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SELECT COMMITTEE SUPPLEMENTARY QUESTIONS

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					                           2011/12 ESTIMATES EXAMINATION: VOTE ACC




                           SUPPLEMENTARY ESTIMATES QUESTIONS




                                                      CONTENTS


1    Mission statement or vision ............................................................................... 4
2    Restructuring .................................................................................................. 5
3    New services or functions.................................................................................. 7
4    Services or functions curtailed ........................................................................... 7
5    User_charges collected ..................................................................................... 7
6    Fundings_allocated_to_capital_works ................................................................. 8
7    Polls, surveys or market research....................................................................... 9
8    Campaigns or publications in 2011/12 ................................................................ 8
9    Advertising_or_public_relations_campaigns ........................................................14
10   Advertising, public relations campaigns and the 2011 Budget ................................15
11   Public relations, communications staff and contractors .........................................16
12   External contractors and consultants .................................................................17
13   Contractors - cross-year comparisons ................................................................18
14   Redundancies.................................................................................................19
15   Redundancies - cross year comparisons .............................................................19
16   Personal_grievances........................................................................................20
17   Employment Relations Authority and Employment Court.......................................21
18   Personal grievance contingency funds ................................................................22
19   Arbitration cases.............................................................................................22
20   Frontline staff.................................................................................................23
21   Frontline staff changes ....................................................................................24
22   Frontline staff - definition.................................................................................24
23   Permanent staff - cross-year comparison ...........................................................25
24   Policy staff - analysis of numbers ......................................................................26
25   Policy staff - unfilled positions...........................................................................28
26   Mergers of government agencies.......................................................................28
27   Secondments to Ministers' offices......................................................................29
28   Costs of servicing Ministers' offices....................................................................29
29   Temporary staff - analysis of numbers ...............................................................30
30   Staff breakdown by role, location and gender......................................................31
31   Staff turnover ................................................................................................31
32   Implications of staff resignations.......................................................................33
33   Redundant staff being reemployed ....................................................................33
34   Estimated costs of severances, redundancies ......................................................34
35   Estimated costs of severances, redundancies ......................................................34



                                                             1
                           2011/12 ESTIMATES EXAMINATION: VOTE ACC


36   Performance bonuses and incentives .................................................................35
37   Analysis of salary levels ...................................................................................38
38   Collective employment contract negotiations.......................................................39
39   Impact of wage negotiations.............................................................................39
40   Timeline of collective employment agreement negotiations ...................................40
41   Incentives for union members ..........................................................................40
42   Collective and individual employment contracts ...................................................40
43   Accident compensation cover............................................................................41
44   Back office functions - savings ..........................................................................42
45   Workplace savings schemes .............................................................................43
46   Workplace savings schemes - impact of 2011 Budget...........................................45
47   Workplace savings schemes - meeting the costs..................................................45
48   Workplace savings schemes - options considered ................................................46
49   Average leave entitlement................................................................................46
50   Annual leave entitlements ................................................................................47
51   Overseas travel ..............................................................................................48
52   Assets planned to be sold.................................................................................50
53   Floor space leased in 2011/12 ..........................................................................51
54   Floor space leased in Wellington........................................................................51
55   Renovation, refurbishment and redecoration .......................................................53
56   Closure of offices planned ................................................................................55
57   Closure of offices considered ............................................................................55
58   Closure of offices in 2010/11 ............................................................................56
59   Codes of compliance with earthquake standards ..................................................56
60   Koru club memberships ...................................................................................57
61   Portable electronic devices ...............................................................................58
62   Personal email accounts...................................................................................59
63   Vehicle use ....................................................................................................60
64   Internal conferences and seminars ....................................................................61
65   Staff training..................................................................................................62
66   Staff morale events.........................................................................................63
67   Baseline update reports ...................................................................................63
68   Five main issues .............................................................................................64
69   Current work programme.................................................................................64
70   Purchase agreement/ output plan......................................................................64
71   Evaluations of policies and programmes .............................................................65
72   Carry-forward of funding..................................................................................67
73   Reviews of Departmental capability ...................................................................66
74   Contracts expected to be shelved, curtailed or extended.......................................67
75   IT projects expected to be shelved or curtailed....................................................68
76   IT projects due for completion ..........................................................................68




                                                             2
                           2011/12 ESTIMATES EXAMINATION: VOTE ACC


77   Software licensing fees ....................................................................................69
79   Websites .......................................................................................................71
80   Carbon neutral initiatives .................................................................................74
81   Budget_bids_- consultation ..............................................................................74
82   Budget bids - submitted...................................................................................74
83   Budget bids - successful ..................................................................................75
84   Budget bids - successful but less than 75% of funding sought ...............................75
85   Budget bids - failed .........................................................................................75
86   In principle transfer of funds between 2010/11 and 2011/12.................................. 0
87   Under spent budgets .......................................................................................75
88   Budget cuts ...................................................................................................77
89   Impact on frontline services .............................................................................77
90   Reprioritised cuts or savings.............................................................................77
91   Purchase advisors ...........................................................................................77
92   Fringe benefits expenditure ..............................................................................78
93   Monitoring achievement of goals .......................................................................79
94   Gym memberships ..........................................................................................79
95   EAP and workplace counselling .........................................................................79
96   Changes arising from other government agencies ................................................80
97   Christchurch earthquake ..................................................................................81
98   Christchurch earthquake - redundancies.............................................................82
99   Rugby World Cup ............................................................................................82


APPENDICES


Appendix 1       Question 7 ACC: Polls, surveys or market research
Appendix 2       Question 9 ACC: Advertising or public relations campaigns
Appendix 3       Question 12 ACC: Consultants
Appendix 4       Question 23 DoL and ACC: Permanent staff
Appendix 5       Question 29 DoL and ACC: Temporary staff
Appendix 6       Question 30 DoL and ACC: Analysis of staff numbers
Appendix 7       Question 37 ACC: Salary levels
Appendix 8       Question 53 ACC: Floor space – In confidence
Appendix 9       Question 59 ACC: Codes of compliance
Appendix 10      Question 64 DoL: Conferences and seminars
Appendix 11      Question 67 DoL: Baseline Update information
Apeendix 12      Question 70 DoL: Quarterly Report information
Appendix 13      Question 71 ACC: Policy or programme evaluation
Appendix 14      Question 79 DoL: Websites




                                                             3
                                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


1.   Will the Department/Ministry’s and its associated agencies’ mission
     statement or vision be changed over the 2011/12 year; if so, what are the
     details of these changes? Why were these changes made, and what is the
     objective behind such changes?
     Answer: Department of Labour (the Department)
        The Department is not expecting to change its vision statement “New Zealand
        thriving through people and work” in the 2011/12 year.
     Answer: Accident Compensation Corporation (ACC)
        In 2009/10, the Accident Compensation Corporation moved away from a singular
        mission or vision statement towards the use of an outcomes framework, which
        was more in line with the Government’s managing for outcomes framework.
        The ACC’s outcomes framework, as set out in its Statement of Intent 2011-2014,
        is as follows:
                                                                          Our Vision

                                              To be leading the world in accident prevention, care and recovery.



                                                           Delivering levy stability by achieving long-term financial
                    Rehabilitate injured people                                   sustainability                                Reduce the incidence and
     Outcomes         in New Zealand more                                                                                       severity of injury where it is
                                                  ^




                                                                                                                          ^
                            effectively                                                                                           cost-effective to do so
                                                                                       ^
                             ^                                                                                                                ^
                      Clients
                                ^                                   ^       All funders            ^                                         ^
                                                                                                                                   Injury prevention sector
     Stakeholders     Providers
                                                                    Government, Levy payers, Tax payers                            All funders
                      Employers
                                 ^                                  ^                                   ^                                     ^
                                 ^                                   ^                                   ^                                  ^
                                                                                                                                   Communities
     Customers        Clients                             All funders                          Levy payers
                                                                                                                                   Levy payers

                                 ^                                   ^                                   ^                                    ^
                                                                                               Deliver flexible, cost-
                                                          Provide funding for the
                      Deliver quality, cost                                                    effective and innovative
     Customer                                             cost of claims in the                                                    Prevent injuries to
                      effective services to                                                    injury insurance
     Value                                                future and helping to                                                    reduce their social and
                      achieve appropriate                                                      products and services
                                                          offset increases in                                                      financial impact
                      outcomes for clients                                                     that exceed our levy
                                                          levies
                                                                                               payers’ expectations

                                 ^                                  ^                                    ^                                    ^
                                 ^                                   ^                                   ^                                    ^
                      Broaden accountability,             Effectively manage
                      and align incentives                investments and                      Increase levy payer engagement
                      between stakeholders                provide better-than-                 Deliver an expanded range of injury insurance and
                      Optimise the                        market benchmark                     prevention services
     Strategic                                            returns on the funds
                      interpretation and                                                       Implement effective and efficient distribution and delivery
     Objectives                                           under management
                      application of the                                                       channels
                      Scheme parameters                   Actively manage                      Improve insurance and prevention business performance
                      Actively develop internal           Scheme and
                                                                                               Develop, review and implement account plans that guide
                      and external capability             operational risks
                                                                                               sustainable account performance
                      to meet our goals

                                 ^                                   ^                                   ^                                    ^
                                                          Investment                           Levy setting and
     Outputs          Claims management                                                                                            Injury prevention
                                                          management                           collection




        The following changes have been made to ACC’s outcomes framework:
               -    the vision has been updated to, “To be leading the world in accident
                    prevention, care and recovery”
               -    the former outcome “Ensure the ACC Scheme is financially sustainable and
                    represents value for money” has been amended to “Delivering levy stability
                    by ensuring long-term financial sustainability”
               -    the former outcome “Reduce the incidence and severity of injury” has been
                    amended to “Reduce the incidence and severity of injury where it is cost-
                    effective to do so”.


                                                                              4
                        2011/12 ESTIMATES EXAMINATION: VOTE ACC


         The core focus of ACC’s outcome framework remains ensuring the financial
         viability of the Scheme. As demonstrated above, effective rehabilitation and
         injury prevention remain the key levers through which ACC can achieve its
         outcomes and deliver against the Government’s priorities.
         The changes in wording do however make ACC’s commitment more explicit to
         ensuring that levies are less volatile in the future and that levy payers have more
         certainty of what they may be expected to pay.
         The caveat at the end of the injury prevention outcome directly reflects ACC’s
         legislation which requires expenditure on injury prevention to be cost-effective in
         reducing future levies.


         end


2.   Does the Department/Ministry and its associated agencies plan any
     restructuring in the near future; if so, what restructuring is planned in
     2011/12 and when will this occur? What evaluations have been carried out
     prior to any proposed restructuring (provide these to the committee)?
     Provide details of current and proposed structural change, the objective of
     the restructuring, staffing increases or reductions as a result, and all costs
     associated with the change including costs of redundancy?
     Answer: Department of Labour (the Department) 1
         a. What restructuring is planned in 2011/12 and when will this occur?
         The Department is entering year three of a five-year change programme to
         transform its business structure and operations.      This will ensure that the
         Department operates efficiently and effectively, meets the expected needs of
         government, and manages ongoing financial pressures.        The Department is
         reviewing how it delivers services under Vote Labour, which includes making the
         best use of its frontline resources.
         Further information is provided in the Department’s Statement of Intent 2011-
         2014 in the “Introduction from the Secretary of Labour”, “Strategic direction”, and
         “Managing in changeable operating environment” sections.
         b. What evaluations have been carried out prior to any proposed restructuring
            (provide these to the committee)?
         In 2009, Ernst & Young undertook a Value for Money review within the then
         Workplace Group within the Department of Labour. The review was put on hold
         while changes were made to the Department’s corporate and policy functions.
         The current Labour Group Change Programme takes into account
         recommendations that were still valid from the 2009 review report as appropriate.
         The Government has announced plans to move some of the work from Vote
         Employment to the Ministry of Education and officials are currently engaged in a
         due diligence exercise to provide advice to Ministers on the best way to proceed
         with this initiative.
         c. Restructuring in 2010/11
         During the past financial year (2010/11) the Department conducted a number of
         restructuring processes including:



     1
       Note: this question is answered from a Departmental perspective across all four Votes – Labour,
     Immigration, Employment, and ACC.



                                                  5
                2011/12 ESTIMATES EXAMINATION: VOTE ACC


  -   The creation of a centralised, integrated and leaner policy, research,
      evaluation and monitoring function that provides integrated labour market
      information and expert advice, including for immigration.
  -   The restructuring of the Immigration Group to strengthen leadership, bring
      like functions together and better integrate the Group within the wider
      Department.
  -   While not taking effect in 2010/11, decisions have been announced to
      restructure the Labour Group. As with the review of the Immigration Group,
      the changes strengthen leadership, bring like functions together and better
      integrate the Group within the wider Department.
  -   Completion of the corporate model implementation review commenced in
      2009/10.
  -   Further restructuring of some Business Services Group divisions to create
      fiscally sustainable structures, to increase capability and capacity within the
      centre so that support to the delivery groups is enhanced.
  d. Staffing increases or reductions as a result, and all costs associated with the
     change including costs of redundancy?
  Restructuring during 2010/11 has resulted in 162 positions being disestablished,
  122 established, and realignment of 213 staff positions within the Department.
  Severance payments were made to 30 Departmental employees in 2010/11 at a
  total cost of $1,440,836.


Answer: Accident Compensation Corporation (ACC)
  ACC has continued with several areas of restructure in the 2010/11 year following
  on from the Value for Money review in 2009/10. This has included the following:
  -   Insurance and Prevention Services, where several business units have
      undergone   restructuring, e.g.   Customer    Services,   Insurance  Risk
      Management, Delivery and Distribution and Injury prevention and Insurance
      Products
  -   Marketing and Communications
  -   Assurance Services.
  The intention in all these reviews has been to ensure that the business units are
  aligned to the overall business strategy.
  As at 31 May 2011, 15 ACC employees have been made redundant at a total cost
  of $428,554. A total of 163.6 new full-time equivalent (FTE) positions have been
  established and 196.2 FTE old positions have been disestablished, with a net loss
  of 32.6 FTE to ACC.
  It is expected that further restructuring will occur in 2011/12 as ACC ensures that
  it is delivering services that meet the organisational long term goals as stated in
  ACC’s Statement of Intent 2011-14.          ACC does not have an estimate for
  redundancy payments in the 2011/12 financial year and has not allocated a
  budget for any such payments.


  end




                                       6
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


3.   What new services or functions do the Department/Ministry and its
     associated agencies respectively intend to introduce in the forthcoming
     financial year? Describe these and estimate their cost.
     Answer: Department of Labour (the Department) and Accident Compensation
     Corporation (ACC)
       The Department has no plan to introduce new services or functions in 2011/12.
       ACC does not intend to introduce any new services or functions in the next
       financial year.


       end


4.   What services or functions do the Department/Ministry or its associated
     agencies respectively intend to cut or curtail in the next financial year?
     Describe the service or function concerned and estimate the cost saving.
     Answer: Department of Labour (the Department) and Accident Compensation
     Corporation (ACC)
       The Department has no plan to cut or curtail services or functions in 2011/12.
       ACC does not intend to cut or curtail any services or functions in the next financial
       year.


       end


5.   What user charges will be collected by the Department/Ministry or its
     associated agencies in the next year? Please break this down by existing
     user charges, extended user charges and new user charges.
     Answer: Department of Labour (the Department) and Accident Compensation
     Corporation (ACC)
       The Department will collect no user charges within this portfolio during the
       forthcoming year.
       ACC and its wholly owned subsidiary, Catalyst Risk Management Limited, do not
       collect user charges.


       end




                                             7
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


6. How much funding has been allocated to capital works by the
   Department/Ministry or its associated agencies respectively in the
   forthcoming financial year? How does this figure compare to that allocated
   and that spent in 2010/11?
  Answer: Department of Labour (the Department) 2
      The Department’s 2011/12 budget for capital has not been finalised. However,
      the forecast is set out in the Statement of Intent 2011-2014 in the section on
      “Organisational health and capability”.
      The capital budget for 2010/11, which is part of a multi-year rolling capital plan, is
      $27.339 million. The year to date expenditure as at 31 May 2011 was $19.551
      million.
  Answer: Accident Compensation Corporation (ACC)
      ACC is mainly funded through levies, and funding for the Non-Earners’ Account is
      the only Vote money ACC receives. ACC pools the Vote and levy monies for the
      purposes of its administrative budget. The Non-Earners’ appropriation funds the
      costs incurred in the Non-Earners’ Account, which includes depreciation and
      amortisation of capital. This depreciation and amortisation expenditure in the
      Non-Earners’ Account is determined from a cost allocation model which allocates
      the expenditure fairly and reasonably across the Accounts in accordance with the
      Act.
      In 2011/2012 ACC has allocated $75.3 million for capital works. In 2010/2011
      ACC allocated funding for capital works of $68.3 million. As at 31 May 2011 ACC
      had spent $49.9 million of this budget.
      The funding allocated to capital works in the 2011/2012 financial year for ACC and
      the comparative figures for the 2010/2011 financial year are outlined in the table
      below.

       ACC Capital Expenditure               2011/12                   2010/11

                                                   Budget         Actual *         Budget

                                                     $'000           $'000           $'000

        Project Capital                             54,094          29,697          40,000

        Capital Maintenance                         16,105          13,765          16,200

        Motor Vehicles                               1,458                0          1,000

        Office Equipment                                22                3              65

        Property                                     3,665           6,463          10,988

       Total Capital Expenditure                   75,344          49,928          68,253

       * 2010/11 Actuals are year to date to 31 May 2011


      end




  2
    Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               8
                       2011/12 ESTIMATES EXAMINATION: VOTE ACC




7.   What polls, surveys or market research does the Department/Ministry or its
     associated agencies respectively intend to undertake in the next financial
     year? Please provide the following details:
     -      Who is to conduct the work
     -      Date the work is to commence
     -      Estimated completion date
     -      Estimated total cost
     -      Whether tenders were or are to be invited; if so, how many were
            received.
     Answer: Department of Labour (the Department)
     The Department intends to undertake the following polls, surveys or market
     research in 2011/12.
             Polls,                                                 Estimated
                       Who is to                                    Total Cost
          surveys or               Commencement      Completion
                        complete                                                  Tenders
            market                     Date            Date          ($000)
                       the work?
           research                                                 GST excl.
                         Colmar                                                      Not
          DOL Brand     Brunton     November 2011                    63 (per     applicable –
                                                     Twice a year
           Health        (under       May 2012                       survey)       national
                        Rapport)                                                   supplier
                                                                                  Yes – by
             Staff
                                                                                  the State
          Engagement     Gallup       April 2011     March 2012        82
                                                                                   Services
            Survey
                                                                                 Commission


     Answer: Accident Compensation Corporation (ACC)
         ACC receives the bulk of its funding from levies and funding for the Non-Earners’
         Account is the only Vote money ACC receives. When ACC conducts its activities, it
         pools the Vote and levy monies and spending on these items is funded jointly.
         Therefore it is not possible to detail estimated spending from Vote ACC money on
         polls, surveys or market research. However, ACC’s total spend of levy and Vote
         ACC allocation is as follows.
         ACC undertakes a large number of surveys and market research projects each
         year. The surveys are used to assist with the monitoring and analysis of ACC’s
         performance.
         ACC tenders polls, surveys and market research in accordance with Government
         tendering and procurement protocols. Most polls, surveys and market research
         activities are completed by a preferred supplier.
         Polls, surveys and market research projects to be undertaken in the 2011/12
         financial year are listed in Appendix 1.


         end




                                             9
                       2011/12 ESTIMATES EXAMINATION: VOTE ACC




8.   How much is estimated will be spent on campaigns or publications in the
     forthcoming financial year? How does this compare to campaigns or
     publications launched or distributed in 2010/11, and at what cost? Provide
     copies of any evaluations of campaigns undertaken in 2010/11.
     Answer: Department of Labour (the Department)
        There are no Departmental campaigns or publications currently being considered
        for Vote ACC in 2011/12.
        Under Vote ACC, during 2010/11, the Department released the following
        documents:
        -   a discussion document “Increasing Choice in workplace accident
            compensation” on 1 June 2011. The budget for printing this document was
            $3,000, largely due to the writing and document design being done in-house
            and the document also being made available on-line. This consultation
            process has not concluded but it is envisaged to cost approximately $8,000.
        -   documents from Steering Group for the Stocktake of ACC Accounts, as an
            independent ministerial advisory group, on 21 December 2010. These
            documents were released electronically and there was no associated budget
            for publication or distribution.
        There were no evaluations undertaken in 2010/11, as these documents do not
        constitute ‘campaigns’.


     Answer: Accident Compensation Corporation (ACC)
        Total estimated expenditure on campaigns and publications in 2011/2012 is
        provided in the answer to Question 9.
     Campaigns launched in 2010/2011
                                                                                     2010/2011
     Details of the project
                                                                                     Total Cost
     Injury Prevention - Campaigns and initiatives relating to preventing and reducing the
     incidence and severity of injuries and occupational disease in New Zealand - promoting safe
     behaviour in work and non-work environments.
     Safety New Zealand Week                                                           $305,000
     In 2010/11 Safety New Zealand week focussed on injury prevention in the
     home resulting from falls. It involved a media event and activities to gain
     unpaid publicity and partnerships with schools, retail outlets, business,
     government, and not for profit organisations who distributed the Safety NZ
     Week messages to their staff, external customers and stakeholders.
     Agriculture industry injury prevention                                            $47,600
     Awareness raising campaign – focussed on promoting the message that
     health and safety is good business.
     Agriculture industry injury prevention                                            $140,000
     Fallen Farmer campaign – a range of paper based media articles in
     magazines featuring stories written from a farmer’s perspective on the
     consequences of injuries to farmers. A small amount of radio featuring key
     hazards arising in agriculture also was included in this spend.
     Road Transport industry injury prevention and Workplace Fleet                     $88,375
     Safety Management programme.
     Awareness raising campaign – focussed on promoting the message that
     health and safety is good business. Campaign included Safety on Bends
     DVD, Nutrition Guide, Safety Tips for Road Transport, Back of truck signs, 6
     video clips, Virtual Risk Manager and Fit for the road.




                                               10
                  2011/12 ESTIMATES EXAMINATION: VOTE ACC


                                                                               2010/2011
Details of the project
                                                                               Total Cost
Metal industry injury prevention                                                 $44,190
Awareness raising campaign – promoting awareness of the major health and
safety issues in the Metal industry.
Construction industry injury prevention                                           $102,075
Awareness raising campaign – promoting awareness of the major health and
safety issues in the Construction industry.
Home safety injury prevention campaign                                            $66,600
Advertorial/promotions aimed at DIY and home safety.
Vitamin D and falls prevention                                                    $25,000
Development of resources designed to educate GPs, Pharmacists and Age
Care facilities on Vitamin D and falls prevention for older adults in aged
residential care.
Forestry industry injury prevention                                               $40,000
Chainsaw Safety Week – a joint venture with STIHL to try to get domestic
chainsaws users to buy and wear safety gear.
Noise Induced Hearing Loss targeted campaign activities                           $254,000
A range of resources for the agriculture, construction, forestry, and metal
manufacturing industries aimed at creating awareness of the issues
associated with noise in the workplace.
Resources included DVDs, posters, fact sheets, guidelines.
Additional activity included identification of noise management and control
options.
Substantial research has been undertaken at Auckland, Massey and
Canterbury Universities to provide an evidence base for future intervention.
Health industry injury prevention                                                 $150,000
Development of the 2011 Guidelines-Moving and Handling of People. This is         (by end of
in draft as well as New Zealand public and international submission phase.        2011)
Targeted campaign to raise awareness of Discomfort, Pain and                      $104,000
Injury in the workplace, production of tools and resources
Awareness raising campaign and provision of tools and resources – primarily
focused through Discomfort, Pain and Injury training programme.
Road safety injury prevention campaign – learner driver                           $200,000
Learner drivers training in hazard perception, increasing driving skills and
increasing the number of hours they’ve practised their driving skills.
Preventing Reinjury                                                               $243,000
This project is aimed at integrating prevention services into frontline
delivery services with the overall objective of reducing the number of repeat
back and fall injuries.
Products and Services – Building awareness of ACC's products and services - providing
transparency for levy payers on the value, cost and purpose of ACC's products and services.
Publications                                                                      $30,000
ACC provides a wide range of information for levy payers (in particular
employers and self-employed people), regularly reprinting stock in response
to demand. Topics cover ACC products, services and levy rates eg
Workplace Safety Management Practices, launch of experience rating in the
Work Account, WorkPlace Cover, CoverPlus, Partnership Programme,
WorkPlace Safety Discounts, Levy Guide, return to work programmes, etc.
Launch of experience rating in the Work Account                                   $300,000
On 1 April 2011 ACC implemented experience rating for employers and self-
employed people. This campaign was to inform affected businesses of the
benefits of experience rating and the impact on their business.
Levy Consultation                                                                 $80,000
Annual consultation round, during which proposals for levy changes are
considered. This is required by the Accident Compensation Act 2001.




                                          11
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


                                                                                     2010/2011
    Details of the project
                                                                                     Total Cost
    Building Relationships with Treatment Providers – Campaigns and initiatives focusing
    on effective treatment and rehabilitation – to help ensure clients have the opportunity to
    return to a productive life.
    ACC News                                                                            $112,000
    A monthly newsletter to treatment providers that provides information about
    ACC strategy, business changes, best practice, and transactional information
    for all treatment providers.
    ACC Review and Treatment Injury Case study                                          $80,000
    Resources included in the ACC News mailout.
    Publications                                                                        $74,000
    Includes guides, case studies, handbooks and a range of other treatment
    provider publications.
    Building Relationships with Clients – Campaigns and initiatives relating to informing
    clients about part-charging for physiotherapy treatment, new processes for sensitive claims
    and provision of a wide range of updated information, publications.
    Hearing Loss                                                                        $15,000
    Awareness raising campaign and provision of resources to explain the
    introduction of co-funding for hearing loss treatment and to provide
    guidance on how to access services.
    GST change project                                                                  $15,000
    Awareness raising campaign and provision of resources to explain the
    changes to clients and providers.
    Publications                                                                        $162,000
    ACC provides a wide range of information for clients, regularly reprinting
    stock in response to demand. Areas covered by publications include guides
    to recovery, working with ACC, death by injury, low back pain and
    information on hearing loss issues, among other matters related to client
    information needs.
    Earthquake Response and Recovery                                                    $25,500
    Provision of information to general public, providers and employers in
    Canterbury the region and broader where appropriate.
    Corporate Communications - Ensures different communities receive clear and accurate
    information about the role and purpose of ACC (including corporate accountability
    documents).
    Accountability documents                                                            $136,500
    (Statement of Intent, Annual Report)


      2010/2011 Campaign Evaluations
      The Insurance and Prevention Services group of ACC evaluated the following
      injury prevention campaigns in 2010/11:
     Safety NZ Week Evaluation
      For the last three years, surveys have been undertaken before and after Safety
      NZ Week to track the general public’s awareness, attitudes and perceptions
      regarding safety in the home. This regular survey is based on a nationally
      representative sample of 500 people.
      The Safety NZ Week 2010 campaign performed well against awareness,
      engagement and participation targets. However, the campaign did not produce an
      increase in self-reported behaviour change. This remained static with 45% of
      participants reporting they have made a change in the last three months.
     Evaluation on the Review of the NZ Patient Handling Guidelines
      This was completed in 3 stages:



                                               12
                  2011/12 ESTIMATES EXAMINATION: VOTE ACC


       o   Thomas, D and Y.L. (2010). Survey of Users of the New Zealand Patient
           Handling Guidelines. The major conclusions were the need replace the
           2003 Guidelines with the advent of new technology and changing practices
           over a decade. (Cost approx. $40k).
       o   Thomas et al. (2009). Report on the Review of the New Zealand Patient
           Handling Guidelines.       This report made a series of 7 major
           recommendations. These included revising the contents and providing a
           cost benefit analysis. (Cost approx. $40k)
       o   Thomas D et al. (2009). Patient Handling Guidelines: Literature Review.
           This report identified the key activities in patient handling that resulted in
           carer injuries internationally. The report identified key carer activities that
           needed to be addressed such as lateral transfers of patients. (Cost $30k).
   Home Safety Checklist pre-launch concept development
    An evaluation to assess the effectiveness of the Home Safety Workshop
    Programme run over the 2010/11 financial year. Feedback forms completed by
    participants at the end of each workshop have been entered electronically and this
    data will be analysed.      400 participants who indicated a willingness to be
    contacted for further research were interviewed by telephone in June 2011 to find
    out what safety improvements they have made to their home as a result of the
    workshop.
    Tai Chi in the Workplace programme evaluation
    Research is being undertaken by UMR Research to confirm the efficacy of the
    programme in terms of falls prevention and the feasibility of National roll-out. The
    results for the evaluation are due in December 2011.
   Ladder exchange programme evaluation
    An evaluation to assess the effectiveness of the Ladder Exchange initiative which
    involved ACC providing funding to Mitre 10 to enable them to offer a discount to
    customers trading-in an old ladder for a new one. A telephone survey was
    conducted in late May- early June 2011 with 53 customers who took part in the
    programme to assess the importance of the discount and the impact the
    programme has had on their ladder use. The results of the survey are due in the
    first quarter of the 2011/12 financial year.
   Discomfort, Pain and Injury WorkSmart usability testing
    An overview of the programme was completed which demonstrates the depth,
    breadth, reach and, most importantly, impact of preventing and managing
    discomfort, pain and injury programme. It was shown that the return on
    investment (ROI) for this programme in 2009/10 was $15.51 per dollar spent.
    Feedback was received from industries which indicated the programme is being
    used both within New Zealand and overseas.


    end




                                         13
                       2011/12 ESTIMATES EXAMINATION: VOTE ACC




9.   For each advertising or public relations campaign to be conducted or
     commissioned or planned by the Department/Ministry and its associated
     agencies respectively, in or for the 2011/12 financial year, please provide
     the following:
     -      Details of the project including all communication plans or proposals,
            any reports prepared for Ministers in relation to the campaign and a
            breakdown of costs
     -      Who is to conduct the project
     -      Type of product or service generally provided by the above
     -      Date the work is to commence
     -      Estimation completion date
     -      Estimated total cost
     -      Whether it is intended that the campaign will be shown to the
             Controller and Auditor-General
     -      Whether tenders were or are to be invited; if so, how many were
             received.
     Answer: Department of Labour (the Department)
         Any advertising or public relations campaigns to be conducted under this Vote in
         2011/12 are still to be determined. The Department is currently developing
         business plans which will inform whether any advertising or public relations
         campaign is undertaken for specific activities.
     Answer: Accident Compensation Corporation (ACC)
         The nature of ACC’s business is that it works with all sectors of the community
         and needs to communicate regularly and widely with a range of audiences.
         Broadly speaking, its key audiences are the general public as clients and levy
         payers; businesses as levy payers and participants in the return to work process;
         treatment providers, as deliverers of treatment for ACC; and government
         agencies as partners in policy and injury prevention initiatives. ACC also works
         with a wide range of community and national organisations on injury prevention.
         In undertaking its programmed advertising and public relations campaigns, ACC
         uses preferred suppliers in order to ensure that the quality of services they
         provide adds appropriate value. Over time, preferred suppliers have been able to
         provide greater value through gaining an understanding of the complexity of
         ACC's business and diverse audiences. Control over the quality of preferred
         suppliers' work is maintained through contracts. Most contracts run for three
         years, with a right of renewal on ACC's part for a further two years.
         Each advertising or public relations campaign is underpinned by specific
         objectives, audiences, messages and a communications strategy.
         Appendix 2 outlines the proposed activities for the 2011/2012 financial year.
         Please note that ACC expects to undertake a number of injury prevention and levy
         related campaigns during 2011/12, primarily targeting:
               Expansion of the Accredited Employer Programme and other Work Account
                levy changes
               Industry-based injury prevention programmes
               Vehicle Fleet Management and Motorcycle Injury Prevention (including the
                use of the Motorcycle Safety Levy)



                                             14
                    2011/12 ESTIMATES EXAMINATION: VOTE ACC


            falls and alcohol related injuries.
      At this time, ACC has not completed scoping of this work and is therefore unable
      to provide any details or expected costing for these campaigns.


      end


10. Have any advertising or public relations campaigns been planned in relation
    to the 2011/12 Budget; if so, provide full details of costs, intended scope of
    campaigns, names of all consultants/contractors engaged to work on
    campaigns?
   Answer: Department of Labour (the Department)
      Any advertising or public relations campaigns to be conducted under this Vote in
      2011/12 are still to be determined. The Department is currently developing
      business plans which will inform whether any advertising or public relations
      campaign is undertaken for specific activities.
   Answer: Accident Compensation Corporation (ACC)
      ACC has no intention of conducting any advertising or public relations campaigns
      in relation to the 2011/2012 Budget.


      end




                                            15
                                  2011/12 ESTIMATES EXAMINATION: VOTE ACC


     11.How    many    public   relations   and/or      communications staff and
        contractors/consultants does the Department/Ministry and its associated
        agencies employ; what is the total salary budget for these staff and how
        does that compare with each of the last five financial years?
             Answer: Department of Labour (the Department) 3
                  The Department employs the following staff and contractors in communications as
                  at 11 May 2011.
                   Communications staff and contractors                    Number of
                                                                             FTEs
                   Permanent communications                                     9
                   Temporary communications (internal                           4
                   communications)
                   TOTAL                                                         13
                   Contractors                                                    4


                  The salary budget for 2010/11 is $1.159 million.
                  Information on contractors and consultants for previous years has already been
                  supplied for previous Estimates Examinations or Financial Reviews.
             Answer: Accident Compensation Corporation (ACC)
                  As at 31 May 2011, ACC’s Marketing and Communications business unit employed
                  24.6 people in a range of media, public relations, marketing and communications
                  roles. Of these, 18.4 were permanent staff and 6.2 were contractors.
                  In recent years, ACC has also provided information about marketing staff together
                  with communications and PR staff. This is to ensure the Committee has a
                  complete view of ACC’s marketing and communications function, which falls into
                  these three broad areas:
                                Operational communications support to the frontline
                                Social marketing to reduce the incidence of injury, and
                                Corporate communications
                  The actual salary spend, as at 31 May 2011, for marketing and communications
                  staff and contractors is $2,441,476. This table shows how this compares with the
                  actual spend for each of the last five financial years.
                   2005/        2006/       2007/2008           2008/2009             2009/2010           2010/2011
                   2006         2007
                    Comm         Comm      Mkt    Comm          Mkt     Comm          Mkt     Comm       Mkt    Comm
Permanent             18          11        22        11        18          10        15.4          10   6.4          12
Casual                2            0         0                              2                       2
Temporary             0            3         6
Contractors                                                      3          2         0.6           2    2.4      3.8
              4
No of staff           20          14             33                   35                     25.1              24.6
         5
ACTUAL            $2,152,037 $2,184,578       $2,972,490             $2,927,490         $2,394,668       $2,441,476 (as
                                                                                                         at 31 May 2011)



             3
               Note: this question is answered from a Departmental perspective across all four Votes – Labour,
             Immigration, Employment, and ACC.
             4
               Staff numbers for 1 July 2006 and 2007 do not include marketing staff.
             5
               Actual spend for all years shown is for staff.



                                                           16
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


       The total personnel figure has decreased since July 2009. This was a result of a
       restructure in August 2009 and a second restructure in June 2011.
       There has been an increase in contractors in the last four months as vacancies
       have occurred prior to the June 2011 restructure. The number of contractors will
       reduce as permanent staff are appointed.


       end


12.How many external contractors or consultants will be engaged or employed
   by the Department/Ministry and its associated agencies in 2011/12 and
   what is the estimated total cost? How does this compare to each of the
   previous five years, both in terms of the number engaged and the total cost?
   For each consultant or contractor that has been engaged in the last five
   financial years please provide the following details:
   -      Name of consultant or contractor
   -      Type of service generally provided by the consultant or contractor
   -      Details of the specific consultancy or contract
   -      Budgeted and/or actual cost
   -      Maximum hourly and daily rates charged
   -      Date of the contract
   -      Date the work commenced
   -      Completion date
   -      Whether tenders were invited; if so, how many were received
   -      Whether there are proposals for further or following work from the
           original consultancy; if so what are the details?
   -      A copy of all reports prepared or delivered as a result of the
           consultancy or contract.
   Answer: Department of Labour (the Department) 6
       The details of contractors and consultants engaged or employed by the
       Department in 2010/11 will be available for the Financial Review after the end of
       the financial year.
       Information on contractors and consultants for previous years has already been
       supplied for previous Estimates Examinations or Financial Reviews.
   Answer: Accident Compensation Corporation (ACC)
       ACC has budgeted a total of $17.1 million for external contractors and consultants
       in the 2011/2012 year.
       As the engagement of contractors and consultants is influenced by a number of
       factors, including legislative requirements, ACC is not able to accurately provide a
       set number of persons who will be engaged. ACC budgets a certain amount per
       year for “contract personnel” and “consultant fees,” but this amount is not broken
       down by the cost of individual contractors or consultants.




   6
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                               17
                    2011/12 ESTIMATES EXAMINATION: VOTE ACC


      Information on contractors and consultants for previous years has already been
      supplied for previous Estimates Examinations or Financial Reviews of the
      Corporation.
      ACC is able to provide information on the total spend on contractors and
      consultants for the last five years. The following table provides ACC’s total spend
      for contractors and consultants from the 2006/2007 financial year to the
      2010/2011 financial year (year to date 31 May 2011):
               Financial Year              Total Spend ($000)
        2010/11 (as at 31 May 2011)               21,461
                 2009/2010                        18,165
                 2008/2009                        31,962
                 2007/2008                        24,684
                 2006/2007                        19,267



      Note that the figures for 2007/08 and 2008/09 differ to what has previously been
      reported. These figures have been accurately updated and are shown in the table
      above.
      Many of the consultants engaged by ACC have specialist technical skills which are
      difficult to identify in the current labour market. Accordingly ACC is required to
      employ them on a longer term basis when they are identified. Typically this
      situation occurs in the area of Information Technology where specialists with an
      in-depth knowledge in their areas of expertise are critical for projects they are
      involved in.
      The details of contractors and consultants who were paid more than $50,000 for
      the period 1 July 2010 to 31 May 2011 are outlined in Appendix 3.


      end


13. Does the Department/Ministry and its associated agencies expect to hire
    more or fewer contractors in the 2011/12 year than it did in 2008/09 and
    what is the difference in the amount expected to be spent in 2011/12
    compared to 2008/09? If the Department/Ministry and its associated
    agencies expects to hire more contractors in the 2011/12 year compared to
    2008/09 year, why are more contractors required?
   Answer: Department of Labour
      The Department’s internal 2011/12 budgets are currently being developed.
   Answer: Accident Compensation Corporation (ACC)
      As the engagement of contractors is influenced by a number of factors, including
      legislative requirements, ACC is not able to accurately provide a set number of
      persons who will be engaged. ACC budgets a certain amount per year for
      “contract personnel” but this amount is not broken down by the cost of individual
      contractors.
      ACC has a budget of $12.7 million for external contractors in the 2011/12 year,
      compared with $27 million spent on external contractors in 2008/09.


      end



                                          18
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC




14. How much is being budgeted in the 2011/12 financial year for redundancy
    payments for the Department/Ministry and its associated agencies and how
    does that compare to the amount budgeted and that spent in each of the
    last five financial years?
   Answer: Department of Labour
      The Department has made no specific provision for redundancy payments for
      2011/12, nor did it in previous years. Information on actual costs of redundancies
      for previous years has already been supplied for previous Estimates Examinations
      or Financial Reviews.
   Answer: Accident Compensation Corporation (ACC)
      ACC does not allocate budget for redundancy payments, and thus has not
      included future redundancy, severance, or other termination package costs in its
      2011/2012 estimates (or in previous estimates).
      The table below summarises the redundancy payments made by ACC over the last
      five financial years.
                    Year                      Redundancy amounts
                                                 paid to staff ($)
          2010/11 (as at 31 May 11)                  428,553.59
                 2009/2010 *                       2,021,445.11
                  2008/2009                          270,584.01
                  2007/2008                          115,832.36
                  2006/2007                          697,164.50
      * The 2009/2010 figure is significantly higher than previous years due to the restructuring
      of business groups within Corporate office and the closure of the Hutt Weekly
      Compensation unit and Blenheim and Thames branches.



      end


15. How many people are expected to receive redundancy payments in the
    2011/12 financial year, and how does that compare to each of the last five
    financial years?
   Answer: Department of Labour
      The Department is carrying out several organisational change programmes, the
      outcomes of which are yet to be determined. No specific provision for redundancy
      payments has been made as numbers are not known at this time, a situation that
      also applied in previous years. Information on numbers of redundancies for
      previous years has already been supplied for previous Estimates Examinations or
      Financial Reviews.
   Answer: Accident Compensation Corporation (ACC)
      ACC does not allocate budget for redundancy payments, and has no way of
      estimating how many staff (if any) will receive redundancy payment in the
      2011/12 financial year.
      The table below represents the number of people who received redundancy
      payments over the last five financial years.




                                               19
                       2011/12 ESTIMATES EXAMINATION: VOTE ACC




                    Year                         Number of staff
                                                paid redundancy
          2010/11 (as at 31 May 11)                     15
                  2009/2010                            91*
                  2008/2009                             10
                  2007/2008                              5
                  2006/2007                             22
       * It was reported in Select Committee questions for the financial year 2009/10 that there
       were 90 employees who were paid redundancy. This figure was as at 31 May 2010, the
       figure reported above is the full year figure.


       end


16. How many personal grievances are estimated to be settled in 2011/12 and
    at what estimated cost? How does this compare to the personal grievances
    lodged by staff or former employees over the last five financial years? For
    each year please, provide the number of personal grievances, the number of
    personal grievances settled and the cost to the Department/Ministry and its
    associated agencies.
   Answer: Department of Labour (the Department) 7
       As the basis for, and number of, personal grievance claims are variable there is no
       estimate of the number or cost for cases that may be settled in 2011/12.
       The number of personal grievance claims made, claims settled, and the cost for
       each of the last five financial years is set out in the table below.
       The information from this table indicates an average of 15 claims made each year,
       with 10 claims settled at an average cost of $10,000 each. While personal
       grievance issues will vary from year to year a similar pattern can be expected for
       2011/12.
       Personal grievances 2006/07 to 2010/11
        Financial year        Claims made           Claims settled         Cost ($)
          2010/11                     12                     10              144,033
          2009/10                     25                      8               20,606
          2008/09                     10                      9              110,457
          2007/08                      7                     11              139,454
          2006/07                     21                     12               97,500


   Answer: Accident Compensation Corporation (ACC)
       ACC does not specifically budget costs for personal grievances. Any settlement is
       based on the merits of each case and is funded out of the operational budget of
       the relevant business group where the individual was employed.
       The table below represents the number of personal grievances lodged by staff or
       former employees over the last five financial years.




   7
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                               20
                         2011/12 ESTIMATES EXAMINATION: VOTE ACC




        Year                No. of personal          No. of personal   Cost to ACC ($)
                            grievances lodged        grievances
                                                     settled
        2011/12                   8 will carry
                                   over from           Unknown             Unknown
                                    previous
                              financial years
        2010/2011                          18               17              175,000
        2009/2010                          15               15               78,407
        2008/2009                            9               8               52,165
        2007/2008                          12                9               28,500
        2006/2007                            7               7                 8,000
       Note: Four of   those settled between 2006 and 2009 were lodged prior to 1 July 2006.



       end


17. How many proceedings with the Employment Relations Authority or
    Employment Court are estimated to be dealt with in 2011/12? How does
    this compare with proceedings lodged by staff or former employees with the
    Employment Relations Authority or Employment Court in the last five
    financial years? For each year please, provide the number of proceedings,
    the number of proceedings settled and the cost to the Department/Ministry
    and its associated agencies.
   Answer: Department of Labour (the Department) 8
       Two staff members or former employees lodged a proceeding with the
       Employment Relations Authority or Employment Court in 2010/11. As at 10 May
       2011 one of these cases has been settled. As the settlement resulted from a
       confidential determination of the Employment Relations Authority, and cost
       information for the year in question relates to a single case, it is not considered
       appropriate to disclose the amount. The other case is scheduled for a further
       hearing in 2011/12.
       Information for the last five years has already been supplied during previous
       Estimates Examinations or Financial Reviews.
   Answer: Accident Compensation Corporation (ACC)
       ACC is currently aware of two proceedings that are expected to be dealt with in
       2011/12. These carry over from those listed for 2010/11 in the table below.
       ACC does not have an estimate of further proceedings lodged with the
       Employment Relations Authority or Employment Court, as all efforts are made to
       resolve any personal grievances raised before they escalate to that level.
       The table represents the number of proceedings lodged by staff or former
       employees with the Employment Relations Authority or Employment Court in the
       last five financial years.      As the settlements result from a confidential
       determination of the Employment Relations Authority, and cost information for the
       year in question relates to a single case, it is not considered appropriate to
       disclose the cost to the Corporation.




   8
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                21
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC




                          Number of               Number of
             Year
                         proceedings          proceedings settled
        2010/2011              1                         1*
        2009/2010              0                         1
        2008/2009              1
        2007/2008              1                         1
        2006/2007              0
       * This relates to a determination, in ACC’s favour, made by the Employment Relations
       Authority which is being appealed to the Employment Court by the employee



       end


18. Has the Department/Ministry and its associated agencies set aside
    contingency funds for the settlement of personal grievances in 2011/12; if
    so, how much and involving how many claims?
   Answer: Department of Labour (the Department) 9
       To date the Department has made specific provision for one personal grievance
       settlement payment for 2011/12. As this one matter is still proceeding it is not
       considered appropriate to disclose the level of the provision.
   Answer: Accident Compensation Corporation (ACC)
       ACC does not set aside any contingency funds for the settlement of personal
       grievances. Funding of any settlement is sourced from the operational budget of
       the appropriate business group, as required.


       end


19. How many arbitration cases involving staff are estimated to be settled in
    2011/12 and at what estimated cost? How does this compare to arbitration
    cases involving staff over the last five financial years? For each year please,
    provide the number of arbitration cases, the number of personal grievances
    settled and the cost to the Department/Ministry and its associated
    agencies?
   Answer: Department of Labour (the Department) 10
       For the purposes of responding to this question arbitration cases are taken as
       those matters involving determination by the Employment Relations Authority or
       the Employment Court.
       The number of ‘arbitration’ cases involving staff over the last five financial years is
       set out in the table below. Settlement may not have occurred in the year the
       case was lodged. Costs of settlement are provided except for those where an



   9
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.

   10
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                22
                           2011/12 ESTIMATES EXAMINATION: VOTE ACC


      order for confidentiality has been determined by the Employment Relations
      Authority or Employment Court.
      As the nature and outcome of cases addressed by way of arbitration are so
      variable an estimate for the 2011/12 year is not available from comparison with
      the previous five years.
                  Arbitration cases table: 2006/07 to 2010/11
            Financial          Claims       Claims              Cost ($)
              year             made       settled by
                                          arbitration
             2006/07             1            Nil                 Nil
             2007/08             5             2                  Nil
             2008/09             1             4                 1,500
             2009/10             4             1                  Nil
             2010/11             3             2                  Nil


   Answer: Accident Compensation Corporation (ACC)
      Provisions providing for arbitration in a New Zealand employment law contract
      were repealed in 1991. To the extent these questions seek information about
      mediation, ACC’s responses to questions 16 and 17 provide that information.


      end


20. How many of the total staff complement are expected to be employed by the
    Department/Ministry and its associated agencies in 2011/12 are considered
    to be frontline staff and how does that number compare to the number of
    frontline staff in each of the past five financial years?
   Answer: Department of Labour (the Department) 11
      The following table contains numbers and percentages for front line and back
      office staff since December 2008 when recording of this split started. The balance
      between operational staff and those whose functions are corporate in nature is not
      expected to change significantly for 2011/12.
                               31-        30-           31-         30-      31-      31-
          Actual FTEs         Dec-08    Jun-09         Dec-09     Jun-10    Dec-10   Mar-11
          Front Line            1,277     1,263         1,278       1,282    1,258     1,278
          Front Line (%)         65.9      66.9          67.2        67.5     68.1      69.0
          Back Office             661       624           625         616      589       574
          Back Office (%)        34.1      33.1          32.8        32.5     31.9      31.0
          Total                 1,938    1,887          1,903      1,898     1,847    1,852


   Answer: Accident Compensation Corporation (ACC)
      ACC defines frontline staff as permanent, fixed-term contract, and casual (hourly)
      employees, whose jobs primarily involve the delivery of services to:
            ACC clients (claimants) via the claims management network; and
            Levy payers via the Business Service Centre.

   11
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.




                                                  23
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


      ACC does not budget or forecast for headcount, only for full-time equivalent (FTE)
      staff numbers. Therefore, the actual headcount can not be determined for the
      coming year. However, 1,888 (FTE) frontline staff has been budgeted for in
      2011/12 financial year.
      The table below represents the number of frontline staff over the last five financial
      years.
         Year                             Number of frontline staff
         2010/11 (as at 31 May 2011)                   1,921
         2009/2010 (as at 30 June 2010)                1,921
         2008/2009 (as at 30 June 2009)                2,050
         2007/2008 (as at 30 June 2008)                2,001
         2006/2007 (as at 30 June 2007)                1,853


   end


21. Are any changes in the balance between frontline staff and back office staff
    planned in the 2011/12 financial year; if so, please provide details?
   Answer: Department of Labour (the Department)
      See the Department’s answer to question 20.
   Answer: Accident Compensation Corporation (ACC)
      Frontline staff are defined as ACC permanent, fixed-term contract, and casual
      (hourly) employees, whose jobs primarily involve the delivery of services to:
                  ACC clients (claimants) via the claims management network; and
                  Levy payers via the Business Service Centre.
      The claims management network consists of those units involved in the
      management of ACC’s total claims portfolio from the initial lodgement of claims
      through to serious injuries requiring life-time support from ACC.
      The Business Service Centre manages customer contacts regarding employer and
      self-employed levies in order to assist ACC levy payers, and resolves queries to
      remove barriers to payment of levies.
      ACC's forecast full time equivalent staff numbers to June 2011 are 2,794 with a
      frontline to back office split of 65% and 35% respectively. ACC is not planning to
      increase staff numbers in the 2011/2012 year, and expects the frontline to back
      office percentage split to remain constant.


      end


22. How does the Department/Ministry and its associated agencies define
    frontline staff for the 2011/12 year and how has that definition changed
    over the past three years?
   Answer: Department of Labour (the Department)
      The Department utilises the State Services definition of frontline staff as being
      “those who deliver services that members of the public directly receive and back
      office staff are those who work on processes that that don’t directly deliver a
      service to a member of the public”. This definition has remain constant over the
      past three years.



                                             24
                        2011/12 ESTIMATES EXAMINATION: VOTE ACC


   Answer: Accident Compensation Corporation (ACC)
      ACC defines frontline staff as permanent, fixed-term contract and casual (hourly)
      employees, whose jobs primarily involve the delivery of service to:
            ACC clients (claimants) via the claims management network, and
            Levy payers via the Business Service Centre (BSC).
      The claims management network consists of those units involved in the
      management of ACC’s total claims portfolio from the initial lodgement of claims
      through to serious injuries requiring life-time support from ACC.
      The Business Service Centre manages customer contacts regarding employer and
      self-employed levies.
      The definition of frontline staff has not changed over the past three years.
      end


23. How many permanent staff are currently employed within the
    Department/Ministry and its associated agencies? How does this compare
    to the last five financial years? Please breakdown by:
    -     Role (e.g. policy/admin/operational)
    -     Classification (full and part-time)
    -     Office (e.g. geographical location)
    Provide detailed explanations for any fluctuations in staff numbers of plus
    or minus 10%.
   Answer: Department of Labour (the Department) 12
      Appendix 4 provides the number of permanent staff employed in the Department
      by geographic location and by role as at 11 May 2011.
      Information for the last five years has already been supplied during previous
      Estimates Examinations or Financial Reviews.
   Answer: Accident Compensation Corporation (ACC)
      Appendix 4 provides a detailed breakdown of actual permanent ACC staff
      numbers by location, role and classification for each of the last five financial
      years. The table below shows actual total permanent staff numbers for each of
      the last five financial years.
          Year (to     Permanent Full          Permanent                Total             Variation From
          30 June)         Time                Part Time             Permanent            Previous Years
                                                                        Staff
          Current 13         2,537                  188                2,725                   -0.7%
            2010             2,544                  200                2,744                   -6.1%
            2009             2,513                  409                2,922                   +7.5%
            2008             2,344                  373                2,717                   +8.9%
            2007             2,235                  261                2,496                   +5.6%
            2006             2,107                  256                2,363                   +4.5%



   12
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.
   13
      Year to 31 May 2011. Figures from 2010 do not categorise permanent full-time staff on long-term leave
   or parental leave as part-time (as was previously calculated). Also, from 2010, those employees who
   work 60 hours and above per fortnight (0.8 FTE and above) are categorised as full-time employees. Those
   employees who work less than 60 hours (0.79 FTE and below) are categorised as part-time employees.
   This definition is in line with SSC reporting. Prior to 2010, employees who worked less than 75 hours (any
   less than 1 FTE) were calculated as part-time.



                                                    25
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


      Several areas showed a 10% fluctuation in numbers, with key contributing factors
      detailed below:
             Branch Operational Staff:
                  o   Auckland – seven fewer staff each in Counties Manakau and North
                      Harbour Branches due to a realignment of resource to caseload and
                      a reduction in the administrative function.
                  o   Otago – seven fewer staff due to a transfer from the Southern
                      South Island Recover Independent Service (SI RIS), located in
                      Alexandra to the Northern SI RIS, located in Timaru.
             Operations (Claims Management) – an increase of 88 staff due to the
              integration of the Health Purchasing and Provider Relationships business
              group into the Claims Management group in July 2010
             Injury Prevention – an increase of 115 staff due to the amalgamation of
              the Injury Prevention and Product Pricing and Development business
              groups to form the Insurance and Prevention Services group in September
              2010
             Other Services – decrease of almost 200 employees due to the increases in
              the two groups above
             The Northern Processing Centre has changed its title and function to the
              Northern Service Centre, and as a result there has been a movement of 86
              staff from the Processing Centres category to the Contact & Inquiry Service
              Centres category
             A change in responsibility has led to a re-allocation of over 30 staff from
              the Elective Service Centre to the Dunedin Service centre in the Contact &
              Inquiry Service Centre category.
             The Sensitive Claims Unit increased by 12 staff due to an increase in
              claims volumes and emphasis on improved client communication.


      end


24. How many staff are currently employed in policy positions and how many
    does it expect to have in the 2011/12 financial year? How does this
    compare with each of the last five financial years? How do these positions
    breakdown by policy area?
   Answer: Department of Labour (the Department) 14
      The number of staff employed in the policy positions from 2006 – 2011 is shown
      in a table below.




   14
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.




                                                26
                    2011/12 ESTIMATES EXAMINATION: VOTE ACC




                   1 July        1 July        1 July         1 July          1 Jul       11 May
                   2006          2007          2008           2009            2010        2011
    Policy Roles      123           115             120           122             138        83


   The break down of positions by policy area as at 11 May 2011 was:
    Policy Area                                                    Numbers
    Accident Compensation Policy and Monitoring                           8
    Labour and Immigration Policy                                        35
    Research, Evaluation and Monitoring                                  33
    Strategic Labour Market Policy                                        7
    Total as 11 May 2011                                                83



Answer: Accident Compensation Corporation (ACC)
   ACC has 20 employees in policy roles as at 14 June 2011. It is expected that 21
   people will be employed in policy roles in the 2011/12 financial year.
   The following table provides a comparison of employees in policy roles across ACC
   for the last five financial years.
                      2005/06       2006/07         2007/08     2008/09         2009/10
    Policy staff            14            20            20          19              21*
   *Includes two employees on fixed term contracts



   During the 2006/07 financial year, the Strategic Policy and Research group (now
   Governance, Policy and Research) took over responsibility for strategic operational
   issues that had previously been managed by ACC’s operational area. This
   impacted on the level of policy resource required.
   The 2010 Review of Expenditure on Policy Advice defined "policy advice" as
   activities conducted for the purpose of providing advice to Ministers and Cabinet.
   Under that definition, ACC's FTE count in terms of policy positions for 2010/11
   was 8.84 (including one Private Secretary).
   ACC’s policy advice function is broader than that captured by the definition of
   policy advice used for the purposes of the Review of Expenditure on Policy Advice.
   ACC provides strategic (eg proposed legislative amendments) and operational
   (e.g. rates of payment for home support services) advice to inform decision
   making by Ministers, the ACC Board, ACC’s Executive management team, and
   operational decision making committees.


   end




                                               27
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


25. How many unfilled policy positions are there currently within the
    Department/Ministry and its associated agencies and how many unfilled
    policy positions does it expect to have in the 2011/12 financial year? How
    does this compare with each of the last five financial years? How do these
    positions break down by policy area? How is the Department/Ministry and
    its associated agencies continuing to carry out policy work in the absence of
    staff in these positions?
   Answer: Department of Labour (the Department) 15
      The Department’s Policy and Research Group (PRG) has 24 unfilled policy
      positions. The breakdown of positions by policy area, as at 11 May 2011, is:
       Policy Area                                                   Number
       Accident Compensation Policy and Monitoring                               3
       Labour and Immigration Policy                                             8
       Research, Evaluation and Monitoring                                       8
       Strategic Labour Market Policy                                            5
       Total as 11 May 2011                                                    24


      The Department expects to fill all unfilled policy positions in 2011/12.
      There is no comparable data from the last five financial years because PRG was
      created from 1 December 2010.
      As the PRG builds to full strength, it has managed to fulfil the expected
      deliverables, and is continuing to recruit valuable staff who can meet our
      requirements to provide high value policy advice.
   Answer: Accident Compensation Corporation (ACC)
      Currently, ACC has one unfilled policy position and is not planning on filling this
      position. It is expected that any other policy positions that become vacant in the
      2011/12 year will be filled. ACC has only one policy area, therefore, these
      positions relate to that area.
      ACC is unable to supply information on unfilled positions in previous financial
      years as it does not record this level of detail. However, over the previous five
      years ACC has managed to carry out its policy function with fewer than optimal
      staff by prioritising work based on the key strategic challenges to the
      organisation, e.g. growth in Scheme costs, and legislative changes.


      end


26. What work, if any, will be done by Department/Ministry staff around
    mergers of Departments, ministries or other government funded agencies in
    the 2011/12 year; and for each such project, what Departments, ministries
    or other government fund agencies are being considered for mergers?
   Answer: Department of Labour (the Department) 16
      The Department is currently looking into the possible transfer of work within Vote
      Employment to the Ministry of Education as already announced by the
      Government.

   15
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.
   16
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                28
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


   Answer: Accident Compensation Corporation (ACC)
      ACC staff will not be doing any work on mergers in 2011/12.


      end


27. How many staff in total are currently seconded to Ministerial offices and are
    these staff members’ salaries paid by the Department/Ministry or by
    Ministerial Services? How does this number compare with the number of
    staff seconded to ministerial offices in each of the last five financial years?
   Answer: Department of Labour (the Department) 17
      There are seven Department’s employees currently seconded to Ministerial offices.
      Their salaries are paid by the Department. This number is the same as that for
      last year and has been relatively stable in recent years. Information for the last
      five years has already been supplied during previous Estimates Examinations or
      Financial Reviews.
   Answer: Accident Compensation Corporation (ACC)
      There are currently two ACC staff seconded to Ministerial offices. One is seconded
      to the Office of the Minister for ACC, the other to the Office of the Associate
      Minister for ACC. The staff member’s salaries are paid by the Corporation.
      From 1 July 2005 until December 2008, one ACC staff member was seconded to
      the Office of the Minister for ACC. Since December 2008, there has been two ACC
      staff members seconded to Ministerial offices.


      end


28. What are the direct costs of servicing Ministerial offices budgeted for in
    2011/12? And how does this compare with each of the last five financial
    years?
   Answer: Department of Labour (the Department) 18
      The Department’s internal 2011/12 budgets are currently being developed. Direct
      costs (personnel) for the 2010/11 financial year are expected to be $657,465.
      Information for the last five years has already been supplied during previous
      Estimates Examinations or Financial Reviews.
   Answer: Accident Compensation Corporation (ACC)
      The only costs ACC incurs for servicing ministerial offices are the salaries of the
      Private Secretaries.
      ACC has previously provided the Committee with salary details of staff seconded
      to work in Ministerial offices. However, it no longer considers disclosure of this
      information to be appropriate for release for reasons of privacy.


      end


   17
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.
   18
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                29
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


29. How many temporary staff are currently employed within the
    Department/Ministry and its associated agencies How does this compare to
    the last five financial years? Please breakdown by:
   -      Role (e.g. policy/admin/operational)
   -      Classification (full and part-time)
   -      Office (e.g. geographical location)
   Provide detailed explanations for any fluctuations in staff numbers of plus
   or minus 10%.
   Answer: Department of Labour (the Department) 19
       Temporary or fixed term staff are employed to assist with workload peaks, to
       provide cover for absences due to, for example, parental leave, or to work on
       specific projects. Variations in these requirements will lead to fluctuations in the
       numbers of staff on temporary or fixed term engagements from year to year.
       Appendix 5 provides the number of temporary staff employed in the Department
       by geographic location and by role as at 11 May 2011.
  Answer: Accident Compensation Corporation (ACC)
       Appendix 5 provides a detailed breakdown of ACC’s current temporary staff
       numbers by office, role and classification, as well as for each of the last five
       financial years. The table below shows current total temporary staff numbers as
       well as totals for each of the last five financial years, including any fluctuations in
       staff numbers of plus or minus ten percent.
       Temporary staff employed by ACC by financial year
        Year to 30 June      # Temporary           #           Total          Variation
                               Full Time       Temporary     Temporary      From Previous
                                               Part Time       Staff              Year
        As at 31 May 2011          83              38           121            +40.7%
               2010                50              36            86             -23.2%
               2009                49              63           112             -42.9%
               2008                48             148           196               3.2%
               2007                47             143           190              -8.7%
               2006                53             155           208            +285.2%


       The fluctuations in the total number of temporary staff employed as at the end of
       each financial year reflects the nature of engagement of temporary staff, such as
       supporting the delivery of critical business projects, and providing coverage for
       permanent employees during extended periods of leave.
       There are currently 35 more temporary staff than in 2010. This increase is
       primarily due to the engagement of 22 temporary staff in the Insurance and
       Prevention Services business group, from July 2010, to assist the business change
       programmes aimed at becoming more efficient, delivering a more sustainable
       Scheme, and being more responsive to customer needs in product and service
       choice and delivery.
       In the Dunedin Service Centre (part of the Contact & Inquiry Service Centres)
       there has been an increase in temporary headcount due to the absorption of work
       from Canterbury following the February 2011 earthquake in Christchurch.



   19
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                30
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


      There has been a decrease of 10 temporary employees in branch operational
      roles, from 34 in 2010 to 24 in 2011. As well as work being reassigned from
      Christchurch, the decrease in branch operational roles is in part due to the
      continuing focus on value for money in the branches, whereby business cases for
      new hires are rigorously assessed, and those on extended periods of leave are not
      necessarily backfilled, but the work is reallocated to existing staff members.
      In individual cases, due to the number of recent change programmes in the
      organisation, line managers are filling vacancies with temporary staff for a defined
      period, rather than recruiting permanent staff, until the final business structure
      for the group or team has been ratified.
      The significant increase in the number of temporary staff between 2005 and 2006
      related to the implementation of EoS, ACC’s claims management system. When
      permanent staff were seconded onto the EoS project, temporary staff were used
      to backfill their positions.


      end


30. Provide a breakdown by role (e.g. policy/administration/operational) and
    location of the Department/Ministry and its associated agencies’ staff
    numbers in comparison to each of the last five financial years, by gender.
   Answer: Department of Labour (the Department) 20
      Appendix 6 provides the number of staff employed in the Department by
      geographic location, by role and by gender as at 11 May 2011.
      Information for the last five years has already been supplied during previous
      Estimates Examinations or Financial Reviews.
   Answer: Accident Compensation Corporation (ACC)
      Appendix 6 provides a detailed breakdown of permanent ACC staff by location,
      role and gender, for each of the last five financial years.


      end


31. What is the anticipated staff turnover for 2011/12 and what was the staff
    turnover for 2010/11 by category; provide this information both as a
    percentage and in numerical terms? Is the turnover rate cause for any
    concern, if so, what are the major issues and how will these be addressed in
    2011/12?
   Answer: Department of Labour (the Department) 21
      The annual unplanned staff turnover within the Department for 2011/12 is
      expected to be at around 13%. Figures for 10 month period to May 2011 for
      2010/11 are provided in the table below.
       Business Group                           Number       Turnover (%)
       Labour Group                                 39              8.58
       Immigration Group                           144             11.03


   20
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.
   21
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                31
                   2011/12 ESTIMATES EXAMINATION: VOTE ACC


    Business Group                        Number        Turnover (%)
    Policy and Research Group*                   10            9.01
    Legal and International Group                 9           10.17
    Business Services Group                      41           15.50
    Executive Group                               8           14.29
    Work Directions**                            10
    Department overall                         261            11.61
   * Policy and Research Group formally established on 1 December 2010
   ** Work Directions Group was formally disestablished on 1 December 2010


   Unplanned staff turnover within the Department is not a cause for concern.
Answer: Accident Compensation Corporation (ACC)
   It is anticipated that ACC staff turnover for the 2011/2012 year will continue to be
   impacted by the increased activity in the employment market, which has created
   competition for skilled professionals. It is anticipated that turnover will increase
   slightly and then stabilise over the coming financial year. A number of initiatives
   are in place that are designed to enhance ACC’s employment value proposition
   and increase staff retention (e.g. the Internal Mentoring Programme, leadership
   capability and development programmes, the Employee Engagement Programme
   and flexible working arrangements).
   Turnover for the current financial year, to 31 May 2011, sits at 13.05% (or 326
   permanent staff). ACC Call Centres have a turnover of 15.61% (or 55 permanent
   staff). ACC’s turnover excluding Call Centres is 12.55% (or 271 permanent staff).
   The following table sets out staff turnover by Business Group. Turnover
   percentages are calculated as a 12 month rolling turnover of voluntary
   terminations of permanent staff.
    Business Group                                 1 July 2010 to 31 May 2011
                                                        %               Number
    Claims Management                                        11.95               217
    Insurance & Prevention Services                          14.89                 53
    Corporate Services                                       21.10                 34
    Scheme Performance                                       16.85                 14
    Governance, Policy & Research                            12.05                  8
    Injury Prevention (until 31 August 2010)                  7.85                  0
    ACC Total                                               13.05                326
   Note: The figures in the table above vary from year to year as some internal restructuring
   or realigning of business groups has occurred. For example the Injury Prevention group
   was disestablished in August 2010, and members of this group transferred to the newly
   formed Insurance & Prevention Services Group.



