety of          Some examples include:
recipients.                               • labour market outcome reports
                                              about older workers, Māori and
                                              other distinctive groups in the
                                              labour market
                                          • various reports on skills
                                          • a framework and tool for forecasting
                                              demand and supply in the food and
                                              beverage sector, which will also
                                              have application in other sectors
                                          • tools for analysing iwi labour market
                                              issues, with applicability for other
                                              iwi
                                          • annual in-depth regional reports
                                              and tools for analysing regional
                                              labour market information.

Positive progress will be made towards    The Department has contributed to
labour market development in all          positive progress towards labour
regions. Results from 2006/07 will be     market development in all regions
used to inform a baseline measure for     during 2006/07. Some examples
future years.                             include the following:
                                          • The Wellington region produced
                                              New Zealand’s first comprehensive
                                              labour market strategy, which was

                                                                               92
Performance standard                      Performance to 30 June 2007
                                             integrated with the wider regional
                                             development strategy. This is now
                                             in implementation mode.
                                          • Several regions have taken their
                                             first steps in developing a regional
                                             labour market strategy, such as
                                             Canterbury, Southland, Otago,
                                             Manawatu and Waikato.
                                          • The Auckland region has instituted a
                                             skills work-stream as part of their
                                             Metro project on regional
                                             development.
                                          • There has been a concentrated
                                             effort on supporting implementation
                                             of the horticulture and viticulture
                                             strategy and the RSE scheme,
                                             focused on the regions where
                                             horticulture and viticulture is
                                             concentrated (most notably Bay of
                                             Plenty, Hawkes Bay and
                                             Marlborough).
                                          • We are working on a baseline
                                             measure for future years, so that
                                             progress can be monitored in a
                                             more systematic way.

The Department works with groupings       The Department of Labour has worked
of key labour market players to provide   with a number of different stakeholders
information and develop strategies for    to produce labour market information
addressing labour market constraints      tools, which are accessible through the
and opportunities. This will include at   Department’s website. The first of
least three experimental projects         these projects involved working directly
involving new ways of addressing          with Ngāti Awa, an iwi in the Eastern
labour market issues at a sector and/     Bay of Plenty. The project produced a
or regional level.                        series of labour market tools to enable
                                          the iwi to analyse labour market trends
Three projects, which have:               in their region and make comparisons
• the potential to make a difference      with other areas.
   to the area being tested
• high-quality evaluation built in        In the second instance, a labour market
• the potential to transfer into other    tool has been developed to enable a
   sectors/regions.                       wide range of stakeholders to access
                                          the education and training data from
At least two of these projects will be    the 2006 Census. This information is
completed within 2006/07.                 particularly valuable for regional
                                          stakeholders involved in tertiary
                                          education and training decision-making.




                                                                               93
Financial performance Figures are GST exclusive

 Year ended              Actual         Main         Supp.    Actual as a %
 30 June 2007                      Estimates     Estimates         of Supp.
                          $000          $000          $000        Estimates
 Revenue:
       Crown              9,713         9,267        9,713          100.0%
       Department            31            92           92           33.7%
       Other                 85             -            1        8,500.0%


 Total Revenue            9,829         9,359        9,806          100.2%
 Total Expenses           8,896         9,359        9,806           90.7%
 Net                        933              -            -                 -
 Surplus/(Deficit)

The increase in appropriation of $0.447 million in the Supplementary
Estimates was primarily due to a fiscally neutral adjustment to reflect a
new cost allocation methodology established across the Department.

The $0.933 million actual surplus includes an approved in-principle transfer
of funding of $0.800 million to 2007/08 to ensure existing commitments
can be fulfilled in 2007/08.

Output class: Policy, research and evaluation

This output class involve the provision of strategic advice and information about
the role the labour market, and intervention in the labour market, can play in the
economic transformation of New Zealand and in improving outcomes for families.

The Labour Market and Employment Strategy Better Work, Working Better is an
example of this output, and outlines how the labour market and employment are
important links between New Zealand’s social and economic outcomes. A labour
market that has improved participation in quality work, with growing productivity,
enables the achievement of both sustainable growth and opportunities for all New
Zealanders.

Contribution to the long-term goals

These services contribute to the Department’s long-term goal:
Our people: All New Zealanders will be able to grow and develop through access
to well-paid and meaningful employment.

Contribution to the medium-term priorities

These services contribute to supporting increased labour market participation by
leading the Government’s work programme on:
• enhancing parents’ and other carers’ choices about work and family
    arrangements
• assisting transitions for youth into employment
• enhancing employment for groups under-represented in the labour force.

Activities

The Government’s economic transformation objectives, which include developing
a skilled and productive workforce and improving the number of globally-
competitive New Zealand firms, begin with people. Enabling more people to
                                                                                94
participate in higher-value work (both in terms of productivity and pay) enables
New Zealanders to achieve their desires for quality of life and good outcomes for
families and dependents. Great strides in lifting overall levels of participation in
work have been made, and it is important to maintain this. Labour scarcity is a
key driver for enterprise to focus on higher-value work and lifting productivity.

As we work to transform our economy and improve outcomes for families by
focusing on higher-value work, we need to ensure that our workforce has the key
skills to enable them to deliver on that higher-value work. This means
addressing skills development at all levels, from functional literacy to managerial
and leadership capability to lift enterprises’ performance. We also need to attract
and retain key skilled individuals from around the world, and make better use of
people’s skills in higher-value work, enabling New Zealand to compete in the
international marketplace.

Activities under this output expense in 2006/07 include:
• leading policy development and debate on workforce and labour market
    issues, to influence the actions of government agencies, employers,
    employees and others such as potential learners
• providing strategic advice on employment and skills issues, ensuring that
    policy matches, enhances and drives the achievement of New Zealand’s
    workforce goals for a transformative labour market
• overseeing and coordinating the work-streams of the Government’s
    employment and labour market strategies, ensuring they are linked to
    broader objectives for economic transformation and improving outcomes for
    families
• leading the Government’s work programme on:
    o      enhancing parents’ and other carers’ choices about work and family
           arrangements
    o      assisting transitions for young people into employment
    o      enhancing employment for groups under-represented in the labour force
• influencing the supply of skills by working with industry and education sectors
    to match educational services to the needs of workers, employers and the
    economy
• leading Government initiatives to address skill and labour shortages by
    working with key agencies such as the Ministry of Education, Tertiary
    Education Commission, Ministry of Social Development and Ministry of
    Economic Development
• working with key agencies and industry groups to implement a series of
    initiatives to shift workplace practice to help employers improve the literacy,
    numeracy and language skills of their employees, and better utilise those
    skills in order to lift workplace productivity
• providing research and analysis of national and international workforce trends
    and the connection between local and international labour markets to improve
    understanding and inform decisions and actions related to employment. This
    includes the development of new statistical collections to support strategic
    policy advice, and research and evaluation
• providing ministerial servicing, including replies to correspondence,
    parliamentary questions, official information requests, speeches and briefing
    notes and other information requested by the Minister.

Performance information

Performance standard                        Performance to 30 June 2007
The Minister responsible for                The Minister provided verbal feedback
employment, and related labour market       to the Department's Acting Chief
Ministers, are satisfied with the quality   Executive and was not fully satisfied
of the Department’s employment policy       with aspects of the policy advice.

                                                                                   95
Performance standard                         Performance to 30 June 2007
advice. Page 102 sets out the quality
standards for policy advice.

The Minister is satisfied with the quality   The Minister provided verbal feedback
of the Department’s ministerial              to the Department's Acting Chief
servicing.                                   Executive and was not fully satisfied
                                             with aspects of ministerial servicing.

The policy development process and           The New Zealand Institute of Economic
resultant advice provided is assessed as     Research (NZIER) is currently
high-quality through external and            undertaking a review of the quality of
internal review of projects.                 policy advice provided to the
                                             departmental Ministers. It is expected
                                             to be completed in September 2007.



Financial performance Figures are GST exclusive


 Year ended               Actual        Main         Supp.    Actual as a %
 30 June 2007                      Estimates     Estimates         of Supp.
                           $000         $000          $000        Estimates
 Revenue:
       Crown               5,050        5,753        5,050          100.0%
       Department             29           75           75           38.7%
       Other                  38            -            -                -


 Total Revenue             5,117        5,828        5,125           99.8%
 Total Expenses            4,923        5,828        5,125           96.1%
 Net                         194             -            -                -
 Surplus/(Deficit)

-       The decrease in appropriation of $0.703 million in the
Supplementary Estimates was primarily due to an expenditure transfer to
the 2009/10 financial year for the Skills Action Plan Initiative – Linked
Employer-Employee Dataset (LEED) to ensure that the maximum long-
term benefits are derived from the planned dataset enhancements over
the next year and staffing constraints, which resulted in work progressing
more slowly than anticipated ($0.205 million), an expenditure transfer to
the 2007/08 financial year for the Workplace Information Survey due to
other commitments by Statistics New Zealand, which delayed
development work ($0.202 million), and an expenditure transfer to the
2007/08 financial year for Upskilling the Workforce Project due to delays
in the development and approval of the associated work programme,
which delayed establishing the associated Programme Office and the
implementation of the programme of work ($0.820 million).




                                                                                  96
VOTE ACC

Summary financial performance

 Year ended 30 June 2007                                            Variance
                                      Actual        Voted 15        Fav/(Unfav)
                                      $000          $000            $000
 Revenue Crown (GST excl)
 Policy and monitoring                     2,346        2,346                  -
 Regulatory services                           99              99              -
 Sub total                                2,445         2,445                  -
 Revenue Department (GST
 excl)
 Policy and monitoring                         46              31             15
 Sub total                                     46           31               15
 Revenue Other (GST excl)
 Policy and monitoring                         19              18              1
 Regulatory services                            -               -              -
 Sub total                                     19           18                 1
 Total Revenue                            2,510         2,494                16
 Departmental Output
 Expenses
 (GST excl)
 Policy and monitoring                     2,312        2,395                 83
 Regulatory services                           89              99             10
 Total Departmental Output                2,401         2,494                93
 Expenses
 Output Classes Supplied by
 Other Parties (GST excl)
 Case management and                      55,739       55,739                  -
 supporting services
 Claim entitlements and services        432,238       432,238                  -
 Public health acute services           183,226       183,226                  -
 Sub total                             671,203       671,203                   -
 Benefits and Other
 Unrequited Expenses (GST
 n/a )
 Other Compensation                     106,988       106,988                  -
 Sub total                             106,988       106,988                   -
 Total Non-Departmental                778,191       778,191                   -
 Expenses



15 Voted figures include adjustments made in the Supplementary Estimates and transfers
under the Public Finance Act 1989.

                                                                                    97
Output class: Policy and monitoring

This output class includes policy, purchase and monitoring advice, research and
evaluation, and ministerial servicing on the ACC scheme, and the performance of
ACC.

The following elements will be required to achieve high-performing workplaces:
•    All parties having a shared understanding of the factors that lead to
     workplace productivity and an agreement on goals.
•    Labour market participants having information and guidance that is tailored,
     targeted and useful to increase awareness and uptake of excellent
     workplace practices, in order to effectively reduce occupational injuries and
     disease.
•    Responsive regulation of the ACC scheme that supports economic and social
     development.
•    More investment in research, evaluation, analysis and performance data
     about what is working or not working in the labour market.

Increased labour market participation will result from:
•    enhancing parents’ and other carers’ choices about work and family
     arrangements
•    enhancing employment for groups under-represented in the labour force.

The Department contributes to these goals by:
•    providing policy, purchase and monitoring advice that contributes to
     reducing injury in New Zealand workplaces, assisting those who are injured
     to return to work and ensuring levies are fair. This assists workplaces to
     effectively balance employers’ and employees’ needs and interests
•    providing policy advice and monitoring the implementation of policy for the
     ACC scheme
•    including vocational rehabilitation to assist people who are unable to return
     to their pre-injury occupation.