   The current ACC staff turnover rate is not a cause for concern, as an increase in
   turnover has been anticipated as a result of the 2009/2010 global financial crisis
   coming to an end.
   The relatively high turnover rate in Corporate Services has been affected by a
   number of factors. The most significant reason is the highly competitive job
   market for Business Technology and Human Resources roles and the internal
   restructuring and realigning of this business group.


   end



                                           32
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC




32. What are the possible implications for the Department/Ministry and its
    associated agencies in 2011/12 from staff resignations since 1 July 2010?
   Answer: Department of Labour (the Department)
      The level of staff resignation is not a cause for concern to the Department [see
      answer to question 23].
   Answer: Accident Compensation Corporation (ACC)
      ACC recognises that retaining staff is a key issue to ensure an efficient,
      sustainable and flexible workforce. Potential implications for the Corporation due
      to the resignation of staff include:
         increased recruitment costs
         increased training time and costs
         loss of operational knowledge
         Increased workload pressure.
      Ongoing initiatives ACC provides to build sustainable organisational capability and
      enhance employee retention include:
         the internal mentoring programme
         Leadership capability and development programmes
         Proactive management of career development and succession
         Flexible working arrangements
         Employee engagement programme.


      end


33. Have any staff made redundant been re-employed as contractors or
    consultants and continue to be engaged   in 2011/12; if so, was this
    negotiated as part of the redundancy, severance or other termination
    packages?
   Answer: Department of Labour (the Department) 22
      One staff member, not within the Accident Compensation portfolio, was made
      redundant and was re-engaged as a contractor for two weeks in 2010/11. This
      was not negotiated as part of the redundancy, severance or other termination
      packages.
   Answer: Accident Compensation Corporation (ACC)
      No employees made redundant by the Corporation in the last financial year have
      been re-employed in a contracting or consultancy capacity.


      end




   22
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                33
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


34. How much is the estimated cost of all redundancy, severance or other
    termination packages for the 2011/12 financial year? How does this
    compare to the total value of all redundancy, severance or other termination
    packages paid out in the last financial year?
   Answer: Department of Labour (the Department) 23
      The Department has made no specific provision for redundancy payments for
      2011/12.
      The total cost of all redundancy, severance or other termination packages paid out
      from 1 July 2010 to 11 May 2011 was $1,440,836.50.
   Answer: Accident Compensation Corporation (ACC)
      ACC does not allocate budget for redundancy payments, and thus has not
      included future redundancy, severance or other termination package costs in its
      2011/2012 estimates.
      The total value of all redundancy, severance, and other termination packages paid
      out by the Corporation in the 2010/11 year, as at May 31 2011, was $428,554.
      These payments were made after every effort had been made to redeploy affected
      staff into other roles within ACC.


      end


35. How much is the estimated cost in $10,000 bands of all individual total
    amounts paid out in redundancy, severance or other termination packages
    in the 2011/12 financial year? How does this compare to the individual total
    amounts paid out in redundancy, severance or other termination packages
    since 1 July 2010?
   Answer: Department of Labour (the Department) 24
      The Department has made no specific provision for redundancy payments for
      2011/12.
      Redundancy payments reflect the salary level and entitlement of the individuals
      concerned. Redundancy payments do not include payment for any annual leave
      or notice period. The redundancy payments made from 1 July 2010 to 11 May
      2011 in $10,000 bands:

            Salary level ($)               Number
              Under 10,000                     3
            10,000 - 19,999                    8
            20,000 - 29,999                    2
            30,000 - 39,999                    1
            40,000 - 49,999                    2
            50,000 - 59,999                    1
            60,000 - 69,999                    4
            70,000 - 79,999                    1
            80,000 - 89,999                    3

   23
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.
   24
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                34
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


            Salary level ($)               Number
             90,000 - 99,999                   3
            100,000 - 109,999                  1
            110,000 - 119,999                  1
                 TOTAL                         30


   Answer: Accident Compensation Corporation (ACC)
      ACC does not allocate budget for redundancy payments, and thus has not
      included future redundancy, severance or other termination package costs in its
      2011/2012 estimates (or in previous estimates).
      The table below provides a breakdown, in $10,000 bands, of individual total
      amounts paid out in redundancy, severance or other termination packages by ACC
      since 1 July 2010, up to and including May 31 2011. ACC makes every effort to
      redeploy staff affected by structural change to other roles within the Corporation.
                                         Number of
                                        redundancy,
            Salary level ($)         severance or other
                                        termination
                                         payments
             Under 10,000                     1
            10,000 to 20,000                  3
            20,000 to 30,000                  5
            30,000 to 40,000                  2
            40,000 to 50,000                  4
                TOTAL                        15


      end


36. What is budgeted to be spent on performance bonuses, payments or
    additional leave in 2011/12? Were staff given any form of bonus or
    incentive payment or leave in the past financial year; if so, why, and what
    were the specific incentive payments or leave received and at what total
    cost? What were the specific criteria for such performance payments? Has
    there been any changes to the criteria since November 2008; if so, what
    specific changes and why? What was the range of performance bonuses or
    payments given to staff in the past financial year (in $1,000 bands), and
    what is estimated will be given in 2011/12 (in $1,000 bands)?
   Answer: Department of Labour (the Department) 25
      Since 2006, the Department's remuneration policy provides for bonuses only in
      exceptional circumstances, which must be approved by the Chief Executive. The
      majority of staff are no longer eligible for bonus payments related to their
      performance.
      Three staff received one-off lump sum performance payments or bonuses in the
      2010/11 financial year relating to performance in 2009/10. The payments made
      in the 2010/11 year to date total $5,000.
      The range of one-off lump sum performance payments for 2010/11 is:


   25
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                35
                       2011/12 ESTIMATES EXAMINATION: VOTE ACC




       Salary level ($)                 Number
       Less than 999                      0
       1000 - 1999                        1
       2000 - 2999                        2
       TOTAL                              3


Answer: Accident Compensation Corporation (ACC)
   ACC practice allows for bonuses and/or incentives in the following circumstances
   which have not changed since November 2008:
   Bonuses
   ACC practice is to restrict payment of bonuses to one specialist technical group
   within the investment team for whom payment of bonuses is consistent with
   market practice.      These are required to ensure competitive employment
   conditions within this specialist industry sector. Eligibility is subject to achieving
   or exceeding externally benchmarked individual performance criteria.
   At risk payments
   The total salary for each member of the Executive includes an ‘at risk’ portion,
   representing remuneration ‘held back’ and payable subject to achievement of
   specified performance criteria. This is equivalent to 15% of their total salary.
   Eligibility to receive these ‘at risk’ payments includes consideration of performance
   against:
        organisational objectives
        organisational aptitude
        individual group objectives.
   The evaluation of performance against these objectives is decided by Chief
   Executive assessment and Board moderation.
   ‘One off’ payments
   ACC practice allows other ‘one off’ payments in limited circumstances, subject to a
   business case approved by a relevant member of the Executive.
        Special effort outside of normal role – this would be in lieu of a higher duties
         allowance or overtime payment. An example of eligibility might include a Case
         Manager acting as a specialist project contributor during the implementation of
         the new claims management system.
   The total amount budgeted for bonus and incentive payments for 2011/2012 is
   $2,193,450.   This is unable to be broken down into $1,000 bands as the
   payments relate to future performance.
   There is no additional leave provided or budgeted for.
   As at 14 June 2011, 21 staff were given a bonus or incentive payment in the
   2010/2011 financial year. The cost of these payments equates to $2,654,632.
   Payments were made for the following reasons:
        Thirteen staff employed in ACC’s Investment and Funds Management unit
         received a performance based bonus payment under the Corporation’s
         Investment Incentive Scheme




                                          36
                  2011/12 ESTIMATES EXAMINATION: VOTE ACC


     Six Executive staff employed under a Senior Management employment
      agreement received a performance based at-risk payment, as per the terms
      and conditions of their employment
     Two staff received a one off performance recognition payment in respect of
      performance or successful project delivery.
The following table provides a breakdown of bonus and Executive at risk
payments paid to staff in the 2010/2011 financial year, in $1,000 bands. The
payments were based on staff performance in the 2009/2010 financial year.
                                   Number of
            Amount ($)
                                   Payments
        8,000 – 9,999                  1
       33,000 – 33,999                 1
       36,000 – 36,999                 1
       40,000 – 40,999                 1
       41,000 – 41,999                 1
       43,000 – 43,999                 1
       47,000 – 47,999                 1
       86,000 – 86,999                 1
       91,000 – 91,999                 1
       95,000 – 95,999                 1
      108,000 – 108,999                1
      115,000 – 115,999                1
      202,000 – 202,999                1
      234,000 – 234,999                1
      248,000 – 248,999                1
      252,000 – 252,999                1
      267,000 – 267,999                1
      341,000 – 341,999                1
      343,000 – 343,999                1
    TOTAL number of payments          19


The ranges of one-off recognition performance payments for 2010/11 are:
    Salary level ($)               Number
    2000 – 2999                       1
    15,000 - 15,999                   1
    TOTAL                             2


end




                                     37
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


37. In $10,000 bands, what are the salary levels of all staff, and how does this
    compare with the salary levels for each of the last five financial years?
   Answer: Department of Labour (the Department) 26
      The salary levels as at 11 May 2011 in $10,000 bands:
               Salary level ($)                 Number
               20,000 - 29,999                       0
               30,000 - 39,999                       234
               40,000 - 49,999                       340
               50,000 - 59,999                       368
               60,000 - 69,999                       371
               70,000 - 79,999                       151
               80,000 - 89,999                       156
               90,000 - 99,999                       82
              100,000 - 109,999                      69
              110,000 - 119,000                      42
              120,000 - 129,999                      27
              130,000 -139,999                       21
              140,000 - 149,999                      25
              150,000 and over                       51
                    TOTAL                        1,937


      The numbers above exclude casual staff and statutory officers. Also excluded are
      overseas locally engaged staff who are paid in the local currency.
      Information for the last five years has already been supplied during previous
      Estimates Examinations or Financial Reviews.
   Answer: Accident Compensation Corporation (ACC)
      The attached table (Appendix 7) provides a breakdown of the number of ACC
      staff in $10,000 salary bands as at 1 July for the last five years, and as at 31 May
      2011. Figures are based on pro-rated base salary
      There was no significant change in the number of employees for each salary band
      as at 31 May 2011 compared to July 2010. Only the $60,000 to $69,999 and
      $70,000 to $79,999 brackets had a difference of more than 10 employees, but
      this represents only 3% of the total number of employees within each of these
      salary bands.
      The lowest salary band of $0 to $9,999 consists of casual workers. Due to the
      focus on value for money, fewer casual workers have been engaged for work,
      hence the numbers in this category continued to go down for the last five years.


      end




   26
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                38
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC




38. How are collective employment contract bargaining negotiations proceeding
    at the Department/Ministry and its associated agencies respectively?
   Answer: Department of Labour (the Department) 27
      The Department concluded a collective employment agreement with the PSA in
      October 2010 for a term through to 30 June 2013.
   Answer: Accident Compensation Corporation (ACC)
      ACC has concluded one collective agreement in 2011 with the Association of
      Senior Medical Specialists. ACC is attending facilitation regarding negotiations for
      a collective agreement with the PSA. The PSA ACC collective agreement expired
      on 30 June 2009.


      end


39. Will wage negotiations be fiscally neutral in 2011/12; if so, how will this be
    managed (i.e. will any output areas be affected)?
   Answer: Department of Labour (the Department) 28
      The collective agreement settled in October 2010 provides a 1.5% increase to
      salary bands in July 2011. This is managed by identifying savings and efficiencies
      across the Department, the reprioritisation of activities, and organisational
      reviews, over the term of the agreement.
   Answer: Accident Compensation Corporation (ACC)
      ACC’s main Collective Employment Agreement (CEA) expired on 30 June 2009 and
      ACC and the PSA have yet to reach a settlement for a new CEA. Costs, if any, will
      be funded from within operational budget.
      This agreement does not include coverage for the negotiation of wages and
      salaries.   However, the current CEA does provide for an average market
      movement, as determined by the Hay Group March Quarter Remuneration
      Survey. This is to be applied through the annual performance and remuneration
      review to staff who fall within the criteria specified in the CEA.
      ACC and the Association of Senior Medical Specialists successfully negotiated a
      collective agreement in the 2010/2011 financial year. From 1 July 2011 base
      salaries will increase by 2% for staff who fall within the criteria specified in the
      CEA.
      In line with the Government’s recently issued ‘Expectations for Pay and
      Employment Conditions in the State Sector’ ACC’s approach is that any
      remuneration increases for 2011/2012 will be met from within approved
      operational budget, and there will be no impact on output areas.


      end




   27
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.
   28
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                39
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC




40. Please provide an outline and timeline of CEA negotiations to be conducted
    in 2011/12?
   Answer: Department of Labour (the Department) 29
      The Department has no CEA negotiations scheduled for 2011/12.
   Answer: Accident Compensation Corporation (ACC)
      The ACC and Associated Senior Medical Specialist collective agreement expires on
      30 June 2012. It is anticipated that negotiations will commence 60 days prior to
      this date.
      ACC and the PSA are negotiating a replacement Collective Employment
      Agreement (CEA) for the one that expired on 30 June 2009. ACC and the PSA are
      attending facilitation in 2011/2012 and it is anticipated that facilitation at the
      Authority will commence mid July 2011. Depending on the outcome, negotiations
      may or may not continue beyond this point.


      end


41. Will any CEA negotiations to be completed with unions in 2011/12 seek to
    provide any form of additional incentive such as a cash payment or bonus
    not offered to non-union members?
   Answer: Department of Labour (the Department)
      See the Department’s answer to question 40.
   Answer: Accident Compensation Corporation (ACC)
      No CEA negotiations to be completed with unions in 2011/12 will seek to provide
      any form of additional incentive not offered to non-union members.


      end


42. How many staff are on collective and individual employment contracts
    respectively? How does this compare with the numbers of staff on collective
    and individual employment contracts for each of the last five financial
    years?
   Answer: Department of Labour (the Department) 30
      The agreement type as at 11 May 2011 by staff numbers is set out in the
      following table:
       Agreement type                    Number
       Individual*                         1,175
       Collective                          1,052
      * Includes locally engaged staff offshore.




   29
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.
   30
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                40
                       2011/12 ESTIMATES EXAMINATION: VOTE ACC


       Information for the last five years has already been supplied during previous
       Estimates Examinations or Financial Reviews.
   Answer: Accident Compensation Corporation (ACC)
       ACC currently has one collective agreement in place, negotiated with the
       Association of Senior Medical Specialists. All staff whose role falls within the
       coverage clause of this agreement are automatically offered the opportunity to
       join the collective employment agreement. There are currently 22 ACC staff
       bound by this agreement.
       All other ACC staff (2824) are on individual employment agreements, which is a
       significant increase on previous years. This is as a direct result of the collective
       agreement between the PSA and ACC expiring on 30 June 2009. A total of 740
       PSA members previously on this collective agreement are currently on individual
       employment agreements, pending ACC and the PSA negotiating a replacement
       Collective Employment Agreement.       It is anticipated that facilitation at the
       Authority will commence mid July 2011.
       The table below provides a breakdown of current staff by collective and individual
       contract and for each of the previous five financial years.
          Financial Year          Collective            Individual
             Current                  22                2,824
             2009/10                  834               1,996
             2008/09                  753               2,281
             2007/08                  643               2,270
             2006/07                  701               1,985
             2005/06                  657               1,914


       end


43. How much is budgeted to be spent on accident compensation cover for staff
    in 2011/12? How does this compare to the last five financial years?
    Answer: Department of Labour (the Department) 31
       Expenditure on accident compensation for 2010/11 and estimated budget for
       2011/12:
                Year                     Total ACC
                                      Premium and
                                     Residual Levies
                                          ($000)
                2005/06*                    364
                2006/07**                   502
                2007/08                     565
                2008/09***                  617
                2009/10                     717
                2010/11                     666
                2011/12****                   -
       * The increase in levies in 2005/06 is primarily due to the increase in the maximum
       threshold for liable earnings for individual staff. ‘Liable earnings’ is the term ACC use to
       describe the part of payroll that is assessable for injury cover levies. ACC has increased
       the maximum threshold for liable earnings for individual staff members from $92,189


31
   Note: this question is answered from a Departmental perspective across all four Votes – Labour,
Immigration, Employment, and ACC.



                                               41
                          2011/12 ESTIMATES EXAMINATION: VOTE ACC


        (2004/05) to $94,226 (2005/06). Other factors contributing to the increase is an increase
        in salary levels and staff numbers.
        ** The increase in levies for 2006/07 is due to a policy decision that all asbestos claims
        and awards should be recovered from employers through the residual claims levy.
        *** The increase in levies for 2008/09 is due to the rate increase and increase in salary.
        **** The 2011/12 Department budget has not yet been finalised.



    Answer: Accident Compensation Corporation (ACC)
        As an Accredited Employer 32, ACC takes on the full financial responsibility of its
        employees’ workplace injuries. As such, ACC is invoiced for a Residual Claims
        levy, and the costs associated with being involved in the ACC Partnership
        Programme 33.
        The amount budgeted to be spent on accident compensation cover for ACC staff in
        the 2011/2012 year is estimated at $647,013 for Residual Claims Levy, and
        $47,928 for Partnership Programme Levy.
        The following table provides the amount paid in ACC levies by ACC for each year
        since 2006/2007.
                                   Residual Claims           Partnership
              Levy year                                                                    GST
                                        levy               Programme levy
              2010/2011                $508,085 34                 $42,567                 $82,598
              2009/2010                 $498,107                     $45.355               $67,933
              2008/2009                 $637,982                   $37,679                 $95,246
              2007/2008                 $532,562                   $32,807                 $80,181
              2006/2007                 $488,561                   $44,197                 $66,595


        end


44. What provisions and plans are being implemented by the
    Department/Ministry and its associated agencies in the 2011/12 financial
    year to account for the savings in back office functions, such as
    administrative and support functions, from 1 July 2012? How is the
    Department/Ministry and its associated agencies planning to meet these
    savings in the next financial year? What is the projected total cost of these
    savings based on current information?
     Answer: Department of Labour (the Department) 35
        The Department has introduced a new measure in the Statement of Intent for
        administrative and support services [see page 40] for a reduction of costs by at
        least 1% on previous year’s result. The detailed planning to achieve these
        savings is in progress. This reduction is projected as $973,000. Further savings



32
   An Accredited Employer is an employer who has attained accreditation under the ACC Partnership
Programme.
33
   The costs associated with the Partnership Programme are an administration fee, Stop Loss and High Cost
Claims Cover levies, unallocated primary health costs, and bulk funded public health care costs.
34
   This levy is an estimate. ACC is unable to provide the actual levy amount until the invoice is received in
August 2011.
35
    Note: this question is answered from a Departmental perspective across all four Votes – Labour,
Immigration, Employment, and ACC.



                                                     42
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


      from 1 July 2012 are likely to be identified as part of continuous reviews of
      administrative and support functions.
   Answer: Accident Compensation Corporation (ACC)
      ACC’s administration budget for 2011/12, which includes back and front office
      functions, remains the same for the 2010/11 year.
      Inflation and staff salary increases will be absorbed through efficiency gains and
      procurement savings.
      end


45. How many staff are currently members of workplace savings schemes (e.g.
    KiwiSaver, the State Sector Retirement Savings Scheme and the Teacher’
    Retirement Savings Scheme) and how does this compare to the last five
    years?
   Answer: Department of Labour (the Department) 36
      The number of staff who are currently members of workplace savings scheme is
      provided in the table.
                      1 July         1 July       1 July         1 July       1 July        11 May
                      2006           2007         2008           2009         2010          2011
       Workplace
       savings                 686          731            969       1,135        1,255            1,309
       schemes


   Answer: Accident Compensation Corporation (ACC)
      ACC pays employer contributions to three workplace savings schemes; – ACC
      Superannuation Scheme (permanent employees only), KiwiSaver and the National
      Provident Fund. If employees are members of more than one workplace saving
      scheme, ACC only makes employer contributions to one.
      The table below summarises the number of staff, as at 31 May 2011, who are
      members of the workplace savings schemes listed above and the number of
      members for the last five years. Some staff are members of more than one
      workplace saving scheme.
       Year               Number           Number          Number         Number       Number       Number
                          of staff as      of staff 30     of staff 30    of staff     of staff     of staff
                          at 31 May        June            June           30 June      30 June      30 June
                          2011             2010            2009           2008         2007         2006
       ACC                      1921             1570            1423          1102         1073          970
       Superannuation
       Scheme
       KiwiSaver                     372          296             209          113          N/A            N/A
       National                       35           37              40           44           45             43
       Provident Fund
       ACC                           248          135              91           27          N/A            N/A
       Superannuation
       Scheme &
       KiwiSaver*
       National                       6                4            4            1          N/A            N/A
       Provident Fund
       & KiwiSaver**


   36
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                  43
               2011/12 ESTIMATES EXAMINATION: VOTE ACC


* Only receives employer contributions to ACC Superannuation Scheme
** Only receives employer contributions National Provident Fund



end




                                       44
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC


46. What provisions, plans and savings are being implemented by the
    Department/Ministry and its associated agencies in the 2011/12 financial
    year to account for the ending of the central funding of employer
    contributions to workplace savings schemes (e.g. KiwiSaver, the State
    Sector Retirement Savings Scheme and the Teacher’ Retirement Savings
    Scheme) on 1 July 2012 as announced in Budget 2011?
   Answer: Department of Labour (the Department)
      The Department will fund the costs of the changes to central funding of workplace
      savings schemes in 2011/12 from within existing baselines.
   Answer: Accident Compensation Corporation (ACC)
      ACC pays employer contributions to three workplace savings schemes – ACC
      Superannuation Scheme (permanent employees only), KiwiSaver and the National
      Provident Fund. If employees are members of more than one workplace savings
      scheme, ACC only makes employer contributions to one.
      Employer contributions have always been funded from ACC’s administration
      budget and not the government central fund. ACC is not affected by the ending of
      the central funding of employer contributions to workplace saving schemes on 1
      July 2012 as announced in 2011 Budget.
      ACC will continue to make employer contributions to the three workplace savings
      schemes post 1 July 2012 and is not implementing any provisions, plans or
      savings due to the announcement in 2011 Budget.


      end


 47.What is the estimated cost to the Department/Ministry and its associated
    agencies of the Government’s changes the central funding of employer
    contributions to workplace savings schemes on 1 July 2012 as announced
    in Budget 2011? How are the Department/Ministry and its associated
    agencies planning to meet these costs in the next three financial years?
    What is the projected cost of these changes based on current information in
    next three financial years?
   Answer: Department of Labour (the Department) 37
      The estimated cost to the Department of the Government’s changes to the central
      funding of workplace saving schemes on July 2012 is around $3 million. The
      Department is considering how it will fund the costs of the changes.
   Answer: Accident Compensation Corporation (ACC)
      ACC has no projected costs from the Government’s changes to the central funding
      of employer contributions to workplace savings schemes as employer
      contributions are funded from ACC’s administration budget.


      end




   37
      Note: this question is answered from a Departmental perspective across all four Votes – Labour,
   Immigration, Employment, and ACC.



                                                45
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC




48.Has the Department/Ministry and its associated agencies considered any
   options that involve reducing staff or reducing pay increases to help cover
   the cost of the Government’s changes to the central funding of employer
   contributions to workplace savings schemes that were announced in Budget
   2011; if so, what were all of these options?
  Answer: Department of Labour (the Department)
     See answer to question 46.
  Answer: Accident Compensation Corporation (ACC)
     ACC has not needed to consider any options to help cover the cost of the
     Government’s changes to the central funding of employer contributions to
     workplace savings schemes.


     end


49.What will be the average annual leave entitlement in 2011/12 for staff
   employed by the Department/Ministry and its associated agencies, does
   this include or exclude any Departmental/Ministry holidays; if so, how
   many? How does this compare with each of the last five financial years?
  Answer: Department of Labour (the Department) 38
     The average annual leave entitlement in the Department is 21.2 days excluding
     the three Departmental days. These figures also exclude locally engaged staff
     offshore whose leave entitlements are governed by local employment legislation.
     Information for the last five years has already been supplied during previous
     Estimates Examinations or Financial Reviews.
  Answer: Accident Compensation Corporation (ACC)
     ACC does not budget or forecast for headcount, only for full-time equivalent staff
     numbers. Therefore, the average annual leave entitlement, which is dependent
     on headcount, cannot be determined for the coming year.
     ACC does not offer any Departmental/Corporation holiday entitlements.
     Currently, the average leave entitlement of ACC employees is 22.37 days per
     year. The following table provides average annual leave entitlements for the last
     five financial years.
              Year           Average Annual Leave
                                   Entitlement
      2010/2011*                      22.37
      2009/2010**                     22.33
      2008/2009***                    22.15
      2007/2008                       22.33
      2006/ 2007                      22.57
     * Includes all permanent, temporary, and casual staff as at 30 April 2011
     ** Includes all permanent, temporary, and casual staff as at 30 June 2010
     ***Includes all permanent, temporary, and casual staff as at 30 June 2009
     end

  38
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               46
                        2011/12 ESTIMATES EXAMINATION: VOTE ACC




50.How many staff, in actual numbers and as a percentage, in 2011/12 will be
   entitled to 4 weeks annual leave, between 4 and 5 weeks annual leave, 5
   weeks annual leave, or more than five weeks annual leave, excluding any
   Departmental/Ministry holidays, and how does this compare with each of
   the last five financial years?
  Answer: Department of Labour (the Department) 39
     The table below shows the last five years’ comparison of numbers and percentage
     of staff that are entitled to four weeks annual leave, between four and five weeks
     annual leave, five weeks annual leave, or more than five weeks annual leave,
     excluding any Departmental/Ministry holidays.
      Annual      30 Jun 07        30 Jun 08          30 Jun 09      30 Jun 10         11 May 11
      Leave
      Entitle
      ment       No.       %       No.       %        No.    %       No.       %       No.       %
      4 weeks    836      49.15    1,023     53.7     1047   52.4   1,019      50.3     883      45.6
      between
      4 and 5    862      50.68     867      45.6     932    46.7     989      48.8   1,028      53.1
      weeks
      5 weeks       2      0.12          6    0.3       7     0.4          7    0.4          4    0.2
      more
      than 5        0          0         7    0.4     11*     0.6     13*       0.6     22*       1.1
      weeks
     * These figures include people who have negotiated specific terms and conditions as part
     of their employment, such as additional leave for salary sacrifice.


     The numbers above exclude casual staff and statutory officers. Also excluded are
     overseas locally engaged staff who are employed under local conditions of
     employment.
     Numbers of staff with four weeks annual leave increased at 1 July 2007 following
     the implementation of the statutory four weeks entitlement from 1 April 2007.
     An outcome of bargaining in 2005 added two days to annual leave entitlements.
     As staff reached the qualifying period their entitlements were increased to four
     weeks and two days.
  Answer: Accident Compensation Corporation (ACC)
     ACC does not budget or forecast for headcount, only for full-time equivalent staff
     numbers.    Therefore, the headcount for each leave entitlement cannot be
     determined for the 2011/12 financial year.
     The following table provides employee annual leave entitlements in both actual
     numbers and percentages for the last five financial years.




  39
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.




                                                 47
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC




      Year              Employees       Employees      Employees        Employees         Employees
                        with less       with 4         with 4 to 5      with 5            with over 5
                        than 4          weeks          weeks            weeks             weeks
                        weeks           annual         annual           annual            annual
                        annual          leave          leave            leave             leave
                        leave           entitlement    entitlement      entitlement       entitlement
                        entitlement
                        No.    %   No.     %      No.          %         No.      %       No.    %
      2010/2011*                   1,499 53                              1,353 47
      2009/2010**     -     -      1,511 53       -            -         1,319 47         -      -
      2008/2009*** -        -      1,730 57       -            -         1,304 43         -      -
      2007/2008       -     -      1,443 53       -            -         1,258 47         -      -
      2006/ 2007      -     -      1,224 48       -            -         1,293 52         -      -
     * Includes all permanent, temporary, and casual staff     as   at 30 April 2011
     ** Includes all permanent, temporary, and casual staff as at 30 June 2010
     ***Includes all permanent, temporary, and casual staff as at 30 June 2009



     ACC’s current policy on annual leave entitlements, which applies to all staff, is
     four weeks (20 days) for the first five years of employment, then five weeks (25
     days) for each continual year thereafter.
     The maximum annual leave entitlement for ACC employees is five weeks (25
     days) per year.


     end


51.How much is being allocated for overseas travel by officials at the
   Department/Ministry and its associated agencies respectively in the
   forthcoming financial year and what proportion of operating expenditure
   does this represent? How does this compare with the total amount spent in
   the last five financial years?
  Answer: Department of Labour (the Department) 40
     The 2011/12 Department budget has not yet been finalised.
     An allocation is also made for bringing refugee intake to New Zealand and
     removing people who do not have valid permits. These have been excluded from
     the figures in the following table.
                                                               Proportion of
                                                                 allocated             Total amount
                           Total            Allocated
                                                                 overseas                spent on
                         operating          overseas
           Year                                               expenditure to             overseas
                        expenditure        expenditure
                                                               the operating               travel
                          ($000)             ($000)             expenditure               ($000)
                                                                    (%)
      2005/06                 253,096               2,763                 1.09                  1,966
      2006/07                 252,818               1,594                 0.63                  1,656
      2007/08                 273,724               2,008                 0.73                  2,217
      2008/09                 300,701               2,676                 0.89                  2,183


  40
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               48
                  2011/12 ESTIMATES EXAMINATION: VOTE ACC


                                                       Proportion of
                                                         allocated       Total amount
                       Total          Allocated
                                                         overseas          spent on
                     operating        overseas
         Year                                         expenditure to       overseas
                    expenditure      expenditure
                                                       the operating         travel
                      ($000)           ($000)           expenditure         ($000)
                                                            (%)
    2009/10               300,637             2,024               0.67            1,942
    2010/11               314,878             2,374               0.75            1,690
                                                                         (Mar 2011 YTD)


Answer: Accident Compensation Corporation (ACC)
   The Corporation is mainly funded through levies and funding for the Non-Earners’
   Account is the only Vote money ACC receives. ACC pools the Vote and levy
   monies for the purposes of its administrative budget. Therefore, it is not possible
   to detail estimated spending from Vote ACC money on overseas travel. However,
   the Corporation’s total spend for levy funding and Vote ACC funding is as follows.
   Staff travel overseas for a number of reasons including conferences, learning
   workshops, and research. Any overseas travel to Australia is approved by the
   relevant General Manager. All other overseas travel is considered on a case by
   case basis and must be approved by the Chief Executive. Additionally, overseas
   travel by ACC Board members, on ACC business, must be approved by the
   Board’s Chair.
   The Budget for International Travel in 2011/12 has increased primarily because of
   a provisional sum set aside for several ACC Board Members to travel overseas to
   observe how other schemes have managed the change from a monopoly provider
   to a competitive market. This travel is dependant on changes being made to the
   ACC Work Account.
   Other reasons for the increase in international travel include:
               Travel costs as part of the Chief Executive recruitment process
               The increasing size of ACC’s international investments means that
                more frequent travel is required in order to oversee the management
                of these assets
               ACC is increasing its engagement with the Heads of Workers
                Compensation Authority and Personal Injury Education Foundation
                which is resulting in an increase in travel to Australia.
   For 2011/2012 ACC’s budget for overseas travel and accommodation is $600,496
   and represents 0.13% of the Corporation’s total operating budget.
                                                 Total ($000)
                                                 allocated for           % of Total
                          Total Operating
           Year                                 overseas travel          Operating
                         Expenses ($000)
                                                  (Including             Expenses
                                                 Subsidiaries)
     2011/12 Budget          $468,073                $600                  0.13%
      May 2011 YTD           $422,280                $328                  0.08%
       2009/2010             $458,196                $299                  0.07%
       2008/2009             $495,850                $390                  0.08%
       2007/2008             $455,361                $442                  0.10%
       2006/2007             $397,845                $441                  0.11%


   end



                                         49
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC




52.What assets are planned to be sold by the Department/Ministry and its
   associated agencies respectively in 2011/12, and how does that compare to
   2010/11?
  Answer: Department of Labour (the Department) 41
     Sale proceeds of $110,116 were received from the sale of Fixed Assets in 2010/11
     (Apr 2011 YTD). The bulk of these proceeds were realised from the sale of 16
     motor vehicles totalling $103,331. The sales of a few items of Office Equipment
     and Furniture make up the balance.
     59 motor vehicles are scheduled to be sold in 2011/12 in accordance with the
     Department’s replacement policy of six years or 100,000 kilometres, which ever
     comes first.
     The Department has no plans to sell any other major asset in the 2011/12
     financial year.
  Answer: Accident Compensation Corporation (ACC)
     ACC plans to sell approximately 100 cars during the 2011/12 year as part of
     ACC’s Corporate Vehicle Replacement Program. Vehicles are replaced based on
     their age (6 years +) and mileage (100k km’s or greater). No vehicle sales will
     occur in 2010/11 year.
     Information Technology equipment such as PCs and servers are sold as part of the
     normal process for refreshing IT equipment on a rolling average four year basis.
     This process is the same for 2010/11 and 2011/12.
     ACC transitioned from individual copier, fax, and printer devices to multi
     functional devices, starting from July 2010. ACC has sold many of its single
     function devices (namely printers & copiers) that had a zero book value (in the
     2010/11 financial year). There are still between 35 – 50 printers that have a book
     value, as well as a few remaining low /zero book value printers that ACC will
     attempt to sell in June 2011. It is likely the subsequent sale will be carried out
     early in the 2011/12 financial year.
     Due to the delay in implementation of Phase II (where software will be installed in
     most MFDs to enable faxing functionality), the standalone fax machines will also
     be sold, if economical to do so, in the first half of the 2011/12 financial year.
     However, given the age and condition of many of these fax machines, the sale
     proceeds will be minimal.
     ACC is also exploring future options for Shamrock House, Molesworth St,
     Wellington. It does not plan on disposing of other property assets during
     2011/2012 and has not sold any property assets during 2010/2011.
     end




  41
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               50
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


53.How much floor space will the Department/Ministry and its associated
   agencies lease in 2011/12 , what will be the annual cost per square metre
   in each specific building, and how does this compare with each of the last
   ten years?
  Answer: Department of Labour (the Department) 42
     The Department leases the following space and annual cost per square metre:
                                                 Cost per
                         Floor space
           Year                                square metre
                       (square metres)             ($)
           2006              44,378                225
           2007              44,047                234
           2008              44,759                238
           2009              45,248                245
           2010              44,994                271
           2011              46,182                287


     Costs and floor space for specific buildings cannot be provided as that information
     is commercially sensitive.
  Answer: Accident Compensation Corporation (ACC)
     As at end December 2011, once ACC’s Wellington corporate office has relocated to
     Vogel Centre, ACC will be leasing 60,591 square metres of floor space.
     The annual cost per square metre for each specific building, compared with
     previous years, is found in Appendix 8. This information is only available for the
     last five years.
     Note: Appendix 8 has been constructed based on the contracted lease costs and
     has been marked as commercially sensitive. In some cases, these contracts are
     on a net lease basis and others on a gross lease basis.


     end


54.How much floor space will the Department/Ministry and its associated
   agencies lease in 2011/12 for its head office in Wellington, what will be
   the annual cost per square metre in each specific building, and how does
   this compare with each of the last five years?
  Answer: Department of Labour (the Department) 43
     The total space leased and cost per square metre by the Department for the Head
     Office in Wellington over the last five years:
                       Floor space         Cost per square
           Year
                     (square metres)         metre ($)
           2006            16,823                   244
           2007            17,100                   250
           2008            17,299                   258
           2009            18,265                   322


  42
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.
  43
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               51
                  2011/12 ESTIMATES EXAMINATION: VOTE ACC


                    Floor space         Cost per square
         Year
                  (square metres)         metre ($)
         2010          15,932                   351
         2011          15,932                   351


   Costs and floor space for specific buildings cannot be provided as that information
   is commercially sensitive.
Answer: Accident Compensation Corporation (ACC)
   In 2011/12 ACC will be leasing 16,779 square metres of floor space for its head
   office in Wellington following its move to Vogel Centre which is due to be
   completed by end of December 2011.
   The annual cost per square metre for each specific building is commercially
   sensitive but, compared with previous years, is as follows:
    Location                                          Annual $ Cost per Square Metre
                                         2006         2007    2008     2009    2010    2011
                                         Year         Year    Year      Year    Year   Year
    Wellington – 23 Waring Taylor St
                                          N/A         N/A      N/A     300      300    300
    (from 1 December 2008)
    Wellington 110 Featherston Street     226         226      226     315      315    201
    Wellington 117-125 Lambton
                                          224         260      260     N/A      N/A    N/A
    Quay
    Wellington 15-17 Murphy Street        253         253      253     320      320    353
    Wellington 256 Lambton Quay
                                          N/A         N/A      320     320      243    N/A
    (from 18 April 2008. Now sub-let)
    Wellington 33 Bowen Street            316         316      316     248      N/A    N/A
    Wellington Ballantrae Place (from
                                          N/A         N/A      N/A     N/A      N/A    285
    1 September 2010)
    Wellington, Aitken Street, Vogel
                                          N/A         N/A      N/A     N/A      N/A    445
    Centre


   The above listing does not include Shamrock House, as it is freehold owned by
   ACC. In 2010/11 Shamrock House accommodated approximately 35% of ACC’s
   corporate office staff. The remaining corporate staff were located throughout
   Wellington in the premises noted in the above table, together with staff who
   provide associated support functions to the corporate office, such as the Business
   Service Centre.
   Note that the table above has been constructed based on the contacted lease
   costs. In some cases, these contracts are on a net lease basis and others on a
   gross lease basis.


   end




                                          52
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC




55.What is the budgeted amount for each renovation, refurbishment or
   redecoration project in offices or buildings of the Department/Ministry and
   its associated agencies respectively that is expected to cost more than
   $10,000 in the 2011/12 financial year? For each, please provide the
   following details:
      - Details of the project
      - Location of the project
      - Name of provider(s) or manufacturer(s)
      - Type of product or service generally provided by the above
      - Estimated cost of the project
      - Estimation completion date
      - Whether tenders were invited, if so, how many were received
      - List separately any single item of furniture worth more than $5000
         and its cost.
  Answer: Department of Labour (the Department) 44

                         Name of            Type of                                        Tenders
                                                           Estimated
                        provider or       product or                       Estimation       invited
        Details of                                         cost of the
                       manufacturer         service                        completion      and how
       the project                                           project
                                          generally                           date           many
                                                             ($000)
                                           provided                                        received
      New office       Not yet known       Interior fit       1,500       August 2011         N/A
      Shanghai                                 out
      Refit              Not known        Interior fit         400          Not known         N/A
      Christchurch                             out
      Airport
      Fit out            Not known         Interior fit     Not yet         Not known         N/A
      Christchurch                             out           known
                                                           (result of
                                                          earthquake)
     Additional projects maybe approved during the course of the year.


  Answer: Accident Compensation Corporation (ACC)
     ACC is planning to renovate, refurbish or redecorate three offices or buildings that
     are budgeted to cost more than $10,000 in the 2011/12 financial year.
     Project 1
     In the 2010/11 financial year, ACC undertook the refurbishment of 20-22 Twigger
     Street in Addington Christchurch, which will continue in the 2011/12 financial
     year. The site is a replacement site for the Christchurch Branch which was
     affected by the 22nd February 2011 earthquake. The consultants and head
     contractor were procured under an emergency procurement process.
      Details of project        Replacement of the Christchurch Branch site as a
                                result of the 22nd February 2011 Earthquake
      Location                  Addington, Christchurch
      Provider                  Hawkins Interiors Ltd
      Type of service           Construction which includes the base build and fit out
      Cost of the project       Estimated cost is $6million
      Estimated                 01 October 2011
      completion date
      Invitation of             Hawkins Interiors Ltd was procured under emergency

  44
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               53
               2011/12 ESTIMATES EXAMINATION: VOTE ACC


 Details of project       Replacement of the Christchurch Branch site as a
                          result of the 22nd February 2011 Earthquake
 tenders                  procurement process however all sub trades have been
                          tendered.
 Furniture>$5000          N/A


Project 2
ACC is consolidating it corporate offices to the Vogel Centre commencing 24 June
2011. The fit out process was initiated in the 2010/11 financial year. The items
mentioned below were ordered in 2010/2011 and will be paid for in the 2011/12
financial year, in line with the delivery schedule.
 Details of project       Vogel Consolidation
 Location                 Wellington
 Provider                 Ferndale Furniture Ltd
 Type of service          Desk screens
 Cost of the project      $99,000
 Estimated                30 September 2011
 completion date
 Invitation of            Open tender – 10 responses received
 tenders
 Furniture>$5000          N/A


 Details of project       Vogel Consolidation
 Location                 Wellington
 Provider                 Kada
 Type of service          Joinery
 Cost of the project      $56,000
 Estimated                30 September 2011
 completion date
 Invitation of            Closed tender released to 4 suppliers
 tenders
 Furniture>$5000          N/A


 Details of project       Vogel Consolidation
 Location                 Wellington
 Provider                 Thornet
 Type of service          Breakout Furniture
 Cost of the project      $30,000
 Estimated                30 September 2011
 completion date
 Invitation of            Closed tender released to 4 suppliers
 tenders
 Furniture>$5000          N/A


Project 3
ACC will be replacing the carpet in its Sale Street office in Auckland in the
2011/12 financial year.
 Details of            Sale Street
 project
 Location              Auckland
 Provider              To be tendered



                                        54
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


       Type of service        Carpet replacement
       Cost of the            Estimated cost of $70,000
       project
       Estimated              30 November 2011
       completion date
       Invitation of          To be tendered
       tenders
       Furniture>$5000 N/A
     Note: ACC has budgeted approximately $500k in 2011/12 for maintenance and renovation,
     refurbishment, and redecoration. At this stage the priorities for this budget are still to be
     finalised and so it is not possible to be precise about how much of this will be allocated to
     renovation, redecoration, or refurbishment as distinct from maintenance.



     end


56.What offices of the Department/Ministry and its associated agencies are
   planned to be closed in the 2011/12 financial year and for each what is the
   location of the office, how many staff are employed there and what is the
   annual budget of the office?
  Answer: Department of Labour (the Department) 45
     The Department has no plans to close offices in the 2011/12 financial year.
  Answer: Accident Compensation Corporation (ACC)
     ACC has no plans to close any offices in the 2011/12 financial year.


     end


57.What offices of the Department/Ministry and its associated agencies are
   being considered for closure in the 2011/12 year and for each what is the
   location of the office, how many staff are employed there and what is the
   annual budget of the office?
  Answer: Department of Labour (the Department) 46
     The Department has no offices being considered for closure in the 2011/12
     financial year.
  Answer: Accident Compensation Corporation (ACC)
     ACC is not considering closing any offices in the 2011/12 financial year.


     end




  45
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.
  46
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               55
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC




58.What offices of the Department/Ministry and its associated agencies were
   closed in 2010/11 and how much is the closure of each office expected to
   save the Department/Ministry in 2011/12 financial year?
  Answer: Department of Labour (the Department) 47
     The Department did not close any offices in the 2010/11 financial year.
  Answer: Accident Compensation Corporation (ACC)
     ACC did not close any offices in 2010/11 financial year.


     end


59.In how many buildings will the Department/Ministry and its associated
   agencies lease space where staff are present and how many of those
   buildings have current code of compliance with the local earthquake
   standards in 2011/12? For each building that does not have current code
   of compliance, what is the address of that building and how many
   Department/Ministry and its associated agencies staff work in that
   building?
  Answer: Department of Labour (the Department) 48
     All of the buildings that the Department occupies within New Zealand hold a
     current Code of Compliance certificate. Generally buildings without a current
     Code of Compliance cannot be legally occupied. All the leases held by the
     Department require the landlord to ensure ongoing certification of the building.
     Any building in New Zealand is built to the earthquake code that was applicable at
     the time of its construction, and there is no ongoing review of this as part of Code
     of Compliance requirements. If a Council has placed an order on a building
     requiring strengthening, and this had not been complied with by the required
     date, a Code of Compliance certificate would not be issued by the Council
     concerned.

  Answer: Accident Compensation Corporation (ACC)
     Buildings are required to be compliant with the Building Act 2004, which places
     additional requirements for strengthening of buildings. Local Council Building
     Codes also note that buildings built after 1976 are deemed unlikely to be
     earthquake prone.
     In 2011, ACC engaged Transfield to undertake a structural review of all its
     buildings in Wellington, Auckland and Christchurch.
     The initial reviews found that the majority of the buildings that ACC occupied in
     Wellington, Auckland and Christchurch were built after 1976 and therefore are
     compliant with the Local Council Building Codes. For the few that were built
     before 1976, the buildings have been redeveloped and seismically strengthened to
     meet the building code.
     In 2011/12, ACC is planning to lease space in 36 buildings where staff are
     present. Thirteen buildings were included in the structural review by Transfield.


  47
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.
  48
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               56
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


     Appendix 9 shows the addresses of the buildings and the number of staff where
     ACC has not determined the level of compliance with seismic loading standard
     (NZS 1170.5:2004). ACC will progressively review these remaining sites
     throughout 2011/12.


     end


60.How many staff will Koru Club memberships be paid for by the
   Ministry/Department in 2011/12, and how does this compare with each of
   the last five years?
  Answer: Department of Labour (the Department) 49
     As at 27 May 2011, the Department has 53 staff with Koru Club memberships.
     The number of Koru Club memberships paid for by the Department has decreased
     from 81 as at 31 May 2010.
     Information for the last five years has already been supplied during previous
     Estimates Examinations or Financial Reviews.
 Answer: Accident Compensation Corporation (ACC)
     As at 22 June 2011, ACC has three staff with Koru Club memberships paid for by
     the Corporation. The number of Koru Club memberships paid for by ACC has
     decreased significantly from previous years.
     The reduction from previous years can be attributed to an increase in the number
     of virtual meetings such as video or teleconferencing and a general decrease in
     travel activity.
     ACC currently receives 12 complimentary Koru Club Memberships under
     commercial arrangements with Air New Zealand. A number of ACC staff members
     have also achieved Gold and Gold Elite Air New Zealand Airpoints status based on
     number of miles flown with Air New Zealand. This status is gained from both
     personal and corporate travel and entitles them to complimentary Koru Club
     Membership.
     In order for a membership to be approved, staff must meet the criteria outlined in
     ACC's current travel policy. This policy states that a traveller must fly a minimum
     of 24 return trips per 12 months before they are eligible for Koru Club
     membership. All Koru Club memberships must be approved by the appropriate
     Manager and General Manager. Exceptions to these rules require the approval of
     the appropriate General Manager and the Chief Executive.
     Koru Club membership figures for previous years, to 30 June, are:
                Year                      Paid Memberships
              2009/2010                          20
              2008/2009                          76
              2007/2008                          72
              2006/2007                          57
              2005/2006                          62


     end




  49
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               57
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


61.How many staff in 2011/12 will have the use of iPads, laptops, cellphones,
   blackberrys, or other portable electronic devices paid for by the
   Department/Ministry; how many will have the use of more than one; what
   proportion of all staff have the use of these devices; what is the estimated
   cost; and how do these numbers compare to the previous five years?


  Answer: Department of Labour (the Department) 50
     As at June 2011, 1,278 staff have the use of portable electronic devices. This
     year there are 95 fewer staff that have an individual device, although we hold
     the same number of devices as a year ago. This is due largely to the
     Departments response to the Christchurch earthquake and the Pike River
     investigation.

     Of the 1,278 staff, approximately 460 have two devices, and there is an internal
     rationalisation exercise in progress.

     The costs are 2010/11 - $1,016,002 and in 2011/12 - $1,267,751. The costs
     increase has mainly been driven by the higher data card usage in the business
     continuity events.

     Information for the last five years has already been supplied during previous
     Estimates Examinations or Financial Reviews.



  Answer: Accident Compensation Corporation (ACC)
     The use of Mobile communication technology allows ACC to become a more
     efficient, responsive and flexible workplace for staff working away from their desk
     or office. Additionally, the use of mobile communication technology such as
     mobile broadband data cards enables ACC staff to remotely access email, desktop
     applications and the internet. This provides greater productivity from ACC staff
     members.
     ACC staff use a number of brands of cell phones, some of which have ‘Personal
     Digital Assistant’ functionality. With the increase in the number of ACC staff using
     mobile communication technology, benchmarking and procurement reviews have
     been completed to ensure competitive pricing is in place from ACC
     Telecommunications Suppliers.
     The following table compares the use of mobile communication devices in the
     current year to the previous 2 financial years and forecasts usages in the 11/12
     year. ACC is unable to provide detailed data across 5 years.
                                              Number of devices
                           As at June      As at June   As at June         11/12
                           2009 ($)        2010 ($)     2011 ($)           Forecast ($)
      iPads                            0              0          10                   50
      Laptops (includes              530           650          640                  600
      those in Chch Red
      Zone locations)
      Cell phones                    756             786             905               905
      assigned to staff
      (including phones
      with PDA

  50
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               58
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


                                              Number of devices
                           As at June      As at June  As at June          11/12
                           2009 ($)        2010 ($)    2011 ($)            Forecast ($)
      functionality;
      excluding iPads)
      Cell phones                     109            213        320           320
      assigned to staff
      with PDA
      functionality
      (excludes iPads)
      Staff with more                 530            650        650           650
      than one device
      (note 1)
      Mobile Broadband                248            224        191           191
      Data Cards
      Proportion of Staff         27.64%         30.47%     33.21%        33.21%
      with cell phones
      (note 2)
      Estimated cost of          513,538        415,854     431,983       432,000
      mobile
      communications
      (includes device
      purchase costs &
      usage charges)
     Note 1: It has been assumed that where a staff member has a laptop they will also have
     some form of cellphone and as a result the number of laptop users has been used to
     estimate a figure for staff with more than one device.
     Note 2: Staff with cell phones/i-phones has been used as this is the most common device
     issued to reflect the proportion of staff with some form of device. Outside this staff may
     also be issued additional devices.



     end


62.Will the Department/Ministry in 2011/12 have a policy about the use of
   personal email accounts (e.g. gmail accounts) in the workplace; if so, what
   policies are in place and do those policies include a prohibition on the use of
   such accounts for official government business?
  Answer: Department of Labour (the Department) 51
     The Department’s current Acceptable Use policy allows staff to check their
     personal email accounts within the bounds of ‘reasonable personal use’. While the
     policy does not expressly address the issue of staff using such accounts for official
     government business, the Classification and Handling policy does prohibit staff
     sending classified information outside the Department without first encrypting it.
     The Acceptable Use policy is currently under review and serious consideration will
     be given to providing more explicit guidance on the use of personal email
     accounts, primarily with regard to mitigating the risk of sensitive data leakage. In
     a broader context, from a ‘brand’ perspective, consideration will also be given to
     including similar guidance in other communications policies such as those
     developed by the Communications and Marketing team.
     The Department has provided staff with secure email via Outlook Web Access for
     those staff that have a business requirement to access Department email services

  51
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               59
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


     when away from the office.          This reduces the need to use personal webmail
     accounts.
  Answer: Accident Compensation Corporation (ACC)
     ACC blocks access to personal email accounts, such as Gmail, from the ACC
     network by an Internet security system. As a result a specific policy does not
     exist regarding the use of personal email addresses to conduct official corporate
     business in the workplace.


     end


63.How many staff have the use of vehicles paid for by the
   Department/Ministry; what are the estimated costs; and how do these
   numbers compare to the previous five financial years?
  Answer: Department of Labour (the Department) 52
     The Department has 298 cars for use by staff for business purposes. This
     includes staff on call for the Department who may need to take the vehicle home.
     Some of these are pool cars. The comparison in the previous five financial years
     are:
                               Total cost
            Year                                   Number of Cars
                                ($000)
      2005/06                               679                  317
      2006/07                               923                  344
      2007/08                               823                  305
      2008/09                               858                  326
      2009/10                               806                  316
      2010/11                               775                  298


  Answer: Accident Compensation Corporation (ACC)
     ACC's vehicle fleet consists mainly of pool cars. Pool cars are made available to
     staff in the group or branch at which they are located. There are approximately
     1000 staff, mainly within the Operations Business Group, that have access to
     ACC's fleet of 217 cars. The number of staff who have access to pool cars has
     remained the same as previous years.
     Thirty one ACC employees currently have private use of an ACC fleet vehicle as
     part of their total remuneration package as at 14 June 2011. The number of roles
     eligible to have a motor vehicle as part of the total remuneration package has
     decreased by four over the last five years.
     The running cost of the fleet, which includes fuel, maintenance, and servicing
     costs, for previous financial years is as follows:
                                                                       Estimated    Budgeted
       2006/07        2007/08        2008/09           2009/10
                                                                       2010/11      2011/12
        ($000)         ($000)         ($000)            ($000)
                                                                        ($000)       ($000)
               970          1,065             806           692               735         782


     end


  52
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                                  60
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC




64.How much has the Department/Ministry and its associated agencies
   respectively budgeted to spend on internal conferences and seminars,
   including travel costs, and what is the purpose of each seminar in 2011/12?
   How does this compare to the 2010/11 financial year? What are the
   measures used to evaluate the success or effectiveness for internal
   conferences or seminars?
  Answer: Department of Labour (the Department) 53
     The Department’s internal 2011/12 budget has yet to be finalised. Details of
     known proposals for internal conferences and seminars for 2011/12 and
     comparative information for 2010/11 are outlined in Appendix 10.
  Answer: Accident Compensation Corporation (ACC)
     The Corporation is mainly funded through levies and funding for the Non-Earners’
     Account is the only Vote money ACC receives. ACC pools the Vote and levy
     monies for the purposes of its administrative budget. The Non-Earners’
     appropriation funds the net costs in the Non-Earners’ income and expenditure
     statement. This income and expenditure is determined from a cost allocation
     model which allocates equitably the expenditure across the Accounts.
     ACC holds internal conferences and seminars to ensure consistent communication
     and learning for staff, relating to:
            Communication about ACC’s strategic and business planning objectives
            Specific communications about key operational initiatives
            Technical training and information, including legislative policy changes and
             changes as a result of court decisions.
     ACC anticipates the funding of internal conferences and seminars in 2011/12 to
     total $41,700. ACC spent $32,519 on internal conferences and seminars in the
     2010/2011 year. The cost of travel to internal conferences and seminars is
     generally borne by individual cost centres within the Corporation. ACC is
     therefore unable to identify travel relating to specific internal conferences and
     seminars.
     The following internal conferences and seminars are planned in 2011/2012:
     National Clinical Advisors’ Conference
     This annual conference, held in Wellington usually in June, is to ensure that ACC’s
     Clinical Advisors are appropriately trained and work in a consistent manner across
     the country. Attendees are up-skilled in changes to legislation and policy that will
     affect the Clinical Advisors’ decision-making. It is also an opportunity to share
     case studies with colleagues. The budget for this conference in 2011/2012 is
     $30,000, compared to the 2010/2011 actual cost of $27,294.
     The meeting will be formally evaluated using a questionnaire completed by
     attendees. In addition, attendees are required to complete a learning and
     development plan which identifies their learning needs. This and subsequent
     meetings will address the specific learning needs of the group.
     Technical Claims Managers’ training seminar
     This annual training seminar, held in Wellington, provides Technical Claims
     Managers and Quality Assurance Managers with information on changes in ACC
     systems and policy due to precedent setting court decisions and legislation


  53
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               61
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


     changes. It enables consistent messages to be delivered to these staff from ACC
     management and provides a forum for staff to progress improvement proposals.
     The seminar also promotes staff professional development as attendees have
     access to Human Resource staff to discuss training and development needs, as
     well as the opportunity to share technical information with their colleagues.
     Seminar attendees will be asked to complete a written evaluation, with feedback
     used to make improvements to future seminars. This year's training will be held
     over 2 days. The budget for this seminar in 2011/2012 is $11,700 (2 days),
     compared to the 2010/2011 actual cost of $5,225 (1 day).


     end


65.How much has the Department/Ministry and its associated agencies
   respectively budgeted to spend on staff training in 2011/12; and what
   percentage of the vote does the amount represent? How does this compare
   to the previous five years?
  Answer: Department of Labour (the Department) 54
     The 2011/12 budget has yet to be finalised.
     Prior years’ expenditure on training for the Departmental staff as a percentage of
     the total Departmental expenditure is set out in the following table.
      2009/10 (%)        2008/09 (%)        2007/08 (%)        2006/07 (%)        2005/06 (%)
               1.47               1.64               1.76               1.37               1.37


  Answer: Accident Compensation Corporation (ACC)
     The Corporation is mainly funded through levies and funding for the Non-Earners’
     Account is the only Vote money ACC receives. ACC pools the Vote and levy
     monies for the purposes of its administrative budget. Therefore, it is not possible
     to detail estimated spending from Vote ACC money on staff training. However,
     ACC’s total spend of levy and Vote ACC allocation is as follows.
     The ACC budget for staff training in 2011/12 is $1,510,404. This represents 0.8%
     of annual salary costs and about 0.03% of the budgeted Levy Revenue for
     2011/2012.
     The actual/forecast staff training spend for the 5 years to 30 June 2011 and
     compared to the 2011/12 budget is summarised in the following table:
                       2011-12       2010-11         2009-10   2008-09       2007-08       2006-07
                        Budget       Forecast         Actual    Actual        Actual        Actual
  Staff Training
  costs                1,510,404       978,938       735,968   1,358,526      1,395,260    890,738
  Percentage of
  Salary & Wages            0.8%          0.5%          0.4%        0.7%           0.8%        0.7%
  Percentage of
  Total Levy
  Revenue                  0.03%         0.02%         0.02%       0.03%         0.04%        0.03%


     The expenditure on staff training fell substantially in 2009/10 and 2010/11
     (forecast) as a result of restructuring and internal reprioritisation.


  54
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                                62
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


     In 2011/12 expenditure is budgeted to increase to meet the additional capability
     required to successfully implement experience rating and other associated
     improvements to ACC’s service delivery.


     end


66.What specific activities or events will the Department/Ministry and its
   associated agencies respectively conduct that contributes towards staff
   morale in the forthcoming financial year?
  Answer: Department of Labour (the Department) 55
     The Department has no plans or activities specifically contributing to staff morale
     building.
  Answer: Accident Compensation Corporation (ACC)
     ACC contributes towards staff morale by focussing on staff health, wellbeing and
     retention of its skilled staff. ACC wants to ensure all staff are provided with the
     opportunities and support to improve their own wellbeing.
     ACC’s retention strategy focuses on maximising the retention of all staff and
     improving their wellbeing through the continued implementation of an integrated
     suite of initiatives including:
        Safety and Wellbeing Programme
        Employee Engagement Programme
        Career Development Programme
        Management and Leadership Development Programmes, including coaching
         and mentoring
        Flexible Working.
     ACC conducts an annual staff survey to assess staff engagement levels, and uses
     this survey to identify actions required to improve staff wellbeing. ACC has
     reported relatively stable levels of engagement since introducing this process in
     2008 and scores above the NZ State sector median. Results from the most recent
     survey are due in July 2011.


     end


67.Please provide a list all reports that were prepared in relation to the
   Department's/Ministry's baseline update for 2011/12.
  Answer: Department of Labour only
     Reports for the 2010 October and 2011 March Baseline Updates were prepared for
     each    Vote    administered   by   the   Department.     Copies   for   Vote
     Labour/Immigration/Employment/ACC are attached within Appendix 11.


     end



  55
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               63
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


68.What are the five main issues facing the Department/Ministry and its
   associated agencies in the 2011/12 financial year, how will these be
   addressed in this and coming years, and how are these issues an outcome
   of previous years? What specific resource commitment is required to
   address each specific issue?
   Answer: Department of Labour (the Department) 56
       The main issues facing the Department are set out in the Department of Labour’s
       Statement of Intent 2011-2014, in the Strategic Direction and Managing in a
       Changeable Operating Environment sections.         The Operating Intentions and
       Organisational Health and Capability sections of the Statement of Intent 2011-14
       sets out the Department’s resource commitment to address these issues.
  Answer: Accident Compensation Corporation (ACC)
       The main issues facing the Corporation are set out in the Accident Compensation
       Corporation’s Statement of Intent 2011-2014, in the Strategic Direction and Risks
       sections.


       end


69.Please provide a copy of the current work programme and list of projects to
   be progressed in 2011/12.
  Answer: Department of Labour (the Department) 57
       The Department’s work programme for 2011/12 is currently being developed
       through business planning. Details of priority programmes are set out in the
       Statement of Intent 2011-2014.
  Answer: Accident Compensation Corporation (ACC)
       The required information is available in the Accident Compensation Corporation’s
       Statement of Intent2011-2014. This document is available on the Corporation’s
       website:
       http://www.acc.co.nz/search-
       results/index.htm?ssUserText=Statement+of+Intent+2011-14


       end


70.Please provide a copy of the purchase agreement/output plan for 2011/12
   and identify the key changes from the previous financial year. Provide a
   copy of the reports against the performance agreement/output plan that
   have been provided to the Minister for the last financial year. What are the
   primary areas of concern that will impact on the Ministry's performance in
   2011/12?
   Answer: Department of Labour only (the Department) 58



  56
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.
  57
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.
  58
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               64
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


     The Department of Labour’s Output Plan for 2011/12 is currently being developed.
     The Output Plan will be provided to the Committee once it is completed and
     approved. Copies of Quarterly Performance Reports provided to the Minister for
     the last financial year are attached as Appendix 12.
     The primary area of concern is to manage ongoing financial pressures and obtain
     value for money for expenditure of taxpayers’ money and ensure it does not
     impact on the Department’s performance in 2011/12.


     end


71.How many evaluations of policies or programmes are planned to be
   completed this year? What policies or programmes are planned to be
   evaluated this year or have evaluations completed this year? What is the
   indicative cost, who is conducting the evaluation (if known) and when is it
   due for completion and results reported?
   Answer: Department of Labour (the Department) 59
     The Department’s work programme for 2011/12 is currently being developed
     through business planning.
     The following policies or programmes have been confirmed as being evaluated
     during the 2011/12 financial year:
         Policies or         Indicative
                              cost for                                 When is it due for
        programmes                            Who is conducting
                              2011/12                                   completion and
           to be                               the evaluation?
                                                                       results reported?
         evaluated             ($000)
      Workplace                 250          Work programme           Various – this is an-
      Language,                              being confirmed.         going programme of
      Literacy and                           Appropriate              evaluation, working
      Numeracy                               evaluators will then     with Ministry of
      employer-led                           be selected using a      Education and
      initiatives                            tendering process.       Tertiary Education
                                                                      Commission
      Employment                 10          Labour Research and      Implementation
      Relations Act                          Evaluation               evaluation finalised
      and Holidays Act                                                in July 2011 and
      Legislative                                                     outcomes evaluation
      changes                                                         will continue into
      outcomes                                                        12/13 and will report
      evaluation. This                                                in October 2013.
      will be
      supported by an
      all-employer
      survey.
      High Performing            10          Labour Research and      Process evaluation
      Working                                Evaluation               by June 2012
      Initiative


  Answer: Accident Compensation Corporation (ACC)
     The Corporation is mainly funded through levies and funding for the Non-Earners’
     Account is the only Vote money ACC receives. ACC pools the Vote and levy
     monies for the purposes of its administrative budget. Therefore it is not possible

  59
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               65
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


     to detail estimated spending from Vote ACC money on evaluations of policies or
     programmes. However, ACC's total spend of levy and Vote ACC allocation is as
     follows.
     ACC undertakes a number of evaluations of policies and programmes each year.
     The evaluations of policies or programmes are used to assist with the monitoring
     and analysis of ACC’s performance.
     There are 6 evaluations of policies or programmes planned for 2011/2012.
     Details of the type of evaluation, its indicative cost, who will be conducting it, and
     when it is due to be completed, are detailed in Appendix 13.


  end


72.What reviews of Departmental contracting policies or practices are planned
   to be started/finished in 2011/12 ? When will/are they expected to be
   completed?
   Answer: Department of Labour (the Department) 60
     The Department’s procurement policy is currently under review and we intend to
     review a range of sensitive expenditure policies in the coming year.
  Answer: Accident Compensation Corporation (ACC)
     ACC is an organisation that promotes continuous improvement. The current
     improvement processes within its procurement area have a plan with a horizon of
     three years.


     end


73.What reviews of Departmental "capability" are planned to be started or
   completed in 2011/12? What aspects of capability are being reviewed? Who
   will undertake these reviews and when will these be completed?
     Answer: Department of Labour (the Department) 61
     The Department is entering year three of a five-year change programme to
     transform its business structure and operations. Further information is provided
     in the Department’s Statement of Intent 2011-2014.


  Answer: Accident Compensation Corporation (ACC)
     ACC’s Insurance and Prevention Services Group has undertaken a capability
     review as part of its change programme. It encompassed people capability,
     process and technology improvements, and was largely conducted internally with
     some assistance from external advisors. The results will be incorporated into the
     programme outcomes which will be rolled out in the 2011/12 year and beyond.
     ACC’s Corporate Services business group has commenced the development of an
     overarching People Strategy, which will ensure the Corporation’s approach to
     capability development continues to be fit for purpose. During the 2010/11


  60
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.
  61
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               66
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


      financial year, ACC has continued to implement key initiatives arising from its
      existing Capability Development Strategy and will continue to do so in 2011/12.
      The regular annual Talent Management assessments will be undertaken by ACC’s
      Corporate Services. The Talent Management programme is a formal process
      which identifies high-potential individuals and targets development activities for
      them.
      A competency framework for procurement will be developed by the Strategic
      Sourcing and Procurement business unit in 2011/12.


      end


74.How much funding for specific projects, policies or programmes has been
   carried forward from the previous financial year? For each, please provide
   the following details:
  -      Name
  -      Location
  -      Name of provider(s)
  -      Estimated cost
  -      Estimation completion date.
      Answer: Department of Labour only (the Department) 62
      The following programmes had funding transferred for Vote ACC in the March
      Baseline Update. Programmes are estimated to be completed within the years
      indicated and will be delivered within the funds transferred.
                                                         2010/11        2011/12        2012/13
              Departmental Expenditure
                                                          ($000)         ($000)         ($000)
       Financial Management Information System                 -5             0              5
       Corporate Model Implementation Project                 -15            15
       TOTAL                                                 -20             15                 5


      There were no capital transfers included in the March 2011 Baseline Update.


      end


75.How many projects or contracts signed in 2010/11 that were due to be
   completed in 2011/12 are now expected to be shelved, curtailed or pushed
   into out years and for each, what was the project name, what was the total
   budgeted cost, what is the actual cost to date, what was its purpose and
   why will it not be completed in 2011/12?
  Answer: Department of Labour (the Department) 63
      Refer to answer to question 86.
  Answer: Accident Compensation Corporation (ACC)

  62
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.
  63
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               67
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


     Of the projects outlined in the 2010-2013 Statement of Intent the following
     project was scheduled to be delivered in 2011/12.
     Project
                                    Purpose                                      Reason
      Name
    Service     This programme includes a number of initiatives      The Service Delivery Model
    Delivery    that form part of the ongoing improvements to        (SDM) programme includes a
    Model       ACC’s claims management. These include               number of initiatives that will
                initiatives that:                                    make ongoing improvements to
                    increase operating efficiencies, e.g.           ACC’s claims management.
                     through automating processes currently          The original multi-year budget
                     reliant on manual operations                    was $8.9m. Many elements
                    develop tools to assist claims                  were delivered; however, some
                     managers, e.g. through better                   of the initiatives that were
                     understanding the financial impact of           expected to be delivered have
                     rehabilitation decisions and through earlier    been delayed due to
                     involvement when clients are referred for       reprioritisation of the capital
                     treatment                                       expenditure in 2011/12.
                    maintain the reliability of critical
                     systems                                         The revised 2010/11 budget for
                    create a clearing house function that           these initiatives is $2.48m.
                     links claims to providers, accredited
                     employers, third party administrators and       The actual 2010/11 cost to
                     claim owners                                    date is $2.51m.
                    develop a strategic plan for the service
                     delivery network.


     end


76.What IT projects, if any, are expected to be shelved or curtailed in the
   2011/12 year and how much will have been spent on each project before it
   is shelved or curtailed?
   Answer: Department of Labour only (the Department) 64
     The Department has no IT projects or contracts in 2011/12 that are expected to
     be shelved, curtailed or pushed into out years.
  Answer: Accident Compensation Corporation (ACC)
     As at 16 June 2011, ACC has no IT projects approved for progression that are
     expected to be shelved or curtailed during the 2011/12 year.


     end


77.What IT projects, if any, started since 1 January 2009 that have not been
   completed are expected to be completed in 2011/12 and what was the total
   budgeted cost of the project when it was begun and what is the expected
   final cost on completion?
   Answer: Department of Labour only (the Department) 65
     Electronic Document and Records Management Project (EDRMS) original capital
     budget is $1,636,155, and there is no change in its expected cost.