Contribution to the long-term goals

These services contribute to the Department’s long-term goals:
Our workplaces: New Zealand workplaces will lead the world in maximising the
value of work while providing a high-quality working life.
Our workforce: The skills of our workers will ensure that New Zealand enterprises
are leaders internationally.
Our people: All New Zealanders will be able to grow and develop through access
to well-paid and meaningful employment.

Contribution to the medium-term priorities

These services contribute to supporting and promoting the transformation of New
Zealand workplaces to become high-performing and to achieve high-quality
working lives by focusing on the workplace productivity drivers, including skills,
safe and healthy workplace cultures, decent work and excellent employment
relationships.

Activities

We do this by:
•   providing policy advice on the ACC scheme’s regulation, ACC policies and
    practices, and interfaces with the health and welfare systems, and the
    workplace health and safety system


                                                                                 98
•       evaluating the impact of the ACC scheme and the ACC’s activities in meeting
        the Government’s objectives for injury prevention, rehabilitation and
        compensation, and wider social and economic goals
•       providing purchase advice on, and monitoring of, the performance of the
        ACC to assist the Minister for ACC to achieve the Government’s objectives
•       managing the ACC board appointment process on behalf of the Minister for
        ACC
•       administering the ACC scheme’s legislation and developing relevant
        regulatory changes on an annual basis (e.g. levy changes)
•       providing secretariat and advisory support for stakeholder interest groups.


Performance information

Performance standard                        Performance to 30 June 2007
The Minister for ACC is satisfied with      The Minister rated the quality of advice
the quality of the Department’s policy      for 2006/07 at an average of 3.72 out
advice. Page 102 sets out the quality       of 5 (where 3 is average, 4 is good and
standards for policy advice.                5 is excellent).

The Minister for ACC is satisfied with      The Minister rated the quality of advice
the quality of the Department’s             for 2006/07 at an average of 3.72 out
purchase advice and monitoring.             of 5 (where 3 is average, 4 is good and
                                            5 is excellent).

The Minister for ACC is satisfied with      The Minister rated the quality of the
the quality of the Department’s             Department’s ministerial servicing for
ministerial servicing.                      2006/07 at an average of 3.72 out of 5
                                            (where 3 is average, 4 is good and 5 is
                                            excellent).

Policy, purchase advice, monitoring and     Policy, purchase advice, monitoring and
ministerial servicing will be delivered.    ministerial servicing were delivered as
As agreed with the Minister for ACC and     agreed with the Minister for ACC and as
as detailed in the Vote ACC Output Plan     detailed in the Vote ACC Output Plan
for 2006/07.                                for 2006/07.



Financial performance Figures are GST exclusive

    Year ended             Actual        Main        Supp.   Actual as a %
    30 June 2007                    Estimates    Estimates        of Supp.
                            $000         $000         $000       Estimates
    Revenue:
          Crown            2,346         2,615      2,346          100.0%
          Department          46            31         31          148.4%
          Other               19             -         18          105.6%


    Total Revenue          2,411         2,646      2,395          100.7%
    Total Expenses         2,312         2,646      2,395           96.5%
    Net                       99             -           -                -
    Surplus/(Deficit)




                                                                                  99
The decrease in appropriation of $0.251 million in the Supplementary
Estimates was primarily due to a fiscally neutral adjustment to reflect a
new cost allocation methodology established across the Department.

Output class: Regulatory services

This output class includes meeting the residual long-term responsibilities of the
Accident Insurance Regulator by managing the Crown’s ongoing risks resulting
from the introduction of the competitive accident insurance market during
1999/2000.

Responsive labour market regulation supports economic and social development,
which contributes to higher-performing workplaces. For New Zealand to become a
world leader in workforce and workplace performance, workplace participants
must develop an understanding of and demonstrate excellent workplace
practices.

Contribution to the long-term goals

These services contribute to the Department’s long-term goals:
Our workplaces: New Zealand workplaces will lead the world in maximising the
value of work while providing a high-quality working life
Our people: All New Zealanders will be able to grow and develop through access
to well-paid and meaningful employment.

Contribution to the medium-term priorities

These services contribute to supporting and promoting the transformation of New
Zealand workplaces to become high-performing and to achieve high-quality
working lives by focusing on workplace productivity drivers.

Activities

We do this by:
• liaising with key stakeholders and responding to non-ministerial enquiries and
   complaints
• residual collection of non-compliers’ penalties
• residual information management and servicing information requests
• responding to any enquiries and complaints related to the competitive
   accident insurance market introduced in 1999/2000
• administering the Insolvent Insurers Fund, should this be invoked.

Performance information

Performance standard                        Performance to 30 June 2007
The Regulator will respond to               In 2006/07, the Regulator responded to
complaints and enquiries within five        all enquiries within five days.
days of receipt, including responding
within five days of receipt to notices of
insurers failing to comply with their
obligation under the 1998 Act.




                                                                                100
Financial performance Figures are GST exclusive


 Year ended              Actual         Main        Supp.    Actual as a %
 30 June 2007                      Estimates    Estimates         of Supp.
                          $000          $000         $000        Estimates
 Revenue:
       Crown                 99          130           99            100%
       Other                  -            -            -                -
 Total Revenue               99          130           99          100.0%
 Total Expenses              89          130           99           89.9%
 Net                         10             -            -                 -
 Surplus/(Deficit)

The decrease in appropriation of $0.031 million in the Supplementary
Estimates was due to a fiscally neutral adjustment to reflect a new cost
allocation methodology established across the Department.




                                                                               101
QUALITY STANDARDS FOR POLICY ADVICE


Policy advice
Ministers expect to receive policy advice consistent with the following quality
standards:
•    Integrated: Advice considers the Government’s priorities and the
     Department’s goals and has been produced after involvement of all relevant
     contributors within the Department
•    Timeliness: Advice is produced in sufficient time to allow thorough
     consideration prior to decision-making, or within the timeframe agreed with
     the Minister.
•    Emerging issues: Advice is provided on emerging issues that are not part
     of the existing work plan.
•    Issue and objective: A clearly defined issue or objective to be achieved is
     provided.
•    Analysis: The analysis is sound and convincing - that is, appropriate
     analytical techniques are employed, convincing evidence is provided and
     there is a clear rationale for recommendations made.
•    Options: All viable options recognising a wider government perspective are
     identified and addressed.
•    Consultation: Where appropriate, the right individuals, government
     departments and interest groups are consulted at the right time, and their
     input is used appropriately.
•    Style and presentation: The report uses a satisfactory style and
     presentation.
•    Implementation: Where appropriate, information is provided on the
     implementation of the selected option(s), including feasibility issues,
     legislative implications, and assessment of fiscal, administrative and
     compliance costs.
•    Evaluation strategy: Where appropriate, advice includes how proposals
     have been or will be evaluated.
•    Impact assessment: Advice has considered the implementation impacts
     on private and public sector stakeholders and customers.

Application of standards
Note that all aspects of the standards may not apply to specific pieces of advice
given considerations of urgency or the particular nature of the advice provided.




                                                                                  102
FINANCIAL STATEMENTS
STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR
ENDED 30 JUNE 2007

Reporting entity
The Department of Labour is a government department as defined by section 2 of
the Public Finance Act 1989. These are the financial statements of the
Department of Labour prepared pursuant to the Public Finance Act 1989. In
addition, the Department has reported the trust monies and memorandum
account which it administers, and separate schedules for non-departmental
activities.


Measurement system
The financial statements have been prepared on a modified historical cost basis
except for certain items with specific accounting policies outlined below.


Accounting policies
The following particular accounting policies, which materially affect the
measurement of financial results and financial position, have been applied.

(a) Budget figures
     The Budget figures are those presented in the Main Estimates and those
     amended by the Supplementary Estimates and any transfer made by Order
     in Council under the Public Finance Act 1989.

(b) Revenue
     The Department derives revenue through the provision of outputs to the
     Crown, for immigration services, sale of publications to third parties and
     interest received from Westpac Trust and overseas bank accounts. Such
     revenue is recognised when earned and is reported in the financial period to
     which it relates.

(c) Fixed assets
     Land and buildings are stated at fair value as determined by an independent
     registered valuer. Fair value is determined using market-based evidence.
     Freehold properties (land and buildings) in New Zealand and overseas are
     individually revalued on a three-yearly cycle.

     The results of revaluing land and buildings are credited or debited to an
     asset revaluation reserve for that class of asset. Where a revaluation
     results in a debit balance in the revaluation reserve, the debit balance will
     be expensed in the Statement of Financial Performance.

     Other fixed assets are recorded at cost less accumulated depreciation.
     Fixed assets forming part of a network which are material in aggregate,
     costing more than $5,000, are capitalised and recorded at cost.

     Any write-down of an item to its recoverable amount is recognised in the
     Statement of Financial Performance.




                                                                                103
(d) Depreciation
      Depreciation is provided on a straight-line basis on all fixed assets, other
      than freehold land and items under construction, at a rate which will write
      off the cost (or valuation) of the assets to their estimated residual value
      over their useful lives.

      Leasehold improvements are depreciated over the shorter of the unexpired
      period of the lease and the estimated useful life of the improvements.

      The useful lives and associated depreciation rates of the major classes of
      assets have been estimated as follows:



      Buildings                     40 years                 (2.5%)
      Leasehold improvements        Up to 13 years           (7.7% to 100%)
      Motor vehicles                4 years                  (25%)
      Furniture and fittings:
             Fixtures and           Up to 10 years           (10% to 100%)
             fittings
             Carpets and drapes     4 to 7 years             (14.3% to 25%)
             Office equipment       4 years                  (25%)
      Computer equipment:
             Software               Up to 5 years            (20% to 100%)
             Other                  Up to 4 years            (25% to 100%)
      Specialised equipment         8 years                  (12.5%)




(e)   Operating leases
      Leases where the lessor effectively retains substantially all the risks and
      benefits of ownership of the leased items are classified as operating leases.
      The Department leases office premises and office equipment. Payments
      arising from operating lease commitments are charged against earnings in
      the periods in which they are incurred over the period of the lease.

(f)   Finance leases
      Leases which effectively transfer to the Department substantially all the
      risks and benefits incident to ownership of the leased items are classified as
      finance leases. These are capitalised at the lower of the fair value of the
      asset or the present value of the minimum lease payments. The leased
      assets and the corresponding lease liabilities are recognised in the
      Statement of Financial Position. The leased assets are depreciated over the
      period the Department is expected to benefit from their use.


(g)   Taxation
      Government departments are exempt from the payment of income tax in
      terms of the Income Tax Act 1994. Accordingly, no charge for income tax
      has been provided for.




                                                                                104
(h)   Goods and services tax (GST)
      All items in the financial statements are exclusive of GST, with the
      exception of receivables and payables, which are stated as GST inclusive.
      Where GST is not recoverable as an input tax, then it is recognised as part
      of the related asset or expense.


(i)   Debtors and receivables
      Receivables are recorded at estimated realisable value after providing,
      where necessary, for doubtful and uncollectible debts.


(j)   Foreign currencies
      Transactions covered by forward exchange contracts are measured and
      reported at the forward rates specified in those contracts. All other foreign
      currency transactions are converted into New Zealand dollars at average
      rates for the month of the transaction approximating the exchange rate at
      the date of the transaction.

      At balance date, monetary assets and liabilities in foreign currencies are
      translated to New Zealand dollars at the closing exchange rate. The
      resulting unrealised exchange gain or loss is recognised in the Statement of
      Financial Performance. Other exchange gains or losses, whether realised or
      unrealised, are recognised in the Statement of Financial Performance in the
      period to which they relate.

(k)   Financial instruments
      The Department is party to financial instruments as part of its normal
      operations. These financial instruments include bank accounts, short-term
      deposits, debtors, creditors and foreign currency forward contracts. All
      revenues and expenses in relation to financial instruments are recognised in
      the Statement of Financial Performance.

      Except for those items covered by a separate accounting policy, all financial
      instruments are shown at their estimated fair value.

(l)   Commitments
      Future expenses and liabilities to be incurred on contracts that have been
      entered into at balance date are disclosed as commitments (at the point a
      contractual obligation arises) to the extent that there are equally
      unperformed obligations. Commitments relating to employment contracts
      are not disclosed.