  64
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.
  65
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               68
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


     ICT Infrastructure Programme original capital budget is $16,262,000, and there is
     no change in its expected cost.
     Application Management System (AMS) Remedial, original capital budget is
     $12,850,618, and there is no change in its expected cost.
  Answer: Accident Compensation Corporation (ACC)
     The table below lists ACC’s IT projects, started since 1 January 2009 that are
     expected to be completed in 2011/2012. In many instances these projects have
     only recently been approved. This explains why budgeted and expected costs are
     the same for some projects.
                Project                Budgeted Cost ($)     Expected final cost ($)
      Employer Search                              468,182                    411,000
      Experience Rating Phase 2                  1,051,400                  1,051,400
      ACC18 Migration                            1,114,061                  1,114,061
      Control M                                      33,811                    33,811
      Development                                  648,038                    648,038
      Virtualisation
      Eos Product Upgrade 6.7                    2,470,000                  2,299,000
      Oracle Product Upgrade                     2,299,000                  2,299,000
      R12.1
      Oracle RAC Build                             453,973                    453,973
      Production Virtualisation                  1,440,953                  1,440,953
      e-channel platform (Tree)                  4,405,913                  4,405,913
      Claims lodgement                             984,000                    984,000
      Clearing House                             1,388,000                  1,388,000
      Virtual Desktop                            2,998,278                  2,998,278
      EOS platform Migration                       503,271                    503,271
      IP Telephony (Avaya                        1,729,382                  1,729,382
      Upgrade)
      Sybase upgrade                               600,191                    600,191
      Pathway Replacement                        1,758,000                   (note 1)
     Note 1: The Pathway Replacement project is currently on hold pending a review of scope
     with the possibility of scope being expanded to meet a wider business need through a
     single system implementation.



     end


78.How much expenditure is planned in this vote for software licensing fees in
   the 2011/12 financial year and how does this compare with spending in
   each of the past five financial years?
   Answer: Department of Labour (the Department) 66
                                 2009/10 ($000)        2010/11 ($000)        2011/12 ($000)
      Software licensing and                1,358.4                $1,498                $1,888
      support fees


  Answer: Accident Compensation Corporation (ACC)
     The Corporation is mainly funded through levies and funding for the Non-Earners’
     Account is the only Vote money ACC receives. ACC pools the Vote and levy

  66
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               69
              2011/12 ESTIMATES EXAMINATION: VOTE ACC


monies for the purposes of its administrative budget. Therefore it is not possible
to detail estimated spending from Vote ACC money for software licensing fees.
However, the Corporation’s total spend of levy and Vote ACC allocation on
licensing fees is shown in the table.
Software licence purchases are funded from the annual capital expenditure budget
for both IT Initiatives and systems maintenance requirements for 2011/2012.
IT initiatives planned for 2011/12 have not yet been fully defined, so the portion
of the 2011/12 capital budget planned to be spent on software licence purchases
for change programmes has not been detailed at this stage. As a result the figure
budgeted in the table for the 2011/12 year reflects the expected software
licensing fees planned for systems maintenance only. In all other years the actual
amounts listed include the costs for both systems maintenance and IT initiatives.




                                    70
                       2011/12 ESTIMATES EXAMINATION: VOTE ACC




                                             Licence               Annual
                                                                                       TOTAL
                  Financial Year            Purchase          Licence/Support
                                                                                       ($000)
                                             ($000)                ($000)
      Year   2011/12    (Budget)*             2,925                11,743               14,668
      Year   2010/11    (Actuals)**           1,103                10,305               11,408
      Year   2009/10    (Actuals)             3,963                 9,238               13,201
      Year   2008/09    (Actuals)             6,043                 8,160               14,203
      Year   2007/08    (Actuals)             4,498                 8,499               12,998
      Year   2006/07    (Actuals)             6,929                 7,347               14,275
     * Reflects budgeted systems maintenance software licensing fees only
     ** Actuals for 2010/11 are year to date to 31st May 2011.



     end


79.How many websites does the Department/Ministry and its associated
   agencies plan to run in 2011/12 and for each, what is it called, what is its
   URL, when was it established, what is its purpose and what is the annual
   cost of operating it?
   Answer: Department of Labour (the Department) 67
     In 2011/12, the Department plans to run seven websites and administer the
     websites of four associated agencies. Please refer to Appendix 14 for the
     details.
     Note as 2011/12 budgets are yet to be finalised, budgeted annual operating costs
     are unable to be provided. Also note that as support for most of the Department’s
     websites is provided by in-house capability, costs are not captured at the level
     requested.
  Answer: Accident Compensation Corporation (ACC)
     ACC plans to run 22 websites in 2011/2012. The overall cost is estimated at
     $1,504,830.
      Website name                             Website information                               Cost
      Acc.co.nz           URL(s)        www.acc.net.nz
                                        www.acc.co.nz                                        $317,681 Tech
                                        www.acc.govt.nz                                      Mtc, support
                                                                                             and
                                        forms.acc.co.nz
                                                                                             development
                          Purpose       To provide all New Zealanders, ACC customers,
                                        Levy payers and providers with information on how
                                        ACC operates and working together.                   $3,300
                                                                                             hosting fees
                          Established   12 + years ago
      Business            URL(s)        businessdescription.co.nz
      descriptions                                                                           (Note 1)
                          Purpose       Enables people to find their business industry
                                        description and code (these codes are used by ACC,
                                        IRD and Statistics New Zealand).
                          Established   Migrated to ACC in 2008
      Careers at ACC      URL(s)        careers.acc.co.nz
                          Purpose       To provide job vacancies and a mechanism for
                                        applying for jobs at ACC.


                          Established   2005


  67
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                                71
                   2011/12 ESTIMATES EXAMINATION: VOTE ACC


Website name                              Website information                                 Cost
Homesafety           URL(s)        homesafety.co.nz
                     Purpose       To be a central source of information about home
                                   safety and to be used during Safety Week to
                                   promote the main messages of Safety Week.
                     Established   2007
New Zealand          URL(s)        nzips.co.nz
Injury Prevention                  db.nzips.co.nz
Strategy
                     Purpose       To provide update on work undertaken by the NZ
                                   Injury Prevention Strategy Secretariat.
                     Established   June 2003
Ride Forever         URL(s)        rideforever.co.nz
                                   ride4ever.co.nz
                     Purpose       to provide safety information and advice to
                                   motorcyclists.
                     Established   2004

Scooter survival     URL(s)        scootersurvival.co.nz


                     Purpose       Provision of safety information to scooter riders to
                                   encourage safer choices and behaviour and reduce
                                   injuries.
                     Established   2008
Habit At Work        URL(s)        habitatwork.co.nz
                     Purpose       An educational tool promoting self-help and
                                   problem solving for preventing and managing
                                   discomfort, pain and injury.
                     Established   2006
Sport tips           URL(s)        www.sportzilla-competition.co.nz/sportsmarttips/
                     Purpose       Provide sports tips to reduce injuries.
                     Established   2003
Work tips            URL(s)        www.sportzilla-competition.co.nz/worktips/

                     Purpose       Provide tips for workers to reduce injuries.
                     Established   2003
Moto NZ              URL(s)        Motonz.org.nz
(Motorcyclists
own the options)
                     Purpose       A mechanism for engagement with motorcyclists
                                   and to provide motorcyclists with information
                                   regarding the activities of Motorcycle Safety Levy
                                   Advisory Council.
                     Established   2011
Move it              URL(s)        moveit.org.nz
                     Purpose       Provides general information and activities to avoid
                                   pain and discomfort when working with computers.
                     Established   2002
ACC                  URL(s)        mysuper.co.nz                                          $350
Superannuation
Scheme
                     Purpose       Providing general information about the ACC
                                   Superannuation Scheme for members' and
                                   prospective members.
                     Established   2008
Netball smart        URL(s)        netballsmart.co.nz                                     $5,700
Snow smart                         snowsmart.co.nz
Soccer smart                       soccersmart.co.nz
                     Purpose       Reduce the social and economic burden of netball,
                                   snow and soccer injuries.
                     Established   2007
Activesmart          URL(s)        activesmart.co.nz                                      $16,500




                                           72
                    2011/12 ESTIMATES EXAMINATION: VOTE ACC


 Website name                              Website information                                   Cost
                      Purpose       Reduce the social and economic burden of injuries
                                    for people participating in social / recreational type
                                    activities (walking, running, cycling).
                      Established   2007
 ACC Online           URL(s)        online.acc.co.nz                                         $859,910


                      Purpose       Provides a set of online services for levy payers and
                                    their agents and advisors, enabling them to access
                                    and maintain certain information online.
                      Established   May 2009
 Practice             URL(s)        practice.co.nz                                           $55,344
                      Purpose       Provides online information about learning driving
                                    skills novice drivers need be a safer driver when
                                    they first drive solo (time of greatest crash/injury
                                    risk in driving career).
                      Established   2009
 Preventing and       URL(s)        acc.dpi.org.nz                                           $40,000
 Managing
 Discomfort, Pain
                      Purpose       Gathering industry, contact, training data relating to
 and Injury
                                    trainees - used to inform decisions, send updates,
                                    run surveys to specific factions in the database.
                                    As a hub for all resources material related to
                                    preventing and managing discomfort pain and
                                    injury.
                      Established   November 2006
 Safe 2 Go            URL(s)        safe2go.co.nz                                            $300

                      Purpose       To promote sharing of information between those
                                    working in the child restraint committee.
                      Established   2002
 International        URL(s)        anzcrtwc.org                                             $5,745
 Disability                         cpanz.org
 Management
                      Purpose       This site provides information about maintaining
 Standards Council
                                    International Disability Management Standards
                                    Council (IDMSC) Professional Certifications in
                                    Australia and New Zealand and allows the
                                    administration of continuing education hours.
                      Established   2009
 EMG-R                URL(s)        emg.acc.co.nz/wps/myportal                               $200,000 Both
                      Purpose       Claims Lodgement system for Electronic ACC45             sites
                                    Claims. Allows Providers to lodge ACC claims and         Supported by
                                    manage the claims in the Claim Summary list.             Solnet
                                    Allows a User Interface and a Bulk load interface for
                                    Practice Management Systems.                             (note 2)
                      Established   2002
 e-Forms              URL(s)        eform.acc.co.nz/NASApp/eform/home.do
                                    Providing an Invoice lodgement system for Provider
                                    Invoicing (ACC40/47e), allows uploads of multiple
                                    invoices and the ability to query existing claims,
                                    Invoices and payment remittance. Provides a User
                                    Interface and a Bulk load interface for Practice
                                    Management Systems.
                      Established   2002
Note 1 – ACC maintains a number of websites internally via its own internal web services
team and time for specific site management is not collected. As a result the costs
displayed represent a portion of the costs of the team to support all these sites.
Note 2 – A project is progressing to replace both EMG-R and e-forms sites. This project is
due to deploy August 2011 but the costs associated with the ongoing provision of these
components has not been defined.




                                            73
                          2011/12 ESTIMATES EXAMINATION: VOTE ACC


        end


80.What carbon neutral initiatives will be undertaken by the
   Department/Ministry and its associated agencies in 2011/12 and what are
   the expected costs/savings of each such initiative?
      Answer: Department of Labour (the Department) 68
        The Department has no plans to undertake any carbon neutral initiatives in
        2011/12.
  Answer: Accident Compensation Corporation (ACC)
        ACC does not allocate specific resources for implementing carbon neutral
        initiatives nor measuring / managing their outcomes. The need to focus on carbon
        neutrality has been built into ‘business as usual’. Some of the key initiatives
        implemented / progressed are:
             Greater rigour and control around air travel and taxis
             Recycling programme – paper, waste and computing equipment


        end


81.In preparing bids for Budget 2011, what consultation took place with other
   political parties as required by Cabinet Office Circular CO (09) 07? Please
   specify:
  -         number of meetings
  -         when they took place
  -         who attended
  -         what items were discussed
  -         what changes, if any, were made to Budget bids following this
            meeting
  -         the titles of any reports prepared for, or generated after the meeting
  Please attach:
  -         Copies of any reports prepared for, or generated after the meeting
  -         Copies of agendas for any meetings
      Answer: Department of Labour only
        No budget bids were prepared for Budget 2011. 69


        end




  68
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.
  69
       For the Accident Compensation portfolio, however, there was a standard process occurring around the
  Non Earners Account (with an associated submission) and mention of a possible capital contingency being
  sought for the purchase of the Disputes Resolution Services Limited.



                                                    74
                             2011/12 ESTIMATES EXAMINATION: VOTE ACC




  82.How many Budget bids were submitted for this vote for Budget 2011?
         Answer: Department of Labour only
            There were no operating Budget bids submitted. 70


            end


  83.How many Budget bids were successful for this vote in Budget 2011?
         Answer: Department of Labour only (the Department)
            There were no operating budget bids submitted. The Department is progressing
            with two capital budget bids which are subject to Cabinet approval of business
            cases in 2011/12.


            end


  84.How many successful Budget bids received funding of less than 75% of that
     sought?
         Answer: Department of Labour only (the Department)
            Refer to answers to questions 82 and 83.


            end


  85.How many Budget bids failed for this vote in Budget 2011? Please provide
     the titles of all failed Budget bids. Are any of the failed Budget being
     considered for resubmission as part of Budget 2011; if so, which ones?
         Answer: Department of Labour only
            Refer to answers to questions 82 and 83.


            end


  86.How much, if anything, does the Department/Ministry and its associated
     agencies plan to carry over from the 2010/11 year into the 2011/12 year
     and what for what reason or reasons will these funds be carried over?


         Answer: Department of Labour only (the Department)
            The Department has requested in principle transfers as outlined in the following
            table.




70 70
        For the Accident Compensation portfolio, however, there was a standard process occurring around the Non
Earners Account (with an associated submission) and mention of a possible capital contingency being sought for
the purchase of the Disputes Resolution Services Limited.



                                                        75
               2011/12 ESTIMATES EXAMINATION: VOTE ACC


Vote ACC

 Item                                                               Amount
                                                                    ($000)
 ACC Choice Work Programme                                               200
 TOTAL                                                                     200




ACC Choice Work Programme

As a result of the Canterbury Earthquake, government decisions to consult on
proposals to extend the Accredited Employers Programme scheme and to
introduce choice to the delivery of the ACC scheme have been delayed from late
February. The decisions were expected to be taken in mid to late May. The
impact of this is that expected consultation has been delayed by two to three
months. This delay has in turn resulted in further delays to expected work to
analyse submissions from consultation, to report to government on the detail of
final policy proposals and to the timing of work needed to plan and advise on
implementation of final policy proposals. It is anticipated that this work will still
be required, but that some of the work will now occur in 2011/12.

The following are the approved expense transfers included in the March 2011
Baseline Update.

Vote ACC

 Item                                                     Amount
                                                           $000
                                            2010/11      2011/12       2012/13
 Departmental Transformation Project
 - Financial Management Information                                       0.005
 System                                       (0.005)
 Departmental Transformation Project
 - Corporate Model Implementation                           0.015
 Project                                      (0.015)
 TOTAL                                       (0.020)        0.015        0.005

Departmental Transformation Projects

The Corporate Model (Phase I), Financial Management Information System (FMIS)
(Phase I) and Review of Immigration Group Structure have been implemented in
2010/11. The purposes of theses projects are to lift organisational strategic
capability and leadership; strengthen assurance activities; deliver quality
corporate services that meet business needs and ensure financial processes
improvements and the resultant changes in the business structure are
implemented. After the implementation of the first phases of these projects the
remaining phases have been reviewed resulting in the funding requirements being
re-phased over the future years.


end




                                      76
                   2011/12 ESTIMATES EXAMINATION: VOTE ACC


87.What cuts or reprioritised savings to the Department/Ministry’s and its
   associated agencies’ budget for 2011/12 were the result of an underspend
   in 2010/11 year and for each, what budgets were under spent and why
   were they under spent?
   Answer: Department of Labour only (the Department)
     The internal budgets are currently being developed. Currently reprioritisation
     expected is in respect of funding pressures in 2011/12, and not as a result of
     under spends in 2010/11.


     end


88.How much is the Department/Ministry and its associated agencies
   expecting to cut their overall budget by in 2011/12 and each of the out
   years as a result of Budget 2011 and what options are being considered
   about how and where such cuts will be made?
   Answer: Department of Labour only (the Department)
     The Department has been considering options to manage funding pressures in
     2011/12 and outyears within current baselines. Proposals to manage these
     pressures are included in the Four year Budget Plans scheduled to be released
     with other Budget documentation by Treasury in late June or July 2011.


     end


89.Have any cuts or reprioritised savings to the Department/Ministry’s and its
   associated agencies’ budget for 2011/12 come from frontline services; if
   so, for each what is the name of the service, how much has been
   reprioritised and what was the reason for the reprioritisation?
   Answer: Department of Labour (the Department)
     There are no proposals to cut frontline services.
  Answer: Accident Compensation Corporation (ACC)
     There are no cuts to ACC’s front line services.


     end


90.What savings or cuts have been reprioritised in Budget 2011; for each
   please provide the name of the service, initiative or programme, how much
   has been reprioritised for each year and what was the reason for the
   reprioritisation?
   Answer: Department of Labour only
     Proposals to manage funding pressures are included in the Four year Budget Plans
     have been recently released with other Budget documentation by Treasury.


     end




                                          77
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


91.How much expenditure is planned in this vote for the services of purchase
   advisors in the 2011/12 financial year and how does this compare with
   spending in the past five financial years?
   Answer: Department of Labour (the Department)
     The Department has no expenditure planned for the services of purchase advisors
     in 2011/12. There was no expenditure for the services of purchase advisors in
     previous years.
  Answer: Accident Compensation Corporation (ACC)
     ACC does not have requirements for purchase advisors and consequently does not
     have any historical or forecasted expenditure.


     end


92.How much expenditure is planned in this vote for the 2011/12 financial
   year on fringe benefits and how many staff qualified for fringe benefits?
   What are the eligibility criteria for fringe benefits?
   Answer: Department of Labour (the Department) 71
     The budget for fringe benefits for 2011/12 has not yet been determined, although
     it will be similar to the 2010/11 budget of $1.539 million.
      2010/11 fringe      2010/11 number
      benefits budget        of staff that                         Eligibility
          ($000)               qualified
      1,539               135*                      Eligibility is based on contractual terms
                                                    with employees and Departmental policies
                                                    and procedures.
     This includes 114 onshore staff and 21 offshore staff.


  Answer: Accident Compensation Corporation (ACC)
     The Corporation is mainly funded through levies and funding for the Non-Earners’
     Account is the only Vote money ACC receives. ACC pools the Vote and levy
     monies for the purposes of its administrative budget.          The Non-Earners
     appropriation funds the net costs in the Non-Earners’ income and expenditure
     statement. This income and expenditure is determined from a cost allocation
     model which allocates equitably the expenditure across the Accounts.
     The estimated fringe benefit for the 2011/12 financial year is $793,346.
     In the current financial year the breakdown of fringe benefits provided is as
     follows:
     Medical Insurance is provided for the Executive Leadership (5) and Senior
     Management staff (4) under their employment agreement provisions – total 9
     staff (as at 30 June 2011).
     31 staff were provided with motor vehicles under employment agreement
     provisions (as at 14 June 2011). The list of eligible positions is set out below in
     Table 1.



  71
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.




                                               78
                     2011/12 ESTIMATES EXAMINATION: VOTE ACC


     65 staff at the Auckland Sale Street office are eligible for subsidised car parking
     (as at 8 June 2011). The subsidised parking arrangements resulted from issues
     with both access to public car parking and limited public transportation options in
     these areas.
  Designations of ACC staff members eligible for motor vehicles (as at 14 June
  2011)
                               TITLE                                      TOTAL
      Area Leader                                                           2
      Branch Manager                                                        20
      Business Manager                                                      2
      Centre Manager                                                         3
      Chief Information Officer                                              1
      Manager, Workplace & Public Safety                                     1
      National Manager                                                       2
      TOTAL                                                                 31


     end


93.What mechanisms does the Ministry/Department and its associated
   agencies have in place in 2011/12 for monitoring its achievement of goals
   against its stated objectives?
   Answer: Department of Labour (the Department) 72
     The Department of Labour’s objectives are set out in the Statement of Intent
     2011-2014, and the Output Plan 2011/12 which is in development. The
     mechanisms in place to monitor these objectives are the Monthly and Quarterly
     Management Reports to the Department’s Strategic Leadership Team, and
     Quarterly Performance Reports to Ministers and the Annual Report.
  Answer: Accident Compensation Corporation (ACC)
     ACC’s Statement of Intent 2011-14 outlines how ACC will progress towards
     achieving its three outcomes. These outcomes will be reported in the Annual
     Report and quarterly reports to the Minister.

     end


94.How much has been budgeted in the 2010/11 financial year for gym
   memberships for staff and how does that compare to the last five financial
   years?
   Answer: Department of Labour (the Department) 73
     The Department does not have a budget for gym membership.
  Answer: Accident Compensation Corporation (ACC)
     ACC does not budget for staff gym memberships, nor has it over the last five
     financial years.
     end


  72
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.
  73
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               79
                      2011/12 ESTIMATES EXAMINATION: VOTE ACC




95.How much has been budgeted for EAP or workplace counselling in the
   2011/12 financial year and how does that compare to the last five financial
   years?
   Answer: Department of Labour (the Department) 74
     The budget for EAP or workplace counselling budgeted for 2011/12 is $37,500 and
     for each of the last financial years was:
        2006/07         2007/08          2008/09         2009/10         2010/11
         ($000)          ($000)           ($000)          ($000)          ($000)
                35              35               35              35              35


  Answer: Accident Compensation Corporation (ACC)
     ACC supplies EAP for any staff member, for up to 4 sessions per year. It also
     provides a wide group of its operational and branch network staff with
     professional supervision. This is a different level of support to staff than EAP in
     that it provides a level of coaching and education around how to manage the work
     tasks and issues that arise within the workplace by working through different
     strategies and approaches.
     For the 2011/12 financial year, ACC has budgeted $156,480 for EAP and
     $661,120 for professional supervision.
     The following table details the amount paid for EAP and professional supervision
     over the last 5 years.
                                                                 Professional
               Year                        EAP
                                                                 supervision
           2006/2007                    $118,044                   $719,586
           2007/2008                    $167,495                   $791,834
           2008/2009                    $176,677                   $889,599
           2009/2010                    $167,606                   $868,324
           2010/2011*                   $151,903                   $707,006
     * Figures shown for 2010/11 are as at 31 May 2011


     end


96.What work has been undertaken or completed relating to changes in Votes,
   or operational changes made in other Government Departments/Ministries
   which impacts on your Department/Ministry and its associated agencies?
   Answer: Department of Labour only (the Department) 75
     The Department works with a number of other government agencies to progress
     its priorities and the priorities of the other agencies. The Department is not aware
     of any work or changes to other Votes that will impact on this approach.


     end

  74
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.
  75
     Note: this question is answered from a Departmental perspective across all four Votes – Labour,
  Immigration, Employment, and ACC.



                                               80
                       2011/12 ESTIMATES EXAMINATION: VOTE ACC




 97.What effect, if any, will the Christchurch Earthquakes have on the
    Department/Ministry’s and its associated agencies’ budget for 2011/12 and
    how have funds been reallocated to address any changes in spending
    priorities as a result?
     Answer: Department of Labour (the Department) 76
       Detailed budgets for 2011/12 are in development. The Department expects to
       incur property related costs and some additional operating costs. These costs, and
       the related re-prioritisation work, are being quantified during the internal budget
       development process.
   Answer: Accident Compensation Corporation (ACC)
       ACC’s forecast impact on cash costs of the earthquake, as used in the formulation
       of the 2011/12 budget, is summarised below:

            Cash costs associated with the            4 months to 30
                                                                            2011/12
           Christchurch Earthquake ($000)               June 2011
         Weekly compensation
               Serious                                    152,533             457,600
               Moderate (paid for 6 months)             3,144,533           1,572,267

         Death Benefits
               Death Benefit (funeral) Grants           2,339,760
                Death Benefit Weekly comp
                (paid to surviving spouses and           938,667            2,816,000
                dependents)
                Child Care                               149,933              449,800


         Lump Sums                                      4,000,000

         Treatment/Rehab
                Serious Injured                          513,333            1,540,000
                Moderate                                1,866,667             933,333

         Public Health Acute Services                   5,000,000
                                          TOTAL       18,105,427           7,769,000


       ACC has funded these entitlements from existing reserves and no additional
       funding is being sought to meet the costs of the Christchurch Earthquake.
       The earthquake’s impact on operating costs is summarised below:

         Operating costs associated with the          4 months to 30
                                                                            2011/12
              Christchurch Earthquake                   June 2011
         Operating expenditure                        398,145.63
         IT Costs                                     263,163.27
         Refit of new Christchurch premises                                 6,432,364

                                          TOTAL       661,308.90         6,432,364 77

76
    Note: this question is answered from a Departmental perspective across all four Votes – Labour,
Immigration, Employment, and ACC.
77
   ACC was insured and any payments from the final claim will off-set the final amount paid.



                                                 81
                        2011/12 ESTIMATES EXAMINATION: VOTE ACC




        Operating expenses have been funded from existing reserves and no additional
        funding is being sought to meet the costs of the Christchurch Earthquake.


        end


 98.How many staff, if any, were made redundant as a result of the
    Christchurch Earthquakes during 2010/11 and how many of these staff are
    expected to be rehired in 2011/12?
     Answer: Department of Labour (the Department) 78
        No Departmental staff were made redundant as a result of the Christchurch
        earthquake during 2010/11.
    Answer: Accident Compensation Corporation (ACC)
        No ACC staff were made redundant as a result of the Christchurch Earthquakes
        during 2010/11.


        end


 99.What costs, if any, does the Department/Ministry and its associated
    agencies expect to incur in 2011/12 as a result of the Rugby World Cup and
    what is the total amount and the nature of these costs? How do these costs
    compare to Ruby World Cup associated costs in each of the past two years?
     Answer: Department of Labour (the Department) 79
        All costs to the Department as a result of Rugby World Cup (RWC) 2011 have
        been and will continue to be met within the Department's baseline funding. The
        Department has redeployed staff and reprioritised funding in order to:
           deliver a high level of immigration service for RWC visitors, particularly the
            participating teams, tournament officials, RWC VIPs, accredited media, and
            their partners and dependents
           attract potential skilled migrants to New Zealand.
        Also see answer to question 8.
    Answer: Accident Compensation Corporation (ACC)
        ACC expects to incur costs of $12,000 in the 2011/12 financial year, being the
        balance of costs incurred over the RWC information project (total cost $35,000).
        The project is intended to inform overseas visitors about unique aspects of the
        ACC Scheme. During the RWC, ACC will place information for overseas visitors in
        targeted accident clinics. Before heading to New Zealand visitors will be targeted
        with messages about the nature of ACC cover (e.g. although ACC provides
        personal injury cover, it is not a replacement for individual travel insurance).
        In addition to operating costs, ACC estimates lifetime claims costs against the
        Scheme of approximately $2m. This estimate is based on the number of


78
   Note: this question is answered from a Departmental perspective across all four Votes – Labour,
Immigration, Employment, and ACC.
     79
        Note: this question is answered from a Departmental perspective across all four Votes – Labour,
     Immigration, Employment, and ACC.



                                                  82
             2011/12 ESTIMATES EXAMINATION: VOTE ACC


international visitors expected, and assumes that there are no serious injuries
(traumatic brain injury, spinal injury).
This project started in late 2010. ACC incurred costs of $23,000 in the 2010/11
financial year, but has not incurred costs in any other financial years.


end




                                   83
                                                        2011/12 ESTIMATES EXAMINATION: VOTE ACC



APPENDIX 1 Question 7: What polls, surveys or market research does the Department/Ministry or its associated agencies
respectively intend to undertake in the next financial year?
Details of ACC: polls, surveys or market research
                                                                             Research                     Completion     Estimated
                            Survey Description                                             Start Date                                            Tenders
                                                                             Provider                       Date          Cost ($)
 Survey of claimants to evaluate satisfaction with service experience      Research New   01 June 2011   30 June 2012        246,505      Part of an overall
                                                                           Zealand                                                        Government Electronic
                                                                                                                                          Tendering System
                                                                                                                                          (GETS) Tender – 34
                                                                                                                                          tenders received
 Treatment Injury - a survey of clients of the Treatment Injury and        Research New   01 June 2011   30 June 2012            69,710   Part of an overall GETS
 Patient Safety Branch to evaluate satisfaction with service experience    Zealand                                                        Tender – 34 tenders
                                                                                                                                          received
 Sensitive Claims - a survey of parents/caregivers of Sensitive Claims     Research New   01 June 2011   30 June 2012            58,950   Part of an overall GETS
 claimants to evaluate satisfaction with service experience                Zealand                                                        Tender – 34 tenders
                                                                                                                                          received
 Partnership Programme - survey of Partnership Programme employers’        Research New   01 June 2011   30 June 2012            52,985   Part of an overall GETS
 work accident claimants seeking to determine their satisfaction with      Zealand                                                        Tender – 34 tenders
 service received from Partnership Programme Employers                                                                                    received
 Serious Injury – a survey of clients of the Serious Injury Service to     UMR            01 June 2011   30 June 2012            92,000   Part of an overall GETS
 evaluate satisfaction with service experience                                                                                            Tender – 34 tenders
                                                                                                                                          received
 Audiology Survey – a survey of clients who have received audiology        Research New   01 November    16 December             20,000   Not specifically tendered
 services to evaluate satisfaction with service experience                 Zealand        2011           2011                             – Research New
                                                                                                                                          Zealand already a
                                                                                                                                          preferred supplier of
                                                                                                                                          research services to
                                                                                                                                          ACC
 Return to Work Monitor                                                    Campbell       01 October     31 May 2012             18,712   Was not tendered. ACC
                                                                           Research and   2011                                            joined an existing
                                                                           Consulting                                                     Australian survey
                                                                           (Australia)
 Mass Market – A survey of levy payers (SEs, SMEs and large enterprises    Research New   01 June 2011   30 June 2012            99,925   Part of an overall GETS
 not in the top 2500) to evaluate satisfaction with service experience     Zealand                                                        Tender – 34 tenders
                                                                                                                                          received
 Third Parties – a survey of Tax Agents, Advisors and Intermediaries who   Research New   01 June 2011   30 June 2012   58,915            Part of an overall GETS
 have had recent contract with an ACC Business Relationship Manager to     Zealand                                                        Tender – 34 tenders
 evaluate service                                                                                                                         received
 Top 2500 - a survey of Finance Managers and Health & Safety Managers      Research New   01 June 2011   30 June 2012            48,550   Part of an overall GETS
 of ACC's Top 2,500 levy paying organisations to evaluate satisfaction     Zealand                                                        Tender – 34 tenders
 with account management interactions and service experience                                                                              received


                                                                                 84
                                                    2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                                                           Research                       Completion    Estimated
                         Survey Description                                                Start Date                                       Tenders
                                                                           Provider                         Date         Cost ($)
Provider Engagement Survey - a survey of clinicians and administrators   Research New     01 March       30 May 2012        51,030   Part of an overall GETS
to evaluate ACC's relationship with the treatment provider sector        Zealand          2011                                       Tender – 34 tenders
                                                                                                                                     received
Co-payments Monitoring Survey - a survey to measure and monitor co-      Research New     01 July 2011   30 June 2012       88,000   Part of an overall GETS
payments charged by health providers for ACC compensated treatment       Zealand                                                     Tender – 34 tenders
                                                                                                                                     received
New Zealand Safety Culture Monitor                                       Research New     01 July 2011   30 June 2012       30,250   Will be tendered to
                                                                         Zealand                                                     ACC’s Preferred Supplier
                                                                                                                                     Panel
Audit of internal communications channel                                 Colmar Brunton   30 June 2011   29 August          50,000   2 tenders received
                                                                                                         2011




                                                                             85
                                                           2011/12 ESTIMATES EXAMINATION: VOTE ACC



APPENDIX 2 ACC Answer to Question 9: Details of advertising or public relations campaigns in, or for, the 2011/12 financial year
                                                                  Type of                                            Intended to be
                                                                                          Estimated
                                                  Project       product or      Start                   Estimated       shown to            Tenders invited and
                Project details                                                          completion
                                               conducted by       service       date                       cost      Controller and          number received*
                                                                                             date
                                                                 provided                                           Auditor-General?
     Launch of experience rating               Aim Proximity   Advertising    1 June    1 December     $150,000     No                 Yes
     Continuation of the campaign to inform    OMD                            2011      2011
     business owners about the benefits of     BlueStar
     experience rating and how it will
     impact them
     Levy Consultation                         Clemenger       Advertising    1 June    1 October      $80,000      No                 Yes
     Annual consultation on proposed levies                                   2011      2011
     as required by the Accident
     Compensation Act 2001

     Business e-newsletter                     Newsletters     Design         1 July    June 2012      $6,000       No                 No
     Development and dissemination of up-      Ltd             Distribution   2011
     to-date information about ACC,
     including changes to products,
     transactional information, and
     information about injury prevention
     and rehabilitation best practice
     Rugby World Cup 2011                      Clemenger       Advertising    1 June    1 October      $10,000      No                 Yes
     Information about ACC – claims,                                          2011      2011
     restricted right to sue, and injury
     prevention – for fans coming to NZ for
     the Rugby World Cup.
     Health Provider related                   BlueStar        Design         1 July    30 June 2012   $74,000      No                 Yes
     information                                               Printing       2011
     Production of material to inform Health                   Mailing
     providers on contract changes,
     performance and legislative and policy
     changes.
     Client-related information                BlueStar        Design         1 July    30 June 2012   $163,000     No                 Yes
     Information on ACC case management        Wickliffe       Printing       2011
     practices. This was to meet legislative                   Mailing
     requirements and also to influence
     active participation in client
     rehabilitation planning




                                                                                 86
                                                         2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                                                Type of                                                     Intended to be
                                                                                           Estimated
                                                Project       product or        Start                       Estimated          shown to             Tenders invited and
            Project details                                                               completion
                                             conducted by       service         date                           cost         Controller and           number received*
                                                                                              date
                                                               provided                                                    Auditor-General?
Serious injury                               Clemenger       Design           1 July    30 June 2012      $90,000          No                    Yes
Resources to influence and inform            BlueStar        Printing         2011
seriously injured clients and to             Wickliffe       Mailing
encourage independence and active
participation in their rehabilitation plan
ACC News & ACC Review                        Bluestar        Design           1 July    30 June 2012      $170,000         No                    Yes
Objective: Development and                   Foolproof       Printing         2011
dissemination of up- to-date                                 Mailing
information about ACC, including
                                                             Editing
changes to case management,
purchasing arrangements,
transactional information, and case
studies of best practice
Mediboard Advertising                        Alantis         Advertising in   1 July    30 June 2012      $142,000         No                  No
Client-related material placement in         Mediboard       GP offices       2011
GPs offices, through Mediboard
Advertising.
Accountability documents                     Blue Star       Publications     1 July    30 May 2012       $60,000          No                    Yes
Annual Report, Statement of Intent                                            2011
 * ACC has not gone through a tender process for the individual projects listed; however the majority are being conducted by suppliers who have gone through a tender
 process. ACC is currently undergoing a tender process for Advertising Services which will be completed in September 2011.




                                                                                 87
                                                        2011/12 ESTIMATES EXAMINATION: VOTE ACC



APPENDIX 3 Question 12 – External contractors or consultants engaged or employed by ACC
Claims Management Contractors and Consultants
                                                                                                                           Proposa    Reports
                                  Further                                                                                                         Service      Specific Details of
                   Spend 10/11                              Hourly or      Contract                 Completion   Tendere    ls for   prepared
   Supplier Name                 budget for      Name                                  Start Date                                                Generally      consultancy or
                       YTD                                  Daily Rate       Date                     Date          d      further       or
                                   10/11                                                                                                         Provided          contract
                                                                                                                            work     delivered
 24D HEALTH &                                 Helen
                   $98,578.75    $15,200.00                 $85 (Hour)    09/09/2010   10/09/2010   30/06/2011   No        Yes       No          Contractor   Business Analyst
 FITNESS LTD                                  Horrell
                                              Olympic                                                                                                         Ariba/CMS
 ASPARONA          $8,689.00                                Fixed Price   31/05/2010   31/05/2010   01/08/2010   No        No        No          Consultant
                                              Software                                                                                                        Investigations
 BASHFORD
                                              Graham        $50,000
 CONSULTING PTY    $112,590.00                                            27/02/2009   23/03/2009   30/06/2010   No        No        No          Contractor   Director, Operations
                                              Bashford      (month)
 LTD
 BEYOND SERVICES                              Darren
                   $51,680.00                               $95 (Hour)    13/04/2010   13/04/2010   29/10/2010   No        No        No          Contractor   Business Analyst
 LIMITED                                      Scott-Hill
                                              Deb           $100
                   $148,497.50   $16,931.00                               01/07/2010   01/07/2010   31/07/2011   No        Yes       No          Contractor   Business Analyst
                                              Harwood       (Hour)
                                              Desiree       $100
                   $35,150.00                                             11/05/2010   11/05/2010   11/11/2010   No        No        No          Contractor   Business Analyst
                                              Heather       (Hour)
                                              Geoff         $120
                   $37,440.00    $15,120.00                               28/02/2011   28/02/2011   30/09/2011   No        No        No          Contractor   Project Manager
                                              Nicholls      (Hour)
                                              Max           $105
                   $165,865.00                                            11/02/2010   15/02/2010   30/06/2011   No        No        No          Contractor   Business Analyst
                                              Maxwell       (Hour)
                                              Penny
                   $18,002.50                               $95 (Hour)    20/04/2010   20/04/2010   31/03/2011   No        Yes       No          Contractor   Business Analyst
                                              Buckmaster
                                              Penny
                   $131,575.00   $15,960.00                 $95 (Hour)    20/04/2010   20/04/2010   01/06/2011   No        Yes       No          Contractor   Business Analyst
                                              Buckmaster
                                              Kevin         $105
                   $16,800.00                                             11/02/2010   15/02/2010   30/06/2011   No        Yes       No          Contractor   Business Analyst
                                              Maxwell       (Hour)
                                              Sarah         $52.5
                   $63,401.25    $8,400.00                                06/09/2010   06/09/2010   30/06/2011   No        Yes       No          Contractor   Project Co-ordinator
                                              Begbie        (Hour)
                                              Sonia         $130
                   $108,940.00   $4,800.00                                24/11/2010   24/11/2010   30/06/2011   No        No        No          Contractor   Project Manager
                                              McFetridge    (Hour)
                                              Stephen       $150                                                                                              Quality Assurance
                   $71,042.50                                             04/06/2009   02/06/2009   21/10/2011   NA        No        No          Contractor
                                              Timperley     (Hour)                                                                                            Manager
                                                            $115
                   $168,782.50   $18,400.00   Val Holmes                  01/04/2010   01/04/2010   31/03/2011   No        Yes       No          Contractor   Project Manager
                                                            (Hour)
                   $80,892.50                 Kane Kiore    $95 (Hour)    01/09/2010   01/09/2010   28/02/2011   No        No        No          Contractor   Business Analyst
                                              Marion
                   $25,410.00                               $60 (Hour)    07/07/2010   07/07/2010   30/09/2010   No        No        No          Contractor   Project Co-ordinator
                                              Huebner
                                                                                                                                                              Project
                                              Rheeta
                   $46,130.00                               $90 (Hour)    19/07/2010   19/07/2010   30/09/2010   No        No        No          Contractor   Implemantation
                                              Ravji
                                                                                                                                                              Coordinator
                                              Vanessa
                   $15,840.00                               $60 (Hour)    18/02/2011   28/02/2011   30/06/2011   No        No        No          Contractor   Project Co-ordinator
                                              Malaluan


                                                                                 88
                                                         2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                                                                                                                Proposa    Reports
                                  Further                                                                                                              Service      Specific Details of
                   Spend 10/11                                Hourly or      Contract                    Completion   Tendere    ls for   prepared
  Supplier Name                  budget for      Name                                       Start Date                                                Generally      consultancy or
                       YTD                                    Daily Rate       Date                        Date          d      further       or
                                   10/11                                                                                                              Provided          contract
                                                                                                                                 work     delivered
                   $7,247.50                   Jane Taylor    $65 (Hour)    06/04/2010      06/04/2010   30/06/2010   No        No        No          Contractor   Project Coordinator
                                               Aideen         $34.95
                   $14,958.54                                               13/09/2010      13/09/2010   06/05/2011   No        No        No          Contractor   Team Administrator
                                               Murray         (Hour)
                                                                                                                                                                   Temp Team
                                               Ian            $34.95
                   $2,062.05                                                02/05/2011      02/05/2011   12/05/2011   No        No        No          Contractor   Administrator covering
                                               Middleton      (Hour)
                                                                                                                                                                   Aideen Murray
                                               Gabrielle
                   $8,344.00                                  $22 (Hour)    03/05/2009      03/05/2009   22/08/2010   No        No        No          Contractor   Administration
                                               Simpson
                                               Carl           $100
CARL MCLAUGHLIN    $167,340.00   $15,750.00                                 22/01/2010      30/01/2010   30/06/2011   No        Yes       No          Contractor   Project Manager
                                               McLaughlin     (Hour)
CLARITY
INFORMATION        $96,370.00                  Harry Guo      $95 (Hour)    29/10/2010      29/10/2010   04/11/2011   No        No        No          Contractor   Data Analyst
MANAGEMENT LTD
CONSULTUS
                                               Denis          $110
RECRUITMENT &      $65,890.00                                               05/07/2010      05/07/2010   05/10/2010   No        No        No          Contractor   Project Manager
                                               Hansell        (Hour)
RESEARCH NZ LTD
                                                              $125                                                                                                 Senior Project
CORUM LIMITED      $57,070.00    $19,110.00    Nicola Speir                 14/01/2011      18/01/2011   29/04/2011   No        Yes       No          Contractor
                                                              (Hour)                                                                                               Manager
DATA VALUE                                     Peter
                   $31,140.00                                 $90 (Hour)    20/07/2010      20/07/2010   31/12/2011   No        Yes       No          Contractor   Reporting Analyst
LIMITED                                        Archer
                                                                                                                                                                   Peer review of
                                               Andrew
DELOITTE           $5,000.00                                  Various       01/03/2010      01/04/2010   14/05/2010   No        No        No          Consultant   benchmarking price
                                               Boyd
                                                                                                                                                                   model
DIS IT SERVICES                                Dianne         $125
                   $205,093.75   $21,000.00                                 19/08/2009      19/08/2009   30/06/2011   No        Yes       No          Contractor   Project Manager
LTD                                            O'Donnell      (Hour)
                                               Dr Frances     $129                                                                                                 Branch Advisory
DR FRANCES BRINN   $82,885.39                                               Multiple        Multiple     23/12/2011   No        Yes       No          Contractor
                                               Brinn          (Hour)                                                                                               Psychologist
                                               Dr Michael     $130                                                                                                 Branch Medical
DR M L AMES        $122,747.50                                              01/09/2009      14/09/2009   19/11/2010   No        No        No          Contractor
                                               Ames           (Hour)                                                                                               Advisor
DYSON CONSULTING                               Dr Maree       $1300 AUD
                   $202,634.93   $241,428.00                                02/10/2009      01/09/2009   30/06/2011   No        Yes       No          Consultant   Expert: Serious Injury
GROUP                                          Dyson          (Day0
                                               Emma           $129
EMMA SUTICH        $51,535.50                                               Multiple        Multiple     30/06/2011   No        No        No          Consultant   Clinical Psychologist
                                               Sutich         (Hour)
                                               Klayton        $119
FINGO LTD          $115,727.50   $17,493.00                                 22/07/2009      21/07/2009   30/06/2011   No        Yes       No          Contractor   Business Analyst
                                               Sara           (Hour)
FRANCES                                        Frances
                   $54,020.00                                 $40 (Hour)    01/07/2008      01/07/2008   30/09/2011   No        No        No          Contractor   Pae Arahi
RANGIHUNA                                      Rangihuna
                                               Stuart                                                                                                              Clinical Advisory
                   $912.53                                    Fixed Price   01/10/2010      01/10/2010   31/10/2010   No        No        No          Consultant
                                               Francis                                                                                                             Review
FRANCIS GROUP
                                                                                                                                                                   Support for designing
CONSULTANTS        $123,380.29   $42,000.00    Multiple       Various       01/10/2010      01/10/2010   30/06/2011   No        Yes       No          Consultant
                                                                                                                                                                   referral
                   $7,014.08                   Multiple       Various       01/10/2010      01/10/2010   30/06/2011   No        Yes       No          Consultant   Support for



                                                                                       89
                                                         2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                                                                                                               Proposa     Reports
                                   Further                                                                                                             Service      Specific Details of
                    Spend 10/11                               Hourly or     Contract                    Completion   Tendere    ls for    prepared
  Supplier Name                   budget for      Name                                     Start Date                                                 Generally      consultancy or
                        YTD                                   Daily Rate      Date                        Date          d      further        or
                                    10/11                                                                                                             Provided          contract
                                                                                                                                work      delivered
                                                                                                                                                                   certification initiatives
                                                                                                                               Yes
                                                                                                                               Seeking
                                                                                                                               approval
                                                              $129                                                             from
GILLIAN POW         $76,980.75                 Gillian Pow                 Multiple        Multiple     23/12/2011   No                   No          Consultant   Clinical Psychologist
                                                              (Hour)                                                           National
                                                                                                                               Manager
                                                                                                                               later in
                                                                                                                               the year
                                                              $120
                    $42,775.00                 Lynn Pistoll                12/06/2009      01/07/2009   30/06/2010   No        No         No          Contractor   Project Manager
                                                              (Hour)
                                               Bernard        $120
                    $21,480.00                                             29/11/2010      31/08/2011   31/08/2011   No        No         No          Contractor   Project Manager
                                               Gore           (Hour)
H2R CONSULTING
                                                              $175
                    $29,513.75                 Julia Lee                   05/03/2009      05/01/2009   30/03/2012   No        No         No          Contractor   Capbility Development
                                                              (Hour)
                                               Anna
                    $13,800.00                                $45 (Hour)   22/03/2010      24/03/2010   01/08/2010   No        No         No          Contractor   Processes & Guidelines
                                               Burrows
                                               Stephanie      $105
                    $58,432.50                                             01/04/2010      30/06/2010   01/10/2010   No        No         No          Contractor   Business Analyst
                                               Davey          (Hour)
HELIUM
WORKSEARCH LTD                                 Tracey         $105
                    $53,582.50                                             22/02/2010      22/02/2010   25/06/2010   No        No         No          Contractor   Business Analyst
                                               Buckley        (Hour)

                                               Bjorke                                                                                                              Programme co-
                    $34,323.00                                $68 (Hour)   01/07/2009      01/07/2009   31/12/2010   No        Yes        No          Contractor
                                               Scheerder                                                                                                           ordinator
                                               Sarah                                                                                                               Programme
                    $22,552.50    $11,160.00                  $62 (Hour)   17/02/2011      21/02/2011   30/06/2011   No        Yes        No          Contractor
                                               Treloar                                                                                                             Coordinator
                                               Margaret
IDPE CONSULTING     $29,990.25    $16,200.00                  $900 (Day)   03/03/2011      03/03/2011   16/09/2011   No        No         No          Contractor   Project Manager
                                               Atkins
GROUP                                          Adam           $110                                                                                                 Senior Business
                    $25,324.20                                             03/09/2009      07/09/2009   31/03/2010   No        No         No          Contractor
                                               Donson         (Hour)                                                                                               Analyst
                    $1,748.25     $4,000.00    Gill Gray      $55 (Hour)   28/04/2011      02/05/2011   30/06/2011   No        Yes        No          Contractor   Project Administrator
                                               Fiona
                    $18,084.00    $9,600.00                   $60 (Hour)   24/02/2011      24/02/2011   30/06/2011   No        Yes        No          Contractor   Project Administrator
                                               Carter

J J DRURY CO LTD    $76,570.40                 Jan Drury      $95 (Hour)   26/02/2010      20/04/2010   29/04/2011   No        No         No          Contractor   Business Analyst

                                               Jane           $125
JANE WHITFIELD      $162,718.75                                            10/06/2009      01/07/2009   31/03/2011   No        No         No          Contractor   Programme Manager
                                               Whitfield      (Hour)
                                               Anja
KAPITI PSYCHOLOGY                                             $129
                    $62,436.00                 Kaehmzow-                   Multiple        Multiple     23/12/2011   No        No         No          Consultant   Clinical Psychologist
LTD                                                           (Hour)
                                               Ferguson
                                                              $129
KIM K NARSI         $132,170.62                Kim Narsi                   Multiple        Multiple     23/12/2011   No        No         No          Consultant   Clinical Advisor
                                                              (Hour)



                                                                                      90
                                                        2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                                                                                                               Proposa    Reports
                                  Further                                                                                                             Service      Specific Details of
                   Spend 10/11                               Hourly or      Contract                    Completion   Tendere    ls for   prepared
  Supplier Name                  budget for      Name                                      Start Date                                                Generally      consultancy or
                       YTD                                   Daily Rate       Date                        Date          d      further       or
                                   10/11                                                                                                             Provided          contract
                                                                                                                                work     delivered

KNOWLEDGE                                     Lynette
                   $181,097.75   $9,975.00                   $90 (Hour)    28/04/2009      27/10/2009   31/03/2011   No        No        No          Contractor   Programme Manager
TRANSFER                                      Wilton

                                              Linley         $100
LINLEY CAUDWELL    $83,175.00    $18,081.00                                10/06/2009      10/06/2009   30/06/2011   No        Yes       No          Contractor   Data Analyst
                                              Caudwell       (Hour)
                                              Richard        $115                                                                                                  Vignette Workshop
MAVEN              $9,048.91                                               01/10/2010      01/10/2010   30/06/2011   No        No        No          Consultant
                                              Burn           (Hour)                                                                                               Elaboration Strategy
NINETWENTY                                    Peter          $110
                   $123,090.00   $18,480.00                                04/10/2010      04/10/2010   31/06/2011   No        No        No          Contractor   Data Analyst
LIMITED                                       Williams       (Hour)
NJS BUSINESS
                   $152,906.25   $1,000.00    Nigel Smith    $125(Hour)    05/05/2010      05/05/2010   30/06/2011   No        No        No          Contractor   Project Manager
CONSULTING
ORBIT CONSULTING
                   $155,960.00   $15,200.00   Kelvin Wills   $90 Hour)     17/02/2010      17/02/2010   30/06/2011   No        Yes       No          Contractor   Business Analyst
SERVICES LIMITED
PLUM CONSULTING                               Helena         $110
                   $132,990.00                                             12/07/2010      12/07/2010   24/12/2010   No        No        No          Contractor   HR Consultant
LIMITED                                       Cummings       (Hour)
PRICEWATERHOUSE    $31,900.00                 N/A            Fixed Price   01/08/2010      01/08/2010   01/09/2010   No        No        No          Consultant   Clearing House Review
COOPERS            $55,500.00                 N/A            Fixed Price   01/09/2010      01/09/2010   01/10/2010   No        No        No          Consultant   Sensitive Claims Work
                                              Anne           $1200
RASCANNEIL         $50,879.43                                              01/08/2009      01/08/2009   30/09/2010   No        No        No          Contractor   Stream Lead
                                              Aitcheson      (Day)
                                                             $115
                   $79,867.50    $19,320.00   David Rigby                  18/10/2010      18/10/2010   30/06/2011   No        No        No          Contractor   Business Analyst
                                                             (Hour)
                                              John           $115
                   $69,690.00                                              18/10/2010      18/10/2010   30/09/2011   No        No        No          Contractor   Business Analyst
                                              Davidson       (Hour)
REDVESPA
CONSULTANTS LTD                               Sarah
                                                             $120
                   $102,480.00   $20,160.00   Louise                       01/10/2010      01/10/2010   31/03/2011   No        Yes       No          Contractor   Project Manager
                                                             (Hour)
                                              Myers
                                              Emma           $100
                   $24,480.00                                              01/04/2010      01/04/2010   30/09/2010   No        No        No          Contractor   Project Manager
                                              Martin         (Hour)
                                                             $115
RESULTEX LIMITED   $109,940.01   $13,800.00   David Blake                  01/11/2010      01/11/2010   31/07/2011   No        Yes       No          Contractor   Business Analyst
                                                             (Hour)
SCALLOWAY                                     Craig          $125
                   $111,000.00   $1,000.00                                 01/11/2010      30/06/2011   30/06/2011   No        No        No          Contractor   Stream Lead
LIMITED                                       Musker         (Hour)
                                              Gavin          $125
SCURDIE NESS LTD   $130,102.78                                             08/02/2010      08/02/2010   25/02/2011   No        Yes       No          Contractor   Programme Manager
                                              Valentine      (Hour)
                                              Susan          $129
SUE CALVERT        $90,558.00                                              Multiple        Multiple     30/06/2011   No        No        No          Consultant   Clinical Psychologist
                                              Calvert        (Hour)
                                              Brenda
                   $52,825.00    $16,800.00                  $800 (Day)    15/11/2010      15/11/2010   15/04/2011   No        Yes       No          Contractor   Technical Writer
                                              Wallace
SYSDOC GROUP LTD
                                                             $100
                   $10,400.00    $16,800.00   Marie Smith                  15/11/2010      15/11/2010   15/04/2011   No        Yes       No          Contractor   Technical Writer
                                                             (Hour)
TACTICS LIMITED    $71,537.07                 James Lloyd    $850 (Day)    15/11/2010      15/11/2010   15/04/2011   No        No        No          Contractor   Technical Writer



                                                                                      91
                                                              2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                                                                                                                            Proposa           Reports
                                     Further                                                                                                                                Service        Specific Details of
                    Spend 10/11                                        Hourly or     Contract                       Completion   Tendere     ls for          prepared
   Supplier Name                    budget for          Name                                        Start Date                                                             Generally        consultancy or
                        YTD                                            Daily Rate      Date                           Date          d       further              or
                                      10/11                                                                                                                                Provided            contract
                                                                                                                                             work            delivered
                                                    Scott
                    $55,800.00     $18,900.00                       $900 (Day)      14/02/2011      24/01/2011      30/06/2011   No         Yes              No            Contractor     Technical Writer
                                                    McJorrow
                                                    Mahinarangi
 TALENT2 NZ LTD     $14,705.00                                      Fixed Price     08/06/2010      08/06/2010      14/06/2010   No         No               No            Contractor     Advisor
                                                    Maika
                                                                                                                                                                                          Senior Business
                                                    Brett           $110
                    $24,033.75                                                      19/07/2010      03/11/2011      30/06/2011   NA         Yes              No            Contractor     Intelligence Analyst -
 THE KNOWLEDGE                                      Kraiger         (Hour)
                                                                                                                                                                                          backfill perm staff
 WAREHOUSE LTD
                                                    Todd            $170
                    $33,325.00                                                      01/07/2010      01/07/2010      30/12/2010   No         No               No            Contractor     Actuarial support
                                                    Nicholson       (Hour)
 TOMHIE HOLDINGS                                    Scott
                    $160,247.50    $15,960.00                       $95 (Hour)      07/10/2009      07/10/2009      30/06/2011   No         No               No            Contractor     Business Analyst
 LTD                                                Snaddon

 UPD CONSULTING                                                     $1250
                    $180,686.00                     Kim Grooby                      01/10/2010      01/10/2010      27/05/2011   No         Yes              No            Contractor     Stream Lead
 LTD                                                                (Day)

 VALETI FINAU       $51,467.52                      Valeti Finau    $300 (Day)      01/07/2008      01/07/2008      30/09/2011   No         No               No            Contractor     Pacific Liaison Adviser

                                                                                                                                            Yes
                                                                                                                                            Seeking
                                                                                                                                            approval
                                                    William         $129                                                                    from
 WILLIAM GRANT      $124,033.50                                                     Multiple        Multiple        30/07/2010   No                          No            Consultant     Clinical Advisor
                                                    Grant           (Hour)                                                                  National
                                                                                                                                            Manager
                                                                                                                                            later in
                                                                                                                                            the year



Corporate Services Contractors and Consultants
                                                 Name of                                                                                                Reports           Type of
                                   Further                                                                                             Proposals
                     Spend                      Contractor      Hourly or      Contract                        Completion                              prepared           Service
   Supplier Name                    budget                                                     Start Date                   Tendered   for further                                         Specific Details
                   10/11 YTD                        or          Daily Rate       Date                            Date                                      or            Generally
                                  for 10/11                                                                                              work?
                                                Consultant                                                                                             delivered         Provided

                                                Amanda
                                                                               03/04/201                                                                                                Acting ICT Commerical
                   $43,056.00                   Collilngwoo     $780 (Day)                     03/04/2011      30/03/2012   No         No              No            Contractor
                                                                               1                                                                                                        Manager
 AMANDA                                         d
 COLLINGWOOD
                                                Amanda
                                                                               31/05/201                                                                                                Acting ICT Commerical
                   $239,290.00                  Collilngwoo     $950 (Day)                     31/05/2010      03/04/2011   No         No              No            Contractor
                                                                               0                                                                                                        Manager
                                                d

                                                Andy                           01/02/201                                                                                                Data Warehouse
 ANDY BOWDEN       $50,400.00                                   $90 (hour)                     01/02/2011      31/07/2011   NA         No              No            Contractor
                                                Bowden                         1                                                                                                        Analyst

 ARROW             $107,050.84                  Simon           $160                           01/03/2010      31/01/2011   No         No              Yes           Consultant         Property Management



                                                                                               92
                                                           2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                             Name of                                                                                     Reports      Type of
                                 Further                                                                                  Proposals
                    Spend                   Contractor      Hourly or    Contract                 Completion                            prepared      Service
 Supplier Name                    budget                                             Start Date                Tendered   for further                                Specific Details
                  10/11 YTD                     or          Daily Rate     Date                     Date                                    or       Generally
                                for 10/11                                                                                   work?
                                            Consultant                                                                                  delivered    Provided

INTERNATIONAL                               Shaw            (hour)                                                                                               backfill

BERRY                                                                                                                                                            Senior Business
                                            Robyn                        15/07/201
CONSULTING        $151,073.75                               $95 (Hour)               19/04/2010   19/08/2011   NA         No            No          Contractor   Intelligence
                                            Berry                        0
GROUP LTD                                                                                                                                                        Analyst/Programmer

BEYOND SERVICES                             Jacqueline                   04/11/201
                  $58,552.50                                $90 (Hour)               08/11/2010   30/06/2011   No         No            No          Contractor   Writer
LIMITED                                     Brasfield                    0

                                            Jacqueline                   04/11/201
                  $8,865.00                                 $90 (Hour)               08/11/2010   29/04/2011   NA         No            No          Contractor   Project Coordinator
                                            Brasfield                    0

                                                                                                                                                                 Senior Business
                                            Jeannette       $105         28/06/201
                  $82,207.50                                                         01/07/2010   23/12/2010   NA         No            No          Contractor   Intelligence
                                            Hook            (Hour)       0
                                                                                                                                                                 Analyst/Programmer

                                                                                                                                                                 Senior Business
                                                                         14/05/201
                  $44,662.50                Jenni Cacho     $90 (Hour)               30/04/2010   30/06/2011   NA         No            No          Contractor   Intelligence Analyst -
                                                                         0
                                                                                                                                                                 backfill perm staff

                                                                         01/12/201
                  $52,440.00                Lara Cook       $60 (Hour)               15/11/2010   20/05/2011   NA         No            No          Contractor   Project Coordinator
                                                                         0

                                            Lisa            $118         06/04/201
                  $11,977.00                                                         06/04/2011   31/07/2011   NA         No            No          Contractor   Project Manager
                                            Temperton       (Hour)       1

                                                            $100         22/11/201                                                                               Website Business
                  $79,301.25                Maru Ririnui                             22/11/2010   02/12/2011   NA         No            No          Contractor
                                                            (Hour)       0                                                                                       Analyst

                                                                                                                                                                 Project Manager,
                                                            $115         23/11/201
                  $106,748.75               Steve Wong                               10/11/2010   11/11/2011   NA         No            No          Contractor   Experience Rating
                                                            (Hour)       0
                                                                                                                                                                 project

                                            Catherine       $105         08/02/201
                  $34,335.00                                                         01/02/2011   15/07/2011   NA         No            No          Contractor   Project Manager
                                            Nicholls        (Hour)       1

                                            Daniel                       16/06/201                                                                               Business Systems
                  $158,840.00                               $95 (Hour)               21/06/2010   31/03/2011   NA         No            No          Contractor
                                            Wilton                       0                                                                                       Analyst

                                            Jason           $120         31/05/201                                                                               Lead Applications
                  $180,590.00                                                        01/05/2009   11/08/2011   NA         No            No          Contractor
                                            Bowie           (Hour)       1                                                                                       Support Analyst

                                            Marcus          $115         08/12/201
                  $25,530.00                                                         08/12/2010   01/06/2011   NA         No            No          Contractor   Senior Project Manager
                                            Southam         (Hour)       0

                                            Penny                        20/04/201
                  $2,327.50                                 $95 (Hour)               20/04/2010   01/06/2011   No         No            No          Contractor   Business Analyst
                                            Buckmaster                   0


                  $57,600.00                William         $120(Hour    29/09/201   27/09/2010   22/12/2010   NA         No            No          Contractor   Project Manager


                                                                                     93
                                                         2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                             Name of                                                                                   Reports      Type of
                                 Further                                                                                Proposals
                    Spend                   Contractor    Hourly or    Contract                 Completion                            prepared      Service
 Supplier Name                    budget                                           Start Date                Tendered   for further                               Specific Details
                  10/11 YTD                     or        Daily Rate     Date                     Date                                    or       Generally
                                for 10/11                                                                                 work?
                                            Consultant                                                                                delivered    Provided

                                            Rotherto      )            0

                                            Bodel         $36.11       13/09/201
                  $14,989.33                                                       13/09/2010   21/11/2010   NA         No            No          Contractor   Personal Assistant
                                            Andersen      (Hour)       0

                                            Rachel                     14/06/201
                  $63,062.30                              $53 (Hour)               14/06/2010   25/03/2011   NA         No            No          Contractor   Business Analyst
CANDLE NZ                                   Devaney                    0
LIMITED
                                            Catherine                  12/07/201                                                                               Business Systems
                  $76,427.50                              $95 (Hour)               12/07/2010   12/01/2011   NA         No            No          Contractor
                                            Marr                       0                                                                                       Analyst

                                            Nalaka        $100         01/06/201                                                                               DW
                  $-                                                               01/06/2011   31/12/2011   NA         No            No          Contractor
                                            Lamahewa      (hour)       1                                                                                       Analyst/Programmer

                                            Tiaki         $105         01/07/201                                                                               Senior Data Warehouse
                  $18,400.00                                                       01/07/2010   01/02/2012   NA         No            No          Contractor
                                            Pritchard     (Hour)       0                                                                                       Analyst

                                            Orla          $100         07/02/201                                                                               Data Warehouse
                  $-                                                               07/02/2011   01/02/2012   NA         No            No          Contractor
                                            Carmodey      (Hour)       1                                                                                       Analyst
CLARITY
INFORMATION                                               $100         29/10/201
MANAGEMENT LTD    $50,550.00                Harry Guo                              29/10/2010   04/11/2011   No         No            No          Contractor   Data Analyst
                                                          (Hour)       0

                                                                                                                                                               Senior Business
                                            Karen         $100         14/12/201                                                                               Intelligence Analyst,
                  $150,550.00                                                      12/07/2010   01/02/2012   NA         No            No          Contractor
                                            Watson        (Hour)       0                                                                                       Experience Rating
                                                                                                                                                               project

                                            Scott                      10/01/201                                                                               Business Intelligence
                  $55,385.00                              $95(Hour)                10/01/2011   04/11/2011   NA         No            No          Contractor
                                            Teitelbaum                 1                                                                                       Oracle Developer

                                                                                                                                                               ETL Developer,
                                            Darren        $100         20/08/201
DARREN BAWDEN     $112,000.00                                                      27/09/2010   24/09/2011   NA         No            No          Contractor   Experience Rating
                                            Bawden        (Hour)       0
                                                                                                                                                               project

                                                          $100         07/12/201                                                                               Business Intelligence
DATA DRIVEN LTD   $167,167.50               Mark Nash                              01/06/2010   01/02/2012   NA         No            No          Contractor
                                                          (Hour)       0                                                                                       Analyst Programmer

DATA VALUE                                  Peter                      20/07/201
                  $630.00                                 $90 (Hour)               20/07/2010   31/12/2011   No         No            No          Contractor   Reporting Analyst
LIMITED                                     Archer                     0

                                                                                                                                                               Learning and
ENDEAVOUR IT                                Angela                     12/11/201
                  $50,950.00                              $100 (Hour               06/12/2010   29/04/2011   No         No            No          Contractor   Development Design
LIMITED                                     Bingham                    0
                                                                                                                                                               Consultant

                                            Megan         $120         25/05/200                                                                               Senior HR Advisor -
H2R CONSULTING    $70,170.00                                                       25/05/2009   23/10/2009   No         No            No          Contractor
                                            Applegate     (Hour)       9                                                                                       Change




                                                                                   94
                                                          2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                             Name of                                                                                    Reports      Type of
                                 Further                                                                                 Proposals
                    Spend                   Contractor     Hourly or    Contract                 Completion                            prepared      Service
 Supplier Name                    budget                                            Start Date                Tendered   for further                               Specific Details
                  10/11 YTD                     or         Daily Rate     Date                     Date                                    or       Generally
                                for 10/11                                                                                  work?
                                            Consultant                                                                                 delivered    Provided

                                            Steve          $110         09/02/201                                                                               Manager Desktop &
                  $151,360.00                                                       15/02/2010   01/12/2010   NA         No            No          Contractor
                                            Maher          (Hour)       0                                                                                       Telecommunications

                                                           $130         21/06/201
                  $57,720.00                Arun Setti                              21/04/2011   29/09/2010   NA         No            No          Contractor   Project Manager
                                                           (Hour)       0

HELIUM                                      Martin         $125         21/09/201
                  $143,718.75                                                       30/09/2011   31/07/2011   NA         No            No          Contractor   Project Manager
WORKSEARCH LTD                              McGregor       (Hour)       0

                                            Rebecca                     03/02/201                                                                               Business Systems
                  $31,912.50                               $75 (Hour)               03/02/2011   31/05/2011   No         No            No          Contractor
                                            Cass                        1                                                                                       Financial Coordinator

                                            Steve          $110         09/02/201                                                                               Manager Desktop &
                  $74,800.00                                                        15/02/2010   30/06/2011   NA         No            No          Contractor
                                            Maher          (Hour)       0                                                                                       Telecommunications

                                            Joanna de      $145         23/06/201
JDEW CONSULTING   $120,531.25                                                       01/07/2010   30/09/2010   NA         No            No          Contractor   Programme Manager
                                            Wilde          (Hour)       0

                                            Brett          $115         01/04/201                                                                               Data Warehouse
KNOWARE           $15,934.50                                                        01/04/2010   30/06/2012   NA         No            No          Contractor
                                            Kraiger        (hour)       0                                                                                       Analyst

MACBROWN
                                                           $120         13/12/201
CONSULTING        $198,960.00               Chris Brown                             25/01/2010   01/02/2012   NA         No            No          Contractor   Data Architect
                                                           (Hour)       0
LIMITED

                                            Mark                        03/06/201                                                                               Business Intelligence
MARK DEKKER       $161,184.00                              $96 (Hour)               08/02/2010   29/07/2011   NA         No            No          Contractor
                                            Dekker                      0                                                                                       ETL Developer

                                            Hieke          $180         30/03/201                                                                               Procurement Review
MAVEN             $92,441.06                                                        30/03/2010   31/07/2010   No         No            Yes         Consultant
                                            Schiele        (Hour)       0                                                                                       and Implementation

                                            Melanie                     24/04/200
MELANIE STOWELL   $70,210.00                               $85 (Hour)               01/05/2009   31/07/2011   NA         No            No          Contractor   Test Lead
                                            Sowell                      9

                                            Michael        $100         03/06/201                                                                               Business Intelligence
MICHAEL CURTIS    $181,400.00                                                       01/02/2010   29/07/2011   NA         No            No          Contractor
                                            Curtis         (Hour)       0                                                                                       ETL Developer

MINT CONSULTING                             Michelle       $130         05/07/201                                                                               Project Manager - MFD
                  $57,687.50                                                        08/07/2010   26/11/2010   NA         No            No          Contractor
SERVICES                                    Vogt           (hour)       0                                                                                       Rollout

                                                                                                                                                                Lead Internal
                                            Nicole         $100         09/11/201
NICOLE MURRAY     $75,675.00                                                        15/11/2010   31/03/2011   NA         No            No          Contractor   Communications
                                            Murray         (Hour)       0
                                                                                                                                                                Manager

NINETWENTY                                                 $100         11/02/201                                                                               Business Intelligence
                  $52,850.00                Chris Marsh                             11/02/2011   29/07/2011   NA         No            No          Contractor
LIMITED                                                    (Hour)       1                                                                                       ETL Developer

                                            Danny                       27/01/201                                                                               Business Intelligence
                  $49,400.00                               $95 (Hour)               27/01/2011   29/07/2011   NA         No            No          Contractor
                                            Lamb                        1                                                                                       Oracle Tester



                                                                                    95
                                                             2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                               Name of                                                                                     Reports      Type of
                                  Further                                                                                   Proposals
                     Spend                    Contractor      Hourly or    Contract                 Completion                            prepared      Service
 Supplier Name                     budget                                              Start Date                Tendered   for further                               Specific Details
                   10/11 YTD                      or          Daily Rate     Date                     Date                                    or       Generally
                                 for 10/11                                                                                    work?
                                              Consultant                                                                                  delivered    Provided

                                              Marc            $135         24/09/201                                                                               Business Intelligence
                   $217,911.25                                                         12/10/2009   23/09/2011   NA         No            No          Contractor
                                              O'Meara         (Hour)       0                                                                                       Project Manager

                                                              $110         22/03/201                                                                               Business Intelligence
                   $24,460.00                 Phil Watts                               21/03/2011   16/09/2011   No         No            No          Contractor
                                                              (Hour)       1                                                                                       ETL Developer

                                              Phillip         $66.50       28/08/201
                   $49,924.88                                                          24/08/2010   24/02/2011   NA         No            No          Contractor   Project Coordinator
                                              Knight          (Hour)       0

                                              Stuart          $105         26/04/201                                                                               Business Intelligence
                   $3,360.00                                                           26/04/2011   21/10/2011   NA         No            No          Contractor
                                              Morley          (Hour)       1                                                                                       Analyst

P A STEPHENS &                                Trish                        04/11/201
                   $81,090.00                                 $90 (Hour)               01/11/2010   31/03/2011   No         No            No          Contractor   Change Services
ASSOCIATES LTD                                Stephens                     0

PAPRIKA                                                                    22/03/201                                                                               Senior Advisor Injury
                   $75,465.00    $10,500.00   Vicky Upton     $90 (Hour)               22/03/2010   30/06/2010   NA         No            No          Contractor
COMMUNICATIONS                                                             0                                                                                       Prevention

POWERHOUSE                                    David           $125         21/04/201
                   $153,591.25                                                         21/04/2010   30/06/2010   NA         No            No          Contractor   Senior Media Advisor
PEOPLE LTD                                    Balham          (Hour)       0

                                              John            $175         17/02/201                                                                               Acting Customer
PROSORT LTD        $161.260.00                                                         17/02/2010   24/12/2010   NA         No            No          Contractor
                                              Trotter         (Hour)       0                                                                                       Services Manager

                                                                                                                 Direct
RODE CONSULTING                               Debbie                       10/07/200
                   $125,640.00                                $720 (Day)               10/07/2009   18/03/2011   Engageme   No            No          Contractor   Procurement Advisor
LIMITED                                       Stevens                      9
                                                                                                                 nt

                                              Gavin           $125         08/02/201
SCURDIE NESS LTD   $55,875.00                                                          08/02/2010   26/08/2011   No         No            No          Contractor   Programme Manager
                                              Valentine       (Hour)       0

                                                              $125         10/06/200
                   $92,050.00                 Kent Barrell                             01/07/2009   31/07/2011   No         No            No          Contractor   Project Management
SILVERSTONE                                                   (Hour)       9
CONSULTING
                                                              $125         25/01/201                                                                               Acting Business
                   $66,256.25                 Kent Barrell                             25/01/2011   31/07/2011   No         No            No          Contractor
                                                              (Hour)       1                                                                                       Manager

STARFISH                                      Adam            $104         02/11/201
                   $63,336.00                                                          02/11/2010   28/02/2011   NA         No            No          Contractor   Procurement Advisor
CONSULTING LTD                                O'Sullivan      (Hour)       0

                                              Trudy           $120         07/07/201
                   $171,360.00                                                         14/07/2010   30/09/2010   NA         No            No          Contractor   Project Manager
                                              Hadley          (Hour)       0

                                              Adam            $104         02/11/201
                   $14,976.00                                                          02/11/2010   28/02/2011   NA         No            No          Contractor   Procurement Advisor
                                              O'Sullivan      (Hour)       0

                                              Adam            $104         02/11/201
                   $19,136.00                                                          02/11/2010   28/02/2011   NA         No            No          Contractor   Procurement Advisor
                                              O'Sullivan      (Hour)       0


                   $56,787.50                 Amanda          $82.60       09/11/201   01/12/2010   28/02/2011   NA         No            No          Contractor   Financial coordinator


                                                                                       96
                                                             2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                             Name of                                                                                       Reports      Type of
                                 Further                                                                                    Proposals
                    Spend                   Contractor        Hourly or    Contract                 Completion                            prepared      Service
 Supplier Name                    budget                                               Start Date                Tendered   for further                               Specific Details
                  10/11 YTD                     or            Daily Rate     Date                     Date                                    or       Generally
                                for 10/11                                                                                     work?
                                            Consultant                                                                                    delivered    Provided

                                            Kirkland          (Hour)       0

                                            Steve             $118         16/09/201                                                                               Senior Business
                  $112,209.50                                                          13/09/2010   30/09/2011   NA         No            No          Contractor
                                            Gasby             (Hour)       0                                                                                       Systems Analyst

                                            Teanna                         21/09/200
                  $14,915.00                                  $95 (Hour)               21/09/2009   31/03/2011   NA         No            No          Contractor   Senior Business Analyst
                                            Joyce                          9

STORM SOLUTIONS                                               $110         07/10/201                                                                               Business Intelligence
                  $181,830.00               Evan Wilson                                01/12/2008   04/11/2011   NA         No            No          Consultant
LTD                                                           (Hour)       0                                                                                       Reporting Layer Lead

SYSDOC GROUP                                Kate              $100         21/04/201
                  $14,225.00                                                           21/04/2010   02/06/2010   NA         No            No          Contractor   Staff backfill
LTD                                         Atkinson          (Hour)       0

                                            Louise            $120         04/08/201
                  $61,800.00                                                           27/07/2010   29/04/2011   NA         No            No          Contractor   Test Management
                                            Mouzouri          (Hour)       0
TA-DAH! LIMITED
                                            Louise            $120         04/08/201
                  $120,840.00                                                          27/07/2010   31/6/11      NA         No            No          Contractor   Test Management
                                            Mouzouri          (Hour)       0

                                                                                                                                                                   Senior Internal
                                            Ruby              $100         28/03/201
TALENT2 NZ LTD    $11,725.00                                                           28/03/2011   30/06/2011   NA         No            No          Contractor   Commuications Advisor
                                            Quemuel           (Hour)       1
                                                                                                                                                                   - Intranet

THE JOHNSON                                                   $150         27/10/201                                                                               Senior Communications
                  $50,625.00                Paul Atkins                                01/11/2010   29/04/2011   NA         No            No          Contractor
GROUP LTD                                                     (Hour)       0                                                                                       Change Specialist

                                                                                                                                                                   Senior Business
                                                                                                                                                                   Intelligence
                                                              $110         11/08/201
TIM EDGELER       $145,310.00               Tim Edgeler                                16/08/2010   29/07/2011   NA         No            No          Contractor   Analyst/Programmer,
                                                              (Hour)       0
                                                                                                                                                                   Experience Rating
                                                                                                                                                                   project

                                                              $96.64       16/02/200
                  $124,436.00               Jill Botterill                             02/03/2009   27/05/2011   NA         No            No          Contractor   Test Analyst
                                                              (Hour)       9

                                            Jonathan                       15/07/200
                  $59,895.50                                  $89 (Hour)               15/07/2009   27/05/2011   NA         No            No          Contractor   Test Analyst
ZEPHYR                                      Bain                           9
CONSULTING
                                            Jonathan                       24/12/201
                  $71,422.50                                  $89 (Hour)               05/01/2011   27/05/2011   NA         No            No          Contractor   Test Analyst
                                            Bain                           0

                                            Paula             $105         21/06/201                                                                               Business Systems
                  $168,840.00                                                          21/06/2010   30/06/2011   NA         No            No          Contractor
                                            Vluggen           (Hour)       0                                                                                       Analyst

                                            Graeme                         24/05/201
ZERONE LTD        $111,510.00                                 $70 (Hour)               24/05/2010   29/04/2011   NA         No            No          Contractor   Telephony Support
                                            Lockyer                        0




                                                                                       97
                                                             2011/12 ESTIMATES EXAMINATION: VOTE ACC



Insurance and Prevention Services Contractors and Consultants
                                                 Name of                                                                                            Reports       Type of
                                    Further                                                                                          Proposals
                       Spend                    Contractor     Hourly or    Contract                      Completion                               prepared       Service
  Supplier Name                    budget for                                                Start Date                Tendered      for further                               Specific Details
                     10/11 YTD                      or         Daily Rate     Date                          Date                                       or        Generally
                                     10/11                                                                                              work
                                                Consultant                                                                                         delivered     Provided
                                                               $100         16/03/201                                  Recruitment
                     $60,920.00                 Jay Kaimal                               16/03/2011       31/12/2011                 Yes           No            Contractor   Business Analyst
                                                               (Hour)       1                                          process
ABSOLUTE IT
                                                               $100         21/03/201
                     $43,200.00                 Jay Kaimal                               16/03/2011       30/06/2011                 No            No            Contractor   Business Analyst
                                                               (Hour)       1
                                                                            25/01/201                                  Recruitment                                            Change Engage
ANA VANEY            $60,968.00                 Ana Vaney      $85 (Hour)                25/01/2011       25/01/2012                 Yes           No            Contractor
                                                                            1                                          process                                                Analyst
                                                                                                                                                                              Senior Business
                                                                            05/07/201                                  Recruitment
                     $174,888.00                Linda Taylor   $85 (Hour)                05/07/2010       30/06/2011                 Yes           No            Contractor   Analyst - Pricing &
                                                                            0                                          process
                                                                                                                                                                              Modelling
                                                Bronwyn        $105
                     $71,550.00                                                          01/02/2010       30/04/2011   No            No            No            Contractor   Project Manager
                                                Green          (Hour)
BEYOND SERVICES                                                                                                                                                               Workstram Lead
                                                               $110         01/04/201                                  Recruitment
LIMITED              $204,305.00                Jerry Bardon                             01/04/2010       27/05/2011                 Yes           No            Contractor   (Processes &
                                                               (Hour)       0                                          process
                                                                                                                                                                              Systems)
                                                                $27.95      13/09/201                                  Recruitment
                     $9,326.34                  Sue Smith                                14/09/2010       29/11/2010                 No            No            Contractor   Admin Temp
                                                               (Hour)       0                                          process
                                                Penny                       20/04/201
                     $6,650.00                                 $95 (Hour)                20/04/2010       01/06/2011   No            No            No            Contractor   Business Analyst
                                                Buckmaster                  0
CALLCUT
                                                               $1350        08/09/201                                  Recruitment                                            accis Programme
MANAGEMENT           $236,250.00                John Callcut                             06/09/2010       31/12/2011                 Yes           No            Contractor
                                                               (Day)        0                                          process                                                Manager
SERVICES
                                                Catherine                   25/11/201                                  Recruitment
CATHERINE O'BYRNE    $112,800.00                               $95 (Hour)                25/11/2010       30/06/2011                 Yes           No            Contractor   Business Analyst
                                                O'Bryne                     0                                          process
                                                Catherine      $2500        01/11/201                                  Direct
CATHERINE RUSBY      $28,601.00                                                          01/12/2010       31/12/2011                 Yes           No            Contractor   Steering group
                                                Rusby          (Day)        0                                          engagement
                                                                            20/07/201                                  Recruitment
DATA VALUE LIMITED   $123,607.00                Peter Archer   $90 (Hour)                20/07/2010       31/12/2011                 Yes           No            Contractor   Reporting Analyst
                                                                            0                                          process
                                                David          $1600                                                   Direct
DAVID STUTELEY       $128,305.00                                                         01/04/2010       31/12/2011                 No            No            Contractor   IQA
                                                Stuteley       (Day)                                                   engagement
                                                                                                                                                                              Delivery &
DELOITTE             $5,030.43                                 Various                                                               No            No            Consultant   Distribution Best
                                                                                                                                                                              Practices




                     $264,078.70                               Various      01/09/200    01/09/2008       31/08/2011   RFP           No            Individual    Consultant   Financial Viability
                                                                            8                                                                      reports                    Reviews
                                                                                                                                                   relating to
                                                                                                                                                   specific
                                                                                                                                                   employers
                                                                                                                                                   provided a
                                                                                                                                                   per the
                                                                                        98                                                         agreement
                                                                                                                                                   (commercial
                                                           2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                              Name of                                                                                              Reports        Type of
                                 Further                                                                                           Proposals
                    Spend                    Contractor      Hourly or    Contract                      Completion                                prepared        Service
  Supplier Name                 budget for                                                 Start Date                Tendered      for further                                 Specific Details
                  10/11 YTD                      or          Daily Rate     Date                          Date                                        or         Generally
                                  10/11                                                                                               work
                                             Consultant                                                                                           delivered      Provided
                                                                                                                                                 ly sensitive)
                  $4,969.50                                  Various                                                               No            No              Consultant   IHC Report
                                                                                                                                                                              Due diligence
                  $16,770.00                                 Various                                                               No            No              Consultant
                                                                                                                                                                              review
                                             Simon
                  $1,768.00                                  Various                                                               No            No              Consultant   Peer review
                                             McDonald
                                                                                                                                                                              PP Customer Value
                                             Dave
                                                                                                                                                                              Proposition,
                  $38,167.61                 Farrelly,       Various                                                               No            No              Consultant
                                                                                                                                                                              services provided
                                             Adithi Pandit
                                                                                                                                                                              by
                                                                          01/03/200                                  Direct                                                   Varying consultancy
                  $494,103.00                Deloitte        Various                   01/03/2009       31/12/2011                 No            Yes             Contractor
                                                                          9                                          engagement                                               roles
                                                                                                                                                                              Delivery &
                  $5,030.43                                  Various                                                               No            No              Consultant   Distribution Best
                                                                                                                                                                              Practices
                                                                                                                                                                              Product
                  $86,730.00                                 Various                                                               No            No              Consultant
                                                                                                                                                                              Methodology
                                                                                                                                                                              Senior Business
                                                             $120         27/08/201                                  Secondment
ERIC W FLESCH     $231,300.00                Eric Flesch                               01/07/2010       30/06/2011                 Yes           No              Contractor   Intelliegence
                                                             (Hour)       0                                          from BTG
                                                                                                                                                                              Analyst
ESCADA                                                                    16/08/201                                  Recruitment
                  $77,869.50                 Jude Roberts    $95 (Hour)                16/08/2010       11/03/2011                 No            No              Contractor   AIB Data Analyst
CONSULTING                                                                0                                          process
                                             Colleen         $155         01/11/201                                  Recruitment
FUJITSU           $54,321.00                                                           01/11/2010       31/12/2010                 No            No              Contractor   Test Manager
                                             Meads           (Hour)       0                                          process
                                             Annabelle
HELIUM                                                       $100         23/12/200                                  Recruitment
                  $225,800.00                Jiminez-                                  26/01/2010       31/12/2011                 Yes           No              Contractor   Business Analyst
WORKSEARCH LTD                                               (Hour)       9                                          process
                                             Swain
                                             Beverley        $100         26/04/201                                  Recruitment                                              Senior Business
                  $32,540.00                                                           02/05/2011       31/08/2011                 Yes           No              Contractor
                                             Lord            (Hour)       1                                          process                                                  Analyst
                                                             $100         26/01/201                                  Recruitment                                              Senior Business
                  $170,550.00                Goh Liang                                 26/01/2010       31/12/2011                 Yes           No              Contractor
                                                             (Hour)       0                                          process                                                  Analyst
                                             Karen           $100         30/09/201                                  Recruitment                                              Senior Business
                  $94,550.00                                                           04/10/2010       31/01/2011                 No            No              Contractor
                                             McKeefry        (Hour)       0                                          process                                                  Analyst
                                             Miriam                       01/07/201                                  Recruitment                                              Programme
                  $57,648.00                                 $60 (Hour)                06/07/2010       31/12/2011                 Yes           No              Contractor
                                             Dassanayake                  0                                          process                                                  Coordinator
                                                                                                                                                                              AIB Lead Solution
                                             Raghu        $160            03/08/201                                  Recruitment
                  $281,792.00                                                          01/09/2010       31/12/2011                 Yes           No              Contractor   Integration
                                             Krishnaswamy (Hour)          0                                          process
                                                                                                                                                                              Architect
                                                                          16/12/201                                  Recruitment                                              Programme
                  $75,675.00                 Shirley Jones   $60 (Hour)                28/10/2010       31/12/2011                 Yes           No              Contractor
                                                                          0                                          process                                                  Coordinator
                                                              $95         14/07/201                                  Recruitment                                              Programme
                  $97,133.00                 Steph Wall                                26/07/2010       31/12/2011                 Yes           No              Contractor
                                                             (Hour)       0                                          process                                                  Accoutant


                                                                                      99
                                                              2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                                 Name of                                                                                          Reports     Type of
                                    Further                                                                                        Proposals
                       Spend                    Contractor      Hourly or    Contract                   Completion                               prepared     Service
  Supplier Name                    budget for                                              Start Date                Tendered      for further                             Specific Details
                     10/11 YTD                      or          Daily Rate     Date                       Date                                       or      Generally
                                     10/11                                                                                            work
                                                Consultant                                                                                       delivered   Provided
                                                                 $95         15/12/200                               Recruitment
                     $183,148.00                Tom Llanillo                               15/12/2009   31/12/2011                 Yes           No          Contractor   Systems Analyst
                                                                (Hour)       9                                       process
                                                Raghu        $160            20/08/201
                     $2,640.00                                                             01/09/2010   31/12/2011                 No            No          Contractor
                                                Krishnaswamy (Hour)          0
                                                                                                                                                                          Project Manager
                                                Hilary          $1000        16/12/201                               Recruitment
HILARY RODGERS       $187,300.00                                                           12/08/2010   30/06/2011                 Yes           No          Contractor   AIB Programme
                                                Rodgers         (Day)        0                                       process
                                                                                                                                                                          Process Stream
IPS CHANGE                                      Sean            $800         01/11/201                               Recruitment                                          Manager Transition
                     $107,600.00                                                           22/11/2010   31/12/2011                 Yes           No          Contractor
PROGRAMME                                       McKenzie        (Day)        0                                       process                                              Management
                                                Guy
                                                                             05/10/201                                                                                    Revenue
LSI CONSULTING LTD   $69,473.82                 Chadwick,                                  10/10/2010   28/02/2011   No            No            No          Consultant
                                                                             0                                                                                            Management
                                                Neil Kirk
MARCEL VAN DEN                                  Marcel Van      $2500        26/11/201                               Direct
                     $87,025.00                                                            01/12/2010   31/12/2011                 Yes           No          Contractor   Steering group
ASSUM                                           den Assum       (Day)        0                                       engagement
NEW ZEALAND
                                                                             01/07/200                                                                                    Health and Safety
COUNCIL OF TRADE     $71,497.28                 N/A                                        01/07/2008   30/06/2011   Yes           No            No          Contractor
                                                                             8                                                                                            Organiser
UNIONS
                                                Nicole          $100
NICOLE MURRAY        $34,800.00                                                            15/11/2010   31/03/2011   N/A           No            No          Contractor   Lead Advisor
                                                Murray          (Hour)
                                                                             27/07/201                               Recruitment
NINETWENTY           $154,366.00                Paul Gordon     $99 (Hour)                 11/08/2010   31/12/2011                 Yes           No          Contractor   AIB Data Analyst
                                                                             0                                       process
                                                                             16/12/201                               Recruitment                                          Programme
PAUL TAYLOR          $114,120.00                Paul Taylor     $90 (Hour)                 28/10/2010   31/12/2011                 Yes           No          Contractor
                                                                             0                                       process                                              Scheduler
                                                Tony            $2250        06/09/201                               Direct                                               Change manager
PQ ASSOCIATES        $291,072.00                                                           30/08/2010   04/03/2011                 No            No          Contractor
                                                Chamberlain     (Day)        0                                       engagement                                           (acting)
                                                Ching-Wei       $120         15/10/200                               Recruitment                                          Senior Business
                     $173,693.00                                                           15/10/2009   26/04/2011                 No            No          Contractor
                                                Yeoh            (Hour)       9                                       process                                              Analyst
RED VESPA
                                                                $150         15/01/201                               Recruitment                                          Programme
                     $86,400.00                 Edith Chan                                 18/01/2010   30/04/2010                 No            No          Contractor
                                                                (Hour)       0                                       process                                              Accoutant
                                                Jeannette       $110         28/03/201                               Recruitment
                     $56,320.00                                                            28/03/2011   31/12/2011                 Yes           No          Contractor   AIB Data Analyst
                                                Hook            (Hour)       1                                       process
                                                                                                                                                                          AIB Technology
                                                                $133         01/09/201                               Recruitment
RESULTEX             $214,092.00                Rob Taylor                                 01/09/2010   01/09/2011                 Yes           No          Contractor   Stream Project
                                                                (Hour)       0                                       process
                                                                                                                                                                          Manager
                                                                $113         04/08/201                               Recruitment
                     $178,315.00                Rod Corlett                                02/09/2010   06/09/2011                 Yes           No          Contractor   AIB Data Analyst
                                                                (Hour)       0                                       process
                                                                                                                                                                          AIB Product
                                                Ron                          29/07/201                               Recruitment
RON HUTCHINGS        $91,710.00                                 $90 (Hour)                 02/08/2010   31/12/2011                 Yes           No          Contractor   Accounting
                                                Hutchings                    0                                       process
                                                                                                                                                                          Business Analyst
                                                                $900         08/10/201                               Recruitment
ROWLING PROJECTS     $75,600.00                 Julia Rowling                              11/10/2010   31/03/2011                 No            No          Contractor   Programme Advisor
                                                                (Day)        0                                       process
SILVERSTONE          $21,062.50                 Kent Barrell    $125         10/06/200     01/07/2009   30/06/2010   No            No            Yes         Contractor   Project


                                                                                         100
                                                           2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                               Name of                                                                                         Reports     Type of
                                  Further                                                                                       Proposals
                     Spend                    Contractor     Hourly or    Contract                   Completion                               prepared     Service
  Supplier Name                  budget for                                             Start Date                Tendered      for further                             Specific Details
                   10/11 YTD                      or         Daily Rate     Date                       Date                                       or      Generally
                                   10/11                                                                                           work
                                              Consultant                                                                                      delivered   Provided
CONSULTING                                                   (Hour)       9                                                                                            Management
                                                                                                                  Selective
                                              Simmonds
SIMMONDS STEWART   $142,841.00                               Various                    01/05/2010   31/12/2010   procuremen    Yes           No          Contractor   Legal advisors
                                              Stewart
                                                                                                                  t
                                                             $1120        31/01/201                               Recruitment                                          Project Manager
                   $117,040.00                Cathy Sneyd                               31/01/2011   31/12/2011                 Yes           No          Contractor
                                                             (Day)        1                                       process                                              Process Stream
                                                             $114         28/02/201                               Recruitment
                   $76,121.00                 Jackie Jones                              28/02/2011   31/12/2011                 Yes           No          Contractor   Business Analyst
                                                             (Hour)       1                                       process
                                                                          04/08/201                               Recruitment                                          AIB Data Quality
                   $140,333.00                Paul Cone      $90 (Hour)                 09/08/2010   31/12/2011                 Yes           No          Contractor
                                                                          0                                       process                                              Business Analyst
                                              Ruth           $100         20/04/201                               Recruitment
                   $60,093.00                                                           08/03/2011   31/12/2011                 Yes           No          Contractor   Business Analyst
                                              Querijero      (Hour)       1                                       process
                                                             $118         10/01/201                               Recruitment
                   $66,848.00                 Lee Vella                                 17/01/2011   21/04/2011                 No            No          Contractor   PM Datam Project
STARFISH                                                     (Hour)       1                                       process
CONSULTING LTD                                Merle          $120         01/07/201                               Recruitment
                   $224,780.00                                                          01/04/2010   30/06/2011                 Yes           No          Contractor   Project Manager
                                              Armstrong      (Hour)       0                                       process
                                              Rose           $118         08/04/201                               Recruitment                                          Project Manager /
                   $45,707.00                                                           11/04/2011   31/08/2011                 Yes           No          Contractor
                                              Graham         (Hour)       1                                       process                                              Business Analyst
                                                              $123        03/08/201                               Recruitment                                          Technology Stream
                   $225,460.00                Sue Familton                              09/08/2010   31/12/2011                 Yes           No          Contractor
                                                             (Hour)       0                                       process                                              Project Manager
                                              Merle          $120         22/09/201                               Recruitment
                   $36,660.00                                                           03/03/2010   30/06/2011                 Yes           No          Contractor   Project Manager
                                              Armstrong      (Hour)       0                                       process
                                                             $114         07/03/201
                   $57,798.00                 Jackie Jones                              28/02/2011   30/06/2011                 No            No          Contractor   Business Analyst
                                                             (Hour)       1
                                                                                                                                                                       Manager Change
                                                             $130         18/11/201                               Recruitment
                   $85,215.00                 Alan Seay                                 18/11/2011   31/12/2011                 Yes           No          Contractor   Programme
                                                             (Hour)       0                                       process
                                                                                                                                                                       Communications
TALENT2 NZ LTD                                Steven          $106.25     01/09/201                               Recruitment                                          Senior Business
                   $75,756.25                                                           07/09/2010   14/01/2011                 No            No          Contractor
                                              Cromb          (Hour)       0                                       process                                              Analyst
                                              Kerri          $120         04/04/201                                                                                    Customer
                   $22,440.00                                                           04/04/2011   15/07/2011                 No            No          Contractor
                                              Osbourne       (Hour)       1                                                                                            Segmention Lead
                                                                                                                                                                       Programme
                                              Albert         $150         17/12/201                               Recruitment
THE CARAPACE LTD   $180,120.50                                                          10/01/2011   09/06/2011                 No            No          Contractor   Manager, Products
                                              Mulholland     (Hour)       0                                       process
                                                                                                                                                                       Delivery
THE KNOWLEDGE                                 Todd           $170         01/07/201
                   $14,400.00                                                           01/07/2010   30/12/2010   No            No            No          Contractor   Actuarial support
WAREHOUSE LTD                                 Nicholson      (Hour)       0
                                                                                                                                                                       Business Analyst -
                                                             $105         01/07/201                               Recruitment
THE LAWNLINE       $165,323.00                Gary Lawn                                 01/07/2010   06/05/2011                 Yes           No          Contractor   Processes &
                                                             (Hour)       0                                       process
                                                                                                                                                                       Systems
WENDY BOOTH                                                   $150        26/05/200                               Recruitment
                   $121,050.00                Wendy Booth                               26/05/2009   31/12/2010                 No            No          Contractor   Programme Advisor
CONSULTING                                                   (Hour)       9                                       process



                                                                                      101
                                                              2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                                  Name of                                                                                                             Reports      Type of
                                   Further                                                                                                            Proposals
                      Spend                      Contractor      Hourly or          Contract                        Completion                                       prepared      Service
  Supplier Name                   budget for                                                     Start Date                            Tendered       for further                               Specific Details
                    10/11 YTD                        or          Daily Rate           Date                            Date                                               or       Generally
                                    10/11                                                                                                                work
                                                 Consultant                                                                                                          delivered    Provided
                                                 Peter           $135           15/01/201                                              Recruitment                                             Data Quality
ZEPHYR             $296,157.00                                                                   21/01/2010     31/12/2011                            Yes            No          Contractor
                                                 Simcock         (hour)         0                                                      process                                                 Manager



Scheme Performance Contractors and Consultants
                                                Name of                                                                                                         Reports      Type of
                                  Further                                                                                                       Proposals
                    Spend                      Contractor      Hourly or       Contract                       Completion                                       prepared      Service
  Supplier Name                    budget                                                      Start Date                        Tendered       for further                                   Specific Details
                  10/11 YTD                        or          Daily Rate        Date                           Date                                               or       Generally
                                 for 10/11                                                                                                         work
                                               Consultant                                                                                                      delivered    Provided
                                               Martin          $150                                                              Preferred
                  $165,645.00                                                 13/05/2008       13/05/2008     Ongoing                           No             No          Contractor    Project Manager
                                               O'Connor        (Hour)                                                            Supplier
                                               Olga            $175                                                              Preferred                                               Onsite support - Backup
ASPARONA          $1,400.00      $6,300.00                                    26/04/2011       26/04/2011     27/05/2011                        No             No          Consultant
                                               Malakhova       (Hour)                                                            Supplier                                                for FMIS team
                                                                                                                                                                                         GST rate change for FMIS
                  $3,180.00                    N/A             Various        N/A              01/07/2010     31/08/2010         no             No             No          Consultant
                                                                                                                                                                                         systems
                                                                              Multiple
                                                                              pieces of
                                                                              work                                                                             Yes -
                  $44,333.33                   N/A             Various        individually     01/07/2009     30/06/2010         Yes            No             Audit       Consultant    Actuarial Support
                                                                              contracted                                                                       Reports
                                                                              during the
                                                                              year
                                                                                                                                                                                         Income and Cost
DELOITTE                                                                                                                                                                                 Allocation Review; further
                                                                                                                                                                                         work is to assist
                  $45,000.00                   N/A             Various        18/03/2011       18/03/2011     31/05/2011         Yes            Yes            Yes         Consultant
                                                                                                                                                                                         developing a new
                                                                                                                                                                                         administrative cost
                                                                                                                                                                                         allocation methodology
                  $48,200.00                   Aloysius The    Various        05/11/2010       19/11/2010     20/01/2011                        No             Yes         Consultant    Audit of ACC Investments
                                                                                                                                                                                         Senior Executive
                  $8,000.00                    Ian Perry       Various        01/04/2010       03/05/2010     07/07/2010                        No             Yes         Consultant
                                                                                                                                                                                         Expenses Review
                                                                                                                                                                                         Assistance with the
                                               Kimberly                                                                                                                                  preperation of a
                  $5,000.00                                    Various        08/11/2010       15/11/2010     26/11/2010         No             No             No          Consultant
                                               Crook                                                                                                                                     submission to the IASB in
                                                                                                                                                                                         respect of the IFRS 4 ED
                                                                                                                                                                                         Advice on disclosures in
ERNST & YOUNG
                                                                                                                                                                                         respect of the funding of
                  $12,000.00                   N/A             Various        N/A              N/A            N/A                No             No             No          Consultant    the residual claims
                                                                                                                                                                                         account for the financial
                                                                                                                                                                                         statements
                  $8,820.00                    N/A             Various        N/A              N/A            N/A                Ongoing        Ongoing        No          Consultant    General taxation services
HELIUM            $19,950.00                   Samantha        $70 (Hour)                                                                       No             No          Contractor    I Lign Administrator



                                                                                               102
                                                          2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                             Name of                                                                                           Reports       Type of
                                 Further                                                                                        Proposals
                    Spend                   Contractor     Hourly or      Contract                 Completion                                 prepared       Service
 Supplier Name                    budget                                              Start Date                   Tendered     for further                                 Specific Details
                  10/11 YTD                     or         Daily Rate       Date                     Date                                         or        Generally
                                for 10/11                                                                                          work
                                            Consultant                                                                                        delivered     Provided
WORKSEARCH LTD                              Wilson
                                            Jan            $2600                                                                                                        Manager, Risk and
                  $12,700.00                                             08/04/2010   03/05/2010   09/07/2010                   No            No           Consultant
                                            Smolnicki      (Day)                                                                                                        Assurance
                                            Jan            $2600                                                                                                        Manager, Risk and
                  $20,300.00                                             09/04/2010   10/05/2010   06/10/2010                   No            No           Consultant
                                            Smolnicki      (Day)                                                                                                        Assurance
                                            Jan            $2600                                                                                                        Manager, Risk and
                  $34,500.00                                             24/09/2010   10/10/2010   Not Finalised                No            No           Consultant
                                            Smolnicki      (Day)                                                                                                        Assurance
                                            Mark           $312.5
                  $65,278.04                                             01/11/2008   01/11/2008   31/10/2010      Yes          No            No           Consultant   Procure to Pay
                                            Shepard        (Hour)
                                            Jan            $2600                                                                                                        Manager, Risk and
                  $289,900.00                                            01/11/2008   01/11/2008   31/10/2010      Yes          No            No           Contractor
                                            Smolnicki      (Day)                                                                                                        Assurance
                                            Zuke           $1050
                  $99,306.98                                             01/11/2008   01/11/2008   31/10/2010      Yes          No            No           Contractor   Internal Auditor
                                            Marinkovich    (Day)
                                                                                                                                                                        Risk Management /
PRICEWATERHOUSE                             Andy                                                                                                                        advice with respect to
COOPERS           $1,950.00                                Fixed price   01/11/2010   01/11/2010   31/12/2010      No           No            No           Consultant
                                            Wotton                                                                                                                      generating a Risk
                                                                                                                                                                        Appetite statement
                                                                                                                                                                        Claims handling expense
                  $35,555.55                N/A            Fixed price   07/04/2010   07/04/2010   20/08/2010      No           No            Yes          Consultant
                                                                                                                                                                        investigation
                                $23,200.0                  $2900                                                                possible
                  $124,700.00               Paul Rhodes                  20/08/2010   23/08/2010   31/05/2011      Yes                        No           Consultant   Acting Chief Actuary
                                0                          (daily)                                                              extension
                  $1,170,135.                                                                                                                 Claims                    Valuation of outstanding
                                            N/A            N/A           01/11/2008   01/11/2008   31/10/2010      Yes          No                         Consultant
                  00                                                                                                                          Liability                 claims liability
                                                                                                                                                                        Fee for accounting
                  $7,875.00                 N/A            Various       27/08/2010   N/A          N/A             No           No            No           Consultant   opinion re residual
                                                                                                                                                                        amount
                                                                                                                                                                        Providing feedback on
                  $3,150.00                 N/A            Various       N/A          N/A          N/A             No           No            No           Consultant   draft 2010 financial
                                                                                                                                                                        statements
                                                                                                                   Yes, 3                                               Business Analyst work for
                                            Louise         $100
RECRUIT I.T.      $94,600.00                                             08/07/2010   19/07/2010   28/01/2011      interviews   No            N/A          Consultant   Investment Systems
                                            Burnham        (Hour)
                                                                                                                   were done                                            Project
                                $10,000.0   Mike
TAX TEAM          $57,532.00                               Various       N/A          N/A          N/A             N/A          No            No           Consultant   Tax Advisory
                                0           Brunner
                                                                                                                                                                        Actuarial Services -
                                                                                                                                              No (a
                                                                                                                                                                        Dynamic Risk Model
TAYLOR FRY PTY                  $250,000.                                                                                                     model
                  $253,361.00               Several        Various       01/08/2010   01/08/2010   01/03/2011      Yes; 2       Yes                        Consultant   project (a model was
LTD                             00                                                                                                            was
                                                                                                                                                                        built in SAS). Phase II
                                                                                                                                              delivered)
                                                                                                                                                                        commenced in Mar11
THE KNOWLEDGE                               Todd           $170
                  $86,062.50                                             01/07/2010   01/07/2010   30/12/2010      No           No            No           Contractor   Actuarial support
WAREHOUSE LTD                               Nicholson      (Hour)




                                                                                      103
                                                            2011/12 ESTIMATES EXAMINATION: VOTE ACC



Governance, Policy and Research Contractors and Consultants
                                                Name of                                                                                                 Reports         Type of
                                    Further                                                                                         Proposals
                        Spend                  Contractor    Hourly or      Contract                    Completion                                     prepared         Service
    Supplier Name                    budget                                               Start Date                   Tendered     for further                                        Specific Details
                      10/11 YTD                    or        Daily Rate       Date                        Date                                             or          Generally
                                   for 10/11                                                                                           work
                                               Consultant                                                                                              delivered       Provided
   MICHAEL J HARRIS   $84,210.00               Michael       $155           19/04/2011     05/07/2006       Ongoing   Direct        Yes -              No            Consultant       Legal Services
                                               Harris        (Hour)                                                   Engagement    Ongoing



Chief Executive’s Office Contractors and Consultants
                                                Name of                                                                            Proposals       Reports          Type of
                                    Further
                        Spend                  Contractor     Hourly or      Contract                   Completion                    for         prepared          Service
    Supplier Name                    budget                                               Start Date                  Tendered                                                        Specific Details
                      10/11 YTD                    or         Daily Rate       Date                       Date                      further           or           Generally
                                   for 10/11
                                               Consultant                                                                            work         delivered        Provided
   DELOITTE           $495.00      No          N/A            Various                                                 No           No             No               Consultant      Time spent confirming
                                                                                                                                                                                   Scheme provisional tax
                                                                                                                                                                                   position and advice on
                                                                                                                                                                                   Scheme not
                                                                                                                                                                                   undertaking expense
                                                                                                                                                                                   transfer.
   MAVEN              $8,000.00    No          Joanna         Fixed Price   20/07/10      01/08/10      31/08/10      No           No             No               Consultant      Scenario Planning
                                               Lambert                                                                                                                             workshop




                                                                                         104
                                                            2011/12 ESTIMATES EXAMINATION: VOTE ACC



       APPENDIX 4: Question 23. How many permanent staff are currently employed within the Department/Ministry and its
       associated agencies? How does this compare to the last five financial years?


Department’s response (as at 11 May 2011)
                                                       Hawkes                 Off                               South
Role               Status Auckland       Canterbury    Bay         Nelson     shore       Otago      Overseas   Canterbury      Southland   Taranaki   Wellington    Westland   TOTAL
Executive/         Full             58            13                               54                                                                           79                204
Admin Support      Time
                   Part             10             1                                  1          1                                                               5                 18
                   Time
Management         Full             89            16           2          1        22            4         26                           1          2         150                  313
                   Time
                   Part              5                                                                                                                           5                 10
                   Time
Customer           Full           552             72          13          9      162            23                          1           5          3         142            1     983
Contact            Time
                   Part             15             7           1          1           3          1                          1                      2            10                 41
                   Time
Policy Analysis    Full                                                                                                                                         64                 64
and Support        Time
                   Part                                                                                                                                         17                 17
                   Time
Technical/         Full             59             3           1          2           9          1          6                                                293                  374
Professional       Time
Support
                   Part              5             1                      1                                                                        1            49                 57
                   Time
TOTAL                             793            113          17        14       251            30         32               2           6          8         814            1   2,081

         Note: Offshore – refers to local people employed in the Department’s Immigration New Zealand offices offshore. Overseas – refers to New Zealand based employees
         posted to a location overseas.
         Staffing details for the previous years have been provided for previous Estimates Examinations or Financial Reviews of the Department.
         The total permanent staff number has decreased by 69 (-3.2%) from the same time last year. Three geographic areas showed more than 10% fluctuations:
         Overseas – The Department’s Immigration New Zealand off shore branches have expanded in this financial year with two new branches established, Mumbai and Pretoria.
         The number of New Zealand based employees posted to overseas has increased from 25 to 32.
         Southland – staff number has decreased from 7 to 6 due to a resignation and the vacancy has not yet been filled.
         Taranaki – staff number has decreased from 9 to 8 due to a resignation and the vacancy has not yet been filled.


                                                                                          105
                                                            2011/12 ESTIMATES EXAMINATION: VOTE ACC



APPENDIX 4 (CONTD.)


ACC Response: All years are shown to 30 June, except 2011, which is shown as to 31 May
                 Branch Operational Staff


                 Northland                             Auckland                                     Waikato                              Bay of Plenty                           East Cape
  Year   Full Time     Part Time    Total     Full Time     Part Time           Total   Full Time           Part Time    Total      Full Time   Part Time      Total     Full Time    Part Time        Total
  2011           38           1         39         177                9          186               54              5       59             77              8         85           14          3           17
  2010           35           1         36         195                8          203               50              5       55             77              7         84           14          3           17
  2009           35           3         38         193               29          222               61              9       70             75          19            94           11          5           16
  2008           26           3         29         158               33          191               43             10       53             63          15            78           12          2           14
  2007           30           1         31         182               22          204               45              5       50             66          13            79           12          1           13
  2006           22           2         24         164               17          181               37              5       42             68          12            80           11          1           12


             Hawke’s Bay                               Taranaki                          Manawatu-Wanganui                                Wellington
  Year   Full Time     Part Time    Total     Full Time     Part Time           Total   Full Time           Part Time    Total      Full Time   Part Time      Total
  2011           34           1         35          17                5           22               49              8       57             73              4         77
  2010           33           3         36          17                5           22               49              8       57             73              5         78
  2009           33           5         38          10                8           18               41              8       49             80          10            90
  2008           30           3         33          10                9           19               51             16       67             65          11            76
  2007           27           4         31          12                7           19               55             12       67             76          11            87
  2006           26           6         32          10                7           17               53             13       66             78              9         87


          Marlborough                         Nelson                      West Coast                               Canterbury                          Otago                          Southland
  Year      FT         PT     Total          FT        PT    Total         FT           PT     Total               FT       PT         Total         FT        PT        Total         FT         PT     Total
 2011                                        23        2       25          8                            8         101           7        108         33        3           36          16         2            18
 2010                                        24        3       27          7            1               8          95       11           106         43        2           45          17         1            18
 2009        8          4          12        18        7       25          7            1               8          95       23           118         31        3           34          21         3            24
 2008       10          2          12        14        6       20          7                            7          90       16           106         34        3           37          19         3            22
 2007       10          2          12        14        6       20          6                            6          96       17           113         36        3           39          19         2            21
 2006        9          2          11        12        6       18          7                            7          86       12            98         32        3           35          17         3            20




                                                                                             106
                                                                           2011/12 ESTIMATES EXAMINATION: VOTE ACC

National Office Administration and Policy (excl Insurance and Prevention Services)
                                                                    Operations (Claims
                              Policy                                  Management)                                  Information management                                    Other Services
                Full         Part
         Year   Time         Time         Total           Full Time       Part Time          Total             Full Time        Part Time        Total          Full Time        Part Time       Total
     2011              17            2             19              207                17              224              103                2               105             216               11           227
     2010              15            3             18              123                 3              126                  99             3               102             409               27           436
     2009              16            3             19              106                 8              114              142               10               152             404               70           474
     2008              17            3             20              150                12              162              121               10               131             352               47           399
     2007              16            3             19              129                10              139              125                6               131             303               26           329
     2006              11            3             14               99                10              109              147                4               151             328               26           354


Other ACC Services
                                                                         Business Service Centre & Debt
                  Insurance and Prevention Services                            Management Unit
         Year   Full Time     Part Time        Total                 Full Time    Part Time                Total
     2011              222               15                  237           156                        8                164
     2010              109               13                  122           155                        8                163
     2009              114               16                  130           143                       16                159
     2008              111               18                  129           130                       13                143
     2007              114               11                  125           159                        6                165
     2006              129               13                  142           126                       10                136


Specialist Operational Staff
           Contact & Inquiry           Elective Service                                                                                           Serious Injury
           Service Centres             Centre                            Processing Centres                    Sensitive Claims                   Service                        Workwise                      Treatment Injury
           Full     Part               Full        Part                                    Part                Full         Part                  Full        Part               Full       Part               Full    Part
  Year     Time     Time     Total     Time        Time      Total       Full Time         Time      Total     Time         Time       Total      Time        Time       Total   Time       Time     Total     Time    Time       Total
 2011       552        45     597             72        12         84            32           5           37          61           1        62      136              7    143           9                9        40          5      45
 2010       457        40     497         101           14     115            119            12       131             48           2        50      132              8    140           8                8        40          4      44
 2009       449        87     536         100           22     122            135            17       152             42           2        44           99     15        114           5                5        39          6      45
 2008       462        72     534             94        21     115            123            19       142             31           1        32           80     15         95           5                5        36     10          46
 2007       442        51     493             88        17     105            119            12       131             27                    27                                       4                   4       23      13         36
 2006       426        45     471             42        14         56         103            20       123             34                    34                                       5                   5       25      13         38




                                                                                                                107
                                                         2011/12 ESTIMATES EXAMINATION: VOTE ACC

APPENDIX 5 Question 29: How many temporary staff are currently employed within the Department/Ministry and its
associated agencies How does this compare to the last five financial years?
Number of temporary staff employed in the Department by geographic location and by role as at 11 May 2011
 Role                                  Status         Auckland       Canterbury       Offshore    Otago       Wellington       TOTAL

 Executive/Admin Support               Full Time                 6                            9                            8           23

                                       Part Time                 1                            1                                         2

 Management                            Full Time                 1                1           2                        11              15

                                       Part Time                                                                           2            2

 Customer Contact                      Full Time              18                  5          27           1            11              62

                                       Part Time                 1                1                                        1            3

 Policy Analysis and Support           Full Time                                                                           2            2

 Technical/Professional Support        Part Time                 3                                                     28              31

                                       Full Time                 2                                                         4            6

 TOTAL                                                        32              7              39           1           67           146

Note: Offshore – refers to local people employed in the Department’s Immigration New Zealand offices offshore. Overseas – refers to New Zealand based employees posted
to a location overseas.
The total temporary staff number has decreased by 8 (5.2%) from the same time last year. All geographic areas except Otago showed more than 10% fluctuations:
        Auckland – temporary administration staff has decreased form 20 to 7, while temporary customer contact front line staff has increased from 15 to 19 in Auckland
        region
        Offshore – due to the opening of two new offshore immigration branches and the increasing work load in Asia region, offshore temporary staff number has increased
        from 27 to 39 to assist work load peaks until permanent appointments are made.
        Wellington – Number of temporary staff number has decreased from 79 to 67. Temporary policy analysis and support roles reduced from 13 to 2, temporary
        administration support roles reduced from 13 to 8, while the front line customer contact roles increased from 2 to 12 to cover work load peaks.
Information for the last five years has already been supplied during previous Estimates Examinations or Financial Reviews.




                                                                                       108
                                                           2011/12 ESTIMATES EXAMINATION: VOTE ACC

         Appendix 5 contd. -Question 29: ACC Temporary Staff by location and role
                                                       2011                      2010                      2009                      2008                      2007                      2006
                                                Full          Part        Full          Part        Full          Part        Full          Part        Full          Part        Full          Part
                     Location                  time           time       time           time       time           time       time           time       time           time       time           time
Branch Operational Staff
Northland                                                            2           1             1                                                   1                         1                         1
Auckland                                               3             1                         1                         1           3             6           2             6           3             4
Waikato                                                              1           1             1                         3
Bay of Plenty                                                                    1             1                         3           2             3           1             2           1             6
East Cape                                                                                                                                          2                         2           1             1
Hawke’s Bay                                                                                                1                         1                                                   1             3
Taranaki                                                                                       1           1                                       1                         2           1             2
Manawatu-Wanganui                                                    3                         2                         1           5             4                         6                         7
Wellington                                                                       1             1           2                         1             3                         1           1             4
Marlborough
Nelson                                                               4                         1           1             1                         3                         3                         7
West Coast                                                           1                                                                             1                         1                         2
Canterbury                                             4             3           8         10              1         12                        18                        14                        20
Otago                                                                1           1             1           2             1                         6                         4                         4
Southland                                                            1           1                                       2                         5           1             4                         3
National Office Administration and Policy
Policy                                                 1                         1                                                                             1                         1
Claims Management (Operations)                         8             3           1             4           2             1           4             7           3             5           3             1
Information management                                 2             2                                     5             1           1             3           5             4       10                3
Other Services                                         6             2       13                3       12            12          13            24          13            20              4         16
Insurance and Prevention Services (Injury
                                                   27                4           1             1           1             1                         5                         5           2             7
Prevention)
Business Service Centre & Debt Management
                                                   10                            5             2           6             1           1         14              3         17              6             5
Unit
Contact & Inquiry Service Centres                  14                7           8             1       12            17              6         19              9         17          13            34
Elective Service Centre                                                                        2           1             3           1             2           2         10              1             5
Processing Centres                                     2                         3                                                   8             7           3             7           3             9
Sensitive Claims                                       1             1           2                                                   1             3           1             2           1             3
Serious Injury Service                                 3             1           2             1           1             2           1             1
Workwise                                                                                                                                           1                         1
Treatment Injury                                       2             1                         2           1             1                         9           3             9           1             8
                                       TOTAL       83            38          50            36          49            63          48           148          47           143          53           155

                                                                                          109
                                                                     2011/12 ESTIMATES EXAMINATION: VOTE ACC

            APPENDIX 6 Question 30: Provide a breakdown by role (e.g. policy/administration/operational) and location of the
            Department/Ministry and its associated agencies’ staff numbers in comparison to each of the last five financial years, by
            gender.


            Number staff employed in the Department by geographic location, by role and by gender as at 11 May 2011
                                                                      Hawkes                                                 South
Role                          Gender    Auckland      Canterbury      Bay       Nelson    Offshore      Otago   Overseas     Cant      Southland   Taranaki   Wellington   Westland   TOTAL
                              Female            67              12                               45         1                                                        86                 211
Executive/Admin Support
                              Male                8              2                               20                                                                   6                  36
Executive/Admin Support
Total                                           75              14                               65         1                                                        92                 247
Management                    Female             50             10                    1          12         2          13                                 1          81                 170
                              Male              45               7          2                    12         2          13                      1         1           87                 170
Management Total                                 95             17          2         1          24         4          26                      1          2         168                 340
Customer Contact              Female           337              44          7         2         149        12                                  2          2          97                 652
                              Male             249              41          7         8          43        13                     2            3          3          67           1     437
Customer Contact Total                         586              85         14        10         192        25                     2            5          5         164           1   1,089
Policy Analysis and Support   Female                                                                                                                                 48                  48
                              Male                                                                                                                                   35                  35
Policy Analysis and Support
Total                                                                                                                                                                83                  83
Technical/Professional
Support                       Female             38              3                    2             8                    4                                          216                 271
                              Male              31               1          1         1             1       1            2                               1          158                 197
Technical/Professional
Support Total                                    69              4          1         3             9       1            6                                1         374                 468
TOTAL                                          825            120          17        14         290       31           32         2           6          8          881           1   2,227
          Note: Offshore – refers to local people employed in the Departments Immigration New Zealand offices offshore. Overseas – refers to New Zealand based employees posted
          to a location overseas.
          Information for the last five years has already been supplied during previous Estimates Examinations or Financial Reviews.




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                                                                      2011/12 ESTIMATES EXAMINATION: VOTE ACC

       Appendix 6 contd. Question 30 - Staff composition by gender


       ACC response: All years are shown to 30 June, except 2011, which is shown as to 31 May
National Office Administration and Policy (excl Insurance and Prevention Services)
                                                              Operations (Claims
                           Policy                               Management)                         Information Management                         Other Corporate Services
YEAR           FEMALE           MALE       Total       FEMALE         MALE          Total       FEMALE                 MALE           Total    FEMALE             MALE       Total
     2011                 14           5         19           147             77         224                    46           59         105                131          96      227
     2010                 14           4         18             78            48         126                    42           60         102                274         162      436
     2009                 14           5         19             63            51         114                    74           78         152                302         172      474
     2008                 15           5         20           105             57         162                    68           63         131                244         155      399
     2007                 12           7         10             93            46         139                    67           64         131                196         133      329
     2006                  8           6         14             78            31         109                    76           75         151                210         144      354


Other ACC Services
               Insurance and Prevention Services (Injury                      Business Service Centre & Debt
                             Prevention)                                            Management Unit
YEAR             FEMALE             MALE                Total            FEMALE                MALE                     Total
       2011             142                 95                  237                 91                 73                       164
       2010               80                42                  122                100                 63                       163
       2009               84                46                  130                 96                 63                       159
       2008               85                44                  129                 91                 52                       143
       2007               77                48                  125                102                 63                       165
       2006               93                49                  142                 94                 42                       136
       2005               79                45                  124                 86                 48                       134



Specialist Operational Staff

         Contact & Inquiry          Elective Service
          Service Centres                Centre                 Processing Centres             Sensitive Claims               Serious Injury Service                     Workwise               Treatment Injury

YEAR    FEM     MALE    Total    FEM       MALE       Total     FEM    MALE        Total    FEM      MALE            Total   FEM        MALE       Total         FEM     MALE         Total   FEMALE   MALE   Total

2011     449      148     597       57       27          84      28           9      37        49          13          62       122           21       143         6             3       9        30     15        45

2010     383      114     497       80       35         115      93          38     131        34          16          50       114           26       140         5             3       8        33     11        44

2009     418      118     536       86       36         122     110          42     152        33          11          44        94           20       114         4             1       5        34     11        45

2008     425      109     534       80       35         115     108          34     142        25           7          32        77           18        95         4             1       5        38      8        46

                                                                                                     111
                                                                         2011/12 ESTIMATES EXAMINATION: VOTE ACC

2007    397       96      493       77       28        105      105             26      131       20              7       27                                             3                    1        4            30          6           36

2006    378       93      471       43       13         56          99          24      123       25              9       34                                             4                    1        5            30          8           38



Branch Operational Staff
                       Northland                                Auckland                                          Waikato                                      Bay of Plenty                                    East Cape
 Year     Female           Male          Total    Female                 Male        Total        Female              Male               Total        Female          Male         Total          Female           Male             Total
 2011             28               11       39           149                    37     186                  43                 16           59             74                11          85                17                          17
 2010             25               11       36           159                    44     203                  40                 15           55             74                10          84                17                          17
 2009             23               15       38           181                    41     222                  54                 16           70             82                12          94                16                          16
 2008             20                9       29           151                    40     191                  46                  7           53             68                10          78                12               2          14
 2007             22                9       31           163                    41     204                  43                  7           50             67                12          79                12               1          13
 2006             18                6       24           147                    34     181                  36                  6           42             67                13          80                11               1          12


                      Hawkes Bay                                Taranaki                               Manawatu-Wanganui                                        Wellington

 Year     Female           Male          Total    Female                 Male         Total       Female              Male           Total            Female          Male         Total

 2011             29                6       35            17                     5      22               43                  14             57                 53            24          77

 2010             29                7       36            18                     4      22               43                  14             57                 54            24          78

 2009             30                8       38            16                     2      18               34                  15             49                 63            27          90

 2008             27                6       33            17                     2      19               48                  19             67                 55            21          76

 2007             25                6       31            17                     2      19               49                  18             67                 66            21          87

 2006             26                6       32            16                     1      17               48                  18             66                 66            21          87



              Marlborough                              Nelson                             West Coast                                Canterbury                                Otago                                 Southland

Year     Female         Male    Total      Female        Male        Total           Female       Male           Total    Female           Male        Total        Female        Male        Total        Female        Male          Total

2011                                              21            4          25                 8                       8             77           31     108              25         11            36               16           2            18

2010                                              22            5          27                 8                       8             80           26     106              31         14            45               17           1            18

2009           10          2        12            20            5          26                 7         1             8             95           23     118              23         11            34               21           3            24

2008           10          2        12            16            4          20                 5         2             7             83           23     106              25         12            37               16           6            22

2007              9        3        12            17            3          23                 5         1             6             87           26     113              28         11            39               17           4            21

2006              7        4        11            14            4          18                 6         1             7             76           22       98             24         11            35               18           2            20



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                                2011/12 ESTIMATES EXAMINATION: VOTE ACC


APPENDIX 7 Question 37: ACC Salary Bands
                                                                                                  31 May
                                            2007          2008          2009         2010
                   Salary bands                                                                    2011
                                            Total         Total         Total        Total
                                                                                                   Total
              $0 - $9999                     179           154          55 80         36 81         29 82
              $10000 - $19999                 40            35           24            19            18
              $20000 - $29999                102            91           80            63            55
              $30000 - $39999                516           491           421          304           313
              $40000 - $49999                405           441           447          484           488
              $50000 - $59999                440           476           325          295           303
              $60000 - $69999                385           432           685          616           599
              $70000 - $79999                304           361           435          448           463
              $80000 - $89999                 98           170           221          249           241
              $90000 - $99999                 58            64           95            89            92
              $100000 - $109999               48            56           47            51            59
              $110000 - $119999               26            33           57            41            43
              $120000 - $129999               20            24           25            34            28
              $130000 - $139999               21            23           29            23            28
              $140000 - $149999                5            19           25            15            22
              $150000 - $159999                6            5             9            15            10
              $160000 - $169999                9            7             6            10            9
              $170000 - $179999                3            8             8             8            11
              $180000 - $189999                6            5             5             1            2
              $190000 - $199999                3            4             2             2            3
              $200000 - $209999                2            2             3             5            6
              $210000 - $219999                2            3             7             4            3
              $220000 - $229999                3            0             2             6            6
              $230000 - $239999                1            3             2             2            2
              $240000 - $249999                0            0             1             2            1
              $250000 plus                     4            6             5             9            12
                                                                               83           84
              Grand Totals                  2686          2913         3021         2831          2846 85




80
   Only those hourly (casual) staff who had worked in the month of June 2009 were included.
81
   Only those hourly (casual) staff who had worked in the month of June 2010 were included.
82
   Only those hourly (casual) staff who had worked in the month of April 2011 were included.
83
   Between 30 June 2009 and 1 July 2009 there were 13 redundancies, resignations, or completion of contract recorded.
Total staff numbers at 30 June 2009 were 3034, but on 1 July 2009 were 3021.
84
   Between 30 June 2010 and 1 July 2010 there were 3 resignations or completion of contract recorded. On 1 July 2010 four
new staff members were hired. Total staff numbers at 30 June 2010 were 2,830, but on 1 July 2010 were 2,831.
85
   Based on 31 May 2011 data



                                                           113
                   2011/12 ESTIMATES EXAMINATION: VOTE ACC


APPENDIX 9 Question 59: ACC response to Codes of compliance with earthquake
standards
   Location                Address                                           Number of staff
   Alexandra               75 Tarbet Street                                              21
   Dunedin                 MacLaggan & Clark Street Corner                               32
   Dunedin                 9 Moray Place                                                 25
   Dunedin                 Otago House, 477 Moray Place                                 207
   Gisborne                Great Street & Palmerston Road Corner                         20
   Greymouth               54 Tainui Street                                              10
   Hamilton                18 London St                                                  80
   Hamilton                5-14 Parkinson Place, Te Rapa                                281
   Hastings                411 Heretaunga Street West                                    48
   Hutt Valley             Colonial House, 270 High Street                              116
   Invercargill            120 Spey Street                                               24
   Masterton               61 Chapel Street                                              13
   Nelson                  47 Collingwood Street                                         36
   New Plymouth            22-28 Molesworth Street                                       32
   Palmerston North        165 Broadway Avenue                                           56
   Porirua                 Lydney Place South                                            22
   Rotorua                 Mayfair Building, 1122 Pukaki Street                          36
   Tauranga – Primary      94 Grey Street                                                60
   Tauranga – Additional   76 Grey Street                                                  9
   Timaru                  Cantec Building, 24 George Street                             55
   Wanganui                Wilson Street & Maria Place Corner                            20
   Whakatane               Neiderer Plaza, Boon Street & The Strand Corner               17
   Whangarei               Walton Plaza, 3-5 Albert Street                               54




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                                                          2011/12 ESTIMATES EXAMINATION: VOTE ACC



APPENDIX 10 Question 64: Budget for internal conferences and seminars, including travel costs, and what is the purpose of
each seminar in 2011/12? How does this compare to the 2010/11 financial year? What are the measures used to evaluate
the success or effectiveness for internal conferences or seminars?


Details of proposed Departmental internal conferences and seminars for 2011/12 and comparative information for 2010/11
                                                                                                                               Comparative
                                                                                                         Comparative                                      Measures used to evaluate
                                                                                                                             information for
                             2011/12                                                                     information                                     the success or effectiveness
     Service                                            Purpose of each seminar in 2011/12?                                      2010/11
                           Budgeted cost                                                                 for 2010/11                                      for internal conferences or
                                                                                                                             Purpose of each                       seminars
                                                                                                        Budgeted cost
                                                                                                                           seminar in 2010/11?
Policy and            Facilitator: $25,000           Strategic and business Planning                    The Group                            $27,500     Strategy Workshop 18
Research Group                                                                                          planning day in                                  February 2011. All Policy and
                      Venue and Catering:                                                               February 2011                                    Research Staff (46 people) met
                      $11,740                                                                           involved costs                                   to discuss the strategy of the
                                                                                                        of $27,500                                       new group going forward.

                      Group Planning Day
Policy and            Whole of Group Meeting:        Strategic Planning                                 N/A
Research Group        $7,000
Visa Services         Not yet finalised but likely   Annual Branch Managers Conferences                         $36,500   The purpose of the             Internal delivery targets and
Division              to be in the region of                                                                              conference was for all         Departmental SOI measures.
NZ Immigration        $40,000 for venues and                                                                              Branch managers, on and
                                                     Auckland: for both on and off shore managers
                      associated costs but                                                                                offshore, to plan strategies
February 2012                                        (Approx 55 managers)
                      excluding participant                                                                               for the coming financial
                      travel costs.                  Bangkok: for offshore branch managers and                            year.
                                                     regional managers.

                      This budget does not
                      include regular                Purpose: For managers to plan strategies for
                      management meetings.           the coming financial year.
Office Deputy Chief   Not yet finalised but likely   Not yet finalised, likely to be in the same vein           $12,000                       $41,435    Evaluation questionnaires
Executive –           to be in the region of         as 2010/11.                                                          Immigration Leadership         completed at the end of the
Immigration           $40,000-50,000 for                                                                                  Forum October 2010.            event.
                      venue and associated                                                                                The purpose was to ensure
                      costs.                                                                                              a shared vision for the
                                                                                                                          direction of Immigration
                      This budget does not                                                                                within the Department and
                      include regular                                                                                     to establish, as leaders
                      management meetings.                                                                                how to make this happen.
                                                                                                                          (Approximately 115
                                                                                                                          attendees).



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                                                 2011/12 ESTIMATES EXAMINATION: VOTE ACC



APPENDIX 11                  Question 67: Baseline Update Information


Reports for the 2010 October and 2011 March Baseline Updates, which were prepared for each Vote administered by the Department, are
appended below.




 Signed Vote ACC      Signed by Min Vote
MBU Submission letterACC OBU submission.




                                                                   118
                                                     2011/12 ESTIMATES EXAMINATION: VOTE ACC



APPENDIX 12          Question 70: Department of Labour’s 2010/11 Quarterly Reports


Copies of Quarterly Performance Reports provided to the Minister for 2010/11 are appended below:




                                       Quarterly Report to
                                       Ministers September 2
     -   September Quarter 2010:



                                    20110404 Quarterly
                                    Performance Report A
     -   December quarter 2010:



                                FINAL 20110614
                               QPR 2010-11 Q3 for M
     -   March quarter 2011:



                              20110404 Quarterly
                              Performance Report.F
     -   June quarter 2011:




                                                                       119
                                                           2011/12 ESTIMATES EXAMINATION: VOTE ACC



APPENDIX 13 Question 71 ACC’s Evaluations of Policies or Programmes
                                                                                                Cost (2011-2012
                                       Evaluation                                                                       Evaluation Provider         Completion Date
                                                                                                 financial year)
Coastal Risk Management - an evaluation to test the cost effectiveness and impact of                         $25,000    Internal ACC research     December 2011
the funding provided to Surf Life Saving for their Coastal Risk Management intervention                                 team and contracted
programme. The evaluation is a case study based assessment of the pilot sites.                                          provider from preferred
                                                                                                                        provider panel
                                                                                                                        (yet to be selected)
Preventing and Managing Discomfort, Pain and Injury (DPI) Programme – An                                     $80,000    Internal ACC research     March 2012
evaluation to assess the effectiveness of the DPI Programme, which has now been                                         team and contracted
running for 5 years.                                                                                                    provider from preferred
                                                                                                                        provider panel
                                                                                                                        (yet to be selected)
Review of New Zealand Injury Prevention Strategy (NZIPS) Monitoring and                                      $35,000    Internal ACC research     August 2011
Reporting Framework - a brief evaluation review of the 2011 NZIPS Monitoring and                                        team and contracted
Reporting Framework. The work includes a process evaluation and reviewing and                                           provider from preferred
recommending how to improve the content of the existing framework to promote                                            provider panel
Ministerial and Senior Officials’ confidence in the Framework.                                                          (yet to be selected)
The evaluation of the 2011 Framework document is intended to help build confidence in
the production of future Framework documents.
Pain Risk Screen Tool - The aim of the project is to identify an effective validated pain                     $2,000    Internal ACC research     September 2011
screening questionnaire that can be consistently administered by branch Client Service                                  team
Staff at 4-6 weeks into the life of a claim. The questionnaire will lead to early
identification of psychosocial flags and, through the use of a decision tool, the referral of
clients to appropriate interventions to facilitate rehabilitation.
The evaluation will examine the utility of the questionnaire and decision tool, to discover
the barriers and enablers to using the tool, and whether the tool assists in referring
clients to interventions, and supports client rehabilitation.
Patient Self-funding Trial - The aim of this project is to evaluate a patient self-             Approx $80,000 (2011-   Internal ACC research     The baseline phase is
managed model for seriously injured clients. This model provides the opportunity for                            2012)   team and contracted       estimated to be
clients to have greater choice and control over the home and community support                                          provider from preferred   completed by March 2012
services they receive as part of their rehabilitation. The evaluation will examine client                               provider panel
outcomes and satisfaction, cost-effectiveness and administrative efficiencies.                                          (yet to be selected)
Spinal Client Community Reintegration - The aim of this 2-year project is to                    Approx $70,000 (2011-   Internal ACC research     A long-term follow up
evaluate the experience, community integration, and outcomes of clients with serious                            2012)   team and contracted       study. The first phase is
spinal injuries and their families. The results will be compared to a similar Australian                                provider from preferred   estimated to be
study carried out by the Transport Accident Commission, Victoria. The results will                                      provider panel            completed by June 2012.
enable ACC to identify opportunities to improve outcomes for clients with serious spinal                                (yet to be selected)
injuries, and their families.