(m) Contingent liabilities and assets
      Contingent liabilities and assets are disclosed at the point at which the
      contingency is evident.


(n)   Cost accounting policies
      The Department's accounting systems record costs by outputs. The costs
      may be direct or indirect. Costs that can be casually linked and assigned to
      an output economically are direct costs. Costs incurred to produce more
      than one output are indirect costs. Indirect costs are allocated to outputs
      according to staff numbers, the amount of resource consumption or use.
      The direct costs of personnel, operating, depreciation and capital charge are
      assigned directly to outputs. Indirect costs are corporate costs that are


                                                                                  105
      mainly shared across all workgroups. For the year ended 30 June 2007,
      direct costs accounted for 81% of the Department’s costs (2006: 81%).


(o)   Employee entitlements
      Provision is made in respect of the Department’s liability for annual, long
      service and retirement leave. Annual leave and other entitlements that are
      expected to be settled within 12 months of reporting date are measured at
      nominal values on an actual entitlement basis at current rates of pay.

      Entitlements that are payable beyond 12 months, such as long service leave
      and retirement leave, have been calculated on an actuarial basis on present
      value of expected future entitlements.


(p)   Restructuring provisions
      A provision for restructuring is recognised when the Department has
      developed a detailed formal plan for the restructuring and has raised a valid
      expectation in those affected that is will carry out the restructuring by
      starting to implement the plan, or announcing its main features to those
      affected by it.


(q)   Taxpayers’ funds
      This is the Crown’s net investment in the Department.



Changes in accounting policies

There have been no changes in accounting policies, including cost allocation
accounting policies, since the date of the last audited financial statements. All
policies have been applied on a basis consistent with other years.




                                                                                    106
Statement of Financial Performance
for the year ended 30 June 2007
     Actual                            Notes         Actual Mains Estimates   Supplementary
                                                                                  Estimates
    30 June                                    30 June 2007    30 June 2007    30 June 2007
       2006
       $000                                           $000            $000            $000
              Revenue
   156,945 Crown                                   158,192         153,700          158,192
     2,344 Department                    1            2,761           3,136           2,869
    85,940 Other                         2           84,491          89,692          89,616
       110 Interest – non-NZDMO                        112              11               11
    245,339 Total Revenue                          245,556         246,539          250,688


              Expenses
   123,635 Personnel costs                         125,313         125,088          133,182
   113,006 Operating costs               3         105,006         106,255          103,155
    10,696 Depreciation                  4           11,468          10,480          12,480
     3,468 Capital charge                5            3,992           4,643           4,000
    250,805 Total Expenses                         245,779         246,466          252,817
     (5,466) Net Surplus/(Deficit)                    (223)             73           (2,129)




The accompanying accounting policies and notes form part of these financial statements.
For information on major variances against budget, refer to Note 17 (pages 129 – 130).




                                                                                       107
Statement of Movement in Taxpayers' Funds
for the year ended 30 June 2007
     Actual                                  Notes         Actual Mains Estimates   Supplementary
                                                                                        Estimates
    30 June                                          30 June 2007    30 June 2007    30 June 2007
       2006
       $000                                                 $000            $000            $000
    48,091 Taxpayers' Funds as at 1 July                  54,393          61,901          54,393

     (5,466) Net Surplus/(Deficit)                          (223)             73           (2,129)
          - Revaluation of land and           12            (376)              -                -
             buildings
     (5,466) Total Recognised Revenues and                  (599)             73           (2,129)
             Expenses for the Year


    13,810 Capital contribution                            4,213           4,213           4,213
    (2,042) Capital withdrawal                                 -               -               -
         - Repayment of surplus to the                         -             (73)              -
            Crown
    54,393 Taxpayers’ Funds as at 30 June                 58,007          66,114          56,477




The accompanying accounting policies and notes form part of these financial statements.
For information on major variances against budget, refer to Note 17 (pages 129 – 130)



                                                                                             108
Statement of Financial Position
as at 30 June 2007
     Actual                                      Notes          Actual   Mains Estimates    Supplementary
                                                                                                 Estimates
    30 June                                              30 June 2007       30 June 2007     30 June 2007
       2006
       $000                                                      $000               $000              $000
              Current Assets
    59,212    Cash and cash equivalents                        52,370             45,159           39,198
     1,368    Prepayments                                       1,376              1,000             1,000
     1,466    Trade and other receivables                       2,086                 960              960
    62,046    Total Current Assets                             55,832             47,119           41,158
              Non-Current Assets
    41,309    Fixed assets                         6           40,261             54,779           51,030
    41,309    Total Non-Current Assets                         40,261             54,779           51,030
   103,355    Total Assets                                     96,093            101,898           92,188
              Current Liab ilities
    36,016    Creditors and payables               7           27,569             26,935           26,935
       224    Provision for repayment of           8              224                 73                    -
              surplus to the Crown
     7,176    Employee entitlements                9            7,265              5,000             5,000
     2,535    Other provisions                    10              533                374              374
       290    Finance leases                      11               20                   -                -
    46,241    Total Current Liab ilities                       35,611             32,382           32,309
              Non-current Liab ilities
     2,688    Employee entitlements                9            2,455              3,400             3,400
        33    Finance leases                      11               20                   2                 2
     2,721    Total Non-Current Liabilities                     2,475              3,402             3,402
    48,962    Total Liabilities                                38,086             35,784           35,711
    54,393    Net Assets                                       58,007             66,114           56,477
              Taxpayers' Funds
    50,035    General funds                       12           54,025             61,756           52,119
     4,358    Asset revaluation reserve           12            3,982              4,358            4,358
    54,393    Total Taxpayers' Funds                           58,007             66,114           56,477
   103,355    Total Liabilities and Taxpayers'                 96,093            101,898           92,188
              Funds




The accompanying accounting policies and notes form part of these financial statements.
For information on major variances against budget, refer to Note 17 (pages 129 – 130).


                                                                                                       109
Statement of Cash Flows
for the year ended 30 June 2007
     Actual                                         Notes          Actual      Mains Estimates       Supplementary
                                                                                                          Estimates
    30 June                                                 30 June 2007          30 June 2007        30 June 2007
       2006
       $000                                                          $000                  $000                $000
              Cash Flows from        Operating
              Activities
              Cash provided from:
             Supply of outputs to:
   156,945   Crown                                               158,192               153,700             158,192
     2,344   Department                                            2,761                 3,136               2,869
    85,401   Other                                                83,656                89,692              89,616
        110  Interest non-NZDMO                                       112                    11                  11
             Cash disb ursed to:
             Cost of producing outputs:
  (231,783) Output expenses                                     (239,853)             (231,361)           (248,714)
     (3,468) Capital charge                                        (3,992)               (4,643)             (4,000)
      9,549 Net Cash Flows from Operating           13                 876               10,535              (2,026)
             Activities
             Cash Flows from Investing
             Activities
             Cash provided from:
        455 Sale of property, plant and                              220                         -                   -
             equipment
             Cash disb ursed to:
   (15,155) Purchase of property, plant and                      (11,985)              (23,826)            (22,201)
             equipment
   (14,700) Net Cash Flows from Investing                        (11,765)              (23,826)            (22,201)
             Activities
             Cash Flows from Financing
             Activities
             Cash provided from:
    13,810 Capital contribution from the                           4,213                 4,213                4,213
             Crown
             Cash disb ursed to:
     (3,953) Repayment of surplus to the                                   -             (6,996)                     -
             Crown
     (2,042) Capital repayments to the Crown                               -                     -                   -
     7,815    Net Cash Flows from Financing                         4,213                (2,783)              4,213
              Activities
     2,664    Net      Increase/(Decrease)     in                  (6,676)             (16,074)            (20,014)
              Cash Held
    56,258    Add: opening cash brought                           59,212                61,233              59,212
              forward
       290    Add: effect of unrealised                              (167)                       -                   -
              exchange rate, changes on
              foreign currencybalances
    59,212    Closing Cash Balance                                52,370                45,159              39,198

    59,212    Closing Cash Balance consists                       52,370                45,159              39,198
              of:
              Cash and bank balances




The accompanying accounting policies and notes form part of these financial statements.
For information on major variances against budget, refer to Note 17 (pages 129 – 130)

                                                                                                                110
Statement of Commitments
as at 30 June 2007
     Actual                                                               Actual
    30 June                                                               30 June 2007
       2006
       $000                                                               $000
              Operating lease commitments
    31,543    Within one year of balance date                                      42,842
     7,055    One to two years                                                      9,726
     8,855    Two to five years                                                    13,275
     1,523    Over five years                                                       1,647
    48,976    Total Operating Lease Commitments                                    67,490
     2,782    Capital commitments                                                   4,101
    51,758    Total Commitments                                                    71,591



The Department has long-term leases on premises, which are subject to regular
reviews. The amounts disclosed below as future commitments are based on the
current rental rates. Operating leases include lease payments for premises and
information technology assets. The majority of the commitments relate to non-
cancellable accommodation leases (51%) and non-cancellable contracts for the
supply of goods and services (49%).




The accompanying accounting policies and notes form part of these financial statements.



                                                                                         111
Statement of Contingent Liabilities and Assets
as at 30 June 2007

Contingent Liabilities
     Actual                                                               Actual
    30 June                                                               30 June 2007
       2006
       $000                                                               $000

     1,607 Outstanding Legal proceedings                                            1,223


The Department’s contingent liabilities can be broken down as follows:
•   Five claims based on allegations of negligence or other tortuous causes of
    actions, totalling, $1,017,000.
•   Twelve employment related claims against the Department, totalling
    $206,000.

Further information usually required by Financial Reporting Standard 15:
Provisions, Contingent Liabilities and Contingent Assets is not disclosed on the
grounds that it can be expected to seriously prejudice the outcome of the
litigation.

No provision has been made in the financial statements in respect of these legal
claims against the Department as, in the opinion of the Department, no material
expense is expected to be incurred.

The Department has not given any guarantees under section 65ZE of the Public
Finance Act 1989 as at 30 June 2007 (2006: nil).




Contingent Assets
The Department has no contingent assets at 30 June 2007 (2006: nil).




The accompanying accounting policies and notes form part of these financial statements.




                                                                                         112
Statement of Unappropriated Expenditure
for the year ended 30 June 2007
The Department has incurred unappropriated expenditure during the year as
outlined below.

 Unappropriated                                    Actual             Appropriation      Unappropriated
    Expenditure                                                                             Expenditure
   30 June 2006                                       30 June 2007        30 June 2007     30 June 2007
          $000                                                 $000               $000            $000
                  Vote: Immigration

         1,087 Services to increase the capacity            142,655           145,528             882
               of New Zealand through
               immigration


             - Services to position New Zealand              15,971            16,591             935
               as an international citizen with
               immigration related interests and
               obligations


         1,087 Total                                        158,626           162,119            1,817
               Unapprop



Funding for fees, salaries and allowances for the Residence Review Board,
Removal Review Authority and the Refugee Status Appeal Authority has
historically been appropriated in departmental operating expenditure. A review
has identified this funding to be outside the scope of the appropriation. Cabinet
has approved the transfer of future funding to Other Expenses to be incurred by
the Crown.

Funding was transferred from 1 April 2007. The funding remaining within
departmental output classes, which covers 1 July 2007 to 31 March 2007, remains
outside the scope of the two output classes.




The accompanying accounting policies and notes form part of these financial statements.