                                                                                       120
                                                      2011/12 ESTIMATES EXAMINATION: VOTE ACC



 APPENDIX 14 Question 79: How many websites does the Department/Ministry and its associated agencies plan to run in
 2011/12 and for each, what is it called, what is its URL, when was it established, what is its purpose and what is the
 annual cost of operating it?


Details of the websites that the Department and its associated agencies plan to run in 2011/12
                                                                Launch                                                                       Budgeted annual
No      Website name                      URL                                                        Purpose
                                                                 date                                                                         operating costs
 1   Department of Labour   http://www.dol.govt.nz/           1997          The Department’s primary website. This site provides         The 2011/12 budget has yet
                                                                            information and tools to support employers and               to be finalised.
                                                                            employees to create safe, fair and rewarding                 Costs are not captured at
                                                                            workplaces and to support regions and industries and         this level of detail.
                                                                            employers to develop a skilled, innovative and
                                                                            productive workforce. This includes information on
                                                                            laws relating to workplace relationships, and the rights
                                                                            and obligations of employers and employees. The site
                                                                            also provides core information required of public
                                                                            service agencies, such as accountability documents,
                                                                            and research.
 2   Health and Safety      www.osh.govt.nz                   January       To provide information on laws relating to workplace         The 2011/12 budget has yet
                                                              1997          health and safety, and outline the rights and                to be finalised.
                                                                            obligations of employers and employees.                      Costs are not captured at
                                                                                                                                         this level of detail.
 3   Skills Highway         http://skillshighway.govt.nz/     July 2010     To educate employers on the importance of literacy           The 2011/12 budget has yet
                                                                            and numeracy in the workplace; and provide guidance          to be finalised.
                                                                            on training and literacy and numeracy measurement.
 4   Immigration New        http://www.immigration.govt.nz/   November      To facilitate entry to New Zealand of applicants for         The 2011/12 budget has yet
     Zealand site                                             1996          immigration services; and provide resources for the          to be finalised.
                                                                            wider immigration stakeholder community.                     Costs are not captured at
                                                                                                                                         this level of detail.
 5   New Zealand Now        www.newzealandnow.govt.nz         August 2008   To encourage skilled migrants to New Zealand based           The 2011/12 budget has yet
                                                                            on lifestyle, work/life balance and employment               to be finalised.
                                                                            opportunities.
                                                                            (The website is a component in a programme that
                                                                            strategically assists NZ employers to fill specific skills
                                                                            shortages).
 6   Investment Now         http://investmentnow.govt.nz/     March 2009    To provide an in-depth online resource for prospective       The 2011/12 budget has yet
                                                                            investors and business migrants. The main purpose of         to be finalised.
                                                                            the site is to enable investors to find out about
                                                                            investing and doing business in New Zealand. As well
                                                                            as registration capability – and the ongoing
                                                                            communication and support from Immigration New


                                                                            121
                                                2011/12 ESTIMATES EXAMINATION: VOTE ACC



                                                          Launch                                                                Budgeted annual
No      Website name                      URL                                             Purpose
                                                           date                                                                  operating costs
                                                                   Zealand that results from registration – the site has
                                                                   information including visa options, the New Zealand
                                                                   business environment, and links to a wide range of
                                                                   government and business networks and contacts.
7    Settlement Support NZ   www.ssnz.govt.nz           October    To act as a conduit for guiding new or recent migrants   The 2011/12 budget has yet
                                                        2009       to regional settlement information, provide              to be finalised.
                                                                   comprehensive regional and national information to
                                                                   help new migrants settle well, find employment and
                                                                   stay in New Zealand.




                                                                   122
                                                               _---~];)epartment      of LabourA
                                                   RECEIVED                            """."., W

         10/97800



         Department of Labour briefing
         2010 OCTOBER BASELINE UPDATE SUBMISSION FOR VOTE ACC


         Recommended action

         1   The submission to the Minister of Finance for Vote ACC is attached for your
             signature.

         2   The submission is due with the Minister of Finance by 1pm on 19 October 201 O.


         Background
         3   The Oqfober Baseline Update (OBU) process presents an opportunity to update
             baselines, reflecting the outcomes of Cabinet and joint ministerial decisions that
             have changed baselines since the Budget Economic and Fiscal Update. OBU is a
             technical update with its content designed to require no review by Cabinet. Joint
             Ministers are required to sign off on all changes agreed between departments and
             Treasury. Changes not agreed by Joint Ministers during the OBU because they fall
             outside of the criteria set in CO (09) 6 Guidelines for Changes to Baselines may be
             considered as part of Budget 2011, or through a separate Cabinet process, if they
             are consistent with the Government's priorities.

         4   Technical changes to baselines will consist primarily of:
    ()
o             •
              •
                    Cabinet decisions between 19 April and 18 October 2010
                    fiscally neutral adjustments
              •     roll-out of the 2014/15 baselines (includes the impact of Cabinet decisions
                    with increasing or decreasing profiles; any significant forecasting changes;
                    and reflect any items that cease in 2014/15)
              •     expense and capital transfers (confirmation of in-principle expense and capital
                    transfers from 2009/10 to 2010/11)

              •     forecasting changes
              •     technical adjustments




\
                                                                                                   1
 Addressing Over-funding of the Non-Earners Account
 5         An aide memoire (ref 10/98232) has been provided to you to address over-funding
           of the 2010/11 Non-Earners' Account currently being received by the Accident
           Compensation Corporation.
 6       If you do not agree to change the funding profile the OBU submission will be
         updated.


Submission items
7         The technical changes for this Vote consist of:

          •         one expense transfer
          •         two forecasting changes
          •         two baseline adjustments to the roll-out of the 2014/15 baseline.




Lesley Haines
Acting Deputy Secretary,
Workplace
for Secretary of Labour                                                 l<r I'" (.0
                                                                     ...... 1 ...... 1 ..... .
(os-     Ie;       Ie
...... 1 ...... 1 ..... .




                                                                                                 2
                                                                                 Department of Labour
                                                                                                  TE TAR! MAHI
                                                                                                                 A
                                                                                                                 W
    BRIEFING


    MINISTER                      PORTFOLIO                                                       DEADLINE
    Hon Dr Nick Smith             Minister for ACC                                                1:00 pm Tuesday
                                                                                                  19 October 2010

    Action sought                 For your signature

    Title                         2010 OCTOBER BASELINE UPDATE SUBMISSION FOR VOTE ACC

    Date                          15 October 2010

    Security                      Budget Sensitive

~
    Copied to                     N/A                                                                                0-
    For referral to               Hon Bill English (2 x copies)

    Agencies consulted            N/A

    Contact information           Shirley Duffy                                     DOl:        9156301
                                  Acting Manager, Management Accounting             MB:      -
                                  Meaw-Fong Phang                                   DDI:     9154014
                                  Director - Finance                                MB:      021485845

    Authorising manager           Lesley Haines                                     DOl:        915-4162
                                  Acting Deputy Secretary, Workplace                MB:         021678443

    Tracker number                10/97800


    Minister's comments



                                                                                                                     ()
C)



    Minister's feedback             Very Poor           Poor           Neutral             Good             Very Good
    Quality of advice                   1                 2              3                  4                    5
    Writing style                       1                 2              3                  4                    5
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    Completeness of information         1                 2              3                  4                    5
                            Office of Hon Dr Nick Smith
                            MP for Nelson
                            Minister for the Environment
                            Minister for Climate Change Issues
                            Minister for ACC



         1 8 OCT 2010
         Hon Bill English
         Minister of Finance
         Parliament Buildings
         WELLINGTON

         2010 OCTOBERBASELINE UPDATE SUBMISSION FOR VOTE ACC

         Introduction

         This report covers those items affecting the baseline for Vote ACC for the October
         Baseline Update.

         I confirm that none of the changes contained in this update require Cabinet decisions at
         this time.

         The proposed changes to baselines are as follows:

         Expense Transfers

         On 22 March and 26 June 2010 respectively, joint Ministers authorised in-principle
         expense transfers for Vote ACC. The exact amount of the transfers was uncertain at
         the time and joint Ministers agreed to confirm the final amount once known.

          The following expense transfers have now been finalised and are as follows:

         Corporate Model Implementation Project and the Policy, Research and Evaluation and
         Vote Employment Review (PREE) - Department-wide project

         Joint Ministers had authorised a maximum in-principle expense transfer of up to
         $0.009 million from 2009/10 to 2010/11 funded by Revenue Crown. The final amount
         available for transfer is $0.009 million.

         The Corporate Model Implementation Project (CMIP) Phase, 1 has been completed.
         Phase 2 is continuing in 2010/11. Corporate services are being realigned to lift
         organisational strategic capability and leadership, strengthen assurance activities and
         deliver quality corporate services that meet business needs.

          The Policy, Research and Evaluation and Vote Employment Review (PREE) is
          reviewing the appropriate configuration of policy, research and evaluation functions in
          the Department of Labour (the Department). It is also assessing the focus and
          objectives of work that the Department undertakes within Vote Employment to support
          the Government's objectives. Stakeholder engagement extended the tirnefrarne.




         Treasu~1049094v1


Private Bag 18041, Parliament Buildings, Wellington 6160, New Zealand. Telephone 64 4 817 6805 Facsimile 64 4 817 6505
     The following table shows the final amount for transfer to 2010/11 by Vote and Output
     Expense.

                                                                Amount             Final
     Vote 1 Output Expenses                                    Previously         Amount
                                                             Authorised by     Transferred
                                                             Joint Ministers    to 2010/11
                                                               $(million)        $(million)
     (Funded byHevenue Crownt
     VoteACC
     Policv and MonitorinQ                                       (0.008)          0.008
     Regulatory Services                                         (0.001 )         0.001
     Total Vote ACC                                              (0.009)          0.009


     Forecasting Changes



()
     Increases in Government Superannuation Fund (GSF) Employer Contribution Rates

     In May this year Datacom, the schemes administrator for the Government
                                                                                                  o
     Superannuation Fund Authority wrote to public service agencies informing them of
     (ncreases in GSF employer contribution rates to apply from 1 July 2010. Cabinet
     agreed that departments may seek a baseline adjustment in the 2010 October Baseline
     Update (OBU) only for increased costs in the 2010/11 year for the impact associated
     with the employer subsidy rate increases that have not been passed on to employees
     whose GSF payments are included as part of their total remuneration package [CAB
     Min (10) 13/5 refers].

     The Department has employees that are not on the total remuneration packages that
     exclude the GSF employer contribution. The increase in GSF employer contribution
     rates is a cost to the employing agency (with no impact on the employee) and the
     Cabinet decision allows the department to seek a baseline increase in OBU to reflect
     this cost for 2010/11 only.

     The following table shows baseline increases by Vote and Output Expense.


     Vote 1 Output Expenses
                                                                               $2010/11
                                                                               $(million)
                                                                                                  o
     (Funded by Revenue Crown)
     VoteACC
     PolicY and Monitoring                                                       0.013
     Total Vote ACC                                                              0.013

     Claim Entitlement and Services

     ACC have advised that claims received have been lower than estimated in the first
     three months of the year. The appropriation was based on the technical report which
     was based on December 2009 estimations. The current estimate is the funding
     required will be $25 million less. ACC are scheduled to provide a report in November
     that will provide more information on the expected outtum.

     In the interim it is proposed to reduce the monthly funding provided to ACC without
     formally changing the appropriation at this stage.




     Treasu~1049094v1
                                                                                              2
          Rollout of the 2014/15 Baseline

          No changes in baselines occurred between 2013/14 and the 2014/15 financial year
          rolled out in this update apart from the following departmental output expense and
          revenue crown appropriation. This is due to the cessation of the expense transfer for
          the Financial Management Information System which covered the period 2009/10 to
          2013/14.


                                                              2013/14      2014/15    Decrease
                             Appropriation                   baseline     baseline      amount
                                                            $(million)   $(million)   $(million)
          Policy and Monitoring
          Departmental output expense                           2.683        2.677      (0.006)
          Revenue Crown                                         2.616        2.610       (0.006)


(J        Forecast Financial Statements
          The baseline update also includes forecast financial statements, although approval for
          these is not sought from the Minister of Finance. The baseline changes sought in this
          letter have been incorporated in the forecast financial statements of the Department of
          Labour, together with the adjustments necessary to accurately reflect estimated
          operating expenditure, capital expenditure and cashflows.

          Recommendations

          I recommend that you:

          1.     agree the changes to the 2010/11, 2011/12, 2012/13, 2013/14 and 2014/15
                 baselines as set out in Table 2 - Summary of baseline changes;

          2.     agree that changes to the 2010/11 baselines be incorporated into the 2010/11
                 Supplementary Estimates;
J~
\-J       3.     agree that until the 2010/11 Supplementary Estimates are enacted, any changes
                 to the 2010/11 appropriations required under recommendation 1 be met from
                 Imprest Supply.

          4.     note that ACC have indicated a forecast decrease of $25 million.

          5.     note that in the interim it is proposed to reduce the monthly funding provided to
                 ACC without formally changing the appropriation at this stage.




      ,
          l~f     r Nick Smith
          ~~rster for ACC


          Treasu~1049094v1
                                                                                                   3
                                                                                                             •

                                               o                                       o
 Table 1: Summary Table of Baseline Numbers, 2010/11 OBU (HYEFU), Vote 23 - 1: Labour - ACC.




Departmental Output Expenses              22          2,844                                (6)      2,839
Non-Departmental Output Expenses                   1,203,221                                     1,098,794
Benefits and Other Unrequited Expenses               62,686                                       245,408
Non-Departmental Borrowing Expenses
Departmental Other Expenses
Non-Departmental Other Expenses
Capital Contributions to the Department
(Pre PFAA)
Departmental Capital Expenditure
Non-Departmental Capital Expenditure
Repayment of Debt (Pre PFAA)


Crown Revenue and Receipts
Tax Revenue
Non-Tax Revenue
Capital Receipts


Output Revenue
Revenue Crown
Revenue Dept
Revenue Other




maria.pene@dol.govt.nz                                         12 Oct 20101:23:13 PM             CFISnet

                                               o                                       o
                                                                                                                                                                   o
                                                                           ,-
                                                                       .

                                                                       u~                                    00
Table 2: Baseline Changes Report, 2010/11 OBU (HYEFU), Vote 23 . 1: Labour· ACC.                                                                                   •




Departmental Output Expenses
Policy and Monitoring
   Dept Annual Appropriation
    Corp Model Implementation Project & Policy, Research and Evaluation &                                                                       eo (09) 6 para
    Vote Emp Review Dept-wide                                                    8                                      ECT in Principle        34
    Increases in Govemment Superannuation Fund (GSF) Employer
    Contribution Rates                                                          13                                    Forecast change           Tsy eire 2010/7
    Rollout of 2014115 Baseline - Cessation of FMIS expense transfer                                                  Other changes outside
    2009/10-2013/14                                                                                               (6) the above criteria        Tsy Cire 2010/12
   Revenue Crown
    Corp ModellmpJementation Project & Policy, Research and Evaluation &                                                                        eo (09) 6 para
    Vote Emp Review Dept-wide                                                    8                                      ECT in Principle        34
    Increases in Govemment Superannuation Fund (GSF) Employer
    Contribution Rates                                                          13                                      Forecast change         Tsy eire 2010/7
    Rollout of 2014/15 Baseline - Cessation of FMIS expense transfer                                                    Other changes outside
    2009/10-2013/14                                                                                               (6) the above criteria        Tsy eire 2010/12
 Regulatory Services
   Dept Annual Appropriation
    Corp Model Implementation Project & Policy, Research and Evaluation &                                                                       eo (09) 6 para
    Vote Emp Review Dept-wide                                                                                       -   ECT in Principle        34
   Revenue Crown
    Corp Model Implementation Project & Policy, Research and Evaluation &                                                                       eo (09) 6 para
    Vote Emp Review Dept-wi9~                                                                                       - ECT in Principle          34
Total changes - Departmental Output Expenses                                    22                                (6)
Total changes - Output revenue (Crown+Dept+Other)                               22                                (6)




maria.pene@dor.govLnz                                                                12 Oct 20101:25:49 PM                                            CFISnet
     " Printable View ofItem Properties                                                Page 1 of2



                               Class:                 DocTrak
                               ID:                    000000808028/0.0
                               DocTrakNo:             111100607
                               DocID:                 BUDGET SENSITIVE
                               CustomerVoice:
                               Status:
                               Branch:
                               Doc Type:              Briefings
                               Service Unit:          Corporate
                               Delegator:             Sandy Tuhou
                               Action Officer:        Sandy Tuhou
                               AuthorlWriter:         Shirley Duffy
                               MP:
                               Dated:                 23/0212011
                               Date Received:         810212011
0                              Reply Due:             8/02/2011
                               Reply Sent:            23/02/2011
                               ClosedlFinalised:      28/0212011
                               Victim Notification:   N
                               Decision:
                               Ministerial Outcome:
                               Rewrite Received:
                                                      2011 March Baseline
                               Title:                 Update Submission for
                                                      VoteACC

                                                      BSG - 2011 March
                                                      Baseline Update
                                                      Submission for Vote
                                                      ACe. The briefing to
C)                                                    all four Ministers is
                                                      recommending that they
                                                      sign the Vote specific
                                                      submission document to
                                                      the Minister of Finance.
                                                      The March Baseline
                                                      Update is an
                               Abstract:              opportunity to update
                                                      baselines, reflecting
                                                      outcomes of Cabinet
                                                      and joint Ministerial
                                                      decisions since the
                                                      October Baseline
                                                      Update. Tracker
                                                      number requested by
                                                      Adrienne on 08.02.11
                                                      RP. Walked to MACC
                                                      by DE on 23/02/11. DE.
                                                      File returned, scanned


      http://ecluniwb07/silentone/printprops.asp?docClass=DocTrak&doclD=000000808028... 4/0312011
I   .




             11/100607
                                                                                   Department of Labour
                                                                                              T' TAR! MAHI
                                                                                                             A
                                                                                                             W
                                  GDVf,Fif\!Mth!T r;):t~CI),f!W
                          AND [ViINISTEHIAL SUPPoRT
             Department of-t:ab-our I5riefing
             2011 MARCH BASELINE UPDATE SUBMISSION FOR VOTE ACC


             Purpose

             1    The submission to the Minister of Finance for Vote ACC is attached for your
                  signature.


             Background
             2    The March Baseline Update (MBU) process presents an opportunity to update
                  baselines reflecting the outcomes of Cabinet and joint ministerial decisions that
        o         have changed baselines since the October Baseline Update (OBU). The MBU is
                  intended to allow technical post-Budget adjustment of baselines, allow an
                  opportunity to make changes to baselines approved by Cabinet since the OBU and
                  provide information to contribute to the preparation of the Budget Economic and
                  Fiscal Update.

             3    Having an MBU allows for timely updating of baselines prior to the production of the
                  Budget The MBU will update baselines for the following items:

                  •      Cabinet decisions between the 2010 OBU and 1 March 2011

                  •      fiscally neutral adjustments

                  •      expense or capital transfers (in-principle expense or capital transfers from
                         2010/11 to 2011/12 and 2012/13, so long as they are consistent with
                         CO (09) 6)

        C)        •      forecasting changes

                  •      technical adjustments.


             Submission items

             4    The technical changes for this Vote consist of:


             Technical Change         No.   Description                                          Amount

              Expense Transfer        1     Transfer of expenditure to 2011/12 and 2012/13       $0.015m to
                                            * Departmental Transformation Projects               2011/12
                                                Timetables reviewed resulting in funding
                                                                                                 $0.005m to
                                                requirements re-phased over future years.
                                                                                                 2012/13
    "


        Technical Change      No.     Description                                                         Amount

        Technical Change      1       Technical change relating to an increase in capital                 $0.003m in
                                      charge                                                              2011/12 and
                                                                                                          outyears



        5    The submission letter attached follows the format prescribed by Treasury for the
             Minister of Finance.

        6    The submission is due with the Minister of Finance's office by 1pm on Wednesday
             2 March 2011.


        Recommendation
        It is recommended that you:


o       1    sign and forward the attached submission to your colleague, the Minister of
             Finance.


                                                                            SIGNED




        Craig Owen                                                          o Dr Nick Smith
        Deputy Chief Executive-                                            Minister for ACC
        Business Services Group
        for Secretary of Labour                                            'ZfJ: / ...... / ..... . ( .
                                                                            ...... '2- lot
()
     "


                           Office of Hon Dr Nick Smith
                           MP for Nelson
                           Minister for the Environment
                           Minister for Climate Change Issues
                           Minister for ACC




            2B FEB 2011

          Hon Bill English
          Minister of Finance
          Parliament Buildings
          WELLINGTON

          2011 MARCH BASELINE UPDATE SUBMISSION FOR VOTE ACC

          Introduction
()
          This report covers those items affecting the baseline for Vote ACC for the March
          Baseline Update.

          I confirm that none of the changes contained in this update require Cabinet decisions at
          this time.

          The proposed changes to baselines are as follows:

          Expense Transfers

          An explanation of each transfer is listed below, and the amounts are specified in Table
          2 attached to this letter.

          Departmental Transformation Projects

          The Corporate Model (Phase I), Financial Management Information System (FMIS)

o         (Phase I) and Review of Immigration Group Structure have been implemented in
          2010/11. The purposes of these projects are to lift organisational strategic capability'
          and leadership; strengthen assurance activities; deliver quality corporate services that
          meet business needs and ensure financial process improvements and the resultant
          changes in the business structure are implemented. After the implementation of the
          first phases of these projects the remaining phases have been reviewed resulting in the
          funding requirements being re-phased over the future years. An expense transfer of
          $0.020 million is requested.

          The following table shows the proposed expense transfers by Vote and Output
          Expenses.




 Private Bag 18041, Parliament Buildings, Weilington 6160, New Zealand. Telephone 64 48176805 Facsimile 6448176505
                                                                                                         >.




Vote 1 Output Expense                             2010/11         2011112       2012113
                                                 $(million)      $(million)     $(million)
(Funded byRevenue Crownt
Vote ACC
Policy_and MonitorilllL                            0.019           0.014          0.005
ReQulatory Services                                0.001           0.001               -
Total Vote ACC                                     0.020           0-015          0_005



Other Technical Changes

Capital Charge

Cabinet agreed that from 1 July 2011 the capital charge rate for all departments be 8%.
Previously it was 7.5% (CAB Min (10) 41/9).
The Department of Labour (the Department) is seeking an increase in appropriation in
accordance with the .Cabinet paper for capital charge expenses that relate to
departmental assets.
                                                                                                              o
The following table shows the proposed technical change by Vote and Output
Expense,

Vote 1 Output Expenses            2010/11      2011/12        2012113         2013/14      2014/15 &
                                                                                             outyears
                                 $(million)   $(million)      $(million)    $(million)       $(million
(Funded by Revenue Crown)
VoteACC
Policy and Monitoring                -          0.003           0.003          0.003          0.003
Total Vote ACC                       -          0.003           0.003          0.003          0.003


Forecast Financial Statements

The baseline update also includes forecast financial statements, although approval for
these is not sought from the Minister of Finance. The baseline changes sought in this
letter have been incorporated in the forecast financial statements of the Department,                         ()
together with the adjustments necessary to accurately reflect estimated operating
expenditure, capital expenditure and cashflows.

Recommendations

I recommend that you:

1.   agree the changes to the 2010/11, 2011/12, 2012/13, 2013/14 and 2014/15
     baselines as set out in Table 2 - Summary of baseline changes;

2.   agree that changes to the 2010/11 baselines be incorporated into the 2010/11
     Supplementary Estimates;
;,        , ..




                 3.   agree that until the 2010/11 Supplementary Estimates are enacted, any changes
                      to the 2010/11 appropriations required under recommendation 1 be made under
                      Imprest     ply.




     ()




     o
 Table 1: Summary Table of Baseline Numbers, 2010/11 MBU, Vote 23 - 1: Labour - ACC.




Departmental Output Expenses              (20)               18       2,862          8                 3   3       2,842
Non-Departmental Output Expenses                 1,192,091        1,203,221                                    1,098,794
Benefits and Other Unrequited Expenses             54,730           62,686                                       245,408
Non-Departmental Borrowing Expenses
Departmental Other Expenses
Non-Departmental Other Expenses
Capital Contributions to the Department
(Pre PFAA)
Departmental Capital Expenditure
Non-Departmental Capital Expenditure
Repayment of Debt (Pre PFAA)


Crown Revenue and Receipts
Tax Revenue
Non-Tax Revenue
Capital Receipts




Revenue Crown
Revenue Dept
Revenue Other




adrienne.spooner@dol.govt.nz                                              22 Feb 2011 4:07:57 PM               CFISnet     ,
                                                        o                                          o
                                                    o                                  o                                                    ,.
Table 2: Baseline Changes Report, 2010/11 MBU, Vote 23 - 1: Labour - ACC.



Departmental Output Expenses
 Policy and Monitoring
   Dept Annual Appropriation
                                                                                                 Other changes outside     CAB Min (10)
     Capital Charge                                              3             3           3   3 the above criteria        41/9
                                                                                                 Expense and Capital       CO (09) 6 para
     Departmental Transformation Projects               (19)    14             5                 transfer (ECT)            26
   Revenue Crown
                                                                                                   Other changes outside   CAB Min (10)
    Capital Charge                                               3             3           3   3   the above criteria      41/9
                                                                                                   Expense and Capital     CO (09) 6 p.r.
    Departmental Transformation Projects                (19)    14             5                   transfer (ECT)          26
 Regulatory Services
   Dept Annual Appropriation
                                                                                                   Expense and Capital     CO (09) 6 par.
    Departmental Transformation Projects                 (1 )                                      transfer (ECT)          26
   Revenue Crown
                                                                                                   Expense and Capital     CO (09) 6 para
    Departmental Transformation Projects                 (1)                                       transfer (EeT)          26
Total changes - Departmental Output Expenses            (20)    1!!           .!!          3   3
Total changes - Output revenue (Crown+Dept+Other\       (20)    18             8           3   3




adrienne.spooner@dol.govt.nz                                    22 Feb20114:03:15 PM                                             CFISnet
' ..   ',    .,   ,1<0




            BRIEFING


            MINISTER                           PORTFOLIO                                                  DEADLINE
            Hon Dr Nick Smith                  Minister for ACC                                          lpm Wednesday
                                                                                                         2 March 2011

            Action sought                      For your signature

            Title                              2011 MARCH BASELINE UPDATE SUBMISSION FOR VOTE ACC

            Date                               23 February 2011

            Security                           Budget Sensitive

            Copied to                          N/A

            Jor referral to                    Hon Bill English (2 x copies)

        \,/encies consulted                    N/A

            Contact information                Shirley Duffy                                DDl:       9156301
                                               Acting Manager, Management Accounting        MB:        -

                                               Meaw-Fong Phang                              DDl:       9154014
                                               Director Finance, Finance                    MB:        021485845

            Authorising manager                Craig Owen                                   DDI:       9154663
                                               Deputy Chief Executive - Business Services   MB:        0212313872
                                               Group

            Tracker number                     11/100607


                         Minister's comments




            o


            Minister's feedback                 Very Poor            Poor         Neutral      Good              Very Good
            Quality of advice                        1                2              3             4                 5
            Writing style                            1                2              3             4                 5
            Quality of analysis                      1                2              3             4                 5
            Completeness of information              1                2              3             4                 5
Quarterly Performance Report
for the quarter ending 31 March 2011




                 Vision:
Contents
Executive summary ......................................................1

AA   Our outcome contribution........................................4

BB   Output performance ............................................. 16

CC   Financial performance........................................... 19

DD   Response to external events.................................. 22

EE   Ownership - Maintaining and developing capability ... 23



Appendices - Vote Output Schedule Reports
      · Vote Labour
      · Vote Immigration
      · Vote Employment
      · Vote ACC
Executive summary
The Department has continued to deliver       ·   The Settlement Services Purchasing
on Ministerial priorities and maintain            Strategy was completed with three
service standards. This was achieved while        priority areas identified: strengthened
responding to the Christchurch earthquake         on-line     settlement      information,
of 22 February 2011 and on-going work             enhanced       on-shore       settlement
relating to the Pike River Mine tragedy of        information frontline services for new
19 November 2010.                                 migrants, and increased workplace
                                                  support for employers and migrants.
The 2011/12 Ministerial Priorities were
                                                  An assessment of services currently
signed off during this quarter and are now
                                                  receiving funding is underway and will
being reflected in the Department’s plans
                                                  inform    purchasing     decisions   for
for 2011/12. Work has commenced on
                                                  2011/12.
2011/12 priorities where the 2010/11
priority has been completed.                  ·   A regional cooperation framework for
                                                  member states to combat people
                                                  smuggling, trafficking in persons and
Our outcome contribution                          transnational     crime    has    been
                                                  developed     through    Bali  Process
A more effective immigration                      meetings.
system                                        ·   As a member of the Border Sector
·   Work to formally close down the               Governance Group, the Department
    Immigration New Zealand Change                contributed to a paper which was
    Programme (INZCP) is on track. Any            considered by the Cabinet Economic
    remaining INZCP projects are being            Growth and Infrastructure Committee
    transitioned   into    the   Business         on 6 April 2011. The efficiency gains
    Development Programme, to other               expected from the IGMS project and its
    areas of the business, or are formally        benefits to New Zealand from the
    closed.                                       improved    facilitation   of  skilled
                                                  migration were highlighted.
·   The     Carrier   Infringement    Trial
    commenced on 21 February 2011. The
    trial will help refine operational,       More productive workplaces and
    process, systems, management and
                                              sectors
    reporting    needs    for    both  the
    Department and for the airline            ·   The Department completed work to
    industry; reduce compliance costs and         support the implementation of the
    ensure workability in practice.               Employment Relations and Holiday
                                                  Amendments Act on 1 April 2011.
·   As part of the Immigration Strategic
    Direction, Cabinet approved reviews of    ·   The Quarterly Assessment of Policy
    migrant investor, student, pathways to        Responses to the Current State of the
    residence    and    visiting  academic        Labour Market paper was provided to
    policies. The Department is working to        all the Department’s Vote Ministers.
    implement proposed changes from July          The proportion of unemployed for six
    2011 onward.                                  months or more was the highest since
                                                  September 2001, and also both adult
·   Cabinet decisions were made on mass
                                                  and youth have a great risk of
    arrivals. A report back is now due in
                                                  entrenched long-term unemployment.
    May 2011.
                                                  Policy responses will be delivered
                                                  through the Youth Pipeline work.
                                              ·   The Quarterly Labour Market Scorecard
                                                  was published on the Department’s
                                                  website for the first time. Most of the

                                                                                     1
    scorecard indicators point to a slowing        Reference and connecting its advice to
    of the labour market.                          a wider national Employment Plan.
                                                   CESB is mandated to drive the labour
·   Research       conducted       by   the
                                                   market strategy forward for the
    Department into the motivations that
                                                   Canterbury region with the Department
    people have for working as aged
                                                   providing Secretariat support.
    caregivers         informed       policy
    development to make caregiver jobs         ·   The Department is working on how the
    more attractive.        A briefing was         skills training system could respond to
    provided to the Minister for Social            needs in the Canterbury region
    Development and Employment about               following the September 2010 and
    the findings of this research.                 February 2011 earthquakes.


More people in quality work                    A better performing accident
·   Implementation of Cabinet decisions        compensation system
    on initiatives to improve safety in the    The Department provided significant policy
    Adventure Tourism sector are on track.     advice culminating in:
    The Department is working with the
    Parliamentary Council Office on the        ·   A draft public consultation document
    draft regulations.                             being considered for public release that
                                                   explores options for extending the
·   The Department released the National           Accredited Employers Programme and
    Health and Safety Action Agenda which          introducing choice in the Work
    sets a new direction for action under          Account.
    Workplace Health and Safety Strategy
    for New Zealand 2010-2015. The             ·   A 2011/12 Letter of Expectations to
    Agenda and accompanying Sector                 the   ACC    Board   chair  providing
    Action Plans are designed to reduce            guidance in the development of ACC’s
    the work toll in industries with the           Statement of Intent and Purchase and
    highest rates of workplace injuries.           Service agreement.

·   The new Quad Bike Safety Guidelines        ·   Cabinet agreement on 4 April 2011 to
    were released in February 2011 and             three ACC Board appointments that
    the Department delivered focused               should help ensure that there is a
    awareness-raising and engagement               diverse and strong range of skills
    activities.                                    available in the governance of the
                                                   Corporation.
·   The Department’s Likely Areas of
    Growth in Employment Opportunities         ·   Budget 2011 funding decisions for the
    report to the Minister for Social              Non-Earners’ Account (NEA), which
    Development       and     Employment           included a more transparent funding
    highlighted the recent growth in male          structure and appropriate funding
    employment and by older people, and            levels.
    the employment opportunities arising
    from the September 2010 Canterbury
    earthquake.
·   The Department briefed all four of its
    Ministers on the possible implications
    of   the   Welfare  Working     Group
    recommendations    for   the    labour
    market if more beneficiaries are
    seeking work.
·   The Department has been working with
    the Christchurch Employment and
    Skills  Board   (CESB),    and   the
    Canterbury Development Corporation
    (CDC) on the Skills Board’s Terms of
2
Output performance                             Financial performance
·   Of the 69 Estimates and Output Plan        ·   The Department was $15.502 million
    performance measures reported on               (7%) below forecast against the
    this quarter, eight (12%) were                 budget in the main estimates.   All
    ‘Achieved’, 52 (75%) were rated as             Votes were behind budget.
    ‘On Track’, seven (10%) ‘Not on
    Track’, one (1%) ‘Not Achieved’, and
    one (1%) ‘Not applicable’. Remedial                   Vote          $            %
    work to address the ‘Not on Track’                                million      below
    performance    measures   is   being                                          forecast
    undertaken by the Department.
                                                    Labour             3.770         7%
·   The ‘Not on Track’ or ‘Not Achieved’
    performance measures were:                      Immigration        9.953         6%

    -   Three Vote Labour performance               Employment         1.442        15%
        measures: two of which were                 ACC                0.337        10%
        related to abandonment rate of
        calls to the contact centre, and one
        related to the number of early         ·   About $6.0 million of the $15.502
        interventions    into   employment         million spending below budget was in
        problems that reduce the need for          fee-funded     activities in   Vote
        higher resolution (see pages 16-           Immigration.
        17).
                                               ·   The Visas and Permits memorandum
    -   Five       Vote     Immigration            account in Vote Immigration had a
        performance measures that relate           $12.0 million deficit at the end of
        to Immigration Adviser licence             March 2011.
        applications,   the   quality   of
        immigration    visa  and    permit     ·   The full year forecast for the Visas and
        decision-making,    approval    of         Permits memorandum account has
        residence programme, timeliness            been reduced in light of both new
        of student applications, and the           forecast volumes developed at the end
        UNHCR mandated refugee quota               of January 2011 and dollar revenue
        (see pages 17-18).                         trends. A shortfall in immigration fees
                                                   of $22.6 million is now forecast.
                                               ·   A Sustainable Funding Strategy has
                                                   been completed which describes work
                                                   to address the future funding shortfall
                                                   in     Vote     Immigration.     Detailed
                                                   initiatives to deliver on the Sustainable
                                                   Funding Strategy are currently under
                                                   development.
                                               ·   Other variances across all votes were
                                                   mainly due to delays in starting
                                                   projects and to staff vacancies. These
                                                   are forecast to reduce by year end.
                                               ·   The Department is proposing an in-
                                                   principle transfer of a further $1.2
                                                   million to 2011/12 in June 2011, in
                                                   addition to the $0.2 million already
                                                   approved.




                                                                                           3
A
A          Our outcome contribution
A more effective immigration system
Immediate Outcomes
·        The delivery of immigration services is improved.
·        Facilitation of entry for migrants, international students and tourists is improved.
·        Settlement of migrants is improved.
·        The integrity of New Zealand’s immigration system is maintained.
·        New Zealand’s international reputation is maintained.
Vote contributing: Vote Immigration


1.1       A long-term immigration                      1.2    Improved Immigration New
          strategy that supports                              Zealand systems and
          sustained economic growth                           delivery of services (MP-VI)
          (MP-VI)*                                     Immigration   Global        Management
The strategic direction was approved in                System (IGMS)
September 2010 and a number of the                     Responses to the Department’s IGMS
policy review papers flowed from it, some              Request For Proposals (RFP) have been
of which were approved during the quarter              received and a comprehensive evaluation
(see section 1.4 below). The Department                of proposals has commenced
is working on implementing the proposed
changes from July 2011 onward. The work                All Independent Quality Assurance (IQA)
streams include:                                       monthly reviews to date have resulted in
                                                       favourable outcomes. Recommendations
·     Student policy and pathways to                   have been accepted and implemented by
      residence for international graduates,           the Department and       all IQA reports
      to prioritise quality students and               provided to Central Agencies.
      ensure that new residents make a
      positive labour market contribution              Implementing     the   Immigration     Act
                                                       2009
·     Migrant levies, to ensure funds are
      allocated    in    accordance  with              The Carrier Infringement Trial, the last
      government priorities                            significant project to commence, will help
                                                       ascertain and refine operational, process,
·     Reviewing Investor Migrant policy to             systems, management and reporting
      facilitate more investor migrants taking         needs for both the Department and for the
      up New Zealand residence                         airline industry. It will also reduce
·     Reducing barriers for universities in            compliance costs and ensure workability in
      relation to visiting academics                   practice. The trial will be completed on 20
                                                       May 2011 and the results will inform policy
·     Work progressed on research projects,            analysis and operational planning for the
      including the Immigration Survey                 full infringement regime roll out.
      Monitoring Programme, productivity
      and local workforce composition, and             Business Process and          Diagnostics
      labour market outcomes and returns to            Design (BPDD) - Phase 3
      education for immigrants and New                 BPDD has been undertaking work to
      Zealanders born 1997-2009.                       transfer its remaining pieces of work to
A report back on Cabinet decisions made                the relevant business group.          The
on the Government’s approach to mass                   outsource    initiative and   cost/benefit
arrivals is due in June 2011.                          analysis has been transferred to the
                                                       Business Development Programme.
*
    MP – VI: Ministerial Priority – Vote Immigration
4
Immigration New Zealand Change                 ·   Supporting Economic Growth Through
Programme (INZCP)                                  Immigration Pathways to Work and
                                                   Residence
Work to formally close down the INZCP is
currently underway and on track, with any      Cabinet also considered investor policy,
remaining INZCP projects transitioned into     and agreed the paper Review of Business
the Business Development Programme, or         Migration.
to other areas of the business.
                                               Work progressed on the review of the
Intensive design and planning work across      Capped Family categories.
the Immigration Group is underway to
identify and clearly articulate the key
problems in each area, and determine           1.5    Other intermediate outcome
potential solutions. The outcomes of this             key SOI activities
work will culminate in a Business Case for
                                               Facilitating entry to New Zealand
Change due to the INZCP Sponsor Group
(which comprises the Chief Executive,          Recognised   Seasonal    Employer    (RSE)
Deputy Chief Executives and two external       policy
representatives) for review on 8 June
                                               The peak horticulture and viticulture
2011.
                                               harvest seasons commenced early this
Immigration Performance Dashboard              year, due to excellent weather conditions,
                                               and industry is reporting record yields. As
A new monthly Immigration performance
                                               at the end of March 2011, there were 130
dashboard and accompanying report is
                                               approved Recognised Seasonal Employers
now being produced for the Minister of
                                               (RSEs) with Approvals to Recruit (ATR)
Immigration. The first edition in February
                                               7,333 positions for 2010/11. There were
2011 was well received and the report will
                                               approximately 5,708 RSE workers in New
continue to be provided in this format.
                                               Zealand. Around half of these were in the
1.3    A sustainable funding                   Hawke’s Bay region.          RSE workers
       strategy for Immigration                supplement local labour and represent less
       New Zealand (MP-VI)                     than 20 percent of labour in the
                                               horticulture sector during peak harvest
Completed.                                     season.     The Department hosted three
                                               RSE Strengthening Partnerships training
1.4    Optimising potential and                secondments for Pacific governments from
                                               Kiribati, Tonga and the Solomon Islands.
       building on existing
       initiatives (particularly               Immigration Advisers Authority
       export education and                    At the end of this quarter the number of
       business migration) (MP-VI)             licensed immigration advisers was 534,
A number of papers arising from the            an increase of 10 advisers since 31
strategic direction for immigration (see 1.1   December 2010.        The growth in the
above) were progressed or decided during       number of licensed advisers has slowed;
the quarter.                                   primarily due to an increase in expired
                                               licences for advisers who were licensed
Strengthening the integrity of pathways to     under    the    Trans    Tasman   Mutual
work and residence                             Recognition Arrangement.
Two Cabinet papers relating to supporting      Nine complaints were prepared and sent to
and strengthening export education were        the Immigration Advisers Complaints and
considered and agreed by the Cabinet           Disciplinary Tribunal during the quarter
Domestic Policy Committee during March         bringing the year-to-date total to 23.
2011:                                          Decisions have been made on eight
·   Immigration Policies to Support            complaints, with five being upheld.
    Economic Growth Through Export             Sanctions were imposed in four cases and
    Education                                  three were dismissed.
                                               The contract for the development and
                                               delivery of an immigration adviser
                                                                                        5
licensing qualification has been signed.         Meeting international commitments
The qualification will be offered from           and maintaining confidence
February 2012.
                                                 The Department met its commitments
Migrant settlement                               through participation in:
The    Settlement    Services   Purchasing       ·   The United Nations High Commissioner
Strategy was completed which identifies              for Refugees (UNHCR) Working Group
three priority areas through which the               on    Resettlement     meeting,    which
Department’s purchase of settlement                  formalised      global     resettlement
services can contribute to immigration               priorities for refugees and their
policy objectives. These are strengthened            integration into resettlement countries.
on-line settlement information services
                                                 ·   The      first  Asia-Pacific   Economic
through the Immigration New Zealand
                                                     Cooperation (APEC) Senior Officials'
website, enhanced on-shore settlement
                                                     Meeting for the Business Mobility
information frontline services for new
                                                     Group (BMG) hosted by the United
migrants,    and    increased    workplace
                                                     States. The BMG meetings focus on
support for employers and migrants. An
                                                     facilitating business travellers in the
assessment of services currently receiving
                                                     Asia Pacific region through the
funding is underway and will inform
                                                     administration of the APEC Business
purchasing decisions for 2011/12.
                                                     Travel Card scheme, which ensures
An increase in the recruitment of                    efficient processing of documentation
temporary migrant workers in the dairy               for business travellers. The meeting
industry,    and     concerns   about     the        also provided a forum for information
vulnerability of this migrant workforce, has         sharing on border security measures,
led to a Migrant Dairy Farm Workers                  such as the Regional Movement Alert
Initiative being established under the               System, ensuring clear communication
Department       of    Labour’s   Vulnerable         between countries on important border
Migrant Project. This initiative will identify       security issues.
and implement interventions that enhance
                                                 ·   A series of Bali Process officials'
settlement support for migrant workers on
                                                     meetings to develop a regional
dairy farms and for their employers. The
                                                     cooperation framework for member
Working Group visited Southland in March
                                                     states to combat people smuggling,
2011 to obtain regional and local level
                                                     trafficking in persons and trans-
feedback from stakeholder groups.
                                                     national    crime.   A   Bali    Process
Border management                                    Ministerial meeting was held, after the
                                                     Department hosted visits from the
As a member of the Border Sector
                                                     Australian       People       Smuggling
Governance      Group,  the   Department
                                                     Ambassador and the International
contributed to a Cabinet Paper setting out
                                                     Organisation    for   Migration    (IOM)
initiatives to increase productivity and
                                                     Regional Representatives for Southeast
manage resource demands. The paper,
                                                     Asia, providing a forum for discussion
which was considered by the Cabinet
                                                     and information sharing at Ministerial
Economic Growth and Infrastructure
                                                     level to promote confidence in New
Committee on 6 April 2011, highlighted
                                                     Zealand’s policies and activities in the
the efficiency gains expected from the
                                                     region.
IGMS project and its benefits to New
Zealand from the improved facilitation of
skilled migration.                               ·   The Pacific Immigration Directors'
                                                     Conference (PIDC) Management Board
The department has also been working                 meeting     in      Tarawa,    Kiribati.
with the other border sector agencies on             This focused on regional activities
developing a joint forecasting capacity to           around the immigration initiatives
assist with planning and future resource             across the Pacific, and implementation
allocation. This work will be ongoing for            of good governance recommendations
the rest of 2011.                                    from the PIDC Institutional Review.



6
More productive workplaces and sectors
Immediate Outcomes
·     Adoption of high-performance workplace practices by New Zealand workplaces is
      increased.
·     Employers’ access to the skills they need is increased.
·     Employers’ access to the workers they need is increased.
·     Productivity in workplaces is improved.
·     Productivity in key sectors is improved.
Votes contributing: Vote Labour, Vote Immigration, Vote Employment and Vote ACC


2.1        Holidays Act Review                       barometer to assess and monitor the
           (MP-VL)*                                  robustness of the skills system, and ideas
                                                     on initiatives to improve the connections
The majority of changes introduced by the            between tertiary education policy and
Holiday Amendments Act came into effect              economic policy.
on 1 April 2011, including the transfer of
holidays for cash and changes to the                 The Department is preparing a follow up
calculation of holiday pay.                          report on how the skills training system
                                                     could respond to skill needs in the
2.2        Employment Relations Act                  Canterbury       region  following    the
           Review (including review of               September 2010 and February 2011
           personal grievances                       earthquakes. This follows initial advice
           provisions and reducing                   outlining the potential labour market
           business compliance costs)                impacts and the short-term labour market
           (MP-VL)                                   and skill needs.

The majority of changes introduced by the            2.4        Safety in Adventure Tourism
Employment Relations Act came into effect                       (MP-VL)
on 1 April 2011, including provisions for            Implementation of Cabinet decisions on
extending the 90-day trial period to                 initiatives to improve safety in the
businesses of all sizes and a change to the          Adventure Tourism sector are on track.
test for personal grievances.                        The      Department  is    working  with
The Minister of Labour presented a                   Parliamentary Council Office on the draft
Cabinet paper on Examination of Collective           regulations.
Bargaining to the Cabinet Strategy
                                                     2.5       Monitoring Labour Market
Committee on 4 April 2011.
                                                               Trends (MP-VE)*
The Department is working with the Inland
Revenue Department to provide advice to              The labour market was monitored and
the Minister of Labour on the boundary               regularly assessed for areas of weakness
between status as an employee and as a               or opportunity. The following pieces of
contractor.                                          advice were provided to the Minister for
                                                     Social Development and Employment:
2.3        Skills Forum (MP-VL)
                                                     ·     The Quarterly State of the Labour
Feedback was sought from the Minister for                  Market report and the Quarterly
Social Development and Employment on                       Assessment of Policy Responses to the
proposals that aim to address the skills                   Current State of the Labour Market
and education driver of the Economic                       paper: These papers stated that the
Growth Agenda.       This includes, for                    proportion of unemployed for six
example, ideas on developing a skills                      months or more was the highest since


*                                                    *
    MP-VL: Ministerial Priority – Vote Labour            MP-VE: Ministerial Priority – Vote Employment
                                                                                                         7
    September 2001, and that the risk of            predicting    that   employment  will
    entrenched long-term unemployment               increase by about 0.5 percent in the
    amongst the adult population is as              second quarter of 2011, and by
    great as it is for youth.                       between 0.5 percent and 0.9 percent
                                                    in the following two quarters.
·   The Employment Update document for
    March highlighted that, despite the         ·   The Jobs On Line monthly reports: The
    negative effects of the Canterbury              March 2011 results reported that over
    earthquake, some sectors continued to           the past year, skilled vacancies
    perform well, such as agriculture and           increased by 32.7 percent and all
    manufacturing exporters.                        vacancies increased by 29.5 percent.
                                                    Job     advertisements   have    been
·   A    briefing    on   employment     and
                                                    increasing consistently since June
    unemployment was provided following
                                                    2009, when they were at their lowest
    the release of the Household Labour
                                                    point due to the recession with skilled
    Force Survey (HLFS). The latest HLFS
                                                    vacancies up by 63.9 percent and all
    showed that the labour market
                                                    vacancies up by 65.5 percent since
    strengthened over the March 2011
    quarter. Employment rose by 1.4                 that time.     Canterbury experienced
    percent and the unemployment rate               mild vacancy growth of 1.2 percent
    fell from 6.7 percent to 6.6 percent.           between December 2010 and March
    The stronger than expected results              2011. This reflects a slowing in
    reflect a gradual lift in economic              vacancy growth after the September
    activity prior to the earthquake and            2010 earthquake as well as the very
    also the volatility that has been seen in       sharp drop in job advertisements
    the labour market data recently. Over           following the 22 February 2011
    the next year we expect the labour              earthquake.
    market to continue to recover,              Support was provided to the Canterbury
    although any significant improvement        Development Corporation in the analysis
    in labour market conditions is not          of, and providing technical expertise on,
    expected until the beginning of 2012,       economic modelling of the labour needs
    given the negative impacts of the           associated     with     the      Canterbury
    Canterbury earthquake. However, by          earthquakes.    The first results of the
    that stage economic growth is forecast      modelling will be available in the second
    to strengthen more rapidly as the           half of 2011, as they are dependent on
    Canterbury rebuild gains momentum.          accurate estimates of damage and
·   The Quarterly Labour Market Scorecard       feedback   from     construction   industry
    was published on the Department’s           leaders.
    website as an A3 scorecard.         The     2.6    Maximising Impacts of
    March 2011 update of the scorecard                 Government Investment
    result show that:
                                                       (MP-VE)
    - employment increased by 1.4
       percent, reflecting the recovery in      Work on the joint industry-led productivity
       the economy and the labour market        partnership with the building, construction
       that was underway prior to the           and housing sector (formerly the building,
       February earthquake                      construction and housing joint venture)
    - the unemployment rate fell slightly       started.     The Skills Working Group
       to 6.6 percent, mainly because           meeting accepted the Department’s view
       there was a large increase in the        that it should look to the changes in the
       labour force participation rate from     sector that will drive employment and
       67.9 percent to 68.7 percent.            skills required over the coming decade.
                                                For example, increased modularisation,
·   The Department’s Leading Indicator of
                                                greater specialisation, increased need for
    Employment     (LIoE)   continued   to
                                                project management and IT skills, and the
    increase during this quarter, and has
                                                introduction of online consenting.
    now recorded six quarters of positive
    change since it started to increase in      The Department also suggested adopting a
    December 2009. The LIoE is currently        skills ecology approach that would look at

8
proposals that would affect individual          Employment about the findings of this
roles, projects, firms and industry at the      research on 22 February 2011.
macro level.
                                                2.8 Other intermediate outcome
2.7   Ensuring a Capable                        key SOI activities
      Workforce (MP-VE)
                                                Supporting    employers   to    have
Work started with the Christchurch              relationships with workers that lead
Employment and Skills Board (CESB) and          to     higher    performance     and
the Canterbury Development Corporation          productivity
(CDC). The CESB comprises central and
                                                Partnership Resource Centre (PRC) work
regional agencies, tertiary institutions,
                                                programme projects included work with
large       employers       and      union
                                                KiwiRail, NorthPower, Menzies Aviation,
representatives. It is mandated to drive
                                                Silver Fern Farms, Bay of Plenty Regional
the labour market strategy forward for the
                                                Council, and five District Health Boards.
Canterbury region ensuring that the local
                                                Interest in the PRC work remains strong,
labour market has the workers and skills
                                                with staff currently engaging with over 25
needed for reconstructions. The CESB is
                                                employers or unions on new potential
working      closely   with     Canterbury
                                                projects. PRC facilitation has resulted in a
Earthquake Recovery Agency in the
                                                proposed settlement in the previously
development of Canterbury Earthquake
                                                intractable Resident Doctors Association
Strategic Plan. The Department has been
                                                and District Health Board New Zealand
working with CDC on a Terms of Reference
                                                Collective Agreement negotiations. PRC
for CESB, and connecting the CESB’s
                                                resources were also made available to the
advice to a wider Employment Plan. The
                                                Canterbury recovery work.
Department has been providing secretariat
support to the CESB’s ongoing work.             All relevant online tools were updated by
                                                1 April 2011 to accommodate Holiday and
A paper Job Quality for Low Paid Workers
                                                Employment Relations legislation changes.
– Evidence from the Survey of Working
Life examining the work arrangements and        Working with sector groups, social
employment conditions of low paid               partners    and   industry    training
employees was completed. This research,         organisations to develop skills plans
analysing data from Statistics New              and address barriers to workforce
Zealand’s   Survey     of  Working   Life,      capacity
confirmed anecdotal evidence of the links
                                                The Department met with employers and
between low paid jobs and various poorer
                                                industry representatives in Auckland in
quality working conditions. The research
                                                March 2011 to discuss growing concerns
also showed low pay persisting over time
                                                on the forthcoming regulatory changes to
for a considerable number of workers.
                                                security legislation, particularly concerning
This    research    will  inform   policy
                                                certification    requirements      and    the
development within the Department.
                                                potential impact of the timing of their
A research exercise to gain insights into       implementation.
the motivations that people have for
                                                Many of the staff employed in the crowd
working     as    aged     caregivers    was
                                                control area are part-time/casual workers
completed. Diverse reasons were given by
                                                and view paying secondary tax on a
the respondents.       Some people were
                                                minimum wage part-time job as a barrier
attracted to these roles on the basis of
                                                and, therefore, may not make themselves
their personality traits (wanting to work
                                                available for temporary Rugby World Cup
with older people in a caring role, liking to
                                                (RWC) duties.       The Department is
feel valued), whilst others saw it as a
                                                continuing to work with the Ministry of
possible way into a career in the health
                                                Justice and the Ministry of Economic
sector or because they perceived that they
                                                Development (RWC Office) to assess risks
lacked other employment options. The
                                                of regulatory timing for RWC, and to
findings of this research will inform policy
                                                assess    and    develop    contingencies,
development to make the caregiver jobs
                                                involving Work and Income and other
more attractive. A briefing was provided
                                                sources of temporary staff, to determine
to the Minister for Social Development and
                                                                           9
the demand and supply of suitable               ·   Phase two of the website and tools
temporary staff for the RWC period.                 development has been progressing.
                                                    This includes development of a three-
The Employment Transitions Advisory
                                                    year website strategy, an expert
Group met. Business New Zealand and
                                                    review, an edit to ‘cull’ and reformat
the New Zealand Council of Trade Unions
                                                    information to enhance the visitor
expressed the strong need for a workforce
                                                    experience, and development of new
strategy to rebuild Canterbury following
                                                    content.
the February 2011 earthquake.           This
strategy aims to address the mix of skills      ·   A number of feature articles in industry
required and how that would be met by               and stakeholder magazines such as
balancing training and immigration issues.          two features in BUILD magazine and
The Department will coordinate a policy             Engineering & Manufacturing magazine
response to identify the requirement for            were published.
the short to medium-term and the
                                                ·   An ongoing liaison was maintained
relationship of a strategy to other
                                                    with a number of business associations
initiatives such as the establishment of the
                                                    and organisations, and with all the key
Canterbury        Earthquake       Recovery
                                                    stakeholders to promote usage of
Authority.
                                                    www.skillshighway.govt.nz and the
Providing    resources   to   improve               uptake of workplace literacy training
literacy, numeracy and other essential              programmes.
skills of New Zealand’s workforce
                                                Targeted    immigration    to    meet
The Department continued to raise               shortages in New Zealand’s skills base
awareness among businesses of the link
                                                The Essential Skills in Demand Lists are
between      workplace     literacy    and
                                                currently being reviewed. The review is
productivity and the resources available to
                                                focusing on 95 occupations in the health
employers. Highlights for this quarter
                                                and education sectors. Submissions for 14
included:
                                                occupations to go on the Long Term Skill
·    A half day Skills Highway Employer         Shortage List, and 12 occupations to go on
     Champions      Forum      sought    the    the Immediate Skill Shortage List were
     Minister’s support to establish a public   reviewed. The review of all occupations
     private       partnership      between     currently on the lists aims to ensure that
     Government and employers that will         the lists are responsive to the changing
     define the delivery and outcomes of a      labour market. The revised lists will be
     long term National Workplace Literacy      released in mid-2011.
     Strategy.
                                                The two Essential Skills in Demand Lists
·    Two workplace literacy graduation          currently contain a number of occupations
     programmes were held:          Spotless    that may be in demand in Canterbury.
     Services’ graduation in Wellington and     These include a wide range of occupations
     EasiYo Products Limited in Auckland.       in health, construction, engineering, ICT,
                                                electronics and telecommunications and
·    A presentation was made, with the
                                                some trade positions.       The lists are
     support of the Department’s Small
                                                flexible, and are one way of assisting with
     Business Information Unit, to the
                                                skilled occupation shortage needs in
     newly formed New Zealand Trade and
                                                Canterbury.
     Enterprise Regional Partners who focus
     on    developing     “high    growth”
     companies in New Zealand.
·    Organisations who have run workplace
     literacy training programmes were
     contacted to enter the third Skills
     Highway Award for 2011, a part of the
     Equal Employment Opportunity Trust’s
     Work and Life Awards


10
More people in quality work
Immediate Outcomes
·   Workplaces provide healthier and safer environments.
·   Employer/employee relationships are more effectively managed.
·   People have the right skills to improve their employment opportunities.
·   Access to work is increased.
·   Quality work in New Zealand continues to be supported by fair international labour
    practices.
Votes contributing: Vote Labour, Vote Employment and Vote ACC


3.1    Renewed Health and Safety                  Action Plan will be developed alongside the
       Strategy (MP-VL)                           five Sector Action Plans.

Three Year National Health and Safety             Quad bike harm reduction project
Action Agenda                                     Focused        awareness-raising       and
The National Action Agenda was released           engagement activities occurred from
and it sets a new direction for action under      January 2011 until April 2011.         This
the Workplace Health and Safety Strategy          involved health and safety inspectors and
for New Zealand 2010-2015.                        the Small Business Information Unit
                                                  visiting quad bike retailers, meeting with
Four action areas                                 agricultural   groups   such   as   Young
Specific national-level     actions   will   be   Farmers,     and   attending   agricultural
delivered under:                                  conferences and field days.

·   growing safety leadership                     The new Quad Bike Safety Guidelines were
                                                  released in mid February 2011. These
·   developing capability                         were promulgated through stakeholder
·   building knowledge                            networks, media promotion, a rural mail
                                                  out of 65,000 summary documents, and
·   supporting a robust health and safety         through the Minister of Labour at the
    system.                                       Farmsafe Zero Injury Forum on 16 March
Five Priority Sectors                             2011.

The Action Agenda focuses on the five             Planning for the enforcement phase
sectors with consistently high levels of          occurred through February and March
workplace injury, disease and fatalities:         2011. This involved the development of
construction,      agriculture,  forestry,        practice support resources for health and
manufacturing, and fishing.     A Sector          safety inspectors, identifying targeted
Action Plan is being developed for each           areas for enforcement activities, and
and they will build shared leadership and         coordinating   regional   and    national
ownership of the problems and solutions;          stakeholder updates and media releases.
enable agreement on key priorities for            The enforcement phase commenced in
action; and foster co-ordinated and               April 2011 and will run for two months,
integrated activity.                              and can then be evaluated and refined as
                                                  appropriate.
Occupational disease
There are 17,000 new cases of work-
related disease every year. The Action            Construction     falls   harm    reduction
Agenda aims to improve surveillance of            project
work-related    diseases,  and     raise          More detailed problem analysis and
awareness of occupational health issues           intervention design continued, building on
facing workers. An Occupational Health            the    identified    root    causes     and
                                                  interventions relating to construction falls.
                                                                              11
There    has    been    initial stakeholder     ·   could increase New Zealand’s already
engagement with some key sector                     high labour force participation rate
associations, signalling general support for
                                                ·   contain areas where the Department
the focus of the project.
                                                    can provide expert advice on the
Employment        agreements              in        analysis and forecasting of labour
agriculture harm reduction project                  demand and employment opportunities
A partnership approach discussion paper         ·   provide for potentially greater policy
on employment agreements in agriculture             and administrative linkages between
was circulated to stakeholders. Given the
                                                    social and employment service
scoping stage of the project, and the
planned vulnerable migrant dairy workers            agencies and ACC to manage longer
project, some more structured stakeholder           term liabilities.
engagement is scheduled from April 2011
to more robustly test the project’s
assumptions and to make a final                 3.3    Other intermediate outcome
recommendation on how or if the project                key SOI activities
should progress.
                                                Development     of        national  and
                                                international policy      and regulatory
                                                standards
3.2    Growing Employment and
       the Economy (MP-VE)                      The Department was a participant in the
                                                meeting of the Governing Body of the
As part of a central/local government           International Labour Organisation, which
inter-agency process assistance was given       is the executive body of the International
to the development of the draft Auckland        Labour Organisation (ILO). Attendance at
Economic Development Strategy.        The       this ensures New Zealand's informed
Department led work on skills and               participation in budget setting and
productivity, and input to other agencies       standards development within the ILO.
work which was presented at the Auckland
Mayoral Summit for discussion in March          The Department submitted its A7 report
2011.                                           on proposed action relating to the 2010
                                                International Labour     Conference  to
The Department provided the Likely Areas        Parliament.
of Growth in Employment Opportunities
report   to   the    Minister  for Social       The Department also progressed a project
Development and Employment.          This       on Labour Market Signalling with the APEC
highlighted the recent growth in male           Human Resource Working Group. The
employment and by older people. It also         project ultimately aims to help countries
provided information on the employment          understand skills shortages and use best
opportunities arising from the September        practice labour market signalling to bridge
2010     Canterbury     earthquake   and        the gap.
subsequent aftershocks.                         Provision of advice and information to
The Welfare Working Group released its          enable the resolution of employment
report on 22 February 2011 setting out a        problems and health and safety issues
package of recommendations to encourage         In the 2010/11 year to date the
a wider group of benefit recipients (such       Department       has   collaborated    with
as single parents and people with               business intermediaries across the country
disabilities) into work. The Department         to   reach    585,932    businesses    with
briefed all four of its Ministers on the        information that supports the resolution of
possible implications for the labour market     employment relations problems and health
of more beneficiaries seeking work. It was      and safety issues. This quarter involved
noted that the changes:                         890     activities    reaching     193,159
·    may raise New Zealand’s         official   businesses, including updating information
     unemployment rate                          through channels such as websites,
                                                e-zines and newsletters, information
                                                stands at events and supporting delivery

12
of updates and training by business           The Department is also organising
support organisations. The main topics        cooperative activity with China as agreed
included quad bike safety, managing           under the labour component of the Trade
holiday leave, supporting businesses to       Agreement with China. In addition, it is
recover from the Canterbury Earthquake        organising the first Senior Labour Officials
and informing businesses about the            Meeting with the Philippines to establish
Employment Relations Act and Holidays         our working relationship on cooperative
Act legislation changes.                      activity based on the labour component of
                                              their Trade Agreement.
Promotion of quality work practices
and environments, and removal of              Participation   for   groups  under-
barriers                                      represented in the labour market
The High Performance Working Initiative       The successful seasonal employment of
aims to build the productivity and            approximately 30 South Auckland Māori
innovation of firms by assisting them to      and Pasifika youth was collectively
introduce    high   performance   working     facilitated between the Department and
practices.     In the period since the        Seeka Kiwifruit Industries Ltd, Te Waiōhua
operating    guidelines   were   approved     iwi leaders of South Auckland, the
contact has been made with six business       Ministry of Social Development (Auckland
associations, four industry bodies and 14     office), and Work and Income.            A
providers who expressed interest in the       successful recruitment hui was hosted by
initiative. The Department’s web site has     Te Waiōhua iwi at Papakura Marae on 27
been updated with material relating to the    January 2011, receiving 98 applications.
initiative.                                   Māori Television presented this initiative
                                              positively on Te Kaea that same evening.
Promotion work during the third quarter
focused     on    work    with    business    Work is underway with the digital sector
intermediaries to inform businesses about     to assess demand for, and supply of,
quad bike safety, earthquake related          workers    in    digital  industries, and
support, managing holiday leave and           employment opportunities for South
changes to the Employment Relations Act       Auckland youth into entry-level IT jobs
and Holidays Act legislation.          The    within various growing digital industries
Department used its networks to get           including content, animation, broadband
information     to     organisations     in   and service/call centres.
Christchurch about health and safety and
                                              The Department continued to actively
employment relations issues arising from
                                              contribute to two work streams in phase
the February 2011 earthquake.
                                              two of the Youth Pipeline. These were Not
Provision of relevant labour market           in Employment, Education or Training
information to employers and job-             (NEET) 16-17 year olds, and options for
seekers to inform business and career         better matching employment and training
choice decision-making                        programmes for NEET 18-24 year olds.
                                              Both these work streams are led by the
The Jobs Online report for the quarter
                                              Ministry of Social Development, with the
showed an overall increase in vacancies by
                                              Department on the governance group
6.2 percent during the three months since
                                              overseeing all Youth Pipeline work
December, and by 65.5 percent since June
                                              streams.       Options development is
2009. The number of skilled vacancies
                                              progressing in preparation for the Youth
advertised increased by 7.1 percent in the
                                              Guarantee Minister’s meeting scheduled
same period, and by 63.9 percent since
                                              for 9 May 2011.
June 2009 (when they were at their lowest
point due to the recession).
International trade agreements and
relationships with trade partners
The Department participated in ongoing
trade labour negotiation meetings on the
Trans Pacific Partnership and the India
New Zealand Closer Economic Partnership.
                                                                       13
A better performing accident compensation system

Immediate Outcomes
·     Rehabilitation and return to work rates meet relevant national and international best
      practice.
·     The rate of increase in new injury claims on the accident compensation system is
      reduced.
·     The cost of the scheme and levy prices are calculated and set in a consistent and
      transparent way.
·     Demonstrated accountability for performance of the accident compensation scheme is
      improved.
·     Cover and entitlement settings within the accident compensation scheme are more
      affordable and sustainable.
Vote contributing: Vote ACC


4.1       Cost Containment and Levy                       development of ACC’s Statement of
          Management (MP-VACC)*                           Intent, and the Service Agreement

The Department completed support for                ·     Budget 2011 funding decisions for the
Government decisions announced on 21                      Non-Earners’ Account (NEA), which
December 2010 that there would be no                      included a more transparent funding
increase in workplace, motor vehicle or                   structure and appropriate funding
earner ACC levies for 2011. This included                 levels. The Department is now
providing input into initiatives on no-                   working       through        ongoing
claims bonuses and risk-based premiums.                   improvements to the monitoring of
Experience    rating  was    subsequently                 the Non-Earners’ Account.
introduced from 1 April 2011.         The           4.2     Scheme stocktake and
regulatory process was therefore used to
                                                            benchmarking (MP-VACC)
control or reduce costs, and increase and
improve employer behaviour incentives for           The Department advised the Minister for
workplace health and safety.                        ACC on weekly compensation and social
                                                    rehabilitation work streams and are
Three ACC Board appointments were
                                                    awaiting the Minister’s response. The next
progressed during the quarter, with
                                                    steps in the current review of monitoring
Cabinet agreement on 4 April and a
                                                    arrangements of both the ACC and the
Ministerial  announcement        concerning
                                                    wider Scheme were also taken, and the
successful candidates made on 13 April.
                                                    terms of reference for a review of
These appointments ensure that there is a
                                                    monitoring were circulated externally for
diverse and strong range of skills available
                                                    comment.
in the governance of the Corporation.
The Department completed updating
                                                    4.3     Investigation of choice in
regulations    such   as   ‘Hearing  Loss                   scheme provision (MP-VACC)
regulations’ and ‘Levy regulations’.                A draft public consultation document on
The Department also provided advice on:             Increasing Choice in Workplace Accident
                                                    Compensation was completed. This has
·      2011/12 Letter       of Expectations, for    been referred to the Minister for ACC to
       the Minister to      send to the Board       seek agreement on content and direction
       chair,  which        provides  important     on the preferred consultation process.
       guidance   for       the   ACC    in   its   This document explores options for
                                                    extending   the   Accredited   Employers
                                                    Programme and introducing choice in the
*
    MP-VACC: Ministerial Priority – Vote ACC
                                                                                              14
Work Account.     The document will be      introducing an independent disputes
considered for public release by Cabinet    tribunal. On 4 April 2011, Cabinet made a
over the next month. Introduction of any    decision   to   separate    the    Dispute
legislation that may arise will not occur   Resolution Services Ltd from ACC. The
prior to December 2011.                     Department is now working through
                                            implementation issues.
4.4   Improving Dispute
      Resolution (MP-VACC)
The Department provided advice to the
Minister for ACC on the merits of




                                                                    15
B
B          Output performance
Performance against framework measures

Of the 69 Estimates and Output Plan performance measures reported on this quarter, eight (12%)
were ‘Achieved’, 52 (75%) were rated as ‘On Track’, seven (10%) ‘Not on Track’, one (1%) ‘Not
Achieved’, and one (1%) ‘Not Applicable’. Full details are reported in the Appendices.

   80%
                                      75%


   70%



   60%



   50%



   40%



   30%



   20%

                 12%
                                                              10%
   10%

                                                                                   1%                   1%
      0%
               Achieved              On track              Not on track       Not Achieved         Not applicable


Vote Labour: Three performance measures were Not on Track.

Output Class 3: Services to promote and support fair and productive employment relationships

Ref         Performance measure                 Standard            Result YTD     Status
(L) 3.1.6   The abandonment rate of calls      Less than 5%                  7.9% Not on Track
            to the contact centre.
Commentary:
Factors contributing to the high abandonment rate include: reduced staffing levels, increased call
handling time attributed to increased complexity of calls, extended hours in response to Christchurch
earthquake and training for the legislative changes decreasing the number of staff available to
answer call demand. In addition, there were significant system issues in the latter period of Q2.


Ref         Performance measure                 Standard            Result YTD     Status
(L) 3.2.7   The number of early                 100                           46   Not on Track
            interventions into employment
            problems that reduce the need
            for higher level problem
            resolution.


16
Commentary:
This was a new measure for 2010/11 and staff are adapting to the processes needed to effectively
identify opportunities and record this activity.

The impacts of legislative change and a practice development project both link to activity that will
increase the number of early interventions.

This is reflected in the volume of successful early interventions increasing by 49 percent over the last
quarter.

Changes in April 2011 to INSITE, the Department’s system used to record interactions and work with
customers, will enable tracking of both successful and unsuccessful attempts at early mediator
interventions to provide a wider context around this measure.



Output Class 4: Services to promote and support safe and healthy people and workplaces

Ref          Performance measure                Standard             Result YTD        Status
(L) 4.1.2  The abandonment rate of calls        Less than 5%                   7.9%    Not on Track
           to the contact centre.
Commentary:
See Output 3.1.6 on the previous page.




Vote Immigration: Five performance measures were Not on Track or Not Achieved.

Output class 1: Immigration Advisers Authority

Ref          Performance measure               Standard              Result YTD        Status
(I) 1.1.1    New Immigration Adviser          90%                             73% Not on Track
             licence applications are
             processed within 50 working
             days of receiving a full
             application.
Commentary:
The quality of new applications was lower than expected, resulting in longer processing times. The
Minister of Immigration has subsequently approved an amendment to the performance measure for
the balance of the current year.



Output class 2: Services to increase the capacity of New Zealand through immigration

Ref          Performance measure               Standard              Result YTD        Status
(I) 2.2.3    The quality of immigration visa   By 31 December           Dec quarter    Not Achieved
             and permit decision-making        2010, the                      6.5%
             improves.                         percentage of
                                               audited
                                               decisions rated
                                               as poor is
                                               reduced to 3%
                                               or less
Commentary:
Significant improvements have been made to the quality of decisions made, with 6.5 percent of
decisions rated as ‘poor’ at 31 December 2010 compared with over 16 percent the previous year. A


                                                                                                       17
focus on improving the quality of decisions has seen ‘good’ decisions increase from around 35 percent
to 75 percent over the same period.

(I) 2.2.4     The number of people             45,000 - 50,000           28,745 Not on Track
              approved for residence under
              the New Zealand Residence
              Programme.
Commentary:
Expected to approve 40,000 people this year. The Christchurch earthquake has had a major impact
on the ability to reach target. Current labour market conditions (relatively high unemployment) are
having an impact on the number of high quality Skilled Migrant Category applicants obtaining suitably
skilled offers of employment.

Ref         Performance measure                   Standard          Result YTD     Status
(I) 2.2.5    The percentage of student         95%                         89.1% Not on Track
             applications that will be
             decided within 0-60 days.
Commentary:
Palmerston North has improved timeliness for onshore decisions. Offshore pressures remain, due to
very high numbers of high risk applications in the Indian market. Bangkok Regional Processing is
assisting with demand, however it is not expected that the standard will be reached by year end.


Output class 3: Services to position New Zealand as an international citizen with immigration-related
interests and obligations

Ref         Performance measure                   Standard          Result YTD     Status
(I) 3.2.2     The annual quota of UNHCR           675 - 825                    468 Not on Track
              mandated refugees who travel
              to New Zealand and undertake
              an initial orientation
              programme.
Commentary:
The Christchurch earthquake in February 2011 disrupted the quota refugee intakes for the remainder
of this financial year due to the reprioritisation of Housing New Zealand Corporation's accommodation
to meet Christchurch needs. The quota for the year is now expected to total 525 with a small intake of
up to 75 expected in May 2011. This group will be resettled in private housing. The Department does
not expect to reach the standard by the end of the year.


Vote ACC: One performance measure was rated as Not Applicable

Ref          Performance measure                 Standard           Result YTD     Status
(A) 1.1.4    Ministerial advisory groups are     Ministerial                       Not Applicable
             satisfied with the quality of the   advisory groups’
             Department’s administrative         rating as
             support.                            satisfied or
                                                 above
                                                 determined
                                                 through
                                                 feedback

Commentary:
There are no advisory groups currently sitting.




18
              C      Financial performance
          As at 31 March 2011, the Department was $15.502 million (7%) behind forecast against the
          budget in the Main Estimates. About $6.0 million of this was in fee-funded activities in Vote
          Immigration.
          ·       Vote Labour was behind budget by $3.77 million (7%) largely due to work on planned
                  projects commencing later than forecast, and staff vacancies.
          ·       Vote Immigration was behind budget by $9.953 million (6%) largely due to lower
                  volumes, savings from vacant positions and project delays in the Output Class: Services
                  to Increase the Capacity of New Zealand through Immigration.
          ·       Vote Employment was behind budget by $1.442 million (15%). This is due to the
                  reduction in staff and associated salary costs as a result of the PREE review and the
                  establishment of the Policy and Research Groups. During the PREE process, there were
                  also a number of vacancies which were unable to be filled. Work is going on to fill the
                  vacancies so that an under spend in relation to staff does not remain a feature of the
                  Vote. Some policy projects were also delayed in the PREE process. Work is now ongoing
                  on a policy work programme agreed with the Minister in February 2011.
          ·       Vote ACC was behind budget by $0.337 million (10%) largely due to timing around
                  filling contract roles.
          The following table shows the financial performance across the Votes and Output Classes.
                                      Budget          Actual      Variance     Variance        Extrapolated    Forecast
                                 Year to Date   expenditure    Year to Date     Year to            Forecast    Variance
                                      ($000)    Year to Date        ($000)         Date            Full Year   Full Year
                                                     ($000)                          %               ($000)      ($000)
              Vote Labour
       International services            679             627            52           8%                 482          52
       Policy advice – labour           6,418          5,460           958          15%                8,357        958
         Fair and productive
                                       18,164         17,178           986           5%              24,136         986
      employment relations
Safe and healthy people and
                                       28,647         27,024          1,623          6%              37,898        1,623
                 workplaces
       Safe management of
hazardous substances in the
                                        3,929          3,778           151           4%                5,187        151
 workplace and amusement
                     devices
                      Total           57,837          54,067         3,770          7%               76,528       3,770
        Vote Immigration
       Immigration Advisers
                                        1,947          1,706           241          12%                2,679        241
                     Authority
 Increase the capacity of NZ
                                      141,793        132,869          8,924          6%             187,324        8,924
        through immigration
           Position NZ as an
    international citizen with
                                       12,036         11,248           788           6%              15,558         788
         immigration-related
    interests and obligations
                        Total        155,776         145,823         9,953          6%              205,561       9,953
       Vote Employment
Labour market analysis and
                                        6,086          5,448           638          10%               7,982         638
                 knowledge
       Policy, research and
                                        3,624          2,820           804          22%               4,785         804
                  evaluation
                       Total           9,710           8.268         1,442         15%               12,767       1,442
                    Vote ACC
       Policy and Monitoring            3,284          2,948           336          10%               4,358         336
         Regulatory Services             117             116             1           0%                 163           1
                        Total          3,401           3,064           337         10%                4,521         337
        TOTAL ALL VOTES              226,724         211,222        15,502          7%              299,377      15,502

                                                                                          19
The appendices containing the Vote Output Schedule Reports provide the detailed financial
performance and the sources of variances from each Vote’s output classes.


   Vote Immigration fee revenue: Visas and Permits memorandum account

            Visas and permits            Memo YTD      Memo YTD      Memo FY       Memo FY
                                          Budget        Actual        Budget        Forecast
                                          ($000)        ($000)        ($000)        ($000)
   Opening balance (deficit)                 (1,369)       (1,369)       (1,369)        (1,369)

   Revenue                                  102,830        80,764       136,520        110,770

   Expenses                                 (97,289)      (91,438)     (133,447)     (127,770)

   Closing balance – surplus (deficit)        4,172      (12,043)         1,703       (18,369)



   ·    The Visas and Permits memorandum account in Vote Immigration had a $12.0 million
        deficit at the end of March 2011. Expenditure on fee-funded activities was $5.9 million
        behind budget, mainly in personnel costs.
   ·    The full year forecast for the memorandum account has been reduced in light of both
        new forecast volumes developed at the end of January 2011 and dollar revenue trends.
        Immigration fees revenue of $120.8 million is forecast for the year ending 30 June 2011,
        which is $22.6 million below the Department’s external (Supplementary) budget.
   ·    The shortfall in revenue largely relates to lower application volumes as well as the timing
        lag between appropriation expenditure and revenue generation through volume and/or
        fee increases. The shortfalls as at 31 March 2011 are mainly in the following categories:
        temporary entry fees of $11.6m (18.9%) and residence programme fees – skilled
        migrant of $8.1m (29.2%). The full year forecast has been reduced in light of both new
        forecast volumes developed at the end of January and dollar revenue trends.
   ·    A Sustainable Funding Strategy has been completed which describes work to address
        the future funding shortfall in Vote Immigration. Detailed initiatives to deliver on the
        Sustainable Funding Strategy are currently under development.
   Variances across all Votes
   ·    Other variances across all votes were mainly due to delays in starting projects and to
        staff vacancies. These are forecast to reduce by year end.
   ·    The Department is proposing an in-principle transfer of a further $1.2 million to 2011/12
        in June 2011, in addition to the $0.2 million already approved.




   20
Capital expenditure

Approved budget      Budget year to   Actual year to       Variance            Variance
  for 2010/11            date             date             ($ 000)                %
     ($000)             ($000)           ($000)
32,191                   25,251           16,792            8,459                33%

This includes
$26.897 million of
carry forward from
2009/10 and
$5.294 million of
new projects



The reasons for significant variances are:
· Remedial work on the Application Management System (AMS) (a variance of $2.137
   million year to date) is behind schedule due to competing priorities with the Act
   Implementation. This work will now be completed next financial year.
·   The budget for the Mumbai office (which has a variance of $1.692 million year to date)
    was scoped for a MFAT site, but this has now been downgraded. This saving will now be
    prioritised for a new project in Shanghai. Delays have impacted many of the other
    projects in the Department’s capital programme, this includes ICT infrastructure with a
    variance of $0.538 million.
The capital expenditure carry forward from the current financial year to 2011/12 is expected
to be $4 million.




                                                                          21
D
D     Response to external events

February 2011 Canterbury                     Employment (HSE) investigation1 ever
                                             undertaken, a safety audit of New
earthquake                                   Zealand’s other underground coal mines,
                                             an internal operational review, and a
Following the February 2011 Canterbury       review of the current regulations for
earthquake, the Department assisted and      underground mining.
provided resources as necessary to assist
with the Canterbury recovery.                The aim of the HSE investigation is to
                                             ascertain the cause of the explosion, to
The business recovery hub - a joint effort   establish whether any legislative breaches
between government departments in            occurred, and based on its findings, to
partnership    with    the    Canterbury     take appropriate regulatory action.     An
Employers’ Chamber of Commerce (CECC)        extension of time for bringing any charges
and    the    Canterbury    Development      under the HSE Act was approved by the
Corporation (CDC) - began working at the     District Court on 2 May 2011.
Department’s Addington location. Twenty-
five full-time staff members from the        The Department will be attending the
Department of Labour, the Ministry of        Royal Commission’s hearings, which are
Social Development and Inland Revenue        due to begin in Greymouth on 11 July
work in the hub alongside the CECC and       2011.
CDC.
The Department worked closely with Civil
Defence in Auckland to manage the lack of
accommodation available in Auckland for
Christchurch evacuees, including former
refugees. A total of 159 former refugees
moved temporarily from Christchurch to
the Mangere Refugee Resettlement Centre
following the February 2011 earthquake.
The Department worked with agencies to
support people to return to Christchurch
where they had jobs or homes to go to. All
former refugees either returned to
Christchurch or were re-housed by early
April 2011.
The Department has provided advice and
support specifically in response to the
Canterbury earthquake across a number of
fronts with some of the key deliverables
highlighted in the previous sections on
pages 8-10.


Pike River Coal mine tragedy

The Department has developed a formal
work programme to respond to the             1
                                                 The Department’s investigation is being carried out
Government’s     Royal    Commission    of
                                             under the provisions of the Health and Safety in
Inquiry into the Pike River Mine tragedy,
                                             Employment Act 1992, and the Health and Safety in
which claimed the lives of 29 miners. This
includes the largest Health and Safety in    Employment (Mining Administration) Regulations
                                             1996, and the Health and Safety in Employment
                                             (Mining – Underground) Regulations 1999.
22
E
E      Ownership - maintaining and developing capability


To drive organisational change and lead capability building, the Department’s
organisational development goals are to create value for New Zealand through:
·   being knowledgeable, influential and collaborative experts on labour and immigration
·   being a facilitative, responsive and effective regulator providing high-quality and
    innovative services
·  having our people, working environment and shared culture support excellent
   performance
being a highly capable department with integrated systems, processes and policies

The following section provides an ownership         completed training, which culminated in
update on initiatives referred to in the            members having a shared understanding of
Statement of Intent 2010/011-2013/14 to             governance      principles     and     effective
improve the Department’s capability.                Boardroom practices.        The training also
                                                    instigated on-going discussion about the
Transforming the Department                         Department’s        general     approach      to
                                                    governance and the sub-committees’ specific
Policy, research and evaluation, and                roles, responsibilities and expectations.
Vote Employment (PREE) review
Centralising the    policy, research      and
evaluation, and Vote Employment functions           Foundation capabilities programme
will position the Department as the                 This is a comprehensive programme to
knowledgeable, influential and collaborative        upgrade and replace core systems and
expert on labour and immigration. Jeremy            processes.
Corban, the new Deputy Chief Executive
leading the Policy and Research Group took          ·   A stage plan for the remaining phases of
up his position. The Department continued               the    implementation     the   Financial
to recruit to new positions in the Policy and           Management Information System was
Research Group.                                         approved.       These include offshore
                                                        deployment and the implementation of
                                                        the procurement component. The system
Immigration New Zealand                                 went live on 1 October 2010 and is now
                                                        being used by managers across the
A new way of organising the Immigration                 Department.       This replaces existing
Group to lift performance and deliver results           systems with an up-to-date, easy to use
came into effect in March 2011 with a new               financial application for managers and
structure being implemented within the                  other users.
Group. The new structure will enable us to
deliver the results expected of us as well as       ·   The Learning Management part of the
to better contribute to the goals of the wider          Human        Resources      Management
Department. Recruitment was underway to                 Information System (HRMIS) was rolled
remaining positions in the new structure.               out, and work was carried out to prepare
                                                        for the implementation of the health and
                                                        safety module and the e-Recruitment
Strengthening         governance        and             tool. The HRMIS will allow managers to
                                                        have easy access to accurate human
foundations
                                                        resources information.
Governance system                                   ·   The implementation of the Electronic
The recommendations from the post-                      Document and Records Management
implementation review of the Department’s               System (EDRMS) is progressing to plan.
governance system are being actioned.                   Stage one was completed, and stage two
Members of the governance sub-committees                was underway and on track. The EDRMS

                                                                                            23
     is a tool used to effectively manage
     business records and documents from
     creation, maintenance through to their
     destruction.       This     will     improve
     productivity through staff having the
     tools to easily access reliable information.
·    The roll-out of the Mid Level Leadership
     Development Programme continued with
     training of a further two cohorts. Other
     activity   included    the   delivery   of
     leadership    essentials   and    coaching
     workshops. The LDP aims to develop
     leadership and management skills, and
     will assist in embedding a stronger
     performance culture in the Department.


Staff cap
The Department was 49 full time equivalent
(FTE) staff below its staff cap of 2024.
The staff cap combines the actual on shore
staff  FTE numbers,        active vacancies,
numbers of staff on leave without pay who
have not been back filled and new staff yet
to commence their employment with the
Department.       This provides a measure
against the State Services Commission
monitored Staffing Cap. The Cap excludes
offshore locally engaged staff.




24
Statement of Intent 2010/11 - Measures and standards for monitoring organisational capability
Measure                                      2009/10 indicator            2009/10 result                 2010/11      2010/11 result
                                                 (target)                                                indicator
                                                                                                          (target)
Office of the Auditor-General grading2
§      Management control                    Good                      Good                        Good              On track
       environment
§      Financial information systems         Good                      Very Good                   Good              On track
       and controls
§      Service performance                   Good                      Needs improvement           Good              On track
       information and associated
       systems and controls
Staff participation in Gallup survey         90% or above              87%                         90% or above      On track
Corporate Group meet or exceed               70% or above              Survey re-scoped            75% or above      On track
customer expectations.                                                 because of
                                                                       organisational
                                                                       changes.
The percentage of customers who              At least 80%              The 2009/10 Customer        At least 80%      On track
indicated they were satisfied with                                     Satisfaction Survey
the overall quality of service                                         was not completed.
delivery received (Vote Labour).
The percentage of customers                  80%                       78%                         80%               Not on track
satisfied that Department staff did
“what they said they would” (Vote
Immigration).
Leadership Development                       New measure               New measure                 50%               On track
Programme – Mid level managers
attendance
Completion of value for money                By June 2010              Achieved                    N/A               N/A
reviews
Project completion of Foundation Capabilities Programme
§      ICT infrastructure                    By January 2011                                                         Not achieved
                                             (This is now on track to a revised date of June 2011)
§      Financial Management                  By November 2011                                                        On track
       Information System
§      Electronic Document and               By October 2010                                                         Not achieved
       Records Management System             (This is now on track to a revised date of July 2011)
       (phase one)
§      Human Resources Management            By August 2010                                                          Not achieved
       Information System (phase             (This is now on track to a revised date of June 2011)
       two)




2
    The grades used by the Office of the Auditor-General are: poor, needs improvement, good, and very good.


                                                                                                                     25
Quarterly Performance Report
for the quarter ending 31 March 2011




Appendices – Vote Output Schedule Reports
CONTENTS

APPENDIX 1: VOTE LABOUR OUTPUT SCHEDULE REPORT
   Output class 1: International services ............................................... 1
   Output class 2: Policy advice – Labour .............................................. 2
   Output class 3: Services to promote and support fair and productive
   employment relationships ............................................................... 4
   Output class 4: Services to promote and support safe and healthy people
   and workplaces............................................................................ 11
   Output class 5: Services to promote and support the safe management of
   hazardous substances in the workplace and amusement devices ........ 14



APPENDIX 2: VOTE IMMIGRATION OUTPUT SCHEDULE REPORT
   Output class 1: Immigration Advisers Authority ............................... 16
   Output class 2: Services to increase the capacity of New Zealand through
   immigration ................................................................................ 17
   Output class 3: Services to position New Zealand as an international
   citizen with immigration-related interests and obligations.................. 24



APPENDIX 3: VOTE EMPLOYMENT OUTPUT SCHEDULE REPORT
   Output class 1: Labour market analysis and knowledge..................... 28
   Output class 2: Policy, research and evaluation................................ 30



APPENDIX 4: VOTE ACC OUTPUT SCHEDULE REPORT
   Output class 1: Policy and monitoring ............................................. 32
   Output class 2: Regulatory services................................................ 34
Appendix 1: Vote Labour output schedule report
Overall Vote Labour financial performance
              Year to date ($000)                                                          Full year ($000)
 Budget        Actual            Variance                                   Budget           Actual         Variance
     57,837            54,067            3,770              7%              80,298

 Vote Labour was behind budget by $3,770,000 (7%) largely due to work on planned projects
 commencing later than originally forecast and staff vacancies. The variance is largely attributable to
 the Services to promote and support safe and healthy people and workplaces, Services to promote and
 support fair and productive employment relationships, and Policy advice – Labour output classes.

 The full year appropriation has been increased by $97,000 net in the 2010/11 Supplementary
 Estimates.


Output class 1: International services

Output 1.1: International services
Performance framework outputs
 Ref      Performance measure                          Standard               Result      Status        Commentary
                                                                               YTD
(L) 1.1.1      Participate in the three events         100%                           2   On track      The Department
               required by New Zealand’s                                                                participated in the ILO
               membership of the                                                                        Governing Body meeting
               International Labour                                                                     in March 2011. The third
               Organisation (ILO) to protect                                                            event will be held in June
               and promote New Zealand’s                                                                2011.
               labour interests.
(L) 1.1.2      Coordinate and submit                   20 - 25                      54    Achieved
               international reports and
               questionnaires within agreed
               timeframes to uphold New
               Zealand’s reputation.
(L) 1.1.3      Receive rating from tripartite          Improve the                                      This will be reported in
               partners and senior officials for       satisfaction                                     the fourth quarter.
               the quality of support, and             rating from
               representation, including               satisfied to
               stakeholder consultation,               satisfied above
               provided to meet New                    expectations1
               Zealand’s obligations.
(L) 1.1.4      The Minister of Labour is               Ministerial rating                               This will be reported in
               satisfied with the quality of           as satisfied or                                  the fourth quarter.
               advice, support and                     above
               representation provided to              determined
               meet New Zealand's labour               through
               related international                   feedback1
               obligations.
(L) 1.1.5      Negotiations on trade labour            100%                     100%      On track
               agreements by officials are
               consistent with the
               Government’s mandate for
               negotiations.


 1
     Ratings used in satisfaction surveys are: Unsatisfied, Partly Satisfied, Satisfied, Satisfied above Expectations, Very Satisfied.


                                                                                                                        1
 Ref         Performance measure                 Standard              Result       Status     Commentary
                                                                        YTD
 (L) 1.1.6   Government’s trade and labour       100%                    100%       On track
             obligations for implementing
             trade labour agreements are
             met in accordance with the
             requirements of each
             agreement.

Activities
 Ref       Activity                              Standard              Result       Status     Commentary
                                                                        YTD
 (L) 1.1.7   The number of international         10 - 18                       20   Above
             events and meetings attended        international                      forecast
             including:                          meetings and
             ·    International Labour           events attended
                  Organisation meetings
             ·    multilateral and bilateral
                  meetings
             ·    trade labour agreement
                  negotiation and
                  implementation.
 (L) 1.1.8   The number of proceedings           15 - 25                        9   Within     All planned proceedings
             held or coordinated including:      proceedings held                   forecast   were held and/or
             ·    assistance based activities    or coordinated                                coordinated where
             ·    cooperative activities                                                       required.
             ·    incoming international
                  visits by overseas
                  delegates.

Financial performance
              Year to date ($000)                                                    Full year ($000)
  Budget       Actual           Variance                              Budget           Actual         Variance
     679             627             52              8%                1,002

 This output class was behind budget by $52,000 (8%) largely due to staff vacancies.

 The full year appropriation has been increased by $63,000 net in the 2010/11 Supplementary
 Estimates.




Output class 2: Policy advice – Labour

Output 2.1: Policy advice - Labour

Performance framework outputs
 Ref     Performance measure                     Standard              Result       Status     Commentary
                                                                        YTD
 (L) 2.1.1   The Minister of Labour’s            Ministerial rating                            This will be reported in
             satisfaction with the quality and   as satisfied or                               the fourth quarter.
             timeliness of the Department’s      above
             policy advice.                      determined
                                                 through
                                                 feedback


 2
Ref         Performance measure                 Standard             Result   Status     Commentary
                                                                      YTD
(L) 2.1.2   The policy process and advice       Meet or exceed                           This will be reported in
            is assessed as good quality         good quality                             the fourth quarter.
            through external and internal       standard
            review of specific projects.
(L) 2.1.3   Policy advice is delivered as       Policy work                   On track
            agreed with the Minister of         programme is
            Labour.                             documented and
                                                delivered to
                                                agreed
                                                timeframes

Output 2.2 Monitoring, research and evaluation

Performance framework outputs
 Ref     Performance measure                    Standard             Result   Status     Commentary
                                                                      YTD
(L) 2.2.1   The Minister of Labour is           Ministerial rating                       This will be reported in
            satisfied with the quality of the   as satisfied or                          the fourth quarter.
            Department’s monitoring,            above
            research and evaluation             determined
            outputs.                            through
                                                feedback
(L) 2.2.2   Monitoring, research and            Monitoring,                   On track
            evaluation outputs are              research and
            delivered as agreed with the        evaluation is
            Minister of Labour.                 documented and
                                                delivered to
                                                agreed
                                                timeframes

Output 2.3: Ministerial servicing

Performance framework outputs
 Ref     Performance measure                    Standard             Result   Status     Commentary
                                                                      YTD
(L) 2.3.1   The Minister of Labour is           Ministerial rating                       This will be reported in the
            satisfied with the quality and      as satisfied or                          fourth quarter.
            timeliness of the Department’s      above
            Ministerial Servicing.              determined
                                                through
                                                feedback
(L) 2.3.2   Ministerial Servicing is            Ministerial rating                       This will be reported in
            delivered as agreed with the        as satisfied or                          the fourth quarter.
            Minister of Labour.                 above
                                                determined
                                                through
                                                feedback
(L) 2.3.3   The Department completes all        Ministerial rating                       This will be reported in
            Ministerial correspondence in a     as satisfied or                          the fourth quarter.
            timely manner.                      above
                                                determined
                                                through
                                                feedback



                                                                                                                    3
Ref            Performance measure                     Standard               Result      Status        Commentary
                                                                               YTD
(L) 2.3.4      The National Advisory Council           Rated satisfied                                  This will be reported in
               on the Employment of Women              or above21                                       the fourth quarter.
               (NACEW), the Workplace                                                                   This will be reported in
               Health and Safety Council                                                                the fourth quarter.
               (WHSC) and the Employment
               Relations Education Advisory
               Committee (EREAC) are
               satisfied with the quality of the
               Department's support services.




Financial performance
              Year to date ($000)                                                          Full year ($000)
  Budget       Actual           Variance                                   Budget            Actual         Variance
     6,418             5,460              958              15%               9,315

 This output class was behind budget by $958,000 (15%) largely due to the later than forecast
 commencement of the Labour Group Change Programme which was waiting for PREE decisions to be
 finalised; and the work programme for the new Policy and Research Group being finalised later than
 originally forecast. Staff vacancies have contributed to the variance.

 The full year appropriation has been reduced by $388,000 net in the 2010/11 Supplementary
 Estimates, largely as a consequence of a fiscally neutral transfer to the Services to promote and
 support safe and healthy people and workplaces output class.



Output class 3: Services to promote and support fair and productive employment
                relationships

Output 3.1: Education, engagement and enforcement
Performance framework outputs
Ref             Performance measure                     Standard                  Result        Status         Commentary
                                                                                  YTD
(L) 3.1.1       Level of services and support           20 partnerships            10 Active    On Track       Two new projects
                on partnership programmes               supported                   Projects                   are being scoped
                provided by the Partnership                                                                    and 28 prospects
                Resource Centre.                                                                               are being assessed.
                                                                                                               Some Partnership
                                                                                                               Resource Centre
                                                                                                               resources have
                                                                                                               been reprioritised to
                                                                                                               the Canterbury
                                                                                                               Earthquake
                                                                                                               recovery process,
                                                                                                               and this is a focus
                                                                                                               for some potential
                                                                                                               project parties.
                                                                                                               This may impact on
                                                                                                               delivery of new
                                                                                                               projects.



 2
     Ratings used in satisfaction surveys are: Unsatisfied, Partly Satisfied, Satisfied, Satisfied above Expectations, Very Satisfied.


 4
Ref            Performance measure                     Standard                  Result        Status         Commentary
                                                                                 YTD
(L) 3.1.2      Training provided by the                Eight training            8 Courses     Achieved
               Partnership Resource Centre.            courses                   Delivered
                                                       delivered
(L) 3.1.3      Case studies documented and             Three case               2 External     On Track
               published by the Partnership            studies                   Research
               Resource Centre.                        documented and         case studies
                                                       published                completed

(L) 3.1.4      Level of customer satisfaction          Rated satisfied              84% of     Achieved
               with services and support               or above32             respondents
               provided by the Partnership                                       rated PRC
               Resource Centre.                                               services and
                                                                                support as
                                                                               satisfactory
                                                                                  or above

(L) 3.1.5      The percentage of e-enquiries           95%                           98.8%     On Track
               requiring a substantive
               response that are responded to
               within three working days.
(L) 3.1.6      The abandonment rate of calls           Less than 5%                   7.9%     Not on         Factors contributing
               to the contact centre.                                                          Track          to the high
                                                                                                              abandonment rate
                                                                                                              include: reduced
                                                                                                              staffing levels,
                                                                                                              increased call
                                                                                                              handling time
                                                                                                              attributed to
                                                                                                              increased
                                                                                                              complexity of calls,
                                                                                                              extended hours in
                                                                                                              response to
                                                                                                              Christchurch
                                                                                                              earthquake and
                                                                                                              training for the
                                                                                                              legislative changes
                                                                                                              decreasing the
                                                                                                              number of staff
                                                                                                              available to answer
                                                                                                              call demand. In
                                                                                                              addition, there were
                                                                                                              significant system
                                                                                                              issues in the latter
                                                                                                              period of Q2.
(L) 3.1.7      The percentage of                       90%                             92%     On Track
               investigations into complaints
               regarding breaches of
               regulatory standards of
               employment legislation
               completed within six months of
               receipt.

3
    Ratings used in satisfaction surveys are: Unsatisfied, Partly Satisfied, Satisfied, Satisfied above Expectations, Very Satisfied.




                                                                                                                                  5
 Ref          Performance measure                  Standard                Result        Status       Commentary
                                                                           YTD
 (L) 3.1.8    The percentage of                    95%                           95%     On Track
              investigations of minimum
              wage exemptions completed
              before the previous exemption
              expires.
 (L) 3.1.9    The percentage of customers          80%                                                This will be reported
              who indicated they were                                                                 in the fourth
              satisfied with the overall                                                              quarter.
              quality of service delivery
              received. Satisfaction to be
              measured by the Workplace
              Service Excellence Survey
              (SES) using the Common
              Measurement tool.
 (L) 3.1.10   A report to be provided to the       Report provided                       On Track     The SES survey was
              Minister of Labour summarising       to the Minister of                                 administered to
              key service excellence results.      Labour by June                                     clients in February
                                                   201143                                             2011 and is on
                                                                                                      track against the
                                                                                                      project targets. A
                                                                                                      report summarising
                                                                                                      the key results was
                                                                                                      provided to the
                                                                                                      Labour Group
                                                                                                      Leadership Team in
                                                                                                      April 2011, and will
                                                                                                      be provided to the
                                                                                                      Minister of Labour in
                                                                                                      June 2011.
 (L) 3.1.11   Partnership initiatives with         25 -35                           26   On Track
              small and medium enterprises
              intermediaries by sector to
              improve workplace practices.



Activities
 Ref          Activity                             Forecast range        Result      Status        Commentary
                                                                          YTD
 (L) 3.1.12   Website visits that relate to        1,500,000 –          1,481,811    Above          This measure is 4
              employment relations.                1,900,000                         Forecast       percent above forecast
                                                                                                    at the end of the third
                                                                                                    quarter.

 (L) 3.1.13   Information reach (e.g.              430,000 –              462,789    Within
              electronic newsletters,              530,000                           Forecast
              publications, large forums) to
              small and medium enterprises
              as a result of engaging with
              intermediaries.




 4
  In February 2011, the Minister of Labour approved varying the standard of this performance measure from a `Report is provided to
 the Minister by December 2010’ to a `Report is provided to the Minister by June 2011’.




 6
Ref          Activity                           Forecast range   Result    Status     Commentary
                                                                  YTD
(L) 3.1.14   Calls answered relating to         160,000 –        121,298   Within
             employment relations matters.      190,000                    Forecast
(L) 3.1.15   E-enquiries relating to            5,000 – 7,000      5,442   Within
             employment relations matters                                  Forecast
             that require a substantive
             response.
(L) 3.1.16   Forums, information visits,        1,000 – 1,200      1,574   Above      This measure is above
             workplace assessments to                                      Forecast   forecast because of
             promote good employment                                                  increased work in
             practice.                                                                Auckland in connection
                                                                                      with the Rugby World
                                                                                      Cup, and in the Bay of
                                                                                      Plenty and Napier in
                                                                                      relation to the
                                                                                      Recognised Seasonal
                                                                                      Employment programme.
(L) 3.1.17   Engagements to inform and          100 – 150             56   Below      This measure is below
             promote resolution of                                         Forecast   forecast due to seasonal
             employment problems.                                                     variations, with
                                                                                      decreased workloads in
                                                                                      the Waikato and
                                                                                      Southern regions.
(L) 3.1.18   Investigations into complaints     1,800 – 2,200      1,774   Above      This measure is a
             regarding breaches of                                         Forecast   reactive measure and
             minimum standards of                                                     complaints are higher
             employment legislation.                                                  than anticipated. There is
                                                                                      no provision to take no
                                                                                      further action or limit
                                                                                      response a minimum
                                                                                      standards complaint,
                                                                                      hence all reported
                                                                                      matters are investigated.
(L) 3.1.19   Investigated applications for      1,200 - 1,400        952   Within     This measure is
             minimum wage exemptions.                                      Forecast   anticipated to be within
                                                                                      the 1,200 – 1,400
                                                                                      standard range by the
                                                                                      end of the fourth quarter.

Output 3.2: Mediation of employment relations problems

Performance framework outputs
Ref          Performance measure                Standard         Result    Status      Commentary
                                                                  YTD
(L) 3.2.1    Where a notice of strike, or       100%              100%     On Track
             lockout, in essential industries
             is received, the percentage of
             occurrences where an
             appropriately experienced
             mediator made available within
             two working days.

(L) 3.2.2    The percentage of matters          75%                90%     On Track
             completed through a mediated
             process within expected
             timeframes.


                                                                                                          7
Ref         Performance measure                   Standard              Result       Status         Commentary
                                                                         YTD
(L) 3.2.3   The percentage of recorded            80%                       90%      On Track
            settlements completed within
            10 working days.

(L) 3.2.4   The percentage of requests for        75% - 85%                 80%      On Track
            mediation settled before or at
            mediation.

(L) 3.2.5   The percentage of customers           80%                                               This will be reported in
            satisfied with the services,                                                            the fourth quarter.
            information and tools provided
            by the Department.
            Satisfaction to be measured by
            the Workplace Service
            Excellence Survey using the
            Common Measurement tool.

(L) 3.2.6   A report to be provided to the        Report provided                    On Track        The SES survey was
            Minister of Labour summarising        to the Minister of                                 administered to clients
            key service excellence results.       Labour by June                                     in February 2011 and is
                                                  201154                                             on track against the
                                                                                                     project targets. A
                                                                                                     report summarising the
                                                                                                     key results was
                                                                                                     provided to the Labour
                                                                                                     Group Leadership Team
                                                                                                     in April 2011, and will
                                                                                                     be provided to the
                                                                                                     Minister of Labour in
                                                                                                     June 2011.

(L) 3.2.7   The number of early                   100                          46    Not on         61 percent of the Year
            interventions into employment                                            Track          To Date standard has
            problems that reduce the need                                                           been achieved. This is a
            for higher level problem                                                                new measure and staff
                                                                                                    are adapting to the
            resolution.
                                                                                                    processes needed to
                                                                                                    effectively identify
                                                                                                    opportunities and record
                                                                                                    this activity.

                                                                                                    The impacts of
                                                                                                    legislative change and a
                                                                                                    practice development
                                                                                                    project both link to
                                                                                                    activity that will increase
                                                                                                    the number of early
                                                                                                    interventions. This is
                                                                                                    reflected in the volume
                                                                                                    of successful early
                                                                                                    interventions increasing
                                                                                                    by 49 percent over the
                                                                                                    last quarter. Changes to


5
  In February 2011, the Minister of Labour approved varying the standard of this performance measure from a `Report is provided to
the Minister by December 2010’ to a `Report is provided to the Minister by June 2011’.




8
 Ref          Performance measure              Standard         Result    Status      Commentary
                                                                 YTD
                                                                                      INSITE in April 2011 will
                                                                                      enable tracking of both
                                                                                      successful and
                                                                                      unsuccessful attempts at
                                                                                      early mediator
                                                                                      interventions to provide
                                                                                      a wider context around
                                                                                      this measure.



Activities
 Ref          Activity                         Forecast range   Result    Status     Commentary
                                                                 YTD
 (L) 3.2.8    Mediations completed.            5,500 - 6,500      4,058   Below      98 percent of the YTD
                                                                          Forecast   target has been achieved.
                                                                                     This measure is driven by
                                                                                     external demand. The
                                                                                     related mediation
                                                                                     measures concerning the
                                                                                     timeliness of completing
                                                                                     mediation processes with
                                                                                     given timeframes
                                                                                     (measure 3.2.2) is
                                                                                     currently tracking at 90
                                                                                     percent (target 75%) and
                                                                                     the volume of recorded
                                                                                     settlements (measure
                                                                                     3.2.9) is tracking at 132
                                                                                     percent of the forecasted
                                                                                     target.

 (L) 3.2.9    Recorded settlements             2,800 - 3,400      3,057   Within     The greatest volumes
              completed.                                                  Forecast   over forecast are
                                                                                     attributed to the
                                                                                     Auckland Central and
                                                                                     Christchurch offices.
                                                                                     Anecdotal evidence from
                                                                                     these regions is that an
                                                                                     increasing number of
                                                                                     recorded settlements are
                                                                                     being received as parties
                                                                                     attempt to reduce costs
                                                                                     by resolving these
                                                                                     matters by negotiating
                                                                                     early settlements.

 (L) 3.2.10   Mediation events related to      250 – 350           178    Below      Forecasting demand for
              collective bargaining matters.                              Forecast   this measure has been
                                                                                     difficult, as it is
                                                                                     dependant on the length
                                                                                     of term of collective
                                                                                     agreements and the need
                                                                                     for mediation between
                                                                                     parties when agreements
                                                                                     are renegotiated.




                                                                                                         9
 Ref            Activity                                Forecast range         Result       Status         Commentary
                                                                                YTD
 (L) 3.2.11     Notices of strike, or lockout in        50 - 55                      150    Above          There have been more
                essential industries received.                                              Forecast       notices of strikes than
                                                                                                           forecasted due to a
                                                                                                           substantial increase in
                                                                                                           industrial disputes with
                                                                                                           District Health Boards
                                                                                                           during the first two
                                                                                                           quarters.




Output 3.3: Support services for employment relationship problem investigation and decision
            making

Performance framework outputs
 Ref             Performance measure                    Standard               Result       Status         Commentary
                                                                                YTD
 (L) 3.3.1       The percentage of applications         95%                         99%     On Track
                 made to the Employment
                 Relations Authority for problem
                 resolution receipted and
                 acknowledged within one
                 working day of being received
                 by the Authority.
 (L) 3.3.2       The Chief of the Employment            Rated as                                           This will be reported in
                 Relations Authority is satisfied       satisfied or                                       the fourth quarter.
                 with the quality of the                above65
                 Department’s support services.

Activity
 Ref             Activity                               Forecast range         Result       Status         Commentary
                                                                                YTD
 (L) 3.3.3       Applications for problem               1,800– 2,200               1,678    Within
                 resolution received and                                                    Forecast
                 processed.




Output 3.4: Support services to the Remuneration Authority

Performance framework outputs
 Ref             Performance measure                    Standard               Result       Status         Commentary
                                                                                YTD
 (L) 3.4.1       The Chair of the Remuneration          Rated as                                           This will be reported in
                 Authority is satisfied with the        satisfied or                                       the fourth quarter.
                 quality of the Department’s            above6
                 support services.




 6
     Ratings used in satisfaction surveys are: Unsatisfied, Partly Satisfied, Satisfied, Satisfied above Expectations, Very Satisfied


 10
Activity
 Ref         Activity                          Forecast range     Result      Status     Commentary
                                                                   YTD
 (L) 3.4.2   Determinations produced by        100 – 110                 88   Within     Historic figures show a
             the Remuneration Authority,                                      Forecast   large amount of
             including local authorities and                                             variability in this
             community boards.                                                           measure. This is due to
                                                                                         phasing within the expiry
                                                                                         dates of the agreements
                                                                                         and electoral cycles.

Financial performance
              Year to date ($000)                                             Full year ($000)
  Budget       Actual           Variance                      Budget           Actual          Variance
   18,164         17,178            986          5%             25,122

 This output class was behind budget by $986,000 (5%) largely due to the later than forecast
 commencement of the Labour Group Change Programme pending PREE decisions being finalised, staff
 vacancies and information technology costs running behind budget.

 The full year appropriation has been reduced by $1,051,000 net in the 2010/11 Supplementary
 Estimates.


Output class 4: Services to promote and support safe and healthy people and workplaces

Output 4.1: Education of workplace participants and engagement with society

Performance framework outputs
 Ref         Performance measure               Standard           Result      Status     Commentary
                                                                   YTD
 (L) 4.1.1   The percentage of e-enquiries     95%               99.2%        On Track
             requiring a substantive
             response that are responded to
             within three working days.

 (L) 4.1.2   The abandonment rate of calls     Less than 5%      7.9%         Not on     Factors contributing to
             to the contact centre.                                           Track      the high abandonment
                                                                                         rate include: reduced
                                                                                         staffing levels, increased
                                                                                         call handling time
                                                                                         attributed to increased
                                                                                         complexity of calls,
                                                                                         extended hours in
                                                                                         response to Christchurch
                                                                                         earthquake and training
                                                                                         for the legislative
                                                                                         changes decreasing the
                                                                                         number of staff available
                                                                                         to answer call demand.
                                                                                         In addition, there were
                                                                                         significant system issues
                                                                                         in the latter period of
                                                                                         Q2.




                                                                                                             11
 Ref          Performance measure                  Standard              Result      Status         Commentary
                                                                          YTD
 (L) 4.1.3    The percentage of customers          80%                                              This will be reported in
              who indicated they were                                                               the fourth quarter.
              satisfied with the overall
              quality of services delivery
              received. Satisfaction to be
              measured by the Workplace
              Service Excellence Survey
              using the Common
              Measurement tool.
 (L) 4.1.4    A report to be provided to the       Report provided                   On Track        The SES survey was
              Minister of Labour                   to the Minister of                                administered to clients
              summarising key service              Labour by June                                    in February 2011 and is
              excellence results.                  201176                                            on track against the
                                                                                                     project targets.

Activities
 Ref          Activity                             Forecast range        Result      Status        Commentary
                                                                          YTD
 (L) 4.1.5    Website hits that relate to          500,000 –              367,523    Within
              health and safety.                   600,000                           Forecast

 (L) 4.1.6    Information reach (e.g.              110,000 –              123,023    Within
              electronic newsletters,              130,000                           Forecast
              publications, large forums) to
              small and medium enterprises
              as a result of engaging with
              intermediaries.
 (L) 4.1.7    E-enquiries relating to health       700 – 900                  787    Within
              and safety matters requiring a                                         Forecast
              substantive response.

 (L) 4.1.8    Calls answered relating to           20,000–25,000           16,315    Within
              health and safety matters.                                             Forecast

 (L) 4.1.9    Forums and workplace                 4,000 – 4,500            3,822    Within
              information visits annually                                            Forecast
              provided by the Department to
              promote good health and
              safety practice.
 (L) 4.1.10   Standards developed in               75 – 100                     47   Below          Fewer standards were
              accordance with the standard                                           Forecast       developed than expected
              setting framework.                                                                    during the quarter. This
                                                                                                    was due to reduced
              · Approved codes of practice         15 – 25                       7   Below
                                                                                                    capacity in the specialist
                 and best practice guides                                            Forecast
                                                                                                    staff resource.
                 revised or developed.
              · Hazard alerts and bulletins        55 – 65                      34   Below
                 released.                                                           Forecast

              · Approved codes of practice         5 – 10                        6   Within
                and best practice guides                                             Forecast
                revoked.



 7
   In February 2011, the Minister of Labour approved varying the standard of this performance measure from a `Report is provided to
 the Minister by December 2010’ to a `Report is provided to the Minister by June 2011’.


 12
Output 4.2: Assessment, investigation and enforcement
Performance framework outputs
 Ref       Performance measure        Standard      Result                           Status        Commentary
                                                      YTD
 (L) 4.2.1    The percentage of customers          80%                                             This will be reported in
              satisfied with the services,                                                         the fourth quarter.
              information and tools provided
              by the Department.
              Satisfaction to be measured by
              the Workplace Service
              Excellence Survey using the
              Common Measurement tool.
 (L) 4.2.2    A report to be provided to the       Report provided                   On Track      The SES survey was
              Minister of Labour                   to the Minister of                              administered to clients in
              summarising key service              Labour by June                                  February 2011 and is on
              excellence results.                  201187                                          track against the project
                                                                                                   targets.
 (L) 4.2.3    The percentage of health and         90%                       96%     On Track
              safety investigations
              completed within five months
              of notification of the event.

 (L) 4.2.4    The percentage of workplaces         80%                       95%     On Track
              that, after six months, have
              addressed the compliance or
              enforcement requirements
              identified.

 (L) 4.2.5    The percentage of workplace          70%                       71%     On Track
              assessments targeted at
              industries identified in the
              Workplace Health and Safety
              Strategy Action Plan.


Activities
 Ref          Activity                             Forecast range        Result      Status        Commentary
                                                                          YTD
 (L) 4.2.6    Completed workplace                  5,000 – 5,500            3,625    Below         The level of inspection
              assessments to promote good                                            Forecast      resources available, and
              health and safety practice.                                                          the need to respond to a
                                                                                                   high level of urgent
                                                                                                   work, has caused a
                                                                                                   reduction in proactive
                                                                                                   outputs.

 (L) 4.2.7    Notified incidents and               3,750 – 4,250            2,924    Within
              complaints that following a                                            Forecast
              preliminary enquiry do not
              proceed to an investigation.




 8
  In February 2011, the Minister of Labour approved varying the standard of this performance measure from a `Report is provided to
 the Minister by December 2010’ to a `Report is provided to the Minister by June 2011’.




                                                                                                                         13
Ref           Activity                             Forecast range        Result      Status        Commentary
                                                                          YTD
(L) 4.2.8     Completed investigations of          4,500 – 5,500            3,645    Within
              health and safety incidents and                                        Forecast
              complaints.
Financial performance
              Year to date ($000)                                                   Full year ($000)
  Budget       Actual           Variance                           Budget           Actual           Variance
     28,647        27,024            1,623           6%            39,521

 This output class was behind budget by $1,623,000 (6%) largely due to the later than forecast
 commencement of the Labour Group Change Programme pending PREE decisions being finalised, staff
 vacancies and leave taken during the holiday period, and staff development costs running behind
 forecast.

 The full year appropriation has been increased by $1,452,000 net in the 2010/11 Supplementary
 Estimates, of which $1,200,000 has been allocated for Pike River costs.


Output class 5: Services to promote and support the safe management of hazardous
substances in the workplace and amusement devices

Performance framework outputs
Ref           Performance measure                  Standard              Result      Status        Commentary
                                                                          YTD
(L) 5.1.1     The Environmental Risk               Service quality                                 This will be reported in
              Management Authority’s               and quantity are                                the fourth quarter.
              (ERMA) is satisfied with the         rated as
              quality of the Department’s          satisfied or
              services and the delivery of the
                                                   above
              activities identified within the
              2010/11 Intentions Report
              agreed between the
              Department and the ERMA.

(L) 5.1.2     The percentage of customers          80%                                             This will be reported in
              who indicated they were                                                              the fourth quarter.
              satisfied with the overall
              quality of service delivery
              received. Satisfaction to be
              measured by the Workplace
              Service Excellence Survey
              using the Common
              Measurement Tool.

(L) 5.1.3     A report to be provided to the       Report provided                   On Track      The SES survey was
              Minister of Labour                   to the Minister of                              administered to clients in
              summarizing the key service          Labour by June                                  February 2011 and is on
              excellence results.                  201198                                          track against the project
                                                                                                   targets.
(L) 5.1.4     The percentage of                    90%                       96%     On Track
              investigations in relation to


 9
   In February 2011, the Minister of Labour approved varying the standard of this performance measure from a `Report is provided to
 the Minister by December 2010’ to a `Report is provided to the Minister by June 2011’.




 14
 Ref          Performance measure                Standard           Result        Status     Commentary
                                                                     YTD
              hazardous substances
              completed within five months
              of notification of event.

 (L) 5.1.5    The percentage of workplaces       75%                      85%     On Track
              that, within six months, have
              satisfactorily addressed the
              compliance or enforcement
              requirements identified in
              relation to hazardous
              substances.

 (L) 5.1.6    The percentage of amusement        85% - 95%                90%     On Track
              device certificate registrations
              and re-registrations issued
              within 15 working days
              following receipt.




Activities
 Ref          Activity                           Forecast range     Result        Status     Commentary
                                                                     YTD
 (L) 5.1.7    Completed investigations in        100 – 150                 158    Above
              relation to hazardous                                               Forecast
              substances.
 (L) 5.1.8    Forums and workplace               800 – 1,200              1,024   Within
              information visits provided by                                      Forecast
              the Department to engage,
              inform and promote in relation
              to hazardous substances.
 (L) 5.1.9    Completed workplace                3,500 – 4,000            3,061   Within
              assessments in relation to the                                      Forecast
              safe management of
              hazardous substances.
 (L) 5.1.10   Amusement device certificate       125 – 175                 114    Within
              registrations and re-                                               Forecast
              registrations.

Financial performance
              Year to date ($000)                                                 Full year ($000)
  Budget       Actual           Variance                         Budget            Actual          Variance
   3,929            3,778            151           4%             5,338

 This output class was behind budget by $151,000 (4%) which is not considered to be significant.
 The full year appropriation has been increased by $21,000 net in the 2010/11 Supplementary Estimates.




                                                                                                              15
Appendix 2: Vote Immigration output schedule report
Overall Vote Immigration financial performance
              Year to date ($000)                                              Full year ($000)
 Budget        Actual           Variance                       Budget           Actual          Variance
  155,776        145,823          9,953           6%           215,514

 Vote Immigration was behind budget by $9,953,000 (6%) largely due to lower volumes, savings from
 vacant positions and project delays in the output class Services to increase the capacity of New Zealand
 through Immigration.

 The full year appropriation has been increased by $2,198,000 net in the 2010/11 Supplementary
 Estimates.




Output class 1: Immigration Advisers Authority

Output 1.1: Immigration Advisers Authority

Performance framework outputs
 Ref      Performance measure                   Standard           Result      Status     Commentary
                                                                    YTD
 (I) 1.1.1   New Immigration Adviser            90%                      73%   Not on     The quality of new
             licence applications are                                          Track      applications was lower
             processed within 50 working                                                  than expected, resulting
             days of receiving a full                                                     in longer processing
                                                                                          times. The Minister of
             application.
                                                                                          Immigration has
                                                                                          subsequently approved
                                                                                          an amendment to the
                                                                                          performance measure for
                                                                                          the balance of the current
                                                                                          year.

 (I) 1.1.2   Applications for renewal of        80%                      87%   On Track
             Immigration Adviser licences
             are processed within 40
             working days of receiving a full
             application.
 (I) 1.1.3   Complaint cases closed within      At least 80%         100%      On Track
             six months.
 (I) 1.1.4   The percentage of District         At least 80%         100%      On Track
             Court cases where the
             Immigration Advisers Authority
             is successful.

Activities
 Ref         Activity                           Forecast           Result      Status     Commentary
                                                range               YTD
 (I) 1.1.5   The number of new licence          60 - 120                 154   Above      The volume of new
             applications completed.                                           Forecast   licence applications has
                                                                                          exceeded forecast.




 16
Ref         Activity                            Forecast              Result       Status      Commentary
                                                range                  YTD
(I) 1.1.6   The number of licence renewal       390 – 440                    186   Below       Renewal applications are
            applications completed.                                                Forecast    received from advisers
                                                                                               prior to their current
                                                                                               licence expiring. There is
                                                                                               not an even spread
                                                                                               across the year and not
                                                                                               all advisers renew. 47%
                                                                                               of licence renewals are
                                                                                               expected to be received
                                                                                               in the last quarter of the
                                                                                               year. To date 84 licences
                                                                                               have expired which has
                                                                                               adversely affected the
                                                                                               forecast for renewals.
(I) 1.1.7   The number of complaint             10 - 25                       23   Above       The number of
            cases.                                                                 Forecast    complaints received is
                                                                                               above forecast.

Financial performance
               Year to date ($000)                                                 Full year ($000)
  Budget       Actual            Variance                         Budget            Actual          Variance
   1,947          1,706            241             12%               2,920

 This output class was behind budget by $241,000 (12%) largely due to a deliberate and planned
 reduction in expenditure to minimise the operating deficit in the Immigration Advisers memorandum
 account. The operating deficit in the memorandum account is the result of revenue pressures from a
 smaller than forecast pool of licensed advisers.


Output class 2: Services to increase the capacity of New Zealand through immigration

Output 2.1: Research, design, development and implementation of advice and policy relating to
building the capacity of New Zealand through immigration
Performance framework outputs
 Ref       Performance measure        Standard       Result  Status     Commentary
                                                       YTD
(I) 2.1.1   The Minister of Immigration is      Ministerial rating                              This will be reported in
            satisfied with the quality and      as satisfied or                                 the fourth quarter.
            timeliness of the Department’s      above determined
            policy advice.                      through feedback
(I) 2.1.2   Policy advice is delivered          Policy work                         On Track
            according to the policy work        programme is
            programme and timeframes            documented and
            (and any subsequent                 delivered to
            amendments) as negotiated           timeframes
            between the Minister and the
            Secretary of Labour.
(I) 2.1.3   The policy process and advice       90% rated as                                    This will be reported in
            is assessed as good quality         good quality or                                 the fourth quarter.
            through external and internal       above
            review of specific projects.
(I) 2.1.4   The Minister of Immigration is      Ministerial rating                              This will be reported in
            satisfied with the quality of the   as satisfied or                                 the fourth quarter.
            Department’s monitoring,            above


                                                                                                                   17
Ref         Performance measure               Standard              Result       Status      Commentary
                                                                     YTD
            research and evaluation           determined
            outputs.                          through
                                              feedback
(I) 2.1.5   Monitoring, research and          Work                               On Track
            evaluation outputs are            programme is
            delivered according to the R&E    documented and
            work programme and                delivered to
            timeframes (and any               timeframes
            subsequent amendments) as
            negotiated between the
            Minister of Immigration and
            the Secretary of Labour.
(I) 2.1.6   The content of R&E reports are    Rated as good                                  This will be reported in
            assessed as high quality          quality or above                               the fourth quarter.
            through external and internal
            review of projects.
(I) 2.1.7   The Minister of Immigration is    Ministerial rating                             This will be reported in
            satisfied with the quality and    as satisfied or                                the fourth quarter.
            timeliness of the Department’s    above
            Ministerial Servicing.            determined
                                              through
                                              feedback
(I) 2.1.8   Undertake six-monthly reviews     Two reviews                    2   Achieved
            of the Immediate Skill            completed
            Shortage List and Long Term
            Skill Shortage List.
(I) 2.1.9   Annual Report on ‘Migration       By 30 June 2011      Completed     Achieved
            Trends and Outlook’.                                   January
                                                                   2011

Output 2.2 Migrant customer services

Performance framework outputs
 Ref      Performance measure                 Standard             Result        Status     Commentary
                                                                    YTD
(I) 2.2.1   The percentage of employers       At least 80%             94%       On Track
            satisfied with the overall
            quality of service provided by
            the Department's Relationship
            Managers in recruiting skilled
            migrants.
(I) 2.2.2   The percentage of customers       At least 80%           March       On Track   The trend is moving in
            satisfied that departmental                             quarter                 the right direction.
            staff "did what they said they                         was 76%
            would".
(I) 2.2.3   The quality of immigration visa   By 31 December           Dec       Not        Significant improvements
            and permit decision-making        2010, the             quarter      Achieved   have been made to the
            improves.                         percentage of           6.5%                  quality of decisions made,
                                              audited                                       with 6.5% of decisions
                                              decisions rated                               rated as ‘poor’ at 31
                                              as poor is                                    December 2010
                                              reduced to 3%                                 compared with over 16%
                                              or less                                       the previous year. A
                                                                                            focus on improving the


 18
Ref         Performance measure              Standard          Result    Status     Commentary
                                                                YTD
                                                                                    quality of decisions has
                                                                                    seen ‘good’ decisions
                                                                                    increase from around
                                                                                    35% to 75% over the
                                                                                    same period.
(I) 2.2.4   The number of people             45,000 - 50,000    28,745   Not on     Expected to approve
            approved for residence under                                 Track      40,000 people this year.
            the New Zealand Residence                                               The Christchurch
            Programme.                                                              earthquake has had a
                                                                                    major impact on the
                                                                                    ability to reach target.
                                                                                    Current labour market
                                                                                    conditions (relatively high
                                                                                    unemployment) are
                                                                                    having an impact on the
                                                                                    number of high quality
                                                                                    Skilled Migrant Category
                                                                                    applicants obtaining
                                                                                    suitably skilled offers of
                                                                                    employment.
(I) 2.2.5   The percentage of student        95%                89.1%    Not on     Palmerston North has
            applications that will be                                    Track      improved timeliness for
            decided within 0-60 days.                                               onshore decisions.
                                                                                    Offshore pressures
                                                                                    remain, due to very high
                                                                                    numbers of high risk
                                                                                    applications in the Indian
                                                                                    market. Bangkok
                                                                                    Regional Processing is
                                                                                    assisting with demand,
                                                                                    however it is not
                                                                                    expected that the
                                                                                    standard will be reached
                                                                                    by the end of the year.
(I) 2.2.6   The percentage of visitor        95%                  96%    On Track
            applications that will be
            decided within 0-60 days.
(I) 2.2.7   The percentage of work           90%                89.4%    On Track
            applications that will be
            decided within 0-60 days.
(I) 2.2.8   The percentage of immigration    95%                  99%    On Track
            compliance activities assessed
            as meeting immigration policy.
(I) 2.2.9   The percentage of border         95%                  97%    On Track
            activities assessed as meeting
            immigration policy.




                                                                                                         19
Activities
 Ref          Activity                         Forecast          Result    Status     Commentary
                                               range              YTD
 (I) 2.2.10   The percentage of approved       60 – 80%           83.7%    Above
              Skilled Migrant Category                                     Forecast
              principal applicants who will
              have a job or job offer.




 (I) 2.2.11   The number of Skilled Migrant    13,000 – 14,000     8,022   Below      Decision numbers this
              Category decisions made.                                     Forecast   year have been impacted
                                                                                      by the Christchurch
                                                                                      earthquake and the
                                                                                      current labour market
                                                                                      generally. Christchurch
                                                                                      branch has commenced
                                                                                      the work of confirming
                                                                                      whether job offers are
                                                                                      still valid before finalising
                                                                                      the grant of residence.
                                                                                      The current labour
                                                                                      market is making it more
                                                                                      difficult for highly skilled
                                                                                      to find employment and
                                                                                      this makes SMC decision
                                                                                      making more difficult.
                                                                                      While a higher level of
                                                                                      decisions is expected
                                                                                      throughout the remainder
                                                                                      of the year, particularly
                                                                                      from the Auckland region,
                                                                                      the original range of
                                                                                      decisions will not be met
                                                                                      this year.

 (I) 2.2.12   Samoan Quota and Pacific Access category
              The number of applications       SQ 1,000 –        SQ: 575   Below      Applications are tracking
              approved under the 2010          1,200                PAC:   Forecast   behind numbers received
              quotas for the Samoan Quota      PAC 400 – 500         254              last year and reflect the
              and Pacific Access.                                                     increased difficulty in
                                                                                      obtaining job offers in the
                                                                                      current labour market
                                                                                      environment. Unlikely to
                                                                                      fill these quotas this year.
 (I) 2.2.13   The number of student visa       110,000 -          80,758   Within
              and permit decisions made.       120,000                     Forecast
              The number of visitor visa and   180,000 -         130,539   Within
              permit decisions made.           190,000                     Forecast
              The number of work visa and      180,000 -         133,147   Within
              permit decisions made.           190,000                     Forecast




 (I) 2.2.14   Immigration System Integrity – Compliance



 20
Ref          Activity                         Forecast        Result    Status     Commentary
                                              range            YTD
             The number of people who will    1,800 - 2,000     1,538   Within
             be removed, deported, depart                               Forecast
             voluntarily, be referred to a
             branch to apply for a Section
             35A permit, or be granted a
             special direction or Ministerial
             direction.
             The number of visits to          200 – 300          278    Within
             employers to encourage                                     Forecast
             compliance with the
             Immigration Act.
             The number of visits to          200 – 300          255    Within
             educational institutions to                                Forecast
             encourage compliance with the
             Immigration Act.
(I) 2.2.15   Recognised Seasonal Employer (RSE)
             The number of RSE visa and       6,500 – 7,000     4,423   Within
             permit applications decided.                               Forecast
             The number of RSE compliance 90 – 110                29    Below      Tracking behind expected
             visits to employers.                                       Forecast   activity levels due to
             The number of RSE compliance 140 – 160               76    Below      seasonal fluctuations. As
             audits to employers.                                       Forecast   we enter the busier
                                                                                   growing and harvest
                                                                                   seasons these are
                                                                                   expected to increase.
             The number of RSE compliance     100 – 120          114    Within
             educational visits to                                      Forecast
             employers.

Output 2.3: Settlement services

Performance framework outputs
 Ref      Performance measure                 Standard        Result    Status     Commentary
                                                               YTD
(I) 2.3.1    The percentage of stakeholder    80%               99%     On Track
             requests for settlement
             information and access to
             mainstream services that are
             addressed.
(I) 2.3.2    The percentage of identified     75%               82%     On Track
             migrant settlement information
             issues that are addressed.




                                                                                                      21
Output 2.4: Support services for the Minister, Residence Review Board and Removal Review
Authority
Performance framework outputs
 Ref        Performance measure       Standard         Result Status    Commentary
                                                        YTD
 (I) 2.4.1   The Associate Minister of       Ministerial rating                        This will be reported in
             Immigration is satisfied with   as satisfied or                           the fourth quarter.
             the quality and timeliness of   above
             Ministerial appeals.            determined
                                             through
                                             feedback
 (I) 2.4.2   The Removal Review              Standard: Rated                           This measure is not
             Authority (RRA) members are     as satisfied or                           reported as the RRA was
             satisfied with the quality of   above                                     disestablished from 29
             the Department’s secretarial                                              November 2010, replaced
             services.                                                                 by the Immigration and
                                                                                       Protection Tribunal
                                                                                       administered by the
                                                                                       Ministry of Justice.
 (I) 2.4.3   The Residence Review Board      Standard: Rated                           This measure is not
             (RRB) members are satisfied     as satisfied or                           reported as the RRB was
             with the quality of the         above                                     disestablished from 29
             Department’s secretarial                                                  November 2010, replaced
             services.                                                                 by the Immigration and
                                                                                       Protection Tribunal
                                                                                       administered by the
                                                                                       Ministry of Justice.
Activities
 Ref         Activity                        Forecast             Result    Status     Commentary
                                             range                 YTD
 (I) 2.4.4   The number of Ministerial       1,800 – 2,000          1,157   Within
             appeals completed.                                             Forecast
 (I) 2.4.5   The number of Removal           250 - 300                                 This activity is not
             Review Authority appeals                                                  reported as the RRA was
             finalised.
                                                                                       disestablished from 29
                                                                                       November 2010, replaced
                                                                                       by the Immigration and
                                                                                       Protection Tribunal
                                                                                       administered by the
                                                                                       Ministry of Justice.
 (I) 2.4.6   The number of Residence         350 - 380                                 This activity is not
             Review Board appeals                                                      reported as the RRB was
             finalised.
                                                                                       disestablished from 29
                                                                                       November 2010, replaced
                                                                                       by the Immigration and
                                                                                       Protection Tribunal
                                                                                       administered by the
                                                                                       Ministry of Justice.




 22
Financial performance
              Year to date ($000)                                    Full year ($000)
  Budget       Actual           Variance               Budget         Actual          Variance
  141,793      132,869        8,924         6%          196,248

 This output class was behind budget by $8,924,000 (6%) which reflects lower volumes, savings from
 vacant positions, project delays, and spending on the Immigration Act review implementation taking
 place later than budgeted.

 The full year appropriation has been increased by $2,738,000 net in the 2010/11 Supplementary
 Estimates, largely due to in-principle expenditure transfers from 2009/10 into 2010/11 being confirmed
 in the 2010 October Baseline Update process; and fiscally neutral transfers of appropriation from the
 Ministry of Foreign Affairs and Trade.