                                                                                                  113
Statement of Departmental Expenditure
and Capital Appropriations
for the year ended 30 June 2007
                                                 Notes        Expenditure     Appropriation
                                                                     Actual          Voted*
                                                             30 June 2007     30 June 2007
                                                                      $000             $000
Appropriations for Classes of Outputs
Vote Labour
PolicyAdvice – Labour                                              13,326           13,546
International Services                                                 949              957
Services to promote and support fair and                           24,947           25,446
productive employment relationships
Services to promote and support safe and                           27,916           28,606
healthypeople and workplaces
Services to promote and support the safe                             4,595           4,718
management of hazardous substances in the
workplace and amusement devices
Total Vote Labour                                                  71,733           73,273

Vote Immigration
Services to increase the capacityof New                           142,655          145,528
Zealand through immigration
Services to position New Zealand as an                             15,971           16,591
international citizen with immigration-related
interests and obligations
Total Vote Immigration                                            158,626          162,119

Vote Employment
Labour market analysis and knowledge                                 8,896           9,806
Policy, research and evaluation                                     4,923            5,125
Total Vote Employment                                              13,819           14,931

Vote ACC
Policyand monitoring                                                2,312            2,395
Regulatoryservices                                                      89               99
Total Vote ACC                                                      2,401            2,494
Total Departmental Output Expenditure                             246,579          252,817
Remeasurements                                     9                  (800)                -
Total Departmental Expenditure                                    245,779          252,817

Appropriation for capital contributions                              4,213           4,213




This includes adjustments made in the Supplementary Estimates.




The accompanying accounting policies and notes form part of these financial statements.




                                                                                        114
Statement of Trust Monies
for the year ended 30 June 2007

The Department operates trust accounts as the agent under section 66 of the
Public Finance Act 1989. The transactions through these accounts and their
balances at 30 June 2007 are not included in the Department’s own financial
statements. Movements in these accounts during the year ended 30 June 2007
were as follows:


                           As at 1 July                                                As At 30 June
Account                           2006 Contribution Distribution   Revenue   Expense            2007
                                  $000        $000         $000       $000      $000            $000

Employment Relations               45          282        (304)         1         -              24
Service Trust
Employment Relations Act            -            6            -         -         -               6
Security of Costs Trust
NZ Immigration Trust            7,215        5,485       (5,641)      331       (33)          7,357
                                7,260        5,773       (5,945)      332       (33)          7,387




The Employment Relations Service Trust (previously called the Industrial
Relations Trust) was established in September 1988 and handles trust monies
received by Labour Inspectors on behalf of workers.

The Employment Relations Act Security of Costs Trust (previously called the
Employment Court Trust) was established in February 1990 and handles monies
held at the direction of the Employment Relations Authority.

The NZ Immigration Trust was established in 1999 to hold bonds required to be
paid by visitors with a higher risk profile. The distribution figure includes
$293,000 net forfeited to the Crown during the year due to clients either not
meeting the conditions of their bond or not having applied for a refund within the
12 months allowed.




The accompanying accounting policies and notes form part of these financial statements.




                                                                                                115
Memorandum Account - Visa and Permits
for the year ended 30 June 2007
                            As at 1 July                         Less Capital Less Capital As At 30 June
                                   2006    Revenue   Expenses       Injection Repayment             2007
                                   $000       $000       $000           $000        $000            $000

Sales of visa and permits        3,733      82,860    (87,954)         (323)            -        (1,684)



This account summarises financial information relating to the accumulated
financial surplus and deficits incurred in the sale of visa and permits by the
Department of Labour.

Memorandum accounts are notional accounts that are not formal assets or
liabilities of the Crown. The accounts record the accumulated balance of
surpluses and deficits incurred in the provision of certain outputs on a full cost
recovery basis. The surplus/deficit levels are dependent upon the business
conditions and the Government’s policy settings prevailing during that period.
The expectation is that, with fluctuations in the immigration market, possible
changes to immigration policy and the potential need for future capital
contributions for expansion and improvement of visa and permit services, the
balance of this account will, over time, reduce.

This memorandum account has been operating since 1 July 1999 and reflects
forecasts based on the current strong demand for visa and permit services.
Changes to these demand levels during or between years may mean actual
outturns differ from forecast. In 2007 expenditure was higher than revenue due
to the continuation of the subsidy on visitor visas.




The accompanying accounting policies and notes form part of these financial statements.

                                                                                                    116
Notes to the Financial Statements
for the year ended 30 June 2007
Note 1:         Revenue - Department
       Actual                                                          Actual Mains Estimates     Supplementary
                                                                                                       Estimates
30 June 2006                                                    30 June 2007     30 June 2007      30 June 2007
         $000                                                            $000             $000              $000
            - Ministryof Economic Development : EnergySafe                  -              330                 -
              State Services Commission - State Sector
       1,579 Retirement Savings Scheme                                 1,912             1,653            1,653
          12 MFAT - Pacific SecurityFund Project                            -                 -              63
              MFAT- Niue Strengthened Co-operation
          13 Programme Fund run byNZAID                                   87               307              307
         740 Ministryof Social Development - Refugee Services            762               846              846
       2,344                                                           2,761             3,136            2,869




Note 2:         Revenue - Other
       Actual                                                         Actual Mains Estimates Supplementary
                                                                                                 Estimates
30 June 2006                                                    30 June 2007   30 June 2007   30 June 2007
        $000                                                            $000            $000          $000

      82,191 Immigration fees                                        83,386            89,190            89,015
         114 Sale of Publications                                        19                480               480
       1,708 Funding from ERMA to fund local capacity in                  -                  -                 -
             hazardous substances compliance and
             monitoring
          96 Property rental recovery                                     -                  -                 -
           6 Partnership Resource Centre                                 19                 22                22
           - Payroll interest                                            15                  -                99
         918 Realised foreign exchange gain                               -                  -                 -
         290 Unrealised foreign exchange gain                             -                  -                 -
         617 Other                                                    1,052                  -                 -

       85,940                                                        84,491            89,692            89,616




                                                                                                               117
Note 3:         Operating Costs

       Actual                                                         Actual Mains Estimates           Supplementary
                                                                                                            Estimates
30 June 2006                                                   30 June 2007        30 June 2007         30 June 2007
         $000                                                           $000                $000                 $000

             - Audit fees to auditors for audit of the 06/07            260                   98                    200
               financial statements
          175 Audit fees to auditors for audit of the 05/06              25                        -                      -
               financial statements
             - Audit fees to auditors for audit of NZ IFRS               15                        -                      -
               financial information
           89 Fees to auditors for other services provided*              16                        -                      -
      19,282 Lease and rental charges                                21,118               21,704                 20,904
             - Realised foreign exchange losses                         (164)                 500                         -
             - Unrealised foreign exchange losses                       167                        -                      -
          16    Bad debts written off                                    18                        -                      -
            5   Change in provision for doubtful debts                    (9)                      -                      -
            -   Fixed asset write-offs                                  806                        -                      -
         115    Net loss on sale of fixed assets                        292                        -                      -
       3,990    Other propertyrelated costs                           3,602                        -                      -
      17,663    Information systems and communication costs          15,500                        -                      -
      28,179    Professional services                                23,530                        -                      -
      13,242    Immigration services direct operating costs          10,849                        -                      -
      30,250    Other operating costs                                28,981               83,953                 82,051

     113,006                                                        105,006              106,255             103,155



The Department has also capitalised $15,068 worth of fees from Audit New
Zealand, the Department’s external auditor, for assurance work done in relation to
the Work Info project (2006: $22,800).



Note 4:           Depreciation
        Actual                                                             Actual Mains Estimates Supplementary
                                                                                                      Estimates
30 June 2006                                                         30 June 2007   30 June 2007   30 June 2007
        $000                                                                 $000            $000          $000

           20 Buildings                                                            23                      20                     20

        1,592    Leasehold improvements                                          2,041                  2,021                  2,021
          201    Office equipment - owned                                          203                      78                     78
           90    Office equipment - leased                                         -                      -                      -
          435    Furniture and fittings                                            508                    -                      -
        2,318    Total Office Equipment and Fittings                             2,752                  2,099                  2,099

           35    Special equipment                                                 126                    -                      -
        6,329    Computer equipment - owned                                      7,651                  7,507                  9,507
        1,218    Computer equipment - leased                                       -                      -                      -
        7,582    Total Plant and Equipment                                       7,777                  7,507                  9,507

         776 Motor Vehicles                                                        916                    854                    854
      10,696 Total Depreciation Charge                                          11,468                 10,480                 12,480




  Note 5: Capital Charge

  The capital charge represents a charge by the Crown on its taxpayers’ funds as at
  30 June and 31 December each year. The capital charge rate for 2007 was 7.5%
  (2006: 8.0%).




                                                                                                                                   118
Note 6:          Fixed Assets

        Actual                                                      Actual
30 June 2006                                                30 June 2007
         $000                                                        $000
                LAND
              - At cost                                                    -
        3,753 At valuation                                         2,714
        3,753 Land - Net Book Value                                2,714
                BUILDINGS
              - At cost                                                  -
          799 At valuation                                         1,405
           (44) Accumulated depreciation                              (11)
          755 Buildings - Net Book Value                           1,394
                LEASEHOLD IMPROVEMENTS
      16,886 At cost                                              17,144
     (11,184) Accumulated depreciation                            (9,289)
        5,702 Leasehold Improvements - Net Book Value              7,855
                SPECIALISED EQUIPMENT
        1,009 At cost                                                845
         (423) Accumulated depreciation                             (388)
          586 Specialised Equipment - Net Book Value                 457
                OFFICEEQUIPMENT - OWNED
        1,927 At cost                                              2,000
       (1,552) Accumulated depreciation                           (1,531)
          375 Office Equipment - Owned - Net Book Value              469
                OFFICEEQUIPMENT - LEASED
          166 At cost                                                166
         (123) Accumulated depreciation                             (137)
            43 Office Equipment - Leased - Net Book Value             29
                FURNITUREAND FITTINGS
        4,885 At cost                                              5,444
       (3,485) Accumulated depreciation                           (3,769)
        1,400 Furniture and Fittings - Net Book Value              1,675
                COMPUTER EQUIPMENT - OWNED
      44,753 At cost                                              50,174
     (28,205) Accumulated depreciation                           (34,115)
      16,548 Computer Equipment Owned- Net Book Value             16,059
                COMPUTER EQUIPMENT - LEASED
        1,333 At cost                                              1,333
       (1,044) Accumulated depreciation                           (1,322)
          289 Computer Equipment Leased- Net Book Value                11
                MOTOR VEHICLES
        6,853 At cost                                              6,949
       (2,187) Accumulated depreciation                           (2,682)
        4,666 Motor Vehicles- Net Book Value                       4,267
                ITEMS UNDER CONSTRUCTION
          370    Leasehold Improvements                            1,634
        6,822    Computer Equipment                                3,697
        7,192    Items Under Construction- Net Book Value          5,331
                 TOTAL FIXED ASSETS
      89,556     At cost and valuation                            93,505
     (48,247)    Accumulated depreciation                        (53,244)
      41,309     Total Carrying Amount of Fixed Assets            40,261




                                                                      119
Land and buildings in Suva were revalued at fair value as at 7 August 2006, by an
independent registered valuer, Ramesh Behari, of Fairview Valuations. Land and
buildings at the Mangere Resettlement Centre in Auckland were revalued at fair
value as at 30 April 2007, by an independent registered valuer, Richard S Arlidge,
of Tse Wall Arlidge. There were no significant assumptions or limiting conditions
set out in the valuation reports.

Note 7:        Creditors and Payables

      Actual                                                                Actual
30 June 2006                                                          30 June 2007
        $000                                                                  $000


     23,342    Creditors and accrued expenses                              15,978
     11,881    Income in advance                                           10,859
        793    GST Payable                                                    732
     36,016    Total Creditors and Payables                                27,569




                                                                              120
Note 8:        Provision for Repayment of Surplus to the Crown

      Actual                                                                   Actual
30 June 2006                                                             30 June 2007
        $000                                                                     $000


          224 Repayment of net surplus for the year ended 30 June 2005           224
          224 Total Amounts Owed to the Crown                                    224




Note 9:        Provision for Employee Entitlenments

      Actual                                                                   Actual
30 June 2006                                                             30 June 2007
        $000                                                                     $000

                    CURRENT LIABILITIES
      5,841         Annual leave                                               6,931
        285         Long service leave                                           163
      1,050         Retiring leave                                               171
      7,176         Total Current                                              7,265

                    NON CURRENT LIABILITIES
        260         Long service leave                                           211
      2,428         Retiring leave                                             2,244
      2,688         Total Non-Current                                          2,455
      9,864         Total Provision for Employee Entitlements                  9,720




An independent actuarial valuation was undertaken by Melville Jessup Weaver as
at 30 June 2007 to estimate the present value of retirement leave and long
service leave. The key assumptions used in discounting to present values were:
• Discount rate for the 2007 financial year 7% p.a. (2006: 6.0% p.a.).
• Salary growth rate for the 2007 financial year 3.5% p.a. (2006: 3.5% p.a.).