                                                                                                  23
Output class 3: Services to position New Zealand as an international citizen with
immigration-related interests and obligations

Output 3.1: Research, advice and implementation of policy relating to positioning New Zealand as
an international citizen

Performance framework outputs
 Ref      Performance measure                   Standard             Result   Status     Commentary
                                                                      YTD
(I) 3.1.1   The Minister of Immigration is      Ministerial rating                       This will be reported in
            satisfied with the quality and      as satisfied or                          the fourth quarter.
            timeliness of the Department’s      above
            policy advice.                      determined
                                                through
                                                feedback
(I) 3.1.2   Policy advice is delivered          Policy work                   On Track
            according to the policy work        programme is
            programme and timeframes            documented and
            (and any subsequent                 delivered to
            amendments) as negotiated           timeframes
            between the Minister and the
            Secretary of Labour.
(I) 3.1.3   The policy process and advice       90% rated as                             This will be reported in
            is assessed as good quality         good quality or                          the fourth quarter.
            through external and internal       above
            review of specific projects.
(I) 3.1.4   The Minister of Immigration is      Ministerial rating                       This will be reported in
            satisfied with the quality of the   as satisfied or                          the fourth quarter.
            Department’s monitoring,            above
            research and evaluation             determined
            outputs.                            through
                                                feedback
(I) 3.1.5   Monitoring, research and            Work                          On Track
            evaluation outputs are              programme is
            delivered according to the          documented and
            research and evaluation work        delivered to
            programme and timeframes            agreed
            (and any subsequent                 timeframes
            amendments) as negotiated
            between the Minister and the
            Secretary of Labour.
(I) 3.1.6   The content of research and         Rated as good                            This will be reported in
            evaluation reports are              quality or above                         the fourth quarter.
            assessed as good quality
            through external and internal
            review of projects.
(I) 3.1.7   Deliver on research outputs         Research work                 On Track
            from the Quota 10 Years On          programme is
            Research Programme.                 delivered to
                                                timeframes and
                                                report(s) have
                                                been published
                                                from the study




 24
Output 3.2: Refugee customer services

Performance framework outputs
 Ref      Performance measure                  Standard         Result     Status     Commentary
                                                                 YTD
(I) 3.2.1   The United Nations High            Standards met                          This will be reported in
            Commissioner for Refugees                                                 the fourth quarter.
            (UNHCR) confirms that
            international standards relating
            to the processing, assessment
            and detention procedures for
            refugee status claimants and
            UNHCR mandated refugees
            have been met.
(I) 3.2.2   The annual quota of UNHCR          675 - 825       468         Not on     The Christchurch
            mandated refugees who travel                                   Track      earthquake in February
            to New Zealand and undertake                                              disrupted the quota
            an initial orientation                                                    refugee intakes for the
            programme.                                                                remainder of this
                                                                                      financial year due to
                                                                                      the reprioritisation of
                                                                                      Housing New Zealand
                                                                                      Corporation's
                                                                                      accommodation to
                                                                                      meet Christchurch
                                                                                      needs. The quota for
                                                                                      the year is now
                                                                                      expected to total 525
                                                                                      with a small intake of
                                                                                      up to 75 expected in
                                                                                      May 2011. This group
                                                                                      will be resettled in
                                                                                      private housing. Not
                                                                                      expected to reach
                                                                                      standard by end of the
                                                                                      year.
(I) 3.2.3   The percentage of the annual       50%             79%         On Track
            refugee quota who successfully
            complete initial refugee
            resettlement programmes and
            transition to mainstream
            services.
(I) 3.2.4   Quota refugees receive             Standards met               Achieved   The report from
            resettlement support from                                                 Refugee Services was
            Refugee Services for a period                                             completed in
            of 12 months and are resettled                                            December 2010.
            in local communities.
(I) 3.2.5   The percentage of identified       75%                                    This will be reported in
            refugee resettlement issues                                               the fourth quarter.
            that are addressed.
(I) 3.2.6   The percentage of stakeholders     75%                                    This will be reported in
            satisfied with the National                                               the fourth quarter.
            Refugee Resettlement Forum.
(I) 3.2.7   The average age of undecided       20 weeks         15 weeks   On Track
            asylum seeker claims for           maximum
            refugee status.


                                                                                                        25
 Ref          Performance measure                 Standard            Result       Status       Commentary
                                                                       YTD
 (I) 3.2.8    Asylum seeker claims for            No complaints to          No     On Track
              refugee status are decided in a     the Ombudsman      complaints
              fair manner.                        are upheld

Activities
 Ref          Activity                            Forecast           Result       Status      Commentary
                                                  range               YTD
 (I) 3.2.9    The number of new asylum            250 - 300              195      Within
              seeker claims for refugee                                           Forecast
              status, including subsequent
              claims, determined.
 (I) 3.2.10   The number of failed asylum         125 -175                 96     Within
              seeker refugee claimants who                                        Forecast
              are removed or depart
              voluntarily.

Output 3.3: Support services for the Refugee Status Appeals Authority

Performance framework outputs
 Ref      Performance measure                     Standard           Result       Status      Commentary
                                                                      YTD
 (I) 3.3.1    The Refugee Status Appeals          Rated as                                    This measure is not
              Authority (RSAA) members are        satisfied or                                reported as the RSAA
              satisfied with the quality of the   better                                      was disestablished from
              Department’s secretarial                                                        29 November 2010,
              services.                                                                       replaced by the
                                                                                              Immigration and
                                                                                              Protection Tribunal
                                                                                              administered by the
                                                                                              Ministry of Justice.



Activity
 Ref          Activity                            Forecast           Result       Status      Commentary
                                                  range               YTD
 (I) 3.3.2    The number of refugee status        130 – 150                                   This activity is not
              appeals and cancellations                                                       reported as the RSAA
              finalised.                                                                      was disestablished from
                                                                                              29 November 2010,
                                                                                              replaced by the
                                                                                              Immigration and
                                                                                              Protection Tribunal
                                                                                              administered by the
                                                                                              Ministry of Justice.




 26
Financial performance
               Year to date ($000)                                  Full year ($000)
  Budget       Actual            Variance              Budget        Actual          Variance
  12,036        11,248        788           6%          16,346

 This output class was behind budget by $789,000 (6%) largely due to the phasing of refugee overseas
 travel expenditure, and because planned outsourced settlement services work commenced later than
 originally forecast. The March 2011 refugee intake was cancelled.

 The full year appropriation has been reduced by $553,000 net in the 2010/11 Supplementary Estimates,
 largely through a fiscally neutral transfer to the Ministry of Justice for the Immigration Protection
 Tribunal.




                                                                                                27
Appendix 3: Vote Employment output schedule report
Overall Vote Employment financial performance
              Year to date ($000)                                                  Full year ($000)
 Budget        Actual           Variance                             Budget         Actual          Variance
      9,710         8,268            1,442            15%               14,209

 Vote Employment was behind budget by $1.442 million (15%). This is due to the reduction in staff and
 associated salary costs as a result of the PREE review and the establishment of the Policy and Research
 Groups. During the PREE process, there were also a number of vacancies which were unable to be filled.
 Work is going on to fill the vacancies so that an underspend in relation to staff does not remain a feature
 of the Vote. Some policy projects were also delayed in the PREE process. Work is now ongoing on a
 policy work programme agreed with the Minister in February 2011.


 The full year appropriation has been reduced by $10,000 net in the 2010/11 Supplementary Estimates.




Output class 1: Labour market analysis and knowledge

Output 1.1: Collection and analysis of labour market information

Performance framework outputs
 Ref      Performance measure                      Standard               Result   Status     Commentary
                                                                           YTD
(E) 1.1.1     Stakeholders are satisfied with      Maintain or                                This will be reported in
              the timeliness and quality of:       improve                                    the fourth quarter.
              ·   labour market reports            satisfaction level
              ·   analysis tools                   compared to the
              ·   seminars                         previous year1012
              ·   analysis advice
              ·   relationships with the
                  Department.
(E) 1.1.2     Labour market reports and            Ministerial rating                         This will be reported in
              tools are fit for purpose for the    as satisfied or                            the fourth quarter.
              Minister for Social                  above
              Development and                      determined
              Employment.                          through
                                                   feedback
(E) 1.1.3     Labour market reports and            Maintain or                                This will be reported in
              tools are fit for purpose for        improve                                    the fourth quarter
              stakeholders.                        satisfaction level
                                                   compared to the
                                                   previous year10
(E) 1.1.4     Labour market reports and            Reports and                     On Track
              tools are delivered on time to       tools are
              the Minister for Social              delivered to
              Development and Employment           agreed
              and relevant Stakeholders.           timeframes




 10
   Satisfaction to be measured by the Annual Stakeholder Satisfaction Survey.


 28
Activities
 Report/           Activity                          Forecast date          Result      Status     Commentary
 Tool                                                                        YTD
 Monthly           Report completed.                 4th week of each               9   Within
 External                                            month                              Forecast
 Migration
 Quarterly         Report completed.                 Early February,                3   Within
 Employment                                          May, August,                       Forecast
 and Unem-                                           and November
 ployment
 Quarterly         Report completed.                 Early February,                3   Within
 Wage                                                May, August,                       Forecast
 Growth                                              and November

Biennial           Report completed.                 June and                       1   Within     Skills Challenges Report
Skills in                                            December                           Forecast   completed and published
Labour                                                                                             Superseded by Quarterly
Market                                                                                             Employment
                                                                                                   Opportunities Report
Quarterly          Report completed.                 Early February,                3   Within
Preview of                                           May, August,                       Forecast
the                                                  and November
Household
Labour Force
Survey
Biennial           Report completed.                 May and                        0   Below      National monitoring
National                                             November                           Forecast   reports on Maori and
Monitoring                                                                                         Youth were prepared last
Programme                                                                                          year
Quarterly          Report completed.                 September,                     3   Within
State of the                                         December,                          forecast
Labour                                               March and June
Market
Quarterly          Report Completed                  September,                     3   Within
Employment                                           January, April                     Forecast
Opportunities
Report
Monthly Jobs       Report completed.                 3rd week of each               9   Within
Online                                               month                              Forecast



Output 1.2: Labour market development

Performance framework outputs
 Ref      Performance measure                        Standard              Result       Status     Commentary
                                                                            YTD
(E) 1.2.1       Stakeholders are satisfied with      Maintain or                                   This will be reported in
                the quality of the advice and        improve                                       the fourth quarter.
                support provided by the              satisfaction level
                Department.                          compared to the
                                                     previous
                                                     year1113

 11
      Satisfaction to be measured by the Annual Stakeholder Satisfaction Survey.




                                                                                                                        29
Ref         Performance measure                 Standard              Result   Status     Commentary
                                                                       YTD
(E) 1.2.2   Stakeholders of identified          Stakeholders                              This will be reported in
            priority sectors are satisfied      rating as                                 the fourth quarter.
            with the quality of advice and      satisfactory or
            support given by the                above
            Department for developing           determined
            their Skills Action Plans.          through
                                                feedback or
                                                annual
                                                stakeholder
                                                survey11
(E) 1.2.3   The Minister for Social             Ministerial rating                        This will be reported in
            Development and Employment          as satisfied or                           the fourth quarter.
            is satisfied with the               above
            Department’s advice on the          determined
            labour market.                      through
                                                feedback

Financial performance
               Year to date ($000)                                             Full year ($000)
  Budget       Actual            Variance                            Budget     Actual          Variance
   6,086          5,448            638             10%                8,620

 This output class was behind budget by $638,000 (10%) largely due to vacancies and expenditure on
 professional services being delayed.




Output class 2: Policy, research and evaluation

Output 2.1: Labour market, employment and skills policy advice

Performance framework outputs
 Ref      Performance measure                   Standard              Result   Status     Commentary
                                                                       YTD
(E) 2.1.1   Policy advice is delivered as       Policy work                    On Track
            agreed with the Minister for        programme is
            Social Development and              documented and
            Employment.                         delivered to
                                                agreed
                                                timeframes
(E) 2.1.2   The Minister for Social             Ministerial rating                        This will be reported in
            Development and Employment          as satisfied or                           the fourth quarter.
            is satisfied with the quality and   above
            timeliness of the Department’s      determined
            policy advice.                      through
                                                feedback
(E) 2.1.3   The policy process and advice       90% rated as                              This will be reported in
            is assessed as good quality         good quality or                           the fourth quarter.
            through external and internal       above
            review of projects.
(E) 2.1.4   Stakeholders are satisfied with     Findings are fit                          This will be reported in
            quality and timeliness of           for purpose and                           the fourth quarter.
            labour market, skills and           audience are



 30
Ref             Performance measure                  Standard              Result   Status     Commentary
                                                                            YTD
                employment research reports.         provided with
                                                     information in
                                                     time to influence
                                                     decision-making
(E) 2.1.5       The Minister for Social              Ministerial rating                        This will be reported in
                Development and Employment           as satisfied or                           the fourth quarter.
                is satisfied with the quality of     above
                the Department’s monitoring,         determined
                research and evaluation              through
                outputs.                             feedback
(E) 2.1.6       Monitoring and evaluation            Work                           On Track
                outputs are delivered                programme is
                according to a research and          documented and
                evaluation work programme            delivered to
                and timeframes.                      agreed
                                                     timeframes
(E) 2.1.7       Research and evaluation              Rated as good                             This will be reported in
                reports are assessed as good         quality or above                          the fourth quarter.
                quality through external and
                internal review of projects.
(E) 2.1.8       Undertake research to create         Work                           Achieved
                an evidence base in future           programme is
                labour market issues as per          documented and
                the Workforce 2020 Work              delivered to
                Programme.                           agreed
                                                     timeframes
(E) 2.1.9       Stakeholders are satisfied with      Research                       On Track
                the quality and timeliness of        reports are
                                                     produced as per
                the research reports.
                                                     the schedule in
                                                     the Business
                                                     Plan1214
(E) 2.1.10      The Minister for Social              Ministerial rating                        This will be reported in
                Development and Employment           as satisfied or                           the fourth quarter.
                is satisfied with the quality and    above
                timeliness of the Department’s       determined
                Ministerial Servicing.               through
                                                     feedback



Financial performance
              Year to date ($000)                                                   Full year ($000)
  Budget       Actual           Variance                               Budget        Actual          Variance
      3,624            2,820            804             22%               5,589

 This output class was behind budget by $804,000 (22%) largely due to expenditure in employment skills
 and policy work having been delayed.




 12
      Satisfaction to be measured by the Annual Stakeholder Satisfaction Survey.




                                                                                                                    31
Appendix 4: Vote ACC output schedule report

Overall Vote ACC financial performance
              Year to date ($000)                                                           Full year ($000)
 Budget        Actual            Variance                                 Budget             Actual          Variance
      3,401            3,064              337              10%              4,858

Vote ACC was behind budget by $337,000 (10%) largely due to timing around filling contract roles. This
Vote is expected to be on budget by year-end.

The full year appropriation has been increased by $2,000 net in the 2010/11 Supplementary Estimates.




Output class 1: Policy and monitoring

Output 1.1: Policy advice

Performance framework outputs
 Ref      Performance measure                          Standard                Result       Status          Commentary
                                                                                YTD
 (A) 1.1.1       The Minister for ACC is               Ministerial rating                                   This will be reported in
                 satisfied with the quality and        as satisfied or                                      the fourth quarter.
                 timeliness of the Department’s        above
                 policy advice.                        determined
                                                       through
                                                       feedback131

 (A) 1.1.2       The policy process and advice         Meet or exceed                                       This will be reported in
                 is assessed as good quality           good quality                                         the fourth quarter.
                 through external and internal         standard
                 review of specific projects.

 (A) 1.1.3       Policy advice is delivered as         Policy work                          On Track
                 agreed with the Minister for          programme is
                 ACC.                                  documented and
                                                       delivered to
                                                       agreed
                                                       timeframes

 (A) 1.1.4       Ministerial advisory groups are       Ministerial                          Not             No Ministerial Advisory
                 satisfied with the quality of the     advisory groups’                     Applicable      groups exist.
                 Department’s administrative           rating as
                 support.                              satisfied or
                                                       above
                                                       determined
                                                       through
                                                       feedback




 13
      Ratings used in satisfaction surveys are: Unsatisfied, Partly Satisfied, Satisfied, Satisfied Above Expectations, and Very Satisfied




 32
Output 1.2: Monitoring

Performance framework outputs
 Ref      Performance measure                 Standard             Result   Status     Commentary
                                                                    YTD
(A) 1.2.1   The Minister for ACC is           Ministerial rating                       This will be reported in
            satisfied with the quality and    as satisfied or                          the fourth quarter.
            timeliness of the Department’s    above
            monitoring advice.                determined
                                              through
                                              feedback
(A) 1.2.2   Monitoring advice will be         Monitoring                    On Track
            delivered as agreed with the      advice work
            Minister for ACC.                 programme is
                                              documented and
                                              delivered to
                                              agreed
                                              timeframes
(A) 1.2.3   ACC Board appointments and        Managed in                    Achieved   Cabinet decision CAB Min
            appointments to any other         accordance with                          (11) 14-1A of 4 April
            advisory groups are managed       Cabinet and SSC                          2011
            in accordance with Cabinet        requirements
            and SSC requirements.

Output 1.3: Ministerial servicing

Performance framework outputs
 Ref      Performance measure                 Standard             Result   Status     Commentary
                                                                    YTD
(A) 1.3.1   The Minister for ACC is           Ministerial rating                       This will be reported in
            satisfied with the quality and    as satisfied or                          the fourth quarter.
            timeliness of the Department’s    above
            Ministerial Servicing.            determined
                                              through
                                              feedback
(A) 1.3.2   Ministerial Servicing is          Ministerial rating                       This will be reported in
            delivered as agreed with the      as satisfied or                          the fourth quarter.
            Minister for ACC.                 above
                                              determined
                                              through
                                              feedback
(A) 1.3.3   The Department completes all      Ministerial rating                       This will be reported in
            Ministerial correspondence in a   as satisfied or                          the fourth quarter.
            timely manner.                    above
                                              determined
                                              through
                                              feedback




                                                                                                            33
Financial performance
              Year to date ($000)                                      Full year ($000)
  Budget       Actual           Variance                    Budget      Actual          Variance
   3,284        2,948        336       10%                   4,694

 This output class was behind budget by $336,000 (10%) largely due to timing around filling contract
 roles.

 Government decisions on the public consultation process regarding choice and extending the Accredited
 Employers Programme have been delayed. This has resulted in some downstream delays in filling
 vacancies and contract roles.




Output class 2: Regulatory services

Output 2.1: Accident Insurance Regulator

Performance framework outputs
 Ref      Performance measure            Standard             Result   Status     Commentary
                                                               YTD
(A) 2.1.1   The Accident Insurance       Within five days              On Track   Subject to Audit NZ
            Regulator will respond to    of receipt,                              annual auditing
            complaints and enquiries     including                                processes; initial meeting
            according to timeliness      responding                               has been held with Audit
            standards.                   within five days                         NZ and nothing of
                                         of receipt to                            concern to report.
                                         notices of
                                         insurers failing
                                         to comply with
                                         their obligation
                                         under the 1998
                                         Act

Financial performance
              Year to date ($000)                                      Full year ($000)
  Budget       Actual           Variance                    Budget      Actual          Variance
      117         116             1         0%               164

 This output class was behind budget by $1,000 (0%) which is a minor variance.




 34
Quarterly Performance Report
for the quarter ending 31 December 2010




               Vision:




                                     1
Contents
Executive summary ............................................ 3
A     Our outcome contribution .............................. 5
B     Output performance.....................................14
C     Financial performance .................................19
D     Response to external events ........................ 21
E     Maintaining and developing capability ........... 22


Appendices - Vote Output Schedule Reports
    · Vote Labour
    · Vote Immigration
    · Vote Employment
    · Vote ACC




                                                                   2
Executive summary
The Department has continued to deliver on                      obtain a safety audit from an accredited
Ministerial priorities and maintain service                     provider, and to become registered
                                                                before being qualified to provide defined
standards.       This was achieved while
                                                                types of adventure activities. Cabinet
responding     to    the  September    2010                     also agreed to provide funding for the
Canterbury earthquake and the Pike Rive Coal                    Tourism    Industry    Association   New
Mine tragedy.                                                   Zealand and Outdoors New Zealand, to
                                                                coordinate and work with other sector
                                                                and government bodies to strengthen
Our outcome contribution                                        the sector as a whole.
A more effective immigration system                        ·    The Skills Challenges Report: New
                                                                Zealand’s skill challenges over the next
·       The Immigration Act went live on 29
                                                                ten years was published on the
        November 2010.      This is an important
                                                                Department’s website in January 2011.
        step towards New Zealand having the best
                                                                The report provides advice on New
        possible   immigration     systems    and
                                                                Zealand’s skills challenges, and      to
        improved delivery of immigration services.
                                                                broader cross-agency government policy
·       Improvement        to   core     immigration            analysis and advice.
        processes included the elimination of cash
                                                           ·    To     promote    higher    productivity,
        from all onshore and five onshore
                                                                innovation,   and    workplace   quality
        branches, reducing risks to the business
                                                                improvement,     the   Department      is
        associated with cash handling, and
                                                                working with over 25 employers
        increasing time for other visa processing
                                                                including the new Auckland Council,
        related activities. Agreements were made
                                                                KiwiRail, NorthPower, Menzies Aviation,
        with six online partners to smooth future
                                                                and the Auckland District Health Boards
        workflow for student visas. Centralising
                                                                (DHB). Interest in this work remains
        residence     applications    handled     by
                                                                strong.
        immigration advisers through one branch
        will improve the efficiency of this process.
                                                       More people in quality work
·       The initial review of the proposed
        replacement of the Immigration Global          ·       The four-step safety campaign, aimed to
        Management        System     (IGMS)  was               reduce the unacceptably high rate of farm
        completed in October 2010 without                      accidents involving quad bikes, was
        significant issues being identified.                   launched in November 2010.             The
·       A proposed strategy which will allow for               construction falls from height project has
        sustainable funding of Immigration New                 identified root causes of falls and
        Zealand in the future was completed and                recommended           interventions     for
        provided to the Minister of Immigration.               implementation in early 2011.
                                                       ·       The quarterly report on Likely Areas of
    More productive workplaces and                             Growth in Employment Opportunities was
                                                               provided to the Minister for Social
    sectors
                                                               Development and Employment on 5
    ·    The Holidays Act and Employment                       October 2010.       This report provides
         Relations    Act    Review    legislation             succinct and timely information that
         successfully    passed    through      all            identifies potential areas (regions) and
         Parliamentary stages. The majority of                 their occupational opportunities as New
         changes will come into effect on 1 April              Zealand recovers from recession.
         2011 and implementation planning is
                                                       ·       The Department provided advice on the
         well underway.
                                                               Business of Ageing Report: Realising the
    ·    Cabinet agreed to make regulations                    economic potential of older people in New
         requiring adventure tourism operators to              Zealand: 2011-2051.      The report has


                                                                                                        3
    identified ways to attract older workers to    Output performance
    stay in work so that they will increase
    their economic contribution.                   ·   Of the 70 Output Plan performance
                                                       measures reported on this quarter, 2
                                                       (3%) were `Achieved’, 59 (84%) were
A better performing accident                           rated as ‘On track’, 7 (10%) ‘Not on
compensation system                                    track’, and 2 (3%)`Not applicable’.
                                                       Remedial work to address the not on track
·   The Department provided significant
                                                       performance     measures      is   being
    policy advice that culminated in:
                                                       undertaken by the Department.
    §   The announcement made by the
        Minister for ACC in December 2010          ·   The not on track performance measures
        that there will be no increase in              were:
        workplace, motor vehicle or earner             §   Two      Vote    Labour’s   performance
        levies for 2011; and the decision to               measures related to abandonment rate
        introduce experience rating to levies in           of calls to the contact centre
        the Work Account .
                                                       §   Four Vote Immigration’s performance
    §   The decisions to extend the Accredited             measures that relate to Immigration
        Employers’ Programme (AEP) and to                  Adviser      licence     applications,
        introduce choice in the Work Account               customers’ satisfaction, approval of
        in principle were also announced.                  residence programme, and timeliness
    §   The decision to support greater                    of student applications
        independence of the dispute resolution         §   One Vote ACC performance measure
        system used when there are disputes                that relates to the ACC Board
        between ACC and claimants was                      appointment process.
        announced in December 2010.

                                                   Financial performance
                                                   ·   The Department was $8.598 million (6%)
                                                       below forecast against the budget in the
                                                       Main Estimates.
                                                   ·   Vote Labour was behind budget by
                                                       $1,991,000 (5%), Vote Immigration was
                                                       behind budget by $5,934,000 (6%), and
                                                       Vote Employment was behind budget by
                                                       $650,000 (12%)
                                                   ·   The variances were mainly due to projects
                                                       delays and staff vacancies.




                                                                                                4
    A       Our outcome contribution
A more effective immigration system

    Immediate Outcomes
    §   The delivery of immigration services is improved.
    §   Facilitation of entry for migrants, international students and tourists is improved.
    §   Settlement of migrants is improved.
    §   The integrity of New Zealand’s immigration system is maintained.
    §   New Zealand’s international reputation is maintained.
    Vote contributing: Vote Immigration

1.1       A long-term immigration                       with a view to reporting back to the Minister of
          strategy that supports sustained              Immigration in April 2011.
          economic growth (MP–VI)*                      Business process and diagnostics design
The strategic direction for immigration, which          (BPDD)- Phase 3
was approved by the Cabinet in September                The Business Process Diagnostic and Design
2010,    contains    focus    areas  for    policy      project has been looking at areas across the
formulation over the next five years.         The       immigration business with the aim of improving
ongoing policy reviews of business policies and         business process efficiency and effectiveness.
the Capped Family stream are being informed             Over the three months, the project has:
by the strategic direction for immigration.
                                                        ·   Eliminated cash from all onshore and five
                                                            onshore branches, reducing risks to the
1.2       Improved Immigration New                          business associated with cash handling and
          Zealand systems and delivery of                   increasing time for other visa processing
          services (MP–VI)                                  related activities.
Implementing the Immigration Act 2009                   ·   Agreed Memoranda of Understanding with
                                                            six new student online partners which will
The Immigration Act went live on 29 November                smooth future workflows for student visa
2010.       The implementation of the Act                   processing.
represents the culmination of a significant
amount of work by the Department over the               ·   Agreed that from February 2011, all
last four years.                                            residence    applications  handled    by
                                                            Immigration Advisers will be processed
Work is underway on the implementation of                   through   one    dedicated  INZ   branch
Interim Visas that started in February 2011.                (Henderson).
The Interim Visa Immigration Instructions were          Immigration global management system
signed off by the Minister of Immigration, and          (IGMS)
the design and development of Interim Visa
training materials begun.                               A briefing paper on the proposed replacement
                                                        of the Immigration Information Technology
In December 2010, the Minister of Immigration           system was sent to the Minister of Immigration
was advised about the work that has started             on 13 October 2010.
on scoping the implementation     requirements
for the new powers of detention and entry and           The    Project    Initiation  Document   was
search. The Immigration Act Implementation              unconditionally signed off in December 2010.
Project team is working with Intelligence Risk          The completion of the IGMS communications
and Integrity Division, Legal Services Division         strategy is underway.
and Human Resources Division to ascertain
                                                        The initial Baseline Health Check review of
what the business needs and objectives are,
                                                        IGMS by Independent Quality Assurance New
                                                        Zealand was completed in October 2010 with a
                                                        favourable outcome, and without significant
*
                                                        issues identified.
    MP – VI: Ministerial Priority – Vote Immigration


                                                                                                    5
A Government Stakeholder forum was held on          Nine warning letters were issued and a number
2 December 2010 to inform other agencies            of offence investigations are underway. Two
about IGMS and offer them the opportunity to        complaints have been prepared and sent to the
review the Request for Proposal (RFP)               Immigration      Advisers    Complaints     and
document. Eleven agencies provided their            Disciplinary Tribunal. The Tribunal chair has
feedback which was incorporated into the final      been appointed and is currently assessing the
RFP. The Project is on track and issued a RFP       34 complaints referred to the Tribunal since the
for the replacement of IGMS on 7 February           Immigration      Advisers     Authority     was
2011.                                               established.

                                                    Tender applications for potential provider(s) to
1.3    A sustainable funding strategy               develop the immigration adviser qualification
       for Immigration New Zealand                  were received in December 2010 and will be
       (MP–VI)                                      assessed in the third quarter.
A briefing paper outlining a proposed               Migrant settlement
sustainable funding strategy was provided to        Refugee and migrant settlement – Canterbury
the Minister of Immigration on 10 December          earthquake
2010.
                                                    In response to the Christchurch earthquake on
                                                    4 September 2010, the Department worked
1.4    Optimising potential and building            with the Settlement Support New Zealand
       on existing initiatives                      (SSNZ) initiative in Christchurch to support the
       (particularly export education               needs of newcomers in Christchurch. SSNZ
       and business migration) (MP–VI)              ensured all newcomers who had contacted
                                                    them had sufficient information regarding
Two draft Cabinet papers on strengthening the       support after the earthquake.        Some non-
integrity of pathways to work and residence         English speaking migrants had contacted the
were prepared and considered by the Officials’      SSNZ     for   information.      In    response,
Committee of the Cabinet Domestic Policy            advertisements were translated and placed in
Committee (ODOM). These papers have now             ethnic newspapers, giving people information
been     considered   and    approved     and       about how to contact SSNZ.
implementation work has begun.
                                                    Auckland Regional Settlement Strategy
A draft Cabinet paper Investor Migrant Policy:      The Department and the Auckland Council
One Year Review was submitted to the Minister       jointly hosted an event in Auckland on 19
of Immigration in December 2010. Following          November 2010 for stakeholders and partners
feedback, the paper is scheduled to be              of the Auckland regional settlement strategy to
discussed at ODOM before a revised version is       celebrate achievements of the first phase of
provided for Cabinet consideration in February      implementation, and launch the direction for
2011.                                               the next phase.        A booklet showcasing
                                                    achievements     was     prepared     by    the
Further briefing material on options for the
                                                    Department, and presentations on the positive
Capped Family stream and its interface with
                                                    impact of the strategy were made by local
retirement visa policies was provided to the
                                                    government and by the Auckland regional
Minister of Immigration in December 2010. A
                                                    health sector.
paper is due to be finalised for consideration by
Cabinet in April 2011.                              Wellington Regional Settlement Strategy
                                                    By November 2010, 15 of the 33 Wellington
                                                    Regional Settlement Strategy actions were
1.5    Other intermediate outcome key
                                                    completed. Of the remaining actions, 14 are on
       SOI activities
                                                    track, and four actions are to be progressed.
Facilitating entry to New Zealand                   The strategy is at the midpoint of its three-year
                                                    implementation plan.
There were 524 licensed immigration advisers
at the end of this quarter. This number has         Border management
slowed due to an increase in expired licences;
                                                    Delivering value for money border services
from ten at the end of the first quarter to 54 at
the end of the second quarter.                      The Department contributed to a report on the
                                                    Border Sector Governance Group’s work to
                                                    develop a more integrated and responsive

                                                                                                 6
border   management      system.     This    was       enhances border security in the Pacific
considered by the Cabinet Expenditure Control          region.
Committee (ECC) in October 2010. The paper
                                                   ·   Bali Process Workshops on Regional
outlined the risks that the border sector will
                                                       Cooperation on Refugees, and Irregular
face over the next five years, as well as the
                                                       Movement        and    Repatriation    and
sector goals for 2015.    Cabinet directed the
                                                       Reintegration. One of the outcomes from
sector to report back to ECC with additional
                                                       these workshops is the consideration of
information on border sector efforts to increase
                                                       regional cooperation options to enhance
productivity and manage resource demands.
                                                       security and to combat irregular movements
The Department is part of a border sector
                                                       in the region.
working group providing input into this report-
back which is being led by the Border Sector       ·   International Organisation for Migration
Secretariat.                                           (IOM) 99th Annual Council. Engagement
                                                       in the IOM contributes to New Zealand’s
Meeting international commitments and
                                                       international      partnerships    in     the
maintaining confidence
                                                       management of          migration and     the
The Department participated in the:                    movement of people. It also strengthens
                                                       the Department’s relationship with IOM,
·     Pacific Immigration Directors’ Conference
                                                       which will in turn improves the effectiveness
      (PIDC) annual meeting and the PIDC-
                                                       and efficiency of our use of IOM’s global
      sponsored workshops on human trafficking,
                                                       migration services.
      people smuggling and irregular movement.
      New Zealand is one of the major donors to
      the PIDC, and engagement in this forum


More productive workplaces and sectors

    Immediate Outcomes
    §   Adoption of high-performance workplace practices by new Zealand workplaces is
        increased.
    §   Employer’s access to the skills they need is increased.
    §   Employer’s access to the workers they need is increased.
    §   Productivity in workplaces is improved.
    §   Productivity in key sectors is improved.
    Votes contributing: Vote Labour, Vote Immigration, Vote Employment and Vote ACC

2.1       Holidays Act Review (MP-VL)*             2.2    Employment Relations Act
The    Holidays    Act   Review     legislation           Review (including review of
successfully passed through all Parliamentary             personal grievances provisions
stages.     The Act gives effect to the                   and reducing business
Government’s decisions on the review of the               compliance costs) (MP-VL)
Holidays Act, including the tradability of a       The Employment Relations Act Review
week of holidays for cash and changes to the       legislation successfully passed through all
calculation of holiday pay. The majority of        Parliamentary stages. The Act gives effect to
changes will come into effect on 1 April 2011.     government policy on employment relations,
Implementation planning is well underway to        and includes provisions extending the 90-day
ensure frontline staff are informed, trained,      trial period to businesses of all sizes and a
and able to implement the changes. The             change to the test for personal grievances.
Department is reviewing its information            The majority of changes come into effect on 1
products, and will update its website              April 2011. Implementation planning is well
accordingly.                                       underway to ensure frontline staff are
                                                   informed, trained, and able to implement the
                                                   changes. The Department is reviewing its
                                                   information products and will update its
                                                   website accordingly.
*
    MP-VL: Ministerial Priority – Vote Labour

                                                                                                7
2.3    Skills Forum (MP-VL)                      2.5       Monitoring Labour Market
The Senior Officials Group on Skills met on 15             Trends (MP-VE)*
December 2010 to discuss a range of              The Department produced the Quarterly State
potential actions, which could result in a       of the Labour Market Scorecard and policy
Cabinet paper in April 2011. These actions       assessment as part of the Household Labour
are now being developed by agencies for          Force Survey release.          The scorecard
testing with Ministers in early 2011, and        identifies areas of strength and weakness
include:                                         across the labour market; the policy
·   Work on better information flows and         assessment      provides   advice     on    the
    engagement between tertiary education        responsiveness of policy settings to the labour
    and training providers, students, and        market     implications  identified    by   the
    employers to improve the decisions made      scorecard.
    by students, and the responsiveness of       The Department co-sponsored the 14th
    providers to employers skill needs.          Labour, Employment and Work Conference
·   Building the innovative capacity of the      (LEW) held in Wellington on 30 November
    tertiary education system (e.g. embedding    and 1 December 2010.        The Department
    management training into qualifications),    contributed 15 papers to the conference
    and the capacity of firms to better          focussing on a broad range of topics related
    recognise and utilise the skills in the      to labour markets, employment and the
    workforce.                                   nature of paid work in New Zealand. Some of
                                                 the papers presented were:
This Group met again on 3 February 2011.
                                                 ·     Labour     Force   Participation in   New
                                                       Zealand.     This paper examines labour
2.4    Safety in Adventure Tourism                     force participation trends in New Zealand,
       (MP-VL)                                         how it compares with the rest of the
                                                       members of Organisation for Economic
On 13 December 2010, Cabinet agreed to:
                                                       Co-operation and Development and how
·   make regulations under the Health and              participation and economic growth might
    Safety in Employment Act 1992, requiring           be affected in the future by population
    adventure tourism operators to obtain a            ageing.
    safety audit from an accredited provider,    ·     Future Demand for Skills in New Zealand
    and to become registered before being              Compared with Forecasts for Some
    qualified to provide defined types of              Western Countries: Relative importance of
    adventure activities                               expansion and retirement demand. This
·   a range of complementary initiatives,              paper compares forecasts of occupational
    including providing funding for the                employment growth made by the United
    Tourism Industry Association New Zealand           States of America, Canada and Australia,
    and Outdoors New Zealand, to coordinate            with the forecasts produced for New
    and    work   with  other    sector  and           Zealand by the Department.
    government bodies to strengthen the          ·     Trial Employment Periods: An evaluation
    sector as a whole.                                 of the first year of operation. This report
The Department expects the regulations to be           presents the results of the Department’s
passed by May 2011, with the requirement to            research into employers’ experiences of
obtain a safety audit commencing on 1                  trial employment periods. The research
October 2011.                                          aimed to assess the extent to which
                                                       employers knew about trial periods, the
The Department also started engaging with a            impacts of trial periods on employers, and
potential accreditation body for the sector,           employers’ perceptions of the costs of
safety auditing agencies, and the key sector           using trial periods.
representative      bodies     about     the
                                                 ·     A Good Worker is Hard to Find: The
complementary initiatives.
                                                       determinants of skills shortages in New
                                                       Zealand firms.    This paper aims to
                                                       investigate the determinants of firms
                                                       reporting having vacancies, hard-to-fill


                                                 *
                                                     MP-VE: Ministerial Priority – Vote Employment
                                                                                                     8
   vacancies and skill shortages, particularly     report provides advice to Minister and
   looking into the vacancies that are hard        Government     on    New    Zealand’s  skills
   to fill for skill-related reasons within and    challenges, as well as advice and support to
   across industries.                              broader cross-agency government policy
                                                   analysis and advice.
The conference provided an opportunity for
the Department to gain an overview of labour       A joint briefing on the Department’s
market research being conducted within New         contribution to the Economic Growth Agenda
Zealand, and to test the Department’s              (EGA), and the summary report were
research findings with a wide group of             provided to the Department’s Ministers in
national labour market experts.                    October 2010.     The Minister for Economic
                                                   Development was also provided with the
                                                   summary report for submission to Cabinet.
2.6    Maximising Impacts of
       Government Investment (MP-                  The Department’s major contribution to the
       VE)                                         EGA is focussed on the Rugby World Cup. In
                                                   December 2010, the Department completed
Following on from the briefing on 1
                                                   the second iteration of its In–Depth Labour
September 2010 regarding the potential skills
                                                   Assessment Report (updating October 2010),
and employment issues associated with
                                                   with more quantitative and qualitative
Ultrafast Broadband (UFB) roll-out, the
                                                   assessment of key labour market issues. This
Department is preparing to report-back to the
                                                   report will be discussed with stakeholders and
Minister   for    Social   Development      and
                                                   updated again in February and May 2011. The
Employment when decisions on the roll-out
                                                   report was not published, but is being shared
have been made.          The report-back will
                                                   with government agencies, industries and
provide further advice on the skills and labour
                                                   other interested stakeholders and parties.
implications of the UFB roll-out in the light of
the preferred partner decisions.            The
Department understands from the Ministry of        2.8    Other intermediate outcome
Economic Development that a full UFB                      key SOI activities
announcement is likely to be made early this
year.                                              Supporting employers to have
In December 2010, the Department provided          relationships with workers that lead to
the Minister for Social Development and            higher performance and productivity
Employment with a briefing on the aged care        The Department is supporting the leadership
sector. The briefing paper provided further        of significant New Zealand firms to lead
advice on the aged care sector and identified      health and safety via the Business Leaders
issues that may be faced by the sector in the      Forum. The Department provides secretariat
future    given   New    Zealand’s      ageing     support services to the Forum’s Steering
population.    The paper also outlined the         Group to enable it to develop an executive
Department’s further work in this area.            safety leadership programme and a health
                                                   and safety benchmarking initiative, which
2.7    Ensuring a Capable Workforce                includes the Forum’s two key projects:
       (MP-VE)                                     ·   The Chief Executive Officer Safety
                                                       Leadership    Assessment   tool  which
The Department’s Future Skills project is
                                                       provides Forum members with the
investigating the critical skills pressures to
support economic growth over the next ten              opportunity to test their performance
                                                       against world class executive safety
years, which include analysis of New
                                                       leadership, and was released to Forum
Zealand’s     current  and     projected   skill
                                                       members on 6 December 2010.
demand and supply trends. The project
has stimulated discussion between senior           ·   The Health and Safety Measurement and
officials from the Department, the Ministry of         Benchmarking    tool, for   which  the
Education, the Tertiary Education Commission           provisional report was released in 22
(TEC), and the Treasury on potential cross-            December 2010.
agency work on skills. The Skills Challenges       The Department continued to provide
Report: New Zealand’s skill challenges over        information to industry associations, business
the next ten years was published on the            networks, trusted advisors and small and
Department’s website in January 2011. The          medium enterprises (SME), that focussed on

                                                                                               9
increasing awareness of the Department's            ·   A number of employers requested the
tools and resources.                                    development of case studies for use on
                                                        their intranet sites. The Skills Highway
The Partnership Resource Centre (PRC) work
                                                        team responded to the request and has
programme       continued    to   focus    on
                                                        developed employee stories from a
productivity,   innovation,   and   workplace
                                                        number of the Employer Champion
quality improvement. Projects include work
                                                        companies to be placed on the Skills
with the new Auckland Council, KiwiRail,
                                                        Highway website.      Thirteen individual
NorthPower, Menzies Aviation, and the
                                                        employee stories from six employers went
Auckland     District Health Boards (DHB).
                                                        live in January 2011.
Work also involved the development of
relationships with business improvement and         ·   To support the use of the literary,
staff engagement strategies, including the              numeracy and other essential skills
new High Performance Working Initiative.                resources available, the Department
Interest in the PRC work remains strong, with           sponsored the Skills Highway Award which
staff engaging currently with over 25                   celebrates workplaces that can show how
employers or unions on new potential                    they    have    helped    improve    their
projects.    The PRC is taking the lead in              employees’     reading,     maths     and
progressing the current high profile talks              communication skills, and consequently
between the Resident Doctors Association and            improved business outcomes. The winner
DHB New Zealand.                                        of the second award was announced on 28
                                                        October 2010. The number and variety of
Working with sector groups, social                      organisations entered the competition
partners and industry training                          shows that businesses relate well to the
organisations to develop skills plans and               concept     of  helping   improve    their
address barrier to workforce capacity                   employees’ working lives by providing
                                                        them     with  workplace    literacy  and
The Skills Highway team facilitated a                   numeracy training.
workshop with the Ministry of Economic
Development (MED), other government                 ·   The Skills Highway team is gathering
agencies and key literacy influencers in                stories generated from workplace literacy
Auckland. The workshop aimed to come up                 and numeracy training to pitch to local
with a practical business-relevant skills action        and sector media, and provide valuable
plan for Auckland that feeds into MED’s EGA             case study material for other employers.
for Auckland City and, in particular, to identify   ·   A number of workplace literacy training
immediate actions that could be built into the          graduation programmes, supported by the
plan for change currently being developed by            Skills Highway, took place in October to
the Council.                                            December 2010, where the majority of
Providing resources to improve literacy,                the graduates are non-native English
numeracy and other essential skills of                  speakers.      The Skills Highway team
New Zealand’s workforce                                 attended some of these graduation
                                                        events. The Hon Minister Steven Joyce
Workplace literacy providers and Industry               also attended the graduation programme
Training Organisation literacy advisers from            of    Fletcher    Construction Company
the lower North Island met on 13 October                employees.
2010 for a networking session. This group
was updated by:                                     Targeted immigration to meet shortages
·   the   officials    from    the     Retirement   in New Zealand’s skills base
    Commission, TEC and the MSD on their            The second review of Essential Skills in
    foundation skill related initiatives            Demand Lists for 2010 began in September
·   the Department on the Skills Highway            2010, with submissions      opening on 5
    website and fed back some of the                October 2010.     This review focuses on
    information       gathered during the           education and health occupations.
    Canterbury Pilot.                               Submissions closed on 12 November 2010,
The Department continued to raise awareness         followed by the consultation and analysis
among businesses of the link between                phase that the Department is working
workplace literacy and productivity and the         through. The reviewed lists will go live in July
resources available to employers.       For         2011.
example:
                                                                                                10
More people in quality work

Immediate Outcomes
§ Workplaces provide healthier and safer environments
§ Employer/employee relationships are more effectively managed.
§ People have the right skills to improve their employment opportunities.
§ Access to work is increased.
§ Quality work in New Zealand continues to be supported by fair international labour
   practices
Votes contributing: Vote Labour, Vote Employment and Vote ACC
   V contributing: Vote ACC
3.1 Renewed Health and Safety                         interventions, and to encourage the sector
      Strategy (MP-VL)                                to take ownership for others.

One harm reduction project on injuries
caused by quad bikes on farms started. One         3.2    Growing Employment and the
other    project   to  address    employment              Economy (MP-VE)
problems resulting from the low use of
                                                   Advice on employment opportunities
employment agreements in the agricultural
industry is being scoped. A falls from heights     The quarterly report on Likely Areas of Growth
in construction project is also being planned.     in Employment Opportunities was provided to
These projects draw heavily on a method for        the Minister for Social Development and
reducing persistent harms developed by an          Employment on 5 October 2010. The report
international expert in the management of          included the Department’s employment growth
regulation and compliance.                         forecast for 2010–2014. Particular attention
                                                   has been paid to prospects in the construction,
·   The quad bike project developed a four-
                                                   manufacturing,     hospitality,   retail,  and
    step safety campaign to reduce serious
                                                   agriculture and forestry industries, as they
    harm resulting from quad bike loss of
                                                   were all negatively impacted by the recession.
    control incidents.  The campaign was
                                                   This report was published on the Department’s
    launched by the Minister of Labour in
                                                   website. This report provides the Minister with
    November 2010, and information sharing
                                                   succinct and timely information that identifies
    and engagement on the safety steps is
                                                   potential    areas    (regions)    and    their
    underway in the regions. Consultations
                                                   occupational opportunities as New Zealand
    on new quad bike guidelines were
                                                   recovers from recession.
    completed. These guidelines will soon be
    on the Department’s website to support         Labour market issues paper
    the campaign.
                                                   The Department provided advice on the
·   The Employment Agreement project aims          Business of Ageing Report: Realising the
    to reduce harm from the non-use and            economic potential of older people in New
    mis-use of employment agreements in            Zealand: 2011-2051, and the Minister for
    dairy,    lamb   and       beef  farming.      Senior Citizens presented it to the Cabinet
    Stakeholder support for using employment       Social Policy Committee (SOC) on 10
    agreement-based     initiatives to   help      November 2010. The report provided timely
    resolve employment-related issues wil be       and valuable research to inform debate about
    important.   As a result, a partnership        New Zealand’s ageing population, which is
    approach paper is being prepared for           expected to create future labour market
    discussion. The aim of this work is to         opportunities as well as challenges. Following
    determine the scope of any project.            consideration of the report, the Cabinet SOC
                                                   directed the Department, the Ministry of Social
·   The construction falls from height has
                                                   Development, the Ministry of Health, the
    progressed to a point where root causes of
                                                   Ministry of Economic Development, the
    falls   have     been    identified   and
                                                   Ministry of Tourism, the Treasury and other
    interventions      recommended         for
                                                   key agencies to undertake further work on:
    implementation in early 2011. The project
    will now engage with the sector to gain        ·   innovative solutions to counterbalance the
    support     for    the     department-led          fiscal pressures of an ageing population on


                                                                                              11
    New Zealand’s economy                        changes, contracting guidelines, serious harm
                                                 –   quad   bike    project   and   Canterbury
·   ways to attract older workers to stay in
                                                 earthquake recovery.
    work
                                                 Promotion of quality work practices and
·   options for partnerships with businesses.
                                                 environments, and removal of barriers
The Department will be working with the
                                                 The implementation of the High Performing
above agencies on this work programme, with
                                                 Working Initiative is underway. The initiative
a particular focus on ways to attract older
                                                 will build quality work practices by partially
workers to stay in work so that they will
                                                 funding specialist business consultants. These
increase their economic contribution.
                                                 consultants will help firms develop high
                                                 performance working processes using industry,
3.3    Other intermediate outcome key            regional        development    and       similar
       SOI activities                            organisations to maximise dissemination.
                                                 Initial contact was made with several potential
Development of national and                      lead partners who have indicated interest in
international policy and regulatory              the initiative.
standards
                                                 Promotion during the quarter included working
The Department completed and submitted           with   key    organisations    and   business
reports   to    the    International Labour      stakeholders such as BMNZ and the Tourism
Organisation (ILO) on:                           Industry Association, to reach small to
·   the draft Convention on Domestic Workers     medium-sized businesses to help them
    that aims to improve the working             improve workplace practices.
    conditions for this group of employees.      The Department provided advice on policy
·   the two fundamental ILO conventions that     work carried out by other government
    New Zealand has not ratified.        These   agencies that aim to remove barriers to
    conventions are related to a minimum age     participation in the labour market. These
    for work and freedom of association.         included:

The Department also participated in the          ·   agreeing on an increasing employment
Governing Body of the ILO, which is the              focus on the Training Opportunities
executive body of the International Labour           programmes managed by Ministry of Social
Office.    Attendance    to    this   ensures        Development and the Tertiary Education
participation in budget setting and standards        Commission
development within the ILO.                      ·   emphasising the need to reflect the impact
Provision of advice and information to               of prisoner employment schemes on local
enable the resolution of employment                  businesses on a paper: Prisoner Skills and
problems and health and safety issues                Employment Strategy

The Department presented to 163 mentors          ·   supporting the need for clear pathways for
from Business Mentors New Zealand (BMNZ)             young people with regard to Youth
at 17 regional seminars that included                Guarantee scheme.
presentations on employment relations, and       Provision of relevant labour market
health    and    safety    information.   The    information to employers and job-seekers
Department also provided technical support       to inform business and career choice
for Dairy New Zealand’s two new learning         decision-making
programmes: Milk Smart and People Smart.
As a result, more health and safety and          The monthly Jobs Online reports were
employment relations information is reaching     published on the Department’s website
the dairy industry via Dairy New Zealand.        presenting the results of monitoring of
                                                 changes in job vacancies advertised drawn
The    Department    undertook   workshops,      from the major internet job boards.      Jobs
communications, and training to reach            Online provides an early indicator of changes
212,000 SMEs with information to support the     in the demand for labour, and whether
resolution of employment relations problems      employment prospects in the economy is
and health and safety issues. Topics covered     improving or declining. This has been used by
included    Christmas    holiday   guidance,     employers as a source of information.
employment relations and holidays legislation

                                                                                             12
Negotiation of the trade labour and                  Participation for groups under-
immigration components of international              represented in the labour market
trade agreements and actively
                                                     On 3 December 2010, the Department
maintaining relationships with trade
                                                     published     a   report   on   Labour   Force
partners
                                                     Participation in New Zealand: Recent trends,
The Department participated in the ongoing           future scenarios and the impact on economic
trade labour negotiation meetings on:                growth on its website. This report was also
                                                     presented at the 14th Labour, Employment
·     the Trans Pacific Partnership, including a
                                                     and Work Conference on 30 November 2010.
      meeting chaired by New Zealand
                                                     The report examined the changes in labour
·     the Pacific Agreement on Closer Economic       force participation over the past 20 years,
      Relations Plus with Pacific Forum Island       focussing on which groups have increased
      Countries                                      their participation and for which groups has it
                                                     fallen. The report also examined the effect of
·     India-New    Zealand      Closer    Economic
                                                     the ageing population on projections for the
      Partnership.
                                                     labour market and the economy over the next
The Department is also participating in the          20 years.
two-year review of the China New Zealand
                                                     The Department supported the Ministry of
Free Trade Agreement (FTA).     The review
                                                     Social Development in developing the youth
meeting was held in November 2010. In
                                                     pipeline proposals through the provision of
consultation with Chinese officials, the
                                                     labour market information on youth who are
Department made amendments to the China
                                                     not in education, employment or training, and
Working     Holiday   Scheme    (negotiated
                                                     through work on identifying accountabilities
alongside the China FTA) to improve the
                                                     and responsibilities across agencies for
operation of the scheme.
                                                     interventions that support disengaged youth or
                                                     those at risk of disengagement.



A better performing accident compensation system

    Immediate Outcomes
    § Rehabilitation and return to work rates meet relevant national and international best
       practice.
    § The rate of increase in new injury claims on the accident compensation system is reduced.
    § The cost of the scheme and levy prices are calculated and set in a consistent and
       transparent way.
    § Demonstrated accountability for performance of the accident compensation scheme is
       improved.
    § Access to work is increased.
    § Cover and entitlement settings within the accident compensation scheme are more
       affordable and sustainable.
    Vote contributing: Vote ACC

4.1       Cost Containment and Levy                   communication process. These decisions are
          Management (MP-VACC)*                       aimed at improving incentives for workplace
                                                      safety, and keeping levies affordable.
The Minister for ACC was provided with policy
advice culminating with the announcements
in December 2010 of the decision that there           4.2    Scheme stocktake and
will be no increase in workplace, motor                      benchmarking (MP-VACC)
vehicle or earner levies for 2011, and the
                                                      The Department provided advice on the
decision to introduce experience rating to
                                                      recommendation of the Stocktake Group as
levies in the Work Account. The Department
                                                      part of the work investigating the introduction
also provided support for the public
                                                      of choice into the accident compensation
                                                      scheme       under      Ministerial    Priority:
*
    MP-VACC: Ministerial Priority – Vote ACC
                                                      Investigation of choice in scheme provision.

                                                                                                  13
4.3    Investigation of choice in                    on the introduction of choice is likely to be
       scheme provision (MP-VACC)                    held in May 2011.

The Minister for ACC was provided with policy        The Department is also scoping the
advice culminating in announcements made in          introduction of competitive delivery to other
December 2010 to extend the Accredited               appropriate accident compensation accounts,
Employers’ Programme         (AEP), and    the       for report-back to Cabinet in June 2011.
decision in principle to introduce choice in
the Work account.       The Department also          4.4        Improving Dispute Resolution
provided      support      for    the   public
                                                                (MP-VACC)
communication process. These decisions are
aimed at providing greater choice and                The Department provided policy advice to the
contestability in terms of how and from whom         Minister   for   ACC    on    increasing the
employers        source      some     accident       independence of the dispute resolution
compensation-related services.                       system used when there are disputes
                                                     between ACC and claimants. The decision to
The Department reported back in February
                                                     support greater independence in ACC dispute
2011 on proposals for the purpose of public
                                                     resolution was announced by Government in
consultation on extending AEP, and on
                                                     December 2010. The Department will report
introducing the option for employers of
                                                     back in     February 2011 on proposals to
choosing whether to purchase workplace
                                                     ensure more independence in administration
accident insurance cover from ACC or from a
                                                     of disputes and remove ownership of the
registered private insurer. Public consultation
                                                     Dispute Resolution Service from ACC.




 B       Output performance
Performance against framework measures
Of the 70 Output Plan performance measures reported on this quarter, 2 (3%) were ‘Achieved’, 59
(84%) were rated as ‘On track’, 7 (10%) ‘Not on track’, and 2 (3%) ‘Not applicable’. Full details
are reported in the Appendices - Vote Output Schedule Reports.




                                   84%
                       90%

                       80%

                       70%

                       60%

                       50%

                       40%

                       30%

                       20%                    10%
                                                       3%            3%
                       10%

                        0%
                               On track     Not on   Achieved       Not
                                            track                   applicable




                                                                                             14
Vote Labour: Two performance measures were not on track.
Output class 3: Services to promote and support fair and productive employment relationships
 Ref         Performance measure                                       Standard           Result           Status
 (L) 3.1.6   The abandonment rate of calls to the contact centre.      Less than 5%       6%               Not on
                                                                                                           track
 Commentary:
 The technology system supporting the contact centre experienced a number of failures in the period from 20 to 24
 December, and 29 to 31 December 2010, resulting in calls not being sent to staff to answer.

 The high abandonment rate of 16% in December 2010 significantly impacted on the year to date abandonment rate.
  The Department is investigating the causes and meeting with the service provider to understand the problem and
 ensure it does not happen again. The year end abandonment rate will be able to be recovered by 30 June 2011.

Output class 4: Services to promote and support safe and healthy people and workplaces
 Ref         Performance measure                                       Standard           Result           Status
 (L) 4.1.2   The abandonment rate of calls to the contact centre.      Less than 5%       6%               Not on
                                                                                                           track
 Commentary:
 The technology system supporting the contact centre experienced a number of failures in the period from 20 to 24
 December, and 29 to 31 December 2010, resulting in calls not being sent to staff to answer.

 The high abandonment rate of 16% in December 2010 significantly impacted on the year to date abandonment rate.
  The Department is investigating the causes and meeting with the service provider to understand the problem and
 ensure it does not happen again. The year end abandonment rate will be able to be recovered by 30 June 2011.



Vote Immigration: Four performance measures were not on track.
Output class 1: Immigration Advisers Authority
 Ref         Performance measure                                       Standard           Result           Status
 (I) 1.1.1   New Immigration Adviser licence applications are          90%                72%              Not on
             processed within 50 working days of receiving a full                                          track
             application.
 Commentary:
 The number of new applications received was higher than expected.             The quality of these applications was
 substantially lower than expected, resulting in longer processing times.

 An internal resourcing proposal for additional fixed term staffing was approved in November 2010 to support
 delivery to the performance standard. These staff have been appointed and commenced work in January 2011.

Output class Output class 2: Services to increase the capacity of New Zealand through immigration
 Ref         Performance measure                                       Standard           Result           Status
 (I) 2.2.2   The percentage of customers satisfied that                At least 80%       75%              Not on
             departmental staff "did what they said they would".                                           track
 Commentary:
 This figure is related to both the performance in respect of timeliness of processing visa applications and the backlog
 issues across the service. We are hopeful this will improve as we clear backlogs and work towards shorter
 processing times.

 Ref         Performance measure                                       Standard           Result           Status
 (I) 2.2.4   The number of people approved for residence under         45,000 - 50,000    18,219           Not on
             the New Zealand Residence Programme.                                                          track
 Commentary:
 The residence programme is not expected to meet the 45,000 residence target due to the down turn in the global
 economy. At the end of December 2010, it was thought that the final figure was more likely to be in the region of
 43,000. However we are expecting this to fall further, to around 41,000, following the February 2011 earthquake in
 Christchurch.




                                                                                                                    15
    Ref         Performance measure                                    Standard           Result          Status
    (I) 2.2.5   The percentage of student applications that will be    95%                87%             Not on
                decided within 0-60 days.                                                                 track
    Commentary:
    While timeliness for processing student application has slightly improved slightly, we expect further improvements
    as the new office at Mumbai comes on stream to support the Indian market and the high levels of applications
    processed there. In addition we are looking at how we can streamline the decision making process for the low value
    applications and so reduce pressure on the branches.



Vote ACC: One performance measure was not on track.
Output class 1: Policy and monitoring
    Ref           Performance measure                                  Standard           Result          Status
    (A) 1.2.3     ACC Board appointments and appointments to any       Managed in         ACC Board       Not on
                  other advisory groups are managed in accordance      accordance with    appointments    track
                  with Cabinet and SSC requirements.                   Cabinet and        has been
                                                                       SSC                delayed
                                                                       requirements
    Commentary:
    The ACC Board appointment process has been delayed partially due to Government consideration of competition
    issues, and the corresponding need to reassess what constitutes appropriate skill sets for Board members. There
    has also been an expansive process through which potential Board members could be nominated and their suitability
    assessed.


Vote ACC: Two performance measures were rated as not applicable.
·      There are no advisory groups currently sitting.
·      The Accident Insurance Regulator did not receive any complaints or enquiries during the
       quarter




                                                                                                                   16
Overall departmental performance

The table below shows achievement across the Votes.
 Vote / Output Class                 Achieved   On track   Not on       Not       Measures
                                                            track    applicable      not
                                                                                  reported
                                                                                    this
                                                                                   quarter
 Vote Labour                                    31 (94%)   2 (6%)                   18
 International services                            4                                 2
 Policy advice – Labour                            2                                 7
 Services to promote and support                   12         2                      5
 fair and productive employment
 relationships
 Services to promote and support                   4          1                      2
 safe and healthy people and
 workplaces
 Services to promote and support                   3                                 2
 the safe management of
 hazardous substances in the
 workplace and amusement
 devices
 Vote Immigration                    1 (4%)     21 (81%)   4 (15%)                  14
 Immigration Advisers Authority                    3          1
 Services to increase the capacity                 11         3                      7
 of New Zealand through
 Immigration
 Services to position New Zealand       1          7                                 7
 as an international citizen with
 immigration-related interests
 and obligations
 Vote Employment                     1 (17%)    5 (83%)                             12
 Labour market analysis and                        1                                 6
 knowledge
 Policy, research and evaluation        1          4                                 6
 Vote ACC                                       2 (40%)    1 (20%)   2 (40%)         6
 Policy and monitoring                             2          1          1           6
 Regulatory services                                                     1
 Total                                  2         59         7           2          50




                                                                                             17
Performance against activity                        Measures not reported during this
measures                                            quarter
                                                    There are 50 performance measures that will
The report also contains activity information
                                                    not be reported to Ministers this quarter.
that is not part of the performance framework –
                                                    These include 23 performance measures
they provide context for the Performance
                                                    covering Ministerial satisfaction with the
Framework measures. Some of these activities
                                                    quality and timeliness of the Department’s
are demand driven and beyond the control of
                                                    policy advice, Ministerial servicing, and
the Department.
                                                    monitoring, research and evaluation.       A
Of the 63 Output Plan activities reported on this   further 27 performance measures relate to
quarter, 30 (48%) were ‘Within forecast’, 15        annual stakeholder satisfaction surveys, the
(24%) ‘Above forecast’, and 18 (28%) ‘Below         external   and   internal    review   of the
forecast’.                                          Department’s specific projects by the New
                                                    Zealand Institute of Economic Research
                                                    (NZIER), or those measures that will be
                                                    measured in the third or fourth quarter.




                                                                                          18
    C        Financial performance
At 31 December 2010, the Department was                         and project delays in Services to increase
$8.598 million (6%) below forecast against the                  the capacity of New Zealand through
budget in the Main Estimates. The Department                    immigration output class.
is expecting to fully spend its budget by year
                                                          ·     Vote Employment was behind budget by
end.
                                                                $650,000 (12%) largely due to policy
·     Vote Labour was behind budget by                          projects having been delayed, with most
      $1,991,000 (5%) largely due to work on                    of that variance attributable to the Policy,
      planned projects running behind the original              research and evaluation output class.
      budget, and staff vacancies.
                                                          ·     Vote ACC was behind budget by $23,000
      Vote Immigration was behind budget by                     (1%) which is not considered to be
      $5,934,000 (6%) largely due to lower                      significant.
      volumes, savings from vacant positions


The following table shows the financial performance across the Votes.

          Vote /          Budget       Actual        Variance       Variance    Extrapolated     Forecast
        Output Class      year to    expenditure      year to        year to      forecast       variance
                           date      year to date      date           date        full year      full year
                          ($000)       ($000)         ($000)           %           ($000)         ($000)


    Vote Labour            38,468         36,477         1,991           5%            80,394        1,992
    International
                              449             400             49         11%              940           49
    services
    Policy advice –
                             4,227          4,010          217            5%           10,603          217
    Labour
    Services to
    promote and
    support fair and
                          12,297           11,609          688            6%           25,850          688
    productive
    employment
    relationships
    Services to
    promote and
    support safe and       18,836          17,798        1,038            5%           37,634        1,038
    healthy people and
    workplaces
    Services to
    promote and
    support the safe
    management of
                             2,659          2,660             (1)       (0%)            5,367              0
    hazardous
    substances in the
    workplace and
    amusement devices
    Vote Immigration      104,813         98,879         5,934           6%          213,771         5,934
    Immigration
                             1,412          1,189          223           16%            2,722          223
    Advisers Authority
    Service to increase
    the capacity of NZ
                           95,087          89,800        5,287            6%          195,078        5,287
    through
    Immigration


                                                                                                      19
      Vote /             Budget       Actual       Variance       Variance   Extrapolated   Forecast
    Output Class         year to    expenditure     year to        year to     forecast     variance
                          date      year to date     date           date       full year    full year
                         ($000)       ($000)        ($000)           %          ($000)       ($000)

 Service to position
 NZ as an
 international citizen
                            8,314          7,890         424           5%          15,971         424
 with immigration-
 related interests
 and obligations
 Vote Employment           5,560          4,910         650           12%          13,636         660
 Labour market
 analysis and               3,272          3,074         198           6%           8.468         198
 knowledge
 Policy, research
                            2,288          1,836         452          20%           5,168         452
 and evaluation
 Vote ACC                  2,072          2,049          23            1%           4,855          23
 Policy and
                            1,997          1,974          23           1%           4,690          23
 monitoring
 Regulatory services          75              75              0        0%             165             0
 Total                   150,913        142,315        8,598           6%        312,656        8,599

The appendices provide the detailed financial performance and the sources of variances from each
Vote’s output classes.




                                                                                                 20
    D      Response to external events
September 2010 Canterbury                          migrants where new migrants talked about
earthquake                                         the impact of the earthquake on their lives
                                                   and learned about the types of support
Following the September 2010 earthquake, the       available to them. An advertising campaign
Department continued to assist and provide         targeting new migrants will also highlight
resources as necessary to assist with the          the SSNZ initiative in Christchurch as the
Canterbury recovery.                               first port of call for assistance.
The Department engaged with other agencies,        The Department continued to provide
and worked with the Canterbury Recovery team       support to the migrant and refugee
and Canterbury Development Corporation             resettlement     ensuring that recently
(CDC) to build a labour market picture of          resettled refugees in the region are
Canterbury following the earthquake and the        provided the right support through the
likely skill and labour needs in the future.       Department’s contracted service providers.
·   A number of steps were identified where        Pike River Coal Mine tragedy
    information gathering and analysis efforts
    from all involved could be aligned, and        The Department started a very large
    analysis shared to support the rebuilding      investigation under the Health and Safety in
    response. The Department has also been         Employment Act of the Pike River Coal Mine
    supporting Canterbury University with the      tragedy, which will continue through the
    development of their housing forecasting       first part of 2011.      This investigation
    model.                                         involves working closely with the Police in
                                                   interviewing and evidence collection. The
·   The Department, together with other            team will also be supported by experts from
    government agencies, industry groups, and      New     Zealand    and    overseas   where
    researchers attended a workshop hosted by      necessary.
    the CDC on 8 December 2010 where
    Canterbury       earthquake   skills    and    The Prime Minister announced on 29
    employment needs, as well as other barriers    November 2010 that the Royal Commission
    that could hamper the reconstruction effort,   of Inquiry is expected to commence in early
    were identified.                               February 2011. Part of the announcement
                                                   asked the Department to recruit an
·   The Department has established a working       overseas expert to undertake a safety audit
    relationship with the national level policy    of New Zealand’s underground coal mines
    coordination team being led by Department      as a matter of urgency. This expert will
    of Prime Minister Committee to support the     provide assurance that there are no other
    Ad Hoc Cabinet Committee on Canterbury         immediate risks or issues in other mines
    Earthquake Recovery.                           that could lead to similar tragedy. Two
Health and Safety Inspection was focussed on       mining experts from Queensland were
the earthquake, including proactive work and       engaged to undertake this task and one of
seminars for key industries (such as demolition    them, along with representatives from the
and scaffolding). This targeted focus will be      Department, visited each of the operating
reviewed soon.                                     underground coal mines before Christmas.