The valuation methodology for retirement leave was reviewed and revised during
the year. This revision and the change in the discount rate accounted for the
majority of the decrease in the estimated liability.

The effect of the change in method and discount rates for retirement leave and
long service leave are deemed remeasurements under the Public Finance Act
1989. Accordingly these have been presented as personnel expenditure in the
Statement of Financial Performance and as remeasurements in the Statement of
Departmental Expenditure and Capital Appropriations.




                                                                                 121
Note 10:        Provisions

                                                    Additional Charge Against Reversal of
                               As at 1 July Provisions During    Provision for   Unused    As At 30
Account                               2006           the Year            Year Provisions June 2007
                                      $000               $000            $000      $000       $000

Refund of INZ lapsed General         357                  -             (11)          -       346
Skills applications
ACC Partnership Programme             29                  -               -           -         29
Restructuring and settlement
costs                               2,149                 -          (1,960)        (31)      158
Total                               2,535                 -          (1,971)        (31)      533


A provision for refunding of lapsed General Skills immigration applications was
established in June 2003. Refunding has largely been completed during the last
four years. The balance represents applications that remain unclaimed as at 30
June 2007.

In January 2003, the Department entered into the ACC’s Partnership Programme
with the ACC. Under the Partnership Programme, the Department took
responsibility for workplace injury management. This includes rehabilitation and
claims management for staff injured at work. In return, the Department is able
to substantially reduce the ACC employers’ levy. This provision relates to the
estimated costs under the Partnership Programme of outstanding claims incurred
but not reported.




                                                                                               122
Note 11:       Finance Lease Liability

      Actual                                                                Actual
30 June 2006                                                          30 June 2007
        $000                                                                  $000

             FINANCE LEASE LIABILITY
        290 Within one year of balance date                                    20
         33 One to two years                                                   20
         323 Total Finance Lease Liability                                     40



Under the Public Finance Act 1989, entering into finance lease arrangements is
deemed to be raising a loan, which requires the approval of the Minister of
Finance. The Department has received the Minister’s approval for these leases.
The interest rates implicit in these lease contracts vary from 7-13% per annum.




                                                                              123
Note 12:           Taxpayers' Funds

Taxpayers’ Funds comprise general funds and a revaluation reserve.

General Funds

      Actual                                                                                 Actual
30 June 2006                                                                           30 June 2007
        $000                                                                                   $000


     43,733 General funds as at 1 July                                                      50,035
     (5,466) Net deficit                                                                      (223)

     13,810 Capital contribution                                                             4,213
     (2,042) Capital withdrawal                                                                  -

     50,035 General Funds as at 30 June                                                     54,025




Revaluation Reserve

      Actual       Actual       Actual                                        Actual       Actual       Actual
        Land      Building        Total                                         Land      Building        Total
30 June 2006 30 June 2006 30 June 2006                                  30 June 2007 30 June 2007 30 June 2007
        $000         $000         $000                                          $000         $000         $000

                                               Opening Balance as
       3,467              891            4,358 at 1 July                      3,467           891        4,358

               -             -               - Effect of revaluations        (1,039)          663         (376)
                                               Closing Balance as
       3,467              891            4,358 at 30 June                     2,428         1,554        3,982




                                                                                               124
Note 13:        Reconciliation of Net Surplus to Net Cash Flows from Operating Activities

       Actual                                            Notes         Actual        Mains Supplementary
                                                                                 Estimates     Estimates
30 June 2006                                                     30 June 2007 30 June 2007  30 June 2007
        $000                                                             $000         $000          $000
      (5,466) Net Surplus / (Deficit)                                    (223)          73        (2,129)
              Add/(less) non-cash items:

      10,696 Depreciation and Amortisation                            11,468       10,480         12,480

        (290) Unrealised FX (gain)/loss                                  167            -              -
      10,406 Total Non-Cash Items                                     11,635       10,480         12,480

                Add/(less) movements in working
                capital items:
         522    (Increase)/decrease in debtors and                      (620)           -           506
                receivables
         947    (Increase)/decrease in prepayments                        (8)           -            368
       2,768    Increase/(decrease) in creditors and                 (10,581)           -        (11,468)
                payables
       1,562    Increase/(decrease) in employee                         (142)           -         (1,462)
                entitlements
       5,799    Working Capital Movements - Net                      (11,351)           -        (12,056)

             Add/(less) item classified as investing
             activity:
         115 Net loss/(profit) on sale of fixed assets                   292            -              -

            - Fixed asset write offs                                     806            -              -
              Add/(less) item classified as investing
              activity:
      (1,305) Increase / (decrease) in finance lease                    (283)         (18)          (321)
              liability
        9,549 Net Cash Flows from Operating                              876        10,535        (2,026)
              Activities




                                                                                                     125
Note 14:                      Financial Instruments

Credit risk
Financial instruments, which potentially subject the Department of Labour to
credit risk, principally consist of cash on hand, bank balances, forward exchange
contracts and accounts receivable. There were no major concentrations of credit
risk with respect to accounts receivable.

The risk that a bank with which funds are deposited will fail or that a party with
which future or current transactions are outstanding will not meet its obligations
is minimised by only opening accounts with banks following Treasury approval.


The Department deals only, where there is a choice, with banks that have a high
credit standing. Exposure to any one counterparty is limited to NZ$5 million
including unsettled forward exchange contracts, bank account balances and
contracts due for settlement on the day the exposure is calculated. This limit
does not apply when the counterparty is the Westpac New Zealand, New Zealand
Debt Management Office (NZDMO) or the Reserve Bank of New Zealand.

Interest Rate Risk
The Department has no interest rate risk as it neither borrows nor invests
monies.

Fair value
Estimated fair values of the Department’s financial assets and liabilities as at 30
June 2007 equate with the carrying amounts reflected in these financial
statements.

Currency risk
The Department operates foreign currency bank accounts to support the
operations of the overseas branches of the Immigration Service. For business
continuity reasons, balances of up to an average month’s expenses for each
branch may be retained in the branch foreign currency bank account. All material
foreign exchange transaction exposures arising in the normal course of business
are identified as early as possible in the budgetary cycle. The Department may
utilise forward contracts to hedge exposures when recognised. Forward exchange
contracts are not captured in the Statement of Financial Position. Forward
contracts in place at balance date and the respective fair values at that date are
as per the following schedule. The NZDMO provided the market valuations of
these instruments.


Maturity Date           Currency         Nominal Foreign     Nominal NZD        Market Value at
                                            Currency
                                         Contracted to Buy Contracted to Buy       30 June 2007
                                                     (Sell)            (Sell)
                                                     $000              $000                $000


10 July 2007            AUD                         2,258             (2,522)            (2,512)

Net Market Value - Forward Contracts                2,258             (2,522)            (2,512)




                                                                                            126
All significant overseas operating lease commitments are listed below, along with
all foreign bank account balances as at 30 June 2007.


Currency                          Foreign Currency                        NZ Dollar
                       Cash at Bank         Operating       Cash at Bank      Operating
                                            Commitments                       Commitments
                                       $000            $000              $000            $000

US Dollar                            1,275              10             1,656               13
Great British Pound                    171             745               446            1,937
Euro                                   523               -               913               -
Australian Dollar                      598             270               658             297
Indian Rupee                         3,695           2,028               116              64
Fijian Dollar                          186              10               150               8
Chinese Yuan                         1,008           4,168               172             709
Hong Kong Dollar                       479           5,811                79             957
Thai Baht                            2,567          13,260               103             530
Taiwanese Dollar                     1,754           1,036                68              40
Tongan Pa'anga                          15              81                10              53
Phillipine Pesp                      1,474             376                41              10
Western Samoan Tala                     43              72                21              35
Singapore Dollar                        26               -                22               -
Other Currencies                        -                -               283               7

Total NZD Equivalent                                                  4,737            4,661




                                                                                         127
Note 15:      Related Party Information

The Department is a wholly-owned entity of the Crown. The government
significantly influences the roles of the Department as well as being its major
source of revenue.

The Department enters into numerous transactions with other government
departments, crown agencies and State-owned enterprises on an arm’s-length
basis. Where those parties are acting in the course of their normal dealings with
the Department, related party disclosures have not been made for transactions of
this nature.

Apart from those transactions described above, the Department has not entered
into any related party transactions.



Note 16: Explanation of major budget changes

The Department introduced a new cost allocation methodology in 2006/07, which
re-allocated funding between output expenses but did not change the total
funding available.

A full list of all budget variances can be found in the Supplementary Estimates of
Appropriations, B7 Volume 1 under each Vote. Other major budget variances
between 2006/07 Main Estimates and 2006/07 Supplementary Estimates are as
follows:

•   Vote Employment: Policy, Research and Evaluation
    An increase for the Department’s transfer of departmental operating
    expenditure ($518,000) is offset by expense transfers to 2007/08 for the
    Workplace Information Survey ($202,000) and Upskilling the Workforce
    project ($820,000) and an expense transfer to 2009/10 for the Linked
    Employer-Employee Database (LEEDS) project ($205,000).

•   Vote Labour: Services to Promote and Support Fair and Productive
    Employment Relationships
    Increases for the Department’s transfer of departmental operating
    expenditure ($272,000) and for compliance support for the Temporary Work
    Policy: RSE scheme ($232,000).




                                                                                  128
Note 17: Explanation of Significant Actual Variations

The following notes explain the significant variances between Supplementary
Estimates and Actuals for 2006/07.


Statement of Financial Performance

The variance in Revenue – Other of $5.125 million, or 6%, resulted primarily
from lower immigration fees received.

The variance in Personnel costs of $7.869 million, or 6% was due to a
misclassification that occurred in the reporting of the supplementary estimates.
The variance in Personnel costs should be considered in conjunction with the
variance in Operating Costs of $1.851 million or 2%.

Total expenditure was below budget by $7.240 million or 2%. This variance is
due to various remeasurements of $800,000 as explained in Note 9 and an
underspend in the following Votes: Vote Labour ($1.540 million), Vote
Immigration ($3.493 million), Vote Employment ($1.112 million) and Vote ACC
($0.093 million). Some of the variance also relates to the following pre-approved
in-principle transfers to 2007/08.

                                                                                     $000

Vote Labour: Services to promote and support fair and productive
employment relationships

An in-principle expense transfer to 2007/08 has been approved for compliance          100
support for the Temporary Work Policy: RSE scheme.

Vote Immigration: Services to position New Zealand as an international
citizen with immigration-related interest and obligations

An in-principle expense transfer to 2007/08 has been approved for Pacific             175
facilitation funding for the Temporary Work Policy: RSE scheme.

Vote Employment: Labour market information

An in-principle expense transfer to 2007/08 has been approved for existing            800
commitments to be fulfilled in 2007/08.




                                                                               129
Statement of Financial Position

                                                                     Net Assets
                                                                Higher/(Lower)
                                                                          $000
Cash and cash equivalents:                                              13,172
Draw-downs of capital not yet spent as capital expenditure
programmes have been delayed.


Trade and other receivables:                                              1,126
Funding for half the year’s employers’ contribution to the
State Services Retirement Scheme was invoiced but unpaid
as at 30 June 2007.

Fixed assets:                                                          (11,068)
The projected spend on capital did not eventuate, as the
Department’s capital expenditure programme was not
approved until September 2006, resulting in delays to capital
projects.

Employee entitlements - current:                                        (2,265)
The minimum legislative entitlement for annual leave
increased from 3 to 4 weeks from 1 April 2007, and the
Department provided an additional two days to staff with
more than 5 years service.

Employee entitlements – non-current:                                        945
The valuation methods for calculating retirement leave and
changes in the assumptions by the independent actuaries at
30 June 2007 were not anticipated.



Statement of Movement in Taxpayers’ Funds

                                                                     Net Deficit
                                                                Higher/(Lower)
                                                                          $000

Net deficit:                                                            (1,906)
Lower immigration fees were received, and expenditure was
lower on planned activities.



Statement of Cash Flows

                                                                      Net Cash
                                                                Higher/(Lower)
                                                                          $000

Net cash flows from investing activities:                                10,216
Purchases of property, plant and equipment were lower due
to delays in the Department’s capital expenditure
programme.



                                                                            130
18. Post Balance Date Events
There were no post balance date events occurring between year-end and the
signing of the financial statements that would have a significant effect on these
financial statements.




                                                                                131
Schedules and Statements: Non-Departmental
      Actual                                            Actual        Mains Supplementary
                                                                  Estimates     Estimates
30 June 2006                                      30 June 2007 30 June 2007  30 June 2007
        $000                                              $000         $000          $000

     60,432    Revenues and receipts                   52,781       41,318        51,556
    705,926    Expenses                               787,036      746,159       789,120
     18,484    Assets                                  13,908        5,640        16,468
      1,549    Liabilities                              1,891          629           638




The following non-departmental statements and schedules record the expenses,
revenue and receipts, assets and liabilities that the Department manages on
behalf of the Crown.

Further details of the Department’s management of these Crown assets and
liabilities are provided in the Statement of Objectives and Service Performance
section of the Annual Report.

These Non-Departmental balances are consolidated into the Crown Financial
Statements. Therefore, readers of these statements and schedules should also
refer to the Crown Financial Statements for 2006/07.




                                                                                   132
STATEMENT OF ACCOUNTING POLICIES

Measurement system
Measurement and recognition rules applied in the preparation of these non-
departmental statements and schedules are consistent with generally accepted
accounting practice and Crown accounting policies.

Accounting policies
The following particular accounting policies, which materially affect the
measurement of financial results and financial position, have been applied.

(a)    Budget figures
       The Budget figures are those presented in the Budget Night Estimates
       (Main Estimates) and those amended by the Supplementary Estimates and
       any transfer made by Order in Council under the Public Finance Act 1989.

(b)    Revenue
       The Department collects revenue on behalf of the Crown. This revenue
       includes the Health and Safety in Employment Levy and the Migrant Levy,
       which are legislated under the Health and Safety in Employment Act 1992
       (section 59) and the Immigration Act 1987 (section 149B) respectively.
       Revenue is recognised when earned and is reported in the financial period
       to which it relates.

(c)    Goods and services tax (GST)
       All items in the schedules are exclusive of GST, with the exception of
       receivables and payables, which are stated as GST inclusive. Where GST
       is not recoverable as an input tax, it is recognised as an expense.

(d)    Debtors and receivables
       Receivables are recorded at estimated realisable value after providing,
       where necessary, for doubtful and uncollectible debts.

(e)    Commitments
       Future expenses and liabilities to be incurred on contracts that have been
       entered into at balance date are disclosed as commitments (at the point a
       contractual obligation arises) to the extent that there are equally
       unperformed obligations. Commitments relating to employment contracts
       are not disclosed.

(f)    Contingent liabilities
       Contingent liabilities are disclosed at the point at which the contingency is
       evident.

Changes in accounting policies
There have been no changes in accounting policies since the date of the last
audited financial statements. All policies have been applied on a basis consistent
with other years.




                                                                                 133
Schedule of Non-Departmental Revenue
for the year ended 30 June 2007

Non-Departmental Revenues are administered by the Department of Labour on
behalf of the Crown. As these revenues are not established by the Department
nor earned in the production of the Department’s outputs, they are not reported
in the departmental financial statements.

      Actual Revenue Type                                                 Actual        Mains Supplementary
                                                                                    Estimates     Estimates
30 June 2006                                                        30 June 2007 30 June 2007  30 June 2007
        $000                                                                $000         $000          $000

               Administered on b ehalf of the Minister of Lab our
               Sovereign Power Revenue
         173 Employment Court, Employment Relations Authority              184          193            193
             and Employment Tribunal fees
      36,694 Health and Safety in Employment Levy                        35,950      29,067         39,305
          26 OSH fees and licences                                           33          33             33
           5 Contestable Fund recoveries                                      -           -              -
         238 Recovery of Higher Salaries Commission costs of                216         250            250
             setting local authority members' renumeration
          33 Infringement notice fines                                       10         247            247
     37,169 Total Non-Departmental Revenue Administered on               36,393      29,790         40,028
             Behalf of the Minister of Labour
               Administered on b ehalf of the Minister of
               Immigration
               Sovereign Power Revenue
     12,912    Migrant Levy                                              11,364      11,528         11,528
        135    Visitor Bonds                                                286           -              -
     10,063    English Language Bonds                                     4,661           -              -
         82    Forfited application fees                                     55           -              -
     23,192    Total Non-Departmental Revenue Administered on            16,366      11,528         11,528
               Behalf of the Minister of Immigration
            Administered on b ehalf of the Minister for Social
            Development and Employment
            Sovereign Power Revenue
         71 Programme recoveries                                            22             -             -
         71 Total Non-Departmental Revenue Administered on                  22             -             -
            Behalf of the Minister for Social Development and
            Employment
     60,432 Total non-departmental revenue administered by               52,781      41,318         51,556
            the Department




The accompanying accounting policies and notes form part of these financial
schedules and statements.


                                                                                                       134
Schedule of Non-Departmental Expenses
for the year ended 30 June 2007
The Schedule of Non-Departmental Expenses summarises non-departmental
expenses that the Department administers on behalf of the Crown. Further details
are provided in the Statement of Non-Departmental Expenditure and Capital
Appropriations on pages 136 to 137.

      Actual                                                     Actual        Mains Supplementary
                                                                           Estimates     Estimates
30 June 2006                                               30 June 2007 30 June 2007  30 June 2007
        $000                                                       $000         $000          $000

             Vote Labour
       2,664 Non-departmental output classes                      3,551        3,536         5,280
       4,699 Other expenses to be incurred by the Crown           4,687        5,298         5,005
      7,363 Total Non-Departmental Expenses: Vote Labour         8,238        8,834        10,285

             Vote ACC
     598,009 Non-departmental output classes                    671,203     636,826        671,203
     100,554 Benefits and other unrequited expenses             106,988     100,499        106,988
    698,563 Total Non-Departmental Expenses: Vote ACC          778,191     737,325        778,191



            Vote Immigration
          - Other expenses to be incurred by the Crown            607             -           644
             Total Non-Departmental Expenses: Vote
          - Immigration                                           607             -           644

    705,926    Total Non-Departmental Expenses                 787,036     746,159        789,120




Note: Annual and other appropriations have been classified together in the above
schedule, but are separately disclosed in the Statement of Non-Departmental
Expenditure and Capital Appropriations.




 The accompanying accounting policies and notes form part of these financial
 schedules and statements.

                                                                                                135
Statement of Non-Departmental Expenditure and Capital Appropriations
for the year ended 30 June 2007
The Statement of Non-Departmental Expenditure and Capital Appropriations details
expenditure and capital payments incurred against appropriations. The
Department administers these appropriations on behalf of the Crown.




                                                                             136
Statement of Non-Departmental Expenditure and Capital Appropriations
for the year ended 30 June 2007


       Actual                                                                Actual           Mains   Supplementary
                                                                                          Estimates        Estimates
30 June 2006                                                          30 June 2007    30 June 2007     30 June 2007
        $000                                                  Notes           $000
                                                                                              $000              $000
                 Annual Appropriations
                 Vote Labour
                 Non-departmental output classes:
         536     Payand Employment Contestable Fund             6              788             889             1,376
       1,259     Employment Relations Contestable Fund          6            1,894           1,778             3,035
                 Health and Safetyin Employment Levy-
         869     collection services                                           869             869              869
                 Other expenses to b e incurred b y the
                 Crown:
         953     International Labour Organisation              6              952           1,400              952
         943     Joint Equal Employment Opportunities Trust                    943             943              943
                 New Zealand Industrial Relations
            18   Foundation                                                      15             15                15
          -      Bad debt expense                                                 1             15                15
       4,578      Total                                                      5,462           5,909             7,205
                 Vote ACC
                 Non-departmental output classes:
      44,273     Case management and supporting services      4,6          55,739           54,706           55,739
     358,220     Claim entitlements and services              4,6         432,238          393,448          432,238
     195,516     Public health acute services                   4         183,226          188,672          183,226
                 Benefits and other unrequited expenses:
     100,554     Other compensation                           4,6         106,988          100,499          106,988

     698,563      Total                                                   778,191          737,325          778,191
                 Vote Immigration
                 Other expenses to b e incurred b y the
                 Crown:
                 RRB, RRA& RSAAMembers' salaries and
          -      allowances                                                    607             -                644

          -      Total                                                         607             -                644

     703,141     Total Annual Appropriations                              784,260          743,234          786,040
                 Other Appropriations
                 Vote Labour
                 Other Expenses to b e incurred b y the
                 Crown:
                 Employment Relations Authoritymembers'
                 salaries and allowances (Employment
       2,785     Relations Act 2000, Section 171)                            2,776           2,925             3,080
       2,785      Total Other Appropriations                                 2,776           2,925             3,080
                 Total Non-Departmental Expenditure and
     705,926     Appropriations                                           787,036          746,159          789,120




GST of $84.5 million (2006: $75.2 million) has been excluded from non-
departmental expenditure and capital appropriations in accordance with the
accounting policy on GST. The GST is not recoverable from the IRD and is an
expense which requires no appropriation. The expense is therefore not included in
the Statement of Non-Departmental Expenditure and Capital Appropriations.



 The accompanying accounting policies and notes form part of these financial
 schedules and statements.


                                                                                                                      137
Statement of Non-Departmental Assets
as at 30 June 2007

      Actual                                            Actual        Mains Supplementary
                                                                  Estimates     Estimates
30 June 2006                                      30 June 2007 30 June 2007  30 June 2007
        $000                              Notes           $000         $000          $000

            Current Assets
     12,846 Cash and bank balances                      8,631        3,853        14,681
      5,638 Receivables and prepayments       1         5,277        1,787         1,787
     18,484 Total Current Assets                       13,908        5,640        16,468



     18,484 Total Assets                               13,908        5,640        16,468




Statement of Non-Departmental Liabilities
as at 30 June 2007

      Actual                                            Actual        Mains Supplementary
                                                                  Estimates     Estimates
30 June 2006                                      30 June 2007 30 June 2007  30 June 2007
        $000                              Notes           $000         $000          $000

            Current Liabilities
      1,097 Creditors and payables            2         1,453         227            236
        276 Provisions                        3           284         257            257
      1,373 Total Current Liabilities                   1,737         484            493

            Term Liabilities
        176 Provisions                        3          154          145            145
        176 Total Term Liabilities                       154          145            145



      1,549 Total Liabilities                           1,891         629            638




 The accompanying accounting policies and notes form part of these financial
 schedules and statements.



                                                                                       138
Statement of Non-Departmental Commitments
as at 30 June 2007
      Actual                                                                  Actual
30 June 2006                                                            30 June 2007
        $000                                                                    $000
      734,760 Operating commitments                                         810,043
      734,760 Total commitments                                             810,043



The operating commitments are all due within one year of the balance date and
comprise:
•      Employment Relations Contestable Fund contracts of $1,660 million which are
       still to be completed as at 30 June 2007 (2006: $1.750 million).
•      Pay and Equity Contestable Fund contracts of $483,000 which are still to be
       completed as at 30 June 2007 (2006: $510,000).
•      The 2007/08 purchase agreement with ACC. The Minister of ACC entered into
       a purchase agreement with ACC on 3 July 2007. The purchase agreement
       outlines the outputs the Minister has agreed to purchased from ACC on behalf
       of non-earners for 2007/08. The total cost of the outputs that the Minister
       committed to on 3 July 2007 was $807.9 million (2006: $732.5 million).



    Statement of Non-Departmental Contingent Liabilities and Assets
    as at 30 June 2007


There were no non-departmental contingent liabilities or contingent assets as at 30
June 2007 (2006: Nil).




    The accompanying accounting policies and notes form part of these financial
    schedules and statements.



                                                                                  139
Notes to Schedules
1: Receivables and Prepayments
          Actual                                                        Actual
  30 June 2006                                                  30 June 2007
           $000                                                          $000


          5,168    Debtors and receivables                             4,795
            470    Prepayments                                           482

          5,638    Total Receivables and Prepayments                   5,277



2: Creditors and Payables
          Actual                                                        Actual
  30 June 2006                                                  30 June 2007
           $000                                                          $000


             24    Creditors                                             763
             39    Income in advance                                       39
          1,034    GST payable                                           651
          1,097    Total Creditors and Payables                        1,453



3: Provisions for Employee Entitlements
          Actual                                                        Actual
  30 June 2006                                                  30 June 2007
           $000                                                          $000

                   Current Liabilities
           276     Annual leave                                          284
           276     Total Current                                         284

                   Non-Current Liabilities
            14     Long service leave                                     14
           162     Retirement leave                                      140
           176     Total Non - Current                                   154

           452     Total Provisions for Employee Entitlements            438




                                                                            140
4:      Vote ACC

Funding is provided by the government through the Department of Labour to ACC
for costs relating to the Non-Earners Account. The Non-Earners Account covers
all personal injuries to people not in the paid workforce - students, beneficiaries,
older people and children.

For claims that originated after 1 July 2001, ACC funding is provided based on an
actuarial assessment of the whole-of-life cost. This is reassessed annually and
funding appropriated from the Crown and provided to ACC. This is referred to as
‘fully funded’ and cost $672.299 million in 2007 (2006: $600.821 million).

For claims that originated prior to 1 July 2001, ACC funding is provided to cover
the costs relating to claims in the year the costs are incurred. The cost of this is
assessed during the year and appropriation sought from the crown and funding
provided to ACC. This is referred to as ‘pay as you go’ and in 2007 cost $105.892
million (2006: $92.906 million).



5:      Explanation of Major Budget Changes

A full list of all budget variances can be found in the Supplementary Estimates of
Appropriations, B7 Volume 1 under each Vote. Other major budget variances
between the 2006/07 Main Estimates and the 2006/07 Supplementary Estimates
are as follows:

•    Vote ACC: Claim Entitlements and Services ($38.790 million)

     This relates to forecast and funding policy changes. The recent Court of
     Appeal decision regarding Schedule 2 claimants, including those suffering the
     effects of work-related exposure to asbestos, has meant that ACC is now
     liable to pay lump sums to these claimants.

•    Vote Labour: Employment Relations Contestable Fund ($1.257 million)

     The final amount of an expense transfer for outstanding 2005/06 contractual
     commitments on the fund.

•    Pay and Employment Equity Contestable Fund ($487,000)

     The final amount of an expense transfer from 2005/06.




                                                                                141
6:     Explanation of Significant Actual Variations

The following notes explain the significant variances between Supplementary
Estimates and Actuals.


Schedule of Non-Departmental Expenditure and Appropriations

                                                                            Expenditure
                                                                         Higher/(Lower)
                                                                                   $000
Vote Labour: Non-Departmental Output Expenses Pay and
Employment Equity Contestable Fund:
Slower than anticipated completion of the 2005/06 contracts.                           (588)
2006/07 contracts commenced later than expected. An in-principle
expense transfer to 2007/08 has been approved.

Vote Labour: Non-Departmental Output Expenses Employment
Relations Education Contestable Fund:
Slower than anticipated completion of the 2005/06 contracts.                          (1,141)
2006/07 contracts commenced later than expected. An in-principle
expense transfer to 2007/08 has been approved.



Schedule of Non-Departmental Assets

                                                                              Net Assets
                                                                         Higher/(Lower)
                                                                                    $000
Cash and cash equivalents:                                                       (6,050)
Higher receivables such as amounts owing from the Tertiary
Education Commission for the forfeit of English Language Bonds.


Receivables and prepayments:                                                           3,490
Lower levels of cash received from debtors such as the Tertiary
Education Commission.




7:     Post balance date events

There were no post balance date events occurring between year-end and the
signing of the financial statements that would have a significant effect on these
non-departmental statements.




                                                                                142
STATEMENT ON THE ADOPTION OF NEW ZEALAND
EQUIVALENTS TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS

Background

New Zealand accounting standard-setting bodies have announced that New
Zealand reporting entities will be required to adopt New Zealand equivalents to
International Financial Reporting Standards (NZ IFRS) for financial years
commencing after 1 January 2007. Differences between NZ IFRS and the current
accounting standards mean that many reporting entities in New Zealand, including
the Department will account for and disclose some transactions differently.

The purpose of this statement is to outline the transitional requirements and the
Department’s plans for the transition to NZ IFRS, and to highlight the key
reporting changes which will affect the Department when it reports under NZ IFRS
for the first time in the financial year beginning 1 July 2007.

Transitional requirements and plans

When publishing its first set of NZ IFRS compliant financial statements for the year
ended 30 June 2008, the Department will be required to:
•   restate all of the 30 June 2006 closing balances in the Statement of Financial
    position, which have been prepared under current accounting rules
•   compile NZ IFRS compliant financial information for the period commencing 1
    July 2006, which will be used as comparative information in the financial
    statements for the period ending 30 June 2008.
To prepare for the transitional requirements and to consider the implications of NZ
IFRS, the Department has established a project team which reports to the
Department’s Audit Committee on a quarterly basis. The Audit Committee has the
overall governance responsibility for the oversight and review of the Department’s
financial statements, including the transition to NZ IFRS.

Key reporting changes

Over the last two financial years, the project team, in conjunction with external
professional advisors, has reviewed NZ IFRS to identify which standards are
applicable and which standards will result in significant changes for the
Department. The Department is a public benefit entity for the purposes of NZ
IFRS and intends to take advantage of all available reporting exemptions.

In accordance with FRS 41: Disclosing the impact of adopting New Zealand
equivalents to international financial reporting standards, the key areas where
accounting policies will change and will have an impact on the financial statements
are:

•   the recognition of forward exchange contracts
•   the measurement of the Department’s liability under the ACC Partnership
    Programme
•   the recognition of sick leave entitlements
•   the recognition of inventories held for distribution
•   the derecognition of some website development costs.

In addition to the above, additional disclosures will be required and some
computer software will be reclassified as an intangible asset.


                                                                                143
The estimated financial impact on the Departmental financial statements of the
adoption of NZ IFRS is shown in the following table. This highlights a
reconciliation of equity, at the beginning of the transition period (1 July 2006)
under previous NZ GAAP, to equity under NZ IFRS.

There is no estimated material financial impact on the opening non-departmental
asset and liability schedules as at 1 July 2006 as a result of the transition to NZ
IFRS.

Cautionary note

The information provided in this statement should not be taken as an exhaustive
list of all the differences between current accounting rules and NZ IFRS. A full
transition note including the effect of NZ IFRS on the financial information
prepared for the year-ended 30 June 2007 will be disclosed in the annual report
for the year-ended 30 June 2008. The implementation cost of implementing NZ
IFRS has not yet been fully quantified. In addition, NZ IFRS may change between
the date of issuing these statements and the date of adoption.




                                                                                144
RECONCILIATION OF DEPARTMENTAL EQUITY AS AT 1 JULY 2006


                               Notes    NZ GAAP      Recognition/   Presentation     NZ IFRS
                                             as at   measurement    adjustments          as at
                                       1 Jul 2006     adjustments                  1 Jul 2006
                                             $000            $000          $000          $000

ASSETS
Current Assets
 Cash and cash equivalents                 59,212               -             -        59,212
 Prepayments                                1,368               -             -         1,368
 Trade and other receivables                1,466               -             -         1,466
 Other financial assets          a              -             503             -           503
 Inventory                       b              -             400             -           400
  Property, plant and            c              -               -           671           671
  equipment
Total Current Assets                      62,046             903            671       63,620

Non-Current Assets
  Property, plant and            c         41,309           (184)       (20,298)       20,827
  equipment
 Intangible assets               d             -                -         19,627       19,627
Total Non-Current Assets                  41,309            (184)          (671)      40,454

Total Assets                             103,355             719               -     104,074

LIABILITIES
Current Liabilities
 Trade and other payables        e         36,016               -           224        36,240
 Finance leases                               290               -             -           290
 Other financial liabilities     a              -               3             -             3
 Insurance liabilities           f              -              22            29            51
 Employee entitlements           g          7,176             108             -         7,284
 Provision for repayment of
 surplus to the Crown            e           224               -           (224)           -
 Other provisions                f         2,535               -            (29)       2,506
 Total Current Liabilities                46,241             133               -      46,374

Non-Current Liabilities
 Finance leases                               33               -               -          33
 Insurance liabilities           f             -              45               -          45
 Employee entitlements                     2,688               -               -       2,688
Total Non-Current                          2,721              45               -       2,766
Liabilities

Total Liabilities                         48,962             178               -      49,140

Net Assets                                54,393             541               -      54,934

TAXPAYERS’ FUNDS
 General funds                             50,035             541              -       50,576
 Asset revaluation reserve                  4,358               -              -        4,358

Total Taxpayers’ Funds                    54,393             541               -      54,934




                                                                            145
Notes to the reconciliation of departmental equity

(a)   Recognition of forward exchange contracts

      In accordance with NZ IAS 39: Financial instruments: recognition and
      measurement, the Department has recognised its forward exchange
      contracts in the Statement of Financial Position at fair value. Under NZ
      GAAP, these were not recognised but disclosed in the notes to the financial
      statements.

(b)   Inventory

      In accordance with NZ IAS 2: Inventories, the Department has recognised
      the publications and brochures that it gives away to the public as
      inventories held for distribution. Inventories held for distribution are
      assets:
      • held for distribution at no or nominal consideration in the ordinary
          course of operations
      • in the process of production for distribution at no or nominal
          consideration in the ordinary course of operations
      • in the form of material or supplies to be consumed in the production
          process or in the rendering of services at no or nominal consideration.

      Under NZ GAAP these were not recognised as an asset.

(c)   Property, plant and equipment

      In accordance with NZ IAS 1: Presentation of financial statements, the
      Department has classified vehicles which are expected to be sold in the
      next 12 months as a current asset. Under NZ GAAP, these were classified
      as non-current assets.

      The vehicles expected to be disposed of in the next 12 months do not
      meet the definition of assets held for sale as a sale is not highly probable.
      The vehicles were not actively marketed for sale at 1 July 2006 and 1 July
      2007.

      In accordance with NZ SIC 32: Web site costs, the Department has
      derecognised some web site development costs. These costs relate to the
      development of the NZ Now web site, which does not generate any
      revenues for the Department and is not transactional in nature, other than
      giving users the ability to download general information on New Zealand
      and the Department’s general services.

(d)   Intangible assets

      In accordance with NZ IAS 38: Intangible assets, the Department has
      classified its computer software as an intangible asset. Previously,
      computer software was treated as a separate class of asset within
      property, plant and equipment.

(e)   Trade and other payables

      The Department has chosen to reclassify the provision for repayment of
      surplus to the Crown and include it within Trade and other payables.




                                                                                146
(f)   Insurance liabilities

      The Department has remeasured its liability for work-related injury claims
      under the ACC Partnership Programme in accordance with the specific
      measurement guidance under NZ IFRS 4: Insurance activities. Under NZ
      GAAP, an estimate of the liability was made in accordance with FRS 15:
      Provisions, contingent liabilities and contingent assets.

      In addition, the Department has presented the liability in accordance with
      the current and non-current definitions outlined in NZ IAS 1: Presentation
      of financial statements. Under NZ GAAP, the liability was included under
      other provisions.

(g)   Employee entitlements

      In accordance with NZ IAS 19: Employee benefits, the Department has
      recognised accumulating sick leave as a liability. Accumulating sick leave
      is any sick leave which can be carried forward and can be used in future
      periods if the current period’s entitlement is not used in full. Under NZ
      GAAP, no provision for sick leave was recognised.




                                                                             147
Appendix 1


WORKPLACE FATALITIES IN 2006/07

Workplace fatalities are an important indicator to report in terms of the enormous
social impact and costs, and resource commitment for the Department to
investigate. It is one of the many indicators of occupational health and safety
trends investigated and monitored by the Department. On its own, the number
of fatalities investigated by the Department is not a reliable guide to levels of
safety performance in the workplace now or over time.

In 2006/07, the Department received reports of 55 workplace deaths. The
deaths included six bystanders (four customers and two visitors). This figure is
similar to the average in previous years, although lower than the number (65) for
the 2005/06 year.

In the agricultural sector, vehicle incidents, especially tractors and all-terrain
vehicles (ATVs) continue to be the leading cause of serious injury and death,
accounting for more than two-thirds of the fatalities in that sector. Six fatal ATV
incidents occurred this year, compared to two in the previous year and five in
2004/05.

Three of the fatalities in the construction industry were due to electrocution, and
a fatal fall from a ladder occurred after the worker received an electric shock.
There was one other fatal fall from heights in the construction sector in 2006/07,
compared to seven in the previous year. Also for 2006/07, vehicles were
involved in four other fatalities in this sector.

Vehicles also continue to be the most common factor associated with fatalities in
the diverse general industrial and commercial sector category, and three deaths
also resulted from crushing incidents in manufacturing enterprises.

Research was carried out during the year following the summer peak in fatal
incidents reported last year. The research analysed 362 workplace fatalities
investigated by the Department from 2000 to 2005 and confirmed the rate of
workplace fatalities was highest in summer, followed by the autumn months. The
peak in summer workplace fatalities was mostly due to the seasonal variations in
fatalities in the agriculture industry. This is linked to the seasonal nature of
agricultural work. Independent of season, most workplace fatalities were workers
aged 65 and over, again with higher representation in the agriculture industry.
This research points to areas where further work can be done in partnership with
stakeholders including industry, business and unions to reduce fatalities and other
health and safety incidents. The focus of such work would be on workplace
systems design, and training and workplace culture.




                                                                                148
There were 55 workplace fatalities reported during 2006/07

Agriculture
                                            Number of
                   Cause
                                             fatalities
Tractor incident                                9
All terrain vehicle (quad bikes) incident       6
Other vehicle incident                          4
Helicopter on ground                            1
Animal                                          1
Total                                           21

Construction
                                            Number of
                   Cause
                                             fatalities
Vehicle incident                                4
Electrocution                                   3
Crushed by falling object                       2
Fall from height                                2
Trench collapse                                 1
Rail incident                                   1
Total                                           13

Extractives
                                            Number of
                   Cause
                                             fatalities
Crushed by underground roof fall                1
Total                                           1

Forestry
                                            Number of
                   Cause
                                             fatalities
Tree felling                                    2
Vehicle incident                                2
Hit by log                                      1
Total                                           5

Industrial/commercial
                                            Number of
                   Cause
                                             fatalities
Vehicle incident                                5
Crushing by machinery                           3
Fall from height                                2
Drowning                                        2
Crushed by falling object                       1


                                                             149
Carbon monoxide poisoning (forklift)               1
Animal                                             1
Total                                             15

Source: Department of Labour: Workplace health and safety fatalities register,
August 2007.

Number of fatal incidents investigated – three-year comparison

  Period       2006/07                 2005/06                2004/05
               21                     17                     24
Agriculture
               (19 vehicle incidents) (10 vehicle incidents) (20 vehicle incidents)
               13                      14                     5
Construction
               (2 from a fall)         (7 from a fall)        (0 from a fall)
Extractives 1                          1                      1
  Forestry     5                       7                      1
Industrial/ 15                         26                     16
commercial (5 vehicle incidents)       (10 vehicle incidents) (2 vehicle incidents)
   Total       55                      65                     47

Victim status – three-year comparison

   Period          2006/07 2005/06 2004/05
  Employee         37       51         28
Self-employed 12            11         11
 "Bystander"       6        3          8
    Total          55       65         47
 Under 18*         4        3          4

* Under 18 included in prior totals

Source: Department of Labour: Workplace health and safety fatalities register,
August 2007.

Data limitations

It is important to note that the workplace fatality investigation statistics collated
by the Department are administrative statistics. They do not purport to give an
accurate measure of New Zealand’s workplace fatalities as a whole. These figures
reflect only the workplace deaths, arising from sudden incidents, reported to the
Department of Labour and determined, on investigation, to be within the
coverage of the Health and Safety in Employment Act. Deaths from occupational
illness are not included in this figure. Not all sudden workplace deaths are
investigated by the Department - Maritime Safety New Zealand and the Civil
Aviation Authority maintain their own records for deaths on ships and aircraft.
The Police Commercial Vehicle Inspection Unit investigates work-related deaths
involving commercial vehicles on the road. Other work-related deaths while
driving on the road may not be reported to the Department.

                                                                                 150
The statistics published in this annual report may differ from those published on
the Department of Labour’s website for the same period because further
information about fatalities for the period may have become available after
publication of the annual report. The statistics on the website are updated if
additional information becomes available following subsequent enquiries.




                                                                               151
       Appendix 2


       MIGRANT LEVY COLLECTION AND ALLOCATION –
       Background
       A migrant levy has been paid in some form by migrants since 1995. The levy is
       paid by most migrants in the Skilled/Business and Family Sponsored Streams,
       and some in the International/Humanitarian Stream. It is not paid by Samoan
       citizens, refugees and family members of refugees.

       The levy for this year was $300 per person (up to a maximum of $1,200 per
       application) for skilled, business and family migrants and $150 per person (up to
       a maximum of $600 per application) for Pacific Access Category migrants.

       The levy helps pay for services necessary because of immigration but difficult to
       charge for directly. These include contribution to the tuition of English for
       Speakers of Other Languages (ESOL) in the compulsory schools sector and for
       adult learners. The levy also funds the Department’s immigration research
       programme and provides funding for our settlement services, and it contributes
       towards the Department of Internal Affairs’ Office of Ethnic Affairs’ telephone
       interpreter services (Language Line).

       Allocation of funds is agreed before the start of each financial year based on
       estimated numbers and revenue. The allocation of funds for the 2007/08 year,
       2006/07 year and the three previous years are outlined below.


       Allocation of migrant levy

Vote          Service                                        2003/0   2004/0   2005/0   2006/0    2007/0
                                                                  4        5        6        7         8
                                                               $000    $0000     $000     $000      $000

Education     ESOL in the compulsory schools sector           3,367    2,767    2,460    2,460     2,460
Education     ESOL in schools (material for parents, and        575      450      400      400       400
              professional development
Education     ESOL for adults (home and community based)        397      397      353      353       353
Immigration   Levy administration                               436      398      354      354       422
Immigration   Immigration Research Programme: Short             650      650      578    1,203     2,253
              Term
Immigration   Immigration Research Programme:                    21      273      224      216       431
              Longitudinal Survey of Immigrants to New
              Zealand (LisNZ)
Immigration   Settlement Services                             1,551    1,106      983    1,233     1,700
Statistics    Immigration Research Programme: LisNZ             906    2,435    1,200      300     1,000
Employment    Settlement Services                                 -      445      396      438       711
Internal      Language Line – pilot telephone interpreting      300    1,266        -      417       537
Affairs       service
Internal      Cultural awareness project                         70        -        -         -        -
Affairs
              Subtotal                                        8,273   10,187    6,948    7,374    10,267
              Contribution to Budget settlement package           -    1,682    3,603        -         -
              Contestable fund for one off settlement             -        -        -        -     1,202
              projects
              Total                                           8,273   11,869   10,551    7,374    11,469




                                                                                        152
WHERE TO FIND US
      The Department of Labour has 48 offices at 17 New Zealand locations,
      including the national office in Wellington. We also have 15 immigration
      offices overseas (one in Australia, eight in Asia, three in Europe and, three
      in the Pacific). Immigration services on behalf of the Department are also
      provided through the Ministry of Foreign Affairs and Trade and British
      Embassies and Consular posts overseas.

      The location of offices relates to the need to target the skilled migrants
      New Zealand needs, foster regional relationships and manage risk. Our
      approach is to test the feasibility of new markets and align with other
      agencies offshore, before setting up a branch.

      Map here showing NZ locations.

Overseas locations

      Immigration branches
      Apia, Bangkok, Beijing, Hong Kong, Jakarta, London, Moscow, New Delhi,
      Nuku’alofa, Shanghai, Singapore, Suva, Sydney, Taipei, The Hague.

      Ministry of Foreign Affairs and Trade posts
      Ankara, Berlin, Brussels, Buenos Aires, Canberra, Dubai, Geneva, Hanoi,
      Ho Chi Minh City, Honiara, Kuala Lumpur, Los Angeles, Madrid, Manila,
      Mexico City, Niue, Noumea, Ottawa, Paris, Port Moresby, Port Vila,
      Pretoria, Rarotonga, Riyadh, Rome, Santiago, Sao Paulo, Seoul, Tarawa,
      Tehran, Tokyo, Warsaw, Washington.

      British Embassy and Consular posts
      Algiers, Amman, Abu Dhabi, Bogota, Brasilia, Cairo, Caracas, Casablanca,
      Doha, Guatemala City, Islamabad, Karachi, Kuwait, La Paz, Lima, Muscat,
      Panama City, Port of Spain, Quito, Sana’a, san Hose, Tel Aviv/Jerusalem,
      Tunis, Yangon.

      Map here showing overseas locations.




                                                                               153
MORE INFORMATION
   Department of Labour
   PO Box 3705
   Wellington
   Phone: +64 4 915 4000
   www.dol.govt.nz

   The Department’s website provides extensive information about the
   Department and all its services. It provides regular updates on health and
   safety, employment relations, immigration and labour market information.
   It also covers initiatives such as workplace productivity, Work-life Balance,
   pay and employment equity, and our international services.

   You can access Department publications and media releases, including
   documents such as the Statement of Intent and Annual Report. There is
   an A-Z of links to specific subjects and research, plus links to other
   Department of Labour sub-sites and related government websites.

   Freephone: 0800 20 90 20

   The Department of Labour can be contacted free from within New Zealand
   on 0800 20 90 20 for information on topics such as employment rights and
   obligations, workplace health and safety, contact details for union and
   employer organisations and a wide range of other services designed to
   help New Zealand workers and workplaces.

   www.immigration.govt.nz

   The Immigration New Zealand website presents information to potential
   visitors and migrants about New Zealand and its people – the way we live
   and work opportunities here.

   Visitors and migrants can access forms, calculate skills, and apply online
   for certain visas and permits. Information is provided for people working
   in the immigration industry, employers seeking workers overseas,
   education providers for international students and community-based
   organisations offering support to migrants.

   www.worksite.govt.nz

   WorkSite/PaeMahi is a one-stop information portal on skills and work in
   New Zealand. It combines work-related resources and services from
   government and non-government organisations. WorkSite/PaeMahi has
   information about education and training, career planning, finding work,
   finding employees, and establishing and operating a business, as well as
   publications and other information about working in New Zealand.




                                                                            154
www.workplaceproductivity.govt.nz

This site provides practical information and resources to help people
improve their workplace productivity. It explains what productivity is, and
gives employers and employees ideas about how they can work in
different and better ways to increase the value of what they produce.

www.dol.govt.nz/worklife

This is an interactive website on the New Zealand Work-Life Balance
project which is helping to shape further practical solutions to help people
combine healthy, productive work with other aspects of life. The site has
information on work-life balance, case studies, events, regular
newsletters, and a channel to feed your ideas and views into the project.

www.dol.govt.nz/futureofwork

The Future of Work programme aims to increase understanding of future
trends in work and their implications for the workplace, workforce and
employment opportunities in New Zealand. The website has information
and new research on changing trends, a monthly newsletter and seeks
online feedback.

www.dol.govt.nz/decentwork

On this site you will see a snapshot of activities contributing to decent
work in New Zealand. These activities are carried out by the Department
of Labour, other government agencies, the New Zealand Council of Trade
Unions, and Business New Zealand. While these activities all have their
own specific aims, they also contribute to decent work in New Zealand.




                                                                         155

								
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