The     Immigration   New    Zealand    (INZ)      The streams of work being led by the
Christchurch initiated a branch ‘recovery          Department      will  inform    the    Royal
project’ to organise workflows to allow for        Commission of Inquiry. To ensure there is a
earthquake    responsiveness, balanced   with      ‘one Department’ response to the tragedy,
business as usual processing.       The INZ        the Executive Group is coordinating the
Christchurch operations is almost back to          Department’s activities relating to Pike
normal with assistance from staff outside the      River, assisted by a Pike River Coordinating
Canterbury region.                                 Group comprised of representatives across
                                                   the Department.
The Department conducted a post-earthquake
workshop on 10 November 2010 for new


                                                                                          21
 E         Maintaining and developing capability

   To drive organisational change and lead capability building, the Department’s
   organisational development goals are to create value for New Zealand through:
   § being knowledgeable, influential and collaborative experts on labour and immigration
   § being a facilitative, responsive and effective regulator providing high-quality and
      innovative services
   § having our people, working environment and shared culture support excellent
      performance
   § being a highly capable department with integrated systems, processes and policies.

The following section provides an update on          Immigration Group, and the Immigration
initiatives referred to in the Statement of Intent   Policy   and   International  Migration,
2010/011-2013/14           to     improve      the   Settlement and Employment Dynamics
Department’s capability.                             (IMSED Research) became part of the new
                                                     PRG.
Transforming the Department                          The Immigration Group now consists of the
Corporate model implementation project               Border Security, Service Delivery, Service
                                                     Design and Refugee and Migrant Settlement
The Corporate Model has centralised corporate        Divisions.    The structure of the group
functions in the Department to lift performance,     changes further as a result of the
improve services and increase value for money.       Immigration Group Structure Review (see
The model was implemented from 1 July 2010.          following item).
As part of the implementation, the appointment
of Directors and management positions was            Immigration New Zealand
completed. The development of processes to           A new way of organising the Immigration
support the Model continued. A programme of          Group to lift performance and deliver results
courses for staff to articulate the new              came into effect in March 2011 with a new
Relationship Approach was completed; the             structure being implemented within the
Relationship Approach is how staff are expected      Group. The new structure will enable us to
to work together across all areas of the             deliver the results expected of us as well as
Department.                                          to better contribute to the goals of the
Policy, research and evaluation, and Vote            wider department.
Employment (PREE) review
                                                     Creating a successful            working
Centralising     the  policy,    research   and      environment
evaluation, and Vote Employment functions will
position the Department as the knowledgeable,        Staff engagement survey
influential and collaborative expert on labour
                                                     Following the distribution of the results of
and immigration. The Department completed
                                                     the Department’s third annual Gallup Staff
the     reassignment     of    positions    and
                                                     Engagement Survey to staff, teams across
implementation of the decisions took place on
                                                     the Department have completed action
schedule on 1 December 2010 to create the
                                                     plans to address improvements and are
new Policy and Research Group (PRG). The
                                                     actively implementing specific actions from
process     started  to   recruit   the   senior
                                                     the plans.
management team for the new PRG.
                                                     Strengthening       governance        and
The service delivery components of the former
Workplace Group became the Labour Group;             foundations
whilst the Health and Safety, Employment             Governance system
Relations, and ACC policy teams became part of
the new PRG.                                         Following   completion   of   the   post-
                                                     implementation review of the Department’s
As   part   of  the    PREE    changes    the
                                                     governance system, implementation started
Workforce/Immigration Group will become the
                                                     of the plan that was agreed following


                                                                                              22
recommendations from the review. The plan              have easy access to accurate human
includes activities to strengthen the operations       resources information.
of the Department’s governance committees
                                                   ·   Following delay to the implementation of
that support the Department’s Strategic
                                                       the Electronic Document and Records
Leadership Team.
                                                       Management System (EDRMS), phase
Foundation capabilities programme                      one will now be completed by July
                                                       2011. The EDRMS is a tool used to
This is a comprehensive programme to upgrade           effectively manage business records and
and replace core systems and processes.                documents from creation, maintenance
·   Phase one of implementation of the                 through to their destruction. This will
    Financial Management Information System            improve productivity through staff
    went live on schedule on 1 October 2010            having the tools to easily access reliable
    and the system is now being used by                information.
    managers across the Department. This           ·   The evaluation of the senior level
    replaces existing systems with an up-to-           Leadership Development Programme
    date, easy to use application for managers         (LDP) was completed. The roll-out of
    and other users.                                   the Mid Level LDP continued and 86
·   Phase One of implementation of the Human           managers have attended the Mid Level
    Resources Management Information System            LDP workshops. The LDP aims to
    (HRMIS) went live on schedule on 13                develop leadership and management
    December 2010 (Learning Management                 skills, and will assist in embedding a
    System). The HRMIS will allow managers to          stronger performance culture in the
                                                       Department.




                                                                                           23
Measures and standards for monitoring organisational capability
                    Measure                            2009/10              2009/10 result               2010/11       2010/11
                                                       indicator                                         indicator      result
                                                        (target)                                          (target)
    Office of the Auditor-General grading1
    §   Management control                         Good                    Good                      Good            On track
        environment
    §   Financial information systems              Good                    Very Good                 Good            On track
        and controls
    §   Service performance                        Good                    Needs                     Good            On track
        information and associated                                         improvement
        systems and controls
    Staff participation in Gallup survey           90% or above            87%                       90% or above    On track
    Corporate Group meet or exceed                 70% or above            Survey re-scoped          75% or above    On track
    customer expectations.                                                 because of
                                                                           organisational
                                                                           changes.
    The percentage of customers who                At least 80%            The 2009/10               At least 80%    On track
    indicated they were satisfied with                                     Customer
    the overall quality of service                                         Satisfaction
    delivery received (Vote Labour).                                       Survey was not
                                                                           completed.
    The percentage of customers                    80%                     78%                       80%             Not on track
    satisfied that Department staff did
    “what they said they would” (Vote
    Immigration).
    Leadership Development                         New measure             New measure               50%             On track
    Programme – Mid level managers
    attendance
    Completion of value for money                  By June 2010            Achieved                  N/A             N/A
    reviews
    Project completion of Foundation Capabilities Programme
    §   ICT infrastructure                         By January 2011                                                   Not achieved
                                                   (This is now on track to a revised date of June 2011)
    §   Financial Management                       By November 2011                                                  On track
        Information System
    §   Electronic Document and                    By October 2010                                                   Not achieved
        Records Management System                  (This is now on track to a revised date of July 2011)
        (phase one)
    §   Human Resources Management                 By August 2011                                                    Not achieved
        Information System (phase                  (This is now on track to a revised date of June 2011)
        two)




1
    The grades used by the Office of the Auditor-General are: poor, needs improvement, good, and very good.


                                                                                                                                24
Quarterly Performance Report
for the quarter ending 31 December 2010




Appendices – Vote Output Schedule Reports
Appendix 1: Vote Labour output schedule report
   Output class 1: International services.......................................3
   Output class 2: Policy advice – Labour......................................4
   Output class 3: Services to promote and support fair and
   productive employment relationships .......................................6
   Output class 4: Services to promote and support safe and
   healthy people and workplaces .............................................. 12
   Output class 5: Services to promote and support the safe
   management of hazardous substances in the workplace and
   amusement devices ............................................................. 15


Appendix 2: Vote Immigration output schedule report
   Output class 1: Immigration Advisers Authority ....................... 17
   Output class 2: Services to increase the capacity of New
   Zealand through immigration ................................................ 18
   Output class 3: Services to position New Zealand as an
   international citizen with immigration-related interests and
   obligations ....................................................... 24


Appendix 3: Vote Employment output schedule report
   Output class 1: Labour market analysis and knowledge ............ 27
   Output class 2: Policy, research and evaluation ....................... 29


Appendix 4: Vote ACC output schedule report
   Output class 1: Policy and monitoring..................................... 31
   Output class 2: Regulatory services ....................................... 33




                                                                                        2
Appendix 1: Vote Labour output schedule report
Overall Vote Labour financial performance
                Year to date ($000)                                                                                    Full year ($000)
  Budget        Actual              Variance                                                   Budget                 Actual            Variance
  38,468        36,477         1,991         5%                                                82,386

Vote Labour was behind budget by $1,991,000 (5%) largely due to work on planned projects running behind the original budget, and staff vacancies.
These have occurred mainly in the Services to promote and support safe and healthy people and workplaces, and Services to promote and support fair and
productive employment relationships output classes.


Output class 1: International services

Output 1.1: International services

Performance framework outputs
 Ref        Performance measure                                                  Standard                                Result          Status     Commentary
 (L) 1.1.1            Participate in the three events required by                100%                                    1               On track   The Department participated in the
                      New Zealand’s membership of the                                                                                               two-week ILO Governing Body
                      International Labour Organisation (ILO) to                                                                                    meeting in November 2010. The
                      protect and promote New Zealand’s                                                                                             second and third events will be
                      labour interests.                                                                                                             held in March and June 2011.
 (L) 1.1.2            Coordinate and submit international                        20 - 25                                 28              On track
                      reports and questionnaires within agreed
                      timeframes to uphold New Zealand’s
                      reputation.
 (L) 1.1.3            Receive rating from tripartite partners and                Improve the satisfaction                                           This will be reported in the fourth
                      senior officials for the quality of support,               rating from satisfied to                                           quarter.
                      and representation, including stakeholder                  satisfied above
                      consultation, provided to meet New                         expectations1
                      Zealand’s obligations.
 (L) 1.1.4            The Minister of Labour is satisfied with the               Ministerial rating as                                              This will be reported in the fourth
                      quality of advice, support and                             satisfied or above                                                 quarter.
                      representation provided to meet New                        determined through
                      Zealand's labour related international                     feedback


 1
     Ratings used in satisfaction surveys are: Unsatisfied, Partly Satisfied, Satisfied, Satisfied above Expectations, Very Satisfied.
 Ref           Performance measure                          Standard                     Result            Status       Commentary
               obligations.
 (L) 1.1.5     Negotiations on trade labour agreements      100%                         100%              On track
               by officials are consistent with the
               Government’s mandate for negotiations.
 (L) 1.1.6     Government’s trade and labour obligations    100%                         100%              On track
               for implementing trade labour agreements
               are met in accordance with the
               requirements of each agreement.

Activities
 Ref           Activity                                     Forecast range               Result            Status        Commentary
 (L) 1.1.7     The number of international events and       10 - 18 international        9                 Within
               meetings attended including:                 meetings and events                            forecast
               ·   International Labour Organisation        attended
                   meetings
               ·   multilateral and bilateral meetings
               ·   trade labour agreement negotiation
                   and implementation.
 (L) 1.1.8     ·   The number of proceedings held or        15 - 25 proceedings held     6                 Within        All planned proceedings were held
                   coordinated including:                   or coordinated                                 forecast      and/or coordinated where
               ·   assistance based activities                                                                           required.
               ·   cooperative activities
               ·   incoming international visits by
                   overseas delegates.

Financial performance
                 Year to date ($000)                                                    Full year ($000)
   Budget        Actual             Variance                          Budget           Actual            Variance
    449           400           49           11%                       989

This output class was behind budget by $49,000 (11%) largely due to staff vacancies and operating expenditure being incurred later than budgeted.


Output class 2: Policy advice – Labour

Output 2.1: Policy advice - Labour

Performance framework outputs
 Ref       Performance measure                             Standard                    Result              Status       Commentary
 (L) 2.1.1    The Minister of Labour’s satisfaction with   Ministerial rating as                                        This will be reported in the fourth
              the quality and timeliness of the            satisfied or above                                           quarter.
              Department’s policy advice.                  determined through

                                                                                                                                                       4
Ref         Performance measure                            Standard                   Result   Status     Commentary
                                                           feedback


(L) 2.1.2   The policy process and advice is assessed      Meet or exceed good                            This will be reported in the fourth
            as good quality through external and           quality standard                               quarter.
            internal review of specific projects.
(L) 2.1.3   Policy advice is delivered as agreed with      Policy work programme               On track
            the Minister of Labour.                        is documented and
                                                           delivered to agreed
                                                           timeframes

Output 2.2 Monitoring, research and evaluation

Performance framework outputs
 Ref       Performance measure                             Standard                   Result   Status     Commentary
(L) 2.2.1   The Minister of Labour is satisfied with the   Ministerial rating as                          This will be reported in the fourth
            quality of the Department’s monitoring,        satisfied or above                             quarter.
            research and evaluation outputs.               determined through
                                                           feedback
(L) 2.2.2   Monitoring, research and evaluation            Monitoring, research and            On track
            outputs are delivered as agreed with the       evaluation is
            Minister of Labour.                            documented and
                                                           delivered to agreed
                                                           timeframes

Output 2.3: Ministerial servicing

Performance framework outputs
 Ref       Performance measure                             Standard                   Result   Status     Commentary
(L) 2.3.1   The Minister of Labour is satisfied with the   Ministerial rating as                          This will be reported in the fourth
            quality and timeliness of the Department’s     satisfied or above                             quarter.
            Ministerial Servicing.                         determined through
                                                           feedback
(L) 2.3.2   Ministerial Servicing is delivered as          Ministerial rating as                          This will be reported in the fourth
            agreed with the Minister of Labour.            satisfied or above                             quarter.
                                                           determined through
                                                           feedback
(L) 2.3.3   The Department completes all Ministerial       Ministerial rating as                          This will be reported in the fourth
            correspondence in a timely manner.             satisfied or above                             quarter.
                                                           determined through
                                                           feedback

                                                                                                                                         5
 Ref                Performance measure                                        Standard                             Result               Status     Commentary
 (L) 2.3.4          The National Advisory Council on the                       Rated satisfied or above2                                            This will be reported in the fourth
                    Employment of Women (NACEW), the                                                                                                quarter.
                    Workplace Health and Safety Council
                    (WHSC) and the Employment Relations
                    Education Advisory Committee (EREAC)
                    are satisfied with the quality of the
                    Department's support services.

Financial performance
                 Year to date ($000)                                                                                  Full year ($000)
   Budget        Actual             Variance                                                  Budget                 Actual            Variance
    4,227        4,010          217          5%                                               10,820

This output class was behind budget by $217,000 (5%) which is not considered to be significant.


Output class 3: Services to promote and support fair and productive employment relationships

Output 3.1: Education, engagement and enforcement

Performance framework outputs
 Ref      Performance measure                                                   Standard                            Result               Status     Commentary
 (L) 3.1.1         Level of services and support on                             20 partnerships                      9                   On track
                   partnership programmes provided by the                       supported
                   Partnership Resource Centre.
 (L) 3.1.2         Training provided by the Partnership                         Eight training courses               4                   On track
                   Resource Centre.                                             delivered
 (L) 3.1.3         Case studies documented and published                        Three case studies                   2 draft external    On track
                   by the Partnership Resource Centre.                          documented and                       evaluations
                                                                                published                            received, 1 case
                                                                                                                     study is in
                                                                                                                     development
 (L) 3.1.4         Level of customer satisfaction with                          Rated satisfied or above3                                           This will be reported in the third
                   services and support provided by the                                                                                             quarter.
                   Partnership Resource Centre.
 (L) 3.1.5         The percentage of e-enquiries requiring a                    95%                                  100%                On track
                   substantive response that are responded
                   to within three working days.
 (L) 3.1.6         The abandonment rate of calls to the                         Less than 5%                         6%                  Not on     The technology system supporting


 2
     Ratings used in satisfaction surveys are: Unsatisfied, Partly Satisfied, Satisfied, Satisfied above Expectations, Very Satisfied.
                                                                                                                                                                                   6
Ref               Performance measure                                      Standard                           Result                      Status            Commentary
                  contact centre.                                                                                                         track             the contact centre experienced a
                                                                                                                                                            number of failures in the period
                                                                                                                                                            from 20 to 24 December, and 29
                                                                                                                                                            to 31 December 2010, resulting in
                                                                                                                                                            calls not being sent to staff to
                                                                                                                                                            answer. The high abandonment
                                                                                                                                                            rate of 16% in December 2010
                                                                                                                                                            significantly impacted on the year
                                                                                                                                                            to date abandonment rate.

                                                                                                                                                            The Department is investigating
                                                                                                                                                            the causes and meeting with the
                                                                                                                                                            service provider to understand the
                                                                                                                                                            problem and ensure it does not
                                                                                                                                                            happen again. The year end
                                                                                                                                                            abandonment rate will be able to
                                                                                                                                                            be recovered by 30 June 2011.
(L) 3.1.7         The percentage of investigations into                    90%                                 91%                        On track
                  complaints regarding breaches of
                  regulatory standards of employment
                  legislation completed within six months of
                  receipt.
(L) 3.1.8         The percentage of investigations of                      95%                                 95%                        On track
                  minimum wage exemptions completed
                  before the previous exemption expires.
(L) 3.1.9         The percentage of customers who                          80%                                                                              This will be reported in the fourth
                  indicated they were satisfied with the                                                                                                    quarter.
                  overall quality of service delivery received.
                  Satisfaction to be measured by the
                  Workplace Service Excellence Survey
                  (SES) using the Common Measurement
                  tool.
(L) 3.1.10        A report to be provided to the Minister of               Report provided to the                                         On track
                  Labour summarising key service                           Minister by June 20113
                  excellence results.



3
    In February 2011, the Minister of Labour approved varying the standard of this performance measure from a `Report is provided to the Minister by December 2010’ to a `Report is provided to the
Minister by June 2011’.



                                                                                                                                                                                                  7
 Ref          Performance measure                           Standard                Result               Status     Commentary
 (L) 3.1.11   Partnership initiatives with small and        25 - 35                 Not applicable for   On track   This measure is a count of the
              medium enterprises intermediaries by                                  this quarter                    number of partnership initiatives
              sector to improve workplace practices.                                                                that advisers have with business
                                                                                                                    intermediaries. They work in
                                                                                                                    partnership to improve the
                                                                                                                    workplace practices of their
                                                                                                                    members through the year. The
                                                                                                                    first half of 2010 involved
                                                                                                                    identification of relationships that
                                                                                                                    may be suitable for more in depth
                                                                                                                    partnership initiatives. Partnership
                                                                                                                    initiatives will be finalised in the
                                                                                                                    second half of the financial year.

Activities
 Ref          Activity                                      Forecast range          Result               Status     Commentary
 (L) 3.1.12   Website visits that relate to employment      1,500,000 – 1,900,000   929,206              Within
              relations.                                                                                 forecast
 (L) 3.1.13   Information reach (e.g. electronic            430,000 – 530,000       340,748              Above      There was an increase in
              newsletters, publications, large forums) to                                                forecast   information dissemination activity
              small and medium enterprises as a result                                                              to support the Canterbury
              of engaging with intermediaries.                                                                      earthquake recovery, and the
                                                                                                                    businesses with understanding and
                                                                                                                    also applying holiday entitlements
                                                                                                                    over the Christmas period.
 (L) 3.1.14   Calls answered relating to employment         160,000 – 190,000       81,578               Within
              relations matters.                                                                         forecast
 (L) 3.1.15   E-enquiries relating to employment            5,000 – 7,000           3,570                Above      The increase in employment
              relations matters that require a                                                           forecast   relations (ER) related enquiries is
              substantive response.                                                                                 attributed to the proposed ER and
                                                                                                                    Holiday change legislation
                                                                                                                    announcements. There was also
                                                                                                                    an increase in demand for public
                                                                                                                    holidays and entitlement queries
                                                                                                                    due to Christmas public holidays
                                                                                                                    falling across a weekend.
 (L) 3.1.16   Forums, information visits, workplace         1,000 – 1,200           967                  Above      A large portion of this increase can
              assessments to promote good employment                                                     forecast   be attributed to work being
              practice.                                                                                             conducted in Auckland with
                                                                                                                    hospitality and retail sectors in
                                                                                                                    preparation for the upcoming
                                                                                                                    Rugby World Cup.
                                                                                                                                                  8
Ref          Activity                                   Forecast range   Result   Status     Commentary
(L) 3.1.17   Engagements to inform and promote          100 – 150        33       Below      Sixty six percent of the year to
             resolution of employment problems.                                   forecast   date target has been achieved.
                                                                                             The latter months of the second
                                                                                             quarter are traditionally busy for
                                                                                             mediators responding to demands
                                                                                             for their reactive work before the
                                                                                             end of the year. It is expected
                                                                                             that year end figure will be
                                                                                             achieved as demands on mediators
                                                                                             to attend to reactive work
                                                                                             decreases.
(L) 3.1.18   Investigations into complaints regarding   1,800 – 2,200    1,174    Above      This is a reactive measure and
             breaches of minimum standards of                                     forecast   complaints were higher than
             employment legislation.                                                         anticipated. There was no
                                                                                             provision to take no further action
                                                                                             or limited response. All reported
                                                                                             complaints were investigated.
(L) 3.1.19   Investigated applications for minimum      1,200 - 1,400    827      Above      There was a substantial increase in
             wage exemptions.                                                     forecast   output connected to the Dunedin
                                                                                             office that assessed 85 minimum
                                                                                             wage exemptions for a single
                                                                                             employer (the Disabled Citizen
                                                                                             Society).

Output 3.2: Mediation of employment relations problems

Performance framework outputs
 Ref      Performance measure                           Standard         Result   Status     Commentary
(L) 3.2.1    Where a notice of strike, or lockout, in   100%             100%     On track
             essential industries is received, the
             percentage of occurrences where an
             appropriately experienced mediator made
             available within two working days.
(L) 3.2.2    The percentage of matters completed        75%              91%      On track
             through a mediated process within
             expected timeframes.
(L) 3.2.3    The percentage of recorded settlements     80%              91%      On track
             completed within 10 working days.
(L) 3.2.4    The percentage of requests for mediation   75% - 85%        79%      On track
             settled before or at mediation.



                                                                                                                          9
 Ref               Performance measure                                       Standard                           Result                      Status           Commentary
 (L) 3.2.5         The percentage of customers satisfied with                80%                                                                             This will be reported in the fourth
                   the services, information and tools                                                                                                       quarter.
                   provided by the Department. Satisfaction
                   to be measured by the Workplace Service
                   Excellence Survey using the Common
                   Measurement tool.
 (L) 3.2.6         A report to be provided to the Minister of                Report provided to the                                         On track
                   Labour summarising key service                            Minister by June 20114
                   excellence results.
 (L) 3.2.7         The number of early interventions into                    100                                17                          On track
                   employment problems that reduce the
                   need for higher level problem resolution.

Activities
 Ref               Activity                                                  Forecast range                     Result                      Status           Commentary
 (L) 3.2.8         Mediations completed.                                     5,500 - 6,500                      2,857                       Within
                                                                                                                                            forecast
 (L) 3.2.9         Recorded settlements completed.                           2,800 - 3,400                      2,220                       Above            This is a reactive measure and the
                                                                                                                                            forecast         greatest volumes over forecast are
                                                                                                                                                             attributed to Auckland Central and
                                                                                                                                                             Christchurch offices. Anecdotal
                                                                                                                                                             evidence from these regions
                                                                                                                                                             showed an increasing number of
                                                                                                                                                             recorded settlements being
                                                                                                                                                             received as parties attempt to
                                                                                                                                                             reduce costs; resolving these
                                                                                                                                                             matters by negotiating early
                                                                                                                                                             settlements and less input of legal
                                                                                                                                                             resource.
 (L) 3.2.10        Mediation events related to collective                    250 – 350                          142                         Within
                   bargaining matters.                                                                                                      forecast
 (L) 3.2.11        Notices of strike, or lockout in essential                50 - 55                            102                         Above            There were more notices of strikes
                   industries received.                                                                                                     forecast         than anticipated due to a
                                                                                                                                                             substantial increase in industrial
                                                                                                                                                             disputes with DHBs during the last
                                                                                                                                                             two quarters.



 4
     In February 2011, the Minister of Labour approved varying the standard of this performance measure from a `Report is provided to the Minister by December 2010’ to a `Report is provided to the
 Minister by June 2011’.


                                                                                                                                                                                                 10
Output 3.3: Support services for employment relationship problem investigation and decision making

Performance framework outputs
 Ref      Performance measure                                                   Standard                             Result             Status     Commentary
 (L) 3.3.1         The percentage of applications made to                       95%                                  99%                On track
                   the Employment Relations Authority for
                   problem resolution receipted and
                   acknowledged within one working day of
                   being received by the Authority.
 (L) 3.3.2         The Chief of the Employment Relations                        Rated as satisfied or                                              This will be reported in the fourth
                   Authority is satisfied with the quality of the               above5                                                             quarter.
                   Department’s support services.

Activity
 Ref               Activity                                                     Forecast range                       Result             Status     Commentary
 (L) 3.3.3         Applications for problem resolution                          1,800– 2,200                         1,183              Within
                   received and processed.                                                                                              forecast

Output 3.4: Support services to the Remuneration Authority

Performance framework outputs
 Ref      Performance measure                                                   Standard                             Result             Status     Commentary
 (L) 3.4.1         The Chair of the Remuneration Authority is                   Rated as satisfied or                                              This will be reported in the fourth
                   satisfied with the quality of the                            above7                                                             quarter.
                   Department’s support services.

Activity
 Ref               Activity                                                     Forecast range                       Result             Status     Commentary
 (L) 3.4.2         Determinations produced by the                               100 – 110                            80                 Within
                   Remuneration Authority, including local                                                                              forecast
                   authorities and community boards.

Financial performance
                 Year to date ($000)                                                                                  Full year ($000)
   Budget        Actual             Variance                                                  Budget                 Actual            Variance
   12,297        11,609         688          6%                                               26,538

This output class was behind budget by $688,000 (6%) largely due to the commencement of the Labour Group Change Programme occurring later than
budgeted, staff vacancies and information technology costs running behind budget.




 5
     Ratings used in satisfaction surveys are: Unsatisfied, Partly Satisfied, Satisfied, Satisfied above Expectations, Very Satisfied
                                                                                                                                                                                11
Output class 4: Services to promote and support safe and healthy people and workplaces

Output 4.1: Education of workplace participants and engagement with society

Performance framework outputs
 Ref      Performance measure                                                Standard                           Result                      Status            Commentary
(L) 4.1.1          The percentage of e-enquiries requiring a                 95%                                100%                        On track
                   substantive response that are responded
                   to within three working days.
(L) 4.1.2          The abandonment rate of calls to the                      Less than 5%                       6%                          Not on            The technology system supporting
                   contact centre.                                                                                                          track             the contact centre experienced a
                                                                                                                                                              number of failures in the period
                                                                                                                                                              from 20 to 24 December, and 29
                                                                                                                                                              to 31 December 2010, resulting in
                                                                                                                                                              calls not being sent to staff to
                                                                                                                                                              answer. The high abandonment
                                                                                                                                                              rate of 16% in December 2010
                                                                                                                                                              significantly impacted on the year
                                                                                                                                                              to date abandonment rate.
                                                                                                                                                              The Department is investigating
                                                                                                                                                              the causes and meeting with the
                                                                                                                                                              service provider to understand the
                                                                                                                                                              problem and ensure it does not
                                                                                                                                                              happen again. The year end
                                                                                                                                                              abandonment rate will be able to
                                                                                                                                                              be recovered by 30 June 2011.
(L) 4.1.3          The percentage of customers who                           80%                                                                              This will be reported in the fourth
                   indicated they were satisfied with the                                                                                                     quarter.
                   overall quality of services delivery
                   received. Satisfaction to be measured by
                   the Workplace Service Excellence Survey
                   using the Common Measurement tool.
(L) 4.1.4          A report to be provided to the Minister of                Report provided to the                                         On track
                   Labour summarising key service                            Minister by June 20116
                   excellence results.




 6
     In February 2011, the Minister of Labour approved varying the standard of this performance measure from a `Report is provided to the Minister by December 2010’ to a `Report is provided to the
 Minister by June 2011’.


                                                                                                                                                                                                  12
Activities
 Ref          Activity                                      Forecast range      Result    Status     Commentary
 (L) 4.1.5    Website hits that relate to health and        500,000 – 600,000   241,090   Below      Visits to the health and safety
              safety.                                                                     forecast   website were 4% below forecast
                                                                                                     due to the seasonal reduction in
                                                                                                     December 2010. However, visits
                                                                                                     are projected to be within forecast
                                                                                                     by year end.
 (L) 4.1.6    Information reach (e.g. electronic            110,000 – 130,000   90,579    Above      The high forecast will be balanced
              newsletters, publications, large forums) to                                 forecast   off with reduced activity over
              small and medium enterprises as a result                                               January and February 2011.
              of engaging with intermediaries.                                                       There was an increase in
                                                                                                     information dissemination activity
                                                                                                     to support the Canterbury
                                                                                                     Earthquake Recovery, and the
                                                                                                     launch of the Quad Bike Safety
                                                                                                     Project.
 (L) 4.1.7    E-enquiries relating to health and safety     700 – 900           564       Above      Health and safety e-enquiries were
              matters requiring a substantive response.                                   forecast   higher than anticipated.
 (L) 4.1.8    Calls answered relating to health and         20,000–25,000       11,420    Within
              safety matters.                                                             forecast
 (L) 4.1.9    Forums and workplace information visits       4,000 – 4,500       2,902     Above      This is in part a phasing issue tied
              annually provided by the Department to                                      forecast   to the harm reduction programme.
              promote good health and safety practice.                                               The initial phases were focussed
                                                                                                     on education activities.
 (L) 4.1.10   Standards developed in accordance with        75 – 100            31        Below      There was a new work programme
              the standard setting framework.                                             forecast   agreed at the beginning of the
              · Approved codes of practice and best         15 – 25             4         Below      year which shifted emphasis to
                 practice guides revised or developed.                                    forecast   national compliance and the harm
              · Hazard alerts and bulletins released.       55 – 65             21        Below      reduction programme. This has
                                                                                          forecast   caused a phasing issue with the
              · Approved codes of practice and best         5 – 10              6         Within     approved codes of practice and
                practice guides revoked.                                                  forecast   best practice guides, as the
                                                                                                     consultation process means that
                                                                                                     many of these will be released in
                                                                                                     the second half of the year. In
                                                                                                     addition, bulletins were issued in
                                                                                                     response to the Christchurch
                                                                                                     earthquake which created an
                                                                                                     unexpected change in focus. This
                                                                                                     measure is expected to be on track
                                                                                                     by the third quarter.
                                                                                                                                  13
Output 4.2: Assessment, investigation and enforcement

Performance framework outputs
 Ref      Performance measure                                                Standard                           Result                      Status            Commentary
 (L) 4.2.1         The percentage of customers satisfied with                80%                                                                              This will be reported in the fourth
                   the services, information and tools                                                                                                        quarter.
                   provided by the Department. Satisfaction
                   to be measured by the Workplace Service
                   Excellence Survey using the Common
                   Measurement tool.
 (L) 4.2.2         A report to be provided to the Minister of                Report provided to the                                         On track
                   Labour summarising key service                            Minister by June 20117
                   excellence results.
 (L) 4.2.3         The percentage of health and safety                       90%                                96%                         On Track
                   investigations completed within five
                   months of notification of the event.
 (L) 4.2.4         The percentage of workplaces that, after                  80%                                95%                         On Track
                   six months, have addressed the
                   compliance or enforcement requirements
                   identified.
 (L) 4.2.5         The percentage of workplace assessments                   70%                                70%                         On Track
                   targeted at industries identified in the
                   Workplace Health and Safety Strategy
                   Action Plan.

Activities
 Ref               Activity                                                  Forecast range                     Result                      Status            Commentary
 (L) 4.2.6         Completed workplace assessments to                        5,000 – 5,500                      2,579                       Within
                   promote good health and safety practice.                                                                                 forecast
 (L) 4.2.7         Notified incidents and complaints that                    3,750 – 4,250                      1,979                       Within
                   following a preliminary enquiry do not                                                                                   forecast
                   proceed to an investigation.
 (L) 4.2.8         Completed investigations of health and                    4,500 – 5,500                      2,466                       Within
                   safety incidents and complaints.                                                                                         forecast




 7
     In February 2011, the Minister of Labour approved varying the standard of this performance measure from a `Report is provided to the Minister by December 2010’ to a `Report is provided to the
 Minister by June 2011’.


                                                                                                                                                                                                  14
Financial performance
                 Year to date ($000)                                                                             Full year ($000)
  Budget        Actual               Variance                                              Budget               Actual            Variance
   18,836       17,798         1,038          5%                                           38,672

This output class was behind budget by $1,038,000 (5%) largely due to the commencement of the Labour Group Change Programme occurring later than
budgeted, staff vacancies, professional services due timing of implementing planned projects, and information technology costs running behind budget.


Output class 5: Services to promote and support the safe management of hazardous substances in the workplace
and amusement devices
Performance framework outputs
 Ref      Performance measure                                               Standard                            Result                     Status            Commentary
 (L) 5.1.1         The Environmental Risk Management                        Service quality and                                                              This will be reported in the fourth
                   Authority’s (ERMA) is satisfied with the                 quantity are rated as                                                            quarter.
                   quality of the Department’s services and                 satisfied or above
                   the delivery of the activities identified
                   within the 2010/11 Intentions Report
                   agreed between the Department and the
                   ERMA.
 (L) 5.1.2         The percentage of customers who                          80%                                                                              This will be reported in the fourth
                   indicated they were satisfied with the                                                                                                    quarter.
                   overall quality of service delivery received.
                   Satisfaction to be measured by the
                   Workplace Service Excellence Survey using
                   the Common Measurement Tool.
 (L) 5.1.3         A report to be provided to the Minister of               Report provided to the                                         On track
                   Labour summarising the key service                       Minister by June 20118
                   excellence results.
 (L) 5.1.4         The percentage of investigations in                      90%                                 96%                        On track
                   relation to hazardous substances
                   completed within five months of
                   notification of event.
 (L) 5.1.5         The percentage of workplaces that, within                75%                                 78%                        On track
                   six months, have satisfactorily addressed
                   the compliance or enforcement


 8
     In February 2011, the Minister of Labour approved varying the standard of this performance measure from a `Report is provided to the Minister by December 2010’ to a `Report is provided to the
 Minister by June 2011’.


                                                                                                                                                                                                 15
 Ref          Performance measure                          Standard                  Result               Status        Commentary
              requirements identified in relation to
              hazardous substances.
 (L) 5.1.6    The percentage of amusement device           85% - 95%                 87%                  On track
              certificate registrations and re-
              registrations issued within 15 working
              days following receipt.

Activities
 Ref          Activity                                     Forecast range            Result               Status        Commentary
 (L) 5.1.7    Completed investigations in relation to      100 – 150                 134                  Above         This is a reactive measure and a
              hazardous substances.                                                                       forecast      large portion of the investigations
                                                                                                                        were related to complaints
                                                                                                                        received in the Auckland area
                                                                                                                        concerning fireworks during
                                                                                                                        October and November 2010.
 (L) 5.1.8    Forums and workplace information visits      800 – 1,200               774                  Above         All regions are currently over
              provided by the Department to engage,                                                       forecast      achieving the target for this
              inform and promote in relation to                                                                         quarter. The 2010/11 Hazardous
              hazardous substances.                                                                                     Substances and New Organisms
                                                                                                                        (HSNO) plan provides greater
                                                                                                                        clarity on activities for focus than
                                                                                                                        previous years.
 (L) 5.1.9    Completed workplace assessments in           3,500 – 4,000             2,084                Above         The 2010/11 HSNO plan provides
              relation to the safe management of                                                          Forecast      greater clarity on activities for
              hazardous substances.                                                                                     focus than in previous years.
                                                                                                                        Concentrated activity around a
                                                                                                                        HSNO plan means that targets can
                                                                                                                        be achieved over a short period.
 (L) 5.1.10   Amusement device certificate registrations   125 – 175                 85                   Within
              and re-registrations.                                                                       Forecast

Financial performance
                  Year to date ($000)                                                 Full year ($000)
  Budget        Actual               Variance                          Budget        Actual            Variance
   2,659         2,660           (1)          (0%)                      5,367

This output class was above budget by $1,000 (<1%). Expenditure will be under budget by the end of the third quarter.




                                                                                                                                                     16
Appendix 2: Vote Immigration output schedule report
Overall Vote Immigration financial performance
                Year to date ($000)                                                   Full year ($000)
 Budget        Actual               Variance                         Budget          Actual            Variance
 104,813       98,879         5,934          6%                      219,705

Vote Immigration was behind budget by $5,934,000 (6%) largely due to lower volumes, savings from vacant positions and project delays in Services to
increase the capacity of New Zealand through immigration output class.


Output class 1: Immigration Advisers Authority

Output 1.1: Immigration Advisers Authority

Performance framework outputs
 Ref      Performance measure                             Standard                   Result               Status       Commentary
 (I) 1.1.1    New Immigration Adviser licence             90%                        72%                  Not on       The number of new applications
              applications are processed within 50                                                        track        received was higher than
              working days of receiving a full                                                                         expected. The quality of these
              application.                                                                                             applications was substantially
                                                                                                                       lower than expected resulting in
                                                                                                                       longer processing times.

                                                                                                                       An internal resourcing proposal for
                                                                                                                       additional fixed term staffing was
                                                                                                                       approved in November 2010 to
                                                                                                                       support delivery to the
                                                                                                                       performance standard. These staff
                                                                                                                       have been appointed and
                                                                                                                       commenced work in January 2011.
 (I) 1.1.2    Applications for renewal of Immigration     80%                        87%                  On track
              Adviser licences are processed within 40
              working days of receiving a full
              application.
 (I) 1.1.3    Complaint cases closed within six months.   At least 80%               100%                 On track
 (I) 1.1.4    The percentage of District Court cases      At least 80%               100%                 On track
              where the Immigration Advisers Authority
              is successful.




                                                                                                                                                      17
Activities
 Ref          Activity                                      Forecast range            Result                Status       Commentary
 (I) 1.1.5    The number of new licence applications        60 - 120                  115                   Above        The volume of new licence
              completed.                                                                                    forecast     applications has exceeded
                                                                                                                         expectations.
 (I) 1.1.6    The number of licence renewal applications    390 – 440                 116                   Below        Renewal applications were
              completed.                                                                                    forecast     received from advisers prior to
                                                                                                                         their current licence expiring.
                                                                                                                         There was not an even spread
                                                                                                                         across the year and not all
                                                                                                                         advisers renewed their licence. To
                                                                                                                         date, 54 licences have expired. It
                                                                                                                         is anticipated that 113 applications
                                                                                                                         will be received in the third
                                                                                                                         quarter, and 191 in the fourth
                                                                                                                         quarter.
 (I) 1.1.7    The number of complaint cases.                10 - 25                   18                    Above        The number of complaints received
                                                                                                            forecast     has exceeded expectations.

Financial performance
                  Year to date ($000)                                                  Full year ($000)
  Budget        Actual               Variance                           Budget        Actual            Variance
   1,412         1,189           223          16%                        2,945

This output class was behind budget by $223,000 (16%) largely due to a deliberate and planned reduction in expenditure to minimise the operating deficit
in the Immigration Advisers memorandum account. The operating deficit in the memorandum account is the result of revenue pressures from a smaller
than forecast pool of licensed advisers.


Output class 2: Services to increase the capacity of New Zealand through immigration

Output 2.1: Research, design, development and implementation of advice and policy relating to building the capacity of New
Zealand through immigration

Performance framework outputs
 Ref      Performance measure                               Standard                  Result                Status       Commentary
 (I) 2.1.1    The Minister of Immigration is satisfied      Ministerial rating as                                        This will be reported in the fourth
              with the quality and timeliness of the        satisfied or above                                           quarter.
              Department’s policy advice.                   determined through
                                                            feedback
 (I) 2.1.2    Policy advice is delivered according to the   Policy work programme                           On track
              policy work programme and timeframes          is documented and

                                                                                                                                                      18
Ref         Performance measure                          Standard                   Result   Status     Commentary
            (and any subsequent amendments) as           delivered to timeframes
            negotiated between the Minister and the
            Secretary of Labour.
(I) 2.1.3   The policy process and advice is assessed    90% rated as good                              This will be reported in the fourth
            as good quality through external and         quality or above                               quarter.
            internal review of specific projects.
(I) 2.1.4   The Minister of Immigration is satisfied     Ministerial rating as                          This will be reported in the fourth
            with the quality of the Department’s         satisfied or above                             quarter.
            monitoring, research and evaluation          determined through
            outputs.                                     feedback
(I) 2.1.5   Monitoring, research and evaluation          Work programme is                   On track
            outputs are delivered according to the R&E   documented and
            work programme and timeframes (and any       delivered to timeframes
            subsequent amendments) as negotiated
            between the Minister of Immigration and
            the Secretary of Labour.
(I) 2.1.6   The content of R&E reports are assessed      Rated as good quality or                       This will be reported in the fourth
            as high quality through external and         above                                          quarter.
            internal review of projects.
(I) 2.1.7   The Minister of Immigration is satisfied     Ministerial rating as                          This will be reported in the fourth
            with the quality and timeliness of the       satisfied or above                             quarter.
            Department’s Ministerial Servicing.          determined through
                                                         feedback
(I) 2.1.8   Undertake six-monthly reviews of the         Two reviews completed               On track
            Immediate Skill Shortage List and Long
            Term Skill Shortage List.
(I) 2.1.9   Annual Report on ‘Migration Trends and       By 30 June 2011                     On track
            Outlook’.

Output 2.2 Migrant customer services

Performance framework outputs
 Ref      Performance measure                            Standard                   Result   Status     Commentary
(I) 2.2.1   The percentage of employers satisfied with   At least 80%                                   This will be reported in the third
            the overall quality of service provided by                                                  quarter.
            the Department's Relationship Managers in
            recruiting skilled migrants.
(I) 2.2.2   The percentage of customers satisfied that   At least 80%               75%      Not on     This figure is related to both the
            departmental staff "did what they said                                           track      performance in respect of timeliness
            they would".                                                                                of processing visa applications and
                                                                                                        the backlog issues across the

                                                                                                                                      19
Ref         Performance measure                           Standard                   Result               Status     Commentary
                                                                                                                     service. We are hopeful this will
                                                                                                                     improve as we clear backlogs and
                                                                                                                     work towards shorter processing
                                                                                                                     times.
(I) 2.2.3   The quality of immigration visa and permit    By 31 December 2010,       End of               On track   Results for December quarter will
            decision-making improves.                     the percentage of          September quarter               not be available until March 2011.
                                                          audited decisions rated    result was poor
                                                          as poor is reduced to 3%   decisions of 10.7%
                                                          or less
(I) 2.2.4   The number of people approved for             45,000 - 50,000            18,219               Not on     The residence programme is not
            residence under the New Zealand                                                               track      expected to meet the 45,000
            Residence Programme.                                                                                     residence target due to the down
                                                                                                                     turn in the global economy. At the
                                                                                                                     end of December 2010, it was
                                                                                                                     thought that the final figure was
                                                                                                                     more likely to be in the region of
                                                                                                                     43,000. However we are expecting
                                                                                                                     this to fall further, to around 41,000,
                                                                                                                     following the February 2011
                                                                                                                     earthquake in Christchurch.
(I) 2.2.5   The percentage of student applications        95%                        87%                  Not on     While timeliness for processing
            that will be decided within 0-60 days.                                                        track      student application has slightly
                                                                                                                     improved slightly, we expect further
                                                                                                                     improvements as the new office at
                                                                                                                     Mumbai comes on stream to support
                                                                                                                     the Indian market and the high
                                                                                                                     levels of applications processed
                                                                                                                     there. In addition we are looking at
                                                                                                                     how we can streamline the decision
                                                                                                                     making process for the low value
                                                                                                                     applications and so reduce pressure
                                                                                                                     on the branches.
(I) 2.2.6   The percentage of visitor applications that   95%                        96%                  On track
            will be decided within 0-60 days.

(I) 2.2.7   The percentage of work applications that      90%                        90%                  On track
            will be decided within 0-60 days.
(I) 2.2.8   The percentage of immigration compliance      95%                        95%                  On track
            activities assessed as meeting immigration
            policy.



                                                                                                                                                    20
 Ref          Performance measure                           Standard            Result               Status     Commentary
 (I) 2.2.9    The percentage of border activities           95%                 98%                  On track
              assessed as meeting immigration policy.

Activities
 Ref          Activity                                      Forecast range      Result               Status     Commentary
 (I) 2.2.10   The percentage of approved Skilled            60 – 80%            81%                  Within
              Migrant Category principal applicants who                                              forecast
              will have a job or job offer.
 (I) 2.2.11   The number of Skilled Migrant Category        13,000 – 14,000     6,543                Within
              decisions made.                                                                        forecast
 (I) 2.2.12   Samoan Quota and Pacific Access category

              The number of applications approved           SQ 1,000 – 1,200    SQ – 347 (year to    Below      SQ - 115 and PAC – 47
              under the 2010 quotas for the Samoan          PAC 400 – 500       date)                forecast   applications were decided from
              Quota and Pacific Access.                                         PAC - 166 (year to              July-November 2010. Close-off
                                                                                date)                           date for lodging applications is 12
                                                                                                                February 2011 which will impact
                                                                                                                on decision rate and the number of
                                                                                                                people approved before year end.
 (I) 2.2.13   The number of student visa and permit         110,000 - 120,000   47,696               Below      The student applications decided is
              decisions made.                                                                        forecast   still within the year end forecast.
                                                                                                                The timing of forecast decisions is
                                                                                                                not evenly spread throughout the
                                                                                                                year due to two student peaks in
                                                                                                                July 2010, and February/March
                                                                                                                2011.
              The number of visitor visa and permit         180,000 - 190,000   90,224               Within
              decisions made.                                                                        forecast
              The number of work visa and permit            180,000 - 190,000   87,093               Within
              decisions made.                                                                        forecast
 (I) 2.2.14   Immigration System Integrity - Compliance
              The number of people who will be              1,800 - 2,000       1,101                Within
              removed, deported, depart voluntarily, be                                              forecast
              referred to a branch to apply for a Section
              35A permit, or be granted a special
              direction or Ministerial direction.
              The number of visits to employers to          200 – 300           151                  Within
              encourage compliance with the                                                          forecast
              Immigration Act.


                                                                                                                                            21
Ref          Activity                                       Forecast range          Result   Status     Commentary
             The number of visits to educational            200 – 300               191      Within
             institutions to encourage compliance with                                       forecast
             the Immigration Act.
(I) 2.2.15   Recognised Seasonal Employer (RSE)
             The number of RSE visa and permit              6,500 – 7,000           2,874    Below      The forecast is expected to be met
             applications decided.                                                           forecast   by year end.
             The number of RSE compliance visits to         90 – 110                22       Below      Work in this area takes place in
             employers.                                                                      forecast   the final half of the operational
                                                                                                        year and the forecast is expected
                                                                                                        to be met by year end.
             The number of RSE compliance audits to         140 – 160               63       Below      Work in this area takes place in
             employers.                                                                      forecast   the final half of the operational
                                                                                                        year and the forecast is expected
                                                                                                        to be met by year end.
             The number of RSE compliance                   100 – 120               60       Within
             educational visits to employers.                                                forecast

Output 2.3: Settlement services

Performance framework outputs
 Ref       Performance measure                              Standard                Result   Status     Commentary
(I) 2.3.1    The percentage of stakeholder requests         80%                     99%      On track
             for settlement information and access to
             mainstream services that are addressed.
(I) 2.3.2    The percentage of identified migrant           75%                     20%      On track
             settlement information issues that are
             addressed.

Output 2.4: Support services for the Minister, Residence Review Board and Removal Review Authority

Performance framework outputs
 Ref      Performance measure                               Standard                Result   Status     Commentary
(I) 2.4.1    The Associate Minister of Immigration is       Ministerial rating as                       This will be reported in the fourth
             satisfied with the quality and timeliness of   satisfied or above                          quarter.
             Ministerial appeals.                           determined through
                                                            feedback
(I) 2.4.2    The Removal Review Authority (RRA)             Standard: Rated as                          This measure is not reported as
             members are satisfied with the quality of      satisfied or above                          the RRA was disestablished from
             the Department’s secretarial services.                                                     29 November 2010, replaced by
                                                                                                        the Immigration and Protection
                                                                                                        Tribunal administered by the

                                                                                                                                     22
 Ref          Performance measure                         Standard                   Result                 Status      Commentary
                                                                                                                        Ministry of Justice.
 (I) 2.4.3    The Residence Review Board (RRB)            Standard: Rated as                                            This measure is not reported as
              members are satisfied with the quality of   satisfied or above                                            the RRB was disestablished from
              the Department’s secretarial services.                                                                    29 November 2010, replaced by
                                                                                                                        the Immigration and Protection
                                                                                                                        Tribunal administered by the
                                                                                                                        Ministry of Justice.

Activities
 Ref          Activity                                    Forecast range             Result                 Status      Commentary
 (I) 2.4.4    The number of Ministerial appeals           1,800 – 2,000              749                    Below       There were lesser requests for
              completed.                                                                                    forecast    appeals received than anticipated.
                                                                                                                        As the number completed is
                                                                                                                        relative to the forecast, it appears
                                                                                                                        that this is not on track, however
                                                                                                                        the number of applications on
                                                                                                                        hand indicates that this work is on
                                                                                                                        track. The forecast range is
                                                                                                                        expected to be met by year end.
 (I) 2.4.5    The number of Removal Review Authority      250 - 300                  37 this quarter        Within      The RRA was disestablished under
              appeals finalised.                                                     (127 appeals           forecast    the implementation of the
                                                                                     finalised to 26                    Immigration Act, with the
                                                                                     November 2010)                     establishment of the Immigration
                                                                                                                        and Protection Tribunal
                                                                                                                        administered by Ministry of Justice
                                                                                                                        from 29 November 2010.
 (I) 2.4.6    The number of Residence Review Board        350 - 380                  58 this                Below       The RRB was disestablished under
              appeals finalised.                                                     quarter (125           forecast    the implementation of the
                                                                                     appeals finalised to               Immigration Act, with the
                                                                                     26 November                        establishment of the Immigration
                                                                                     2010)                              and Protection Tribunal
                                                                                                                        administered by Ministry of Justice
                                                                                                                        from 29 November 2010.

Financial performance
                 Year to date ($000)                                                  Full year ($000)
  Budget        Actual               Variance                         Budget         Actual            Variance
   95,087       89,800         5,287          6%                      200,365

This output class was behind budget by $5,287,000 (6%) which reflects lower volumes, savings from vacant positions, project delays, and spending on the
Immigration Act Review Implementation taking place later than budgeted.

                                                                                                                                                     23
Output class 3: Services to position New Zealand as an international citizen with immigration-related interests
and obligations

Output 3.1: Research, advice and implementation of policy relating to positioning New Zealand as an international citizen

Performance framework outputs
 Ref      Performance measure                             Standard                   Result   Status     Commentary
(I) 3.1.1   The Minister of Immigration is satisfied      Ministerial rating as                          This will be reported in the fourth
            with the quality and timeliness of the        satisfied or above                             quarter.
            Department’s policy advice.                   determined through
                                                          feedback
(I) 3.1.2   Policy advice is delivered according to the   Policy work programme               On track
            policy work programme and timeframes          is documented and
            (and any subsequent amendments) as            delivered to timeframes
            negotiated between the Minister and the
            Secretary of Labour.
(I) 3.1.3   The policy process and advice is assessed     90% rated as good                              This will be reported in the fourth
            as good quality through external and          quality or above                               quarter.
            internal review of specific projects.
(I) 3.1.4   The Minister of Immigration is satisfied      Ministerial rating as                          This will be reported in the fourth
            with the quality of the Department’s          satisfied or above                             quarter.
            monitoring, research and evaluation           determined through
            outputs.                                      feedback
(I) 3.1.5   Monitoring, research and evaluation           Work programme is                   On track
            outputs are delivered according to the        documented and
            research and evaluation work programme        delivered to agreed
            and timeframes (and any subsequent            timeframes
            amendments) as negotiated between the
            Minister and the Secretary of Labour.
(I) 3.1.6   The content of research and evaluation        Rated as good quality or                       This will be reported in the fourth
            reports are assessed as good quality          above                                          quarter.
            through external and internal review of
            projects.
(I) 3.1.7   Deliver on research outputs from the          Research work                       On track
            Quota 10 Years On Research Programme.         programme is delivered
                                                          to timeframes and
                                                          report(s) have been
                                                          published from the study




                                                                                                                                      24
Output 3.2: Refugee customer services

Performance framework outputs
 Ref      Performance measure                              Standard               Result    Status     Commentary
 (I) 3.2.1    The United Nations High Commissioner for     Standards met                               This will be reported in the fourth
              Refugees (UNHCR) confirms that                                                           quarter.
              international standards relating to the
              processing, assessment and detention
              procedures for refugee status claimants
              and UNHCR mandated refugees have been
              met.
 (I) 3.2.2    The annual quota of UNHCR mandated           675 - 825              375       On track
              refugees who travel to New Zealand and
              undertake an initial orientation
              programme.
 (I) 3.2.3    The percentage of the annual refugee         50%                    84%       On track
              quota who successfully complete initial
              refugee resettlement programmes and
              transition to mainstream services.
 (I) 3.2.4    Quota refugees receive resettlement          Standards met                    Achieved   The report from Refugee Services
              support from Refugee Services for a period                                               was completed in December 2010.
              of 12 months and are resettled in local
              communities.
 (I) 3.2.5    The percentage of identified refugee         75%                                         This will be reported in the fourth
              resettlement issues that are addressed.                                                  quarter.
 (I) 3.2.6    The percentage of stakeholders satisfied     75%                                         This will be reported in the fourth
              with the National Refugee Resettlement                                                   quarter.
              Forum.
 (I) 3.2.7    The average age of undecided asylum          20 weeks maximum       3 weeks   On track
              seeker claims for refugee status.
 (I) 3.2.8    Asylum seeker claims for refugee status      No complaints to the             On track
              are decided in a fair manner.                Ombudsman are upheld

Activities
 Ref          Activity                                     Forecast range         Result    Status     Commentary
 (I) 3.2.9    The number of new asylum seeker claims       250 - 300              195       Within
              for refugee status, including subsequent                                      forecast
              claims, determined.
 (I) 3.2.10   The number of failed asylum seeker           125 -175               73        Within     Compliance Operations underwent
              refugee claimants who are removed or                                          forecast   a database transition in December
              depart voluntarily.                                                                      2010 which may impact on the
                                                                                                       accuracy of this month statistics.


                                                                                                                                    25
Output 3.3: Support services for the Refugee Status Appeals Authority

Performance framework outputs
 Ref      Performance measure                              Standard                   Result            Status     Commentary
 (I) 3.3.1    The Refugee Status Appeals Authority         Rated as satisfied or                                   This measure is not reported as
              (RSAA) members are satisfied with the        better                                                  the RSAA was disestablished from
              quality of the Department’s secretarial                                                              29 November 2010, replaced by
              services.                                                                                            the Immigration and Protection
                                                                                                                   Tribunal administered by the
                                                                                                                   Ministry of Justice.

Activity
 Ref          Activity                                     Forecast range             Result            Status     Commentary
 (I) 3.3.2    The number of refugee status appeals and     130 – 150                  42 this quarter   Within     The RSAA was disestablished
              cancellations finalised.                                                (71 appeals       forecast   under the implementation of the
                                                                                      finalised to 26              Immigration Act, with the
                                                                                      November 2010)               establishment of the Immigration
                                                                                                                   and Protection Tribunal
                                                                                                                   administered by Ministry of Justice
                                                                                                                   from 29 November 2010.

Financial performance
                  Year to date ($000)                                                  Full year ($000)
  Budget        Actual               Variance                          Budget         Actual            Variance
   8,314         7,890           424          5%                       16,395

This output class was behind budget by $424,000 (5%) which is not considered to be significant.




                                                                                                                                               26
Appendix 3: Vote Employment output schedule report
Overall Vote Employment financial performance
                 Year to date ($000)                                                                  Full year ($000)
 Budget        Actual               Variance                                            Budget       Actual            Variance
  5,560         4,910           650          12%                                        14,286

Vote Employment was behind budget by $650,000 (12%) largely due to policy projects delays, with most of that variance attributable to the Policy,
research and evaluation output class.


Output class 1: Labour market analysis and knowledge

Output 1.1: Collection and analysis of labour market information

Performance framework outputs
 Ref      Performance measure                                                Standard                Result           Status      Commentary
 (E) 1.1.1          Stakeholders are satisfied with the                      Maintain or improve                                  This will be reported in the fourth
                    timeliness and quality of:                               satisfaction level                                   quarter.
                    ·   labour market reports                                compared to the
                    ·   analysis tools                                       previous year9
                    ·   seminars
                    ·   analysis advice
                    ·   relationships with the Department.
 (E) 1.1.2          Labour market reports and tools are fit for              Ministerial rating as                                This will be reported in the fourth
                    purpose for the Minister for Social                      satisfied or above                                   quarter.
                    Development and Employment.                              determined through
                                                                             feedback
 (E) 1.1.3          Labour market reports and tools are fit for              Maintain or improve                                  This will be reported in the fourth
                    purpose for stakeholders.                                satisfaction level                                   quarter
                                                                             compared to the
                                                                             previous year99
 (E) 1.1.4          Labour market reports and tools are                      Reports and tools are                    On track
                    delivered on time to the Minister for Social             delivered to agreed
                    Development and Employment and                           timeframes
                    relevant Stakeholders.




 9
     Satisfaction to be measured by the Annual Stakeholder Satisfaction Survey.


                                                                                                                                                               27
Activities
 Report/ Tool                                 Activity                        Forecast date               Result   Status            Commentary
 Monthly External Migration                   Report completed.               4th week of each month      3        Within forecast
 Quarterly Employment and                     Report completed.               Early February, May,        1        Within forecast
 Unemployment                                                                 August, and November
 Quarterly Wage Growth                        Report completed.               Early February, May,        1        Within forecast
                                                                              August, and November
 Biennial Skills in Labour Market             Report completed.               June and December           0        Below forecast    The report was not prepared
                                                                                                                                     because of review of priorities in the
                                                                                                                                     Policy and Research Group.
 Quarterly Preview of the                     Report completed.               Early February, May,        1        Within forecast
 Household Labour Force Survey                                                August, and November
 Biennial National Monitoring                 Report completed.               May and November            0        Below forecast    National monitoring reports on Maori
 Programme                                                                                                                           and Youth were prepared last year.
                                                                                                                                     We are not producing any report this
                                                                                                                                     year.
 Quarterly State of the Labour                Report completed.               September, December,        1        Within forecast
 Market                                                                       March and June
 Monthly Jobs Online                          Report completed.               3rd week of each month      3        Within forecast

Output 1.2: Labour market development

Performance framework outputs
 Ref      Performance measure                                              Standard                    Result            Status        Commentary
 (E) 1.2.1        Stakeholders are satisfied with the quality              Maintain or improve                                         This will be reported in the fourth
                  of the advice and support provided by the                satisfaction level                                          quarter.
                  Department.                                              compared to the
                                                                           previous year10
 (E) 1.2.2        Stakeholders of identified priority sectors              Stakeholders rating as                                      This will be reported in the fourth
                  are satisfied with the quality of advice and             satisfactory or above                                       quarter.
                  support given by the Department for                      determined through
                  developing their Skills Action Plans.                    feedback or annual
                                                                           stakeholder survey10
 (E) 1.2.3        The Minister for Social Development and                  Ministerial rating as                                       This will be reported in the fourth
                  Employment is satisfied with the                         satisfied or above                                          quarter.
                  Department’s advice on the labour market.                determined through
                                                                           feedback



 10
      Satisfaction to be measured by the Annual Stakeholder Satisfaction Survey.


                                                                                                                                                                    28
Financial performance
                  Year to date ($000)                                                   Full year ($000)
  Budget        Actual               Variance                          Budget          Actual            Variance
   3,272         3,074           198          6%                        8,666

This output class was behind budget by $198,000 (6%) largely through contract work on the industry programme having been delayed.


Output class 2: Policy, research and evaluation

Output 2.1: Labour market, employment and skills policy advice

Performance framework outputs
 Ref      Performance measure                               Standard                   Result           Status       Commentary
 (E) 2.1.1    Policy advice is delivered as agreed with     Policy work programme                       On track
              the Minister for Social Development and       is documented and
              Employment.                                   delivered to agreed
                                                            timeframes
 (E) 2.1.2    The Minister for Social Development and       Ministerial rating as                                    This will be reported in the fourth
              Employment is satisfied with the quality      satisfied or above                                       quarter.
              and timeliness of the Department’s policy     determined through
              advice.                                       feedback
 (E) 2.1.3    The policy process and advice is assessed     90% rated as good                                        This will be reported in the fourth
              as good quality through external and          quality or above                                         quarter.
              internal review of projects.
 (E) 2.1.4    Stakeholders are satisfied with quality and   Findings are fit for                                     This will be reported in the fourth
              timeliness of labour market, skills and       purpose and audience                                     quarter.
              employment research reports.                  are provided with
                                                            information in time to
                                                            influence decision-
                                                            making
 (E) 2.1.5    The Minister for Social Development and       Ministerial rating as                                    This will be reported in the fourth
              Employment is satisfied with the quality of   satisfied or above                                       quarter.
              the Department’s monitoring, research         determined through
              and evaluation outputs.                       feedback
 (E) 2.1.6    Monitoring and evaluation outputs are         Work programme is                           On track
              delivered according to a research and         documented and
              evaluation work programme and                 delivered to agreed
              timeframes.                                   timeframes
 (E) 2.1.7    Research and evaluation reports are           Rated as good quality or                                 This will be reported in the fourth
              assessed as good quality through external     above                                                    quarter.
              and internal review of projects.

                                                                                                                                                  29
 Ref               Performance measure                                      Standard                   Result           Status      Commentary
 (E) 2.1.8         Undertake research to create an evidence                 Work programme is                           Achieved    No further outputs from this work
                   base in future labour market issues as per               documented and                                          stream.
                   the Workforce 2020 Work Programme.                       delivered to agreed
                                                                            timeframes
 (E) 2.1.9         Stakeholders are satisfied with the quality              Research reports are                        On track
                   and timeliness of the research reports.                  produced as per the
                                                                            schedule in the Business
                                                                            Plan11
 (E) 2.1.10        The Minister for Social Development and                  Ministerial rating as                                   This will be reported in the fourth
                   Employment is satisfied with the quality                 satisfied or above                                      quarter.
                   and timeliness of the Department’s                       determined through
                   Ministerial Servicing.                                   feedback

Financial performance
                  Year to date ($000)                                                                   Full year ($000)
  Budget        Actual               Variance                                          Budget          Actual            Variance
   2,288         1,836           452          20%                                       5,620

This output class was behind budget by $452,000 (20%) largely due to expenditure in employment skills, and policy work having been delayed.




 11
      Satisfaction to be measured by the Annual Stakeholder Satisfaction Survey.


                                                                                                                                                                 30
Appendix 4: Vote ACC output schedule report
Overall Vote ACC financial performance
                 Year to date ($000)                                                                                 Full year ($000)
 Budget        Actual               Variance                                                  Budget                Actual            Variance
  2,072         2,049            23          1%                                                4,878

Vote ACC was behind budget by $23,000 (1%) which is not considered to be significant.


Output class 1: Policy and monitoring

Output 1.1: Policy advice

Performance framework outputs
 Ref      Performance measure                                                  Standard                             Result                   Status       Commentary
 (A) 1.1.1         The Minister for ACC is satisfied with the                  Ministerial rating as                                                      This will be reported in the fourth
                   quality and timeliness of the Department’s                  satisfied or above                                                         quarter.
                   policy advice.                                              determined through
                                                                               feedback12
 (A) 1.1.2         The policy process and advice is assessed                   Meet or exceed good                                                        This will be reported in the fourth
                   as good quality through external and                        quality standard                                                           quarter.
                   internal review of specific projects.
 (A) 1.1.3         Policy advice is delivered as agreed with                   Policy work programme                                         On track
                   the Minister for ACC.                                       is documented and
                                                                               delivered to agreed
                                                                               timeframes
 (A) 1.1.4         Ministerial advisory groups are satisfied                   Ministerial advisory                                          Not          There are no advisory groups
                   with the quality of the Department’s                        groups’ rating as                                             applicable   currently sitting.
                   administrative support.                                     satisfied or above
                                                                               determined through
                                                                               feedback




 12
      Ratings used in satisfaction surveys are: Unsatisfied, Partly Satisfied, Satisfied, Satisfied Above Expectations, and Very Satisfied




                                                                                                                                                                                       31
Output 1.2: Monitoring

Performance framework outputs
 Ref      Performance measure                              Standard                 Result   Status     Commentary
(A) 1.2.1   The Minister for ACC is satisfied with the     Ministerial rating as                        This will be reported in the fourth
            quality and timeliness of the Department’s     satisfied or above                           quarter.
            monitoring advice.                             determined through
                                                           feedback
(A) 1.2.2   Monitoring advice will be delivered as         Monitoring advice work            On track
            agreed with the Minister for ACC.              programme is
                                                           documented and
                                                           delivered to agreed
                                                           timeframes
(A) 1.2.3   ACC Board appointments and                     Managed in accordance             Not on     The ACC Board appointment
            appointments to any other advisory groups      with Cabinet and SSC              track      process has been delayed partially
            are managed in accordance with Cabinet         requirements                                 due to Government consideration
            and SSC requirements.                                                                       of competition issues, and the
                                                                                                        corresponding need to reassess
                                                                                                        what constitutes appropriate skill
                                                                                                        sets for Board members. There
                                                                                                        has also been an expansive
                                                                                                        process through which potential
                                                                                                        Board members could be
                                                                                                        nominated and their suitability
                                                                                                        assessed.

Output 1.3: Ministerial servicing

Performance framework outputs
 Ref      Performance measure                              Standard                 Result   Status     Commentary
(A) 1.3.1   The Minister for ACC is satisfied with the     Ministerial rating as                        This will be reported in the fourth
            quality and timeliness of the Department’s     satisfied or above                           quarter.
            Ministerial Servicing.                         determined through
                                                           feedback
(A) 1.3.2   Ministerial Servicing is delivered as agreed   Ministerial rating as                        This will be reported in the fourth
            with the Minister for ACC.                     satisfied or above                           quarter.
                                                           determined through
                                                           feedback
(A) 1.3.3   The Department completes all Ministerial       Ministerial rating as                        This will be reported in the fourth
            correspondence in a timely manner.             satisfied or above                           quarter.
                                                           determined through
                                                           feedback


                                                                                                                                     32
Financial performance
                  Year to date ($000)                                                    Full year ($000)
  Budget        Actual              Variance                          Budget            Actual            Variance
   1,997         1,974           23          1%                        4,713

This output class was behind budget by $23,000 (1%) which is not considered to be significant.


Output class 2: Regulatory services

Output 2.1: Accident Insurance Regulator

Performance framework outputs
 Ref      Performance measure                              Standard                     Result           Status       Commentary
 (A) 2.1.1     The Accident Insurance Regulator will       Within five days of                           Not          No complaints or enquiries
               respond to complaints and enquiries         receipt, including                            applicable   received.
               according to timeliness standards.          responding within five
                                                           days of receipt to notices
                                                           of insurers failing to
                                                           comply with their
                                                           obligation under the
                                                           1998 Act

Financial performance
                 Year to date ($000)                                                     Full year ($000)
  Budget        Actual             Variance                           Budget            Actual            Variance
    75            75             0          0%                         165

There was no variance for this output class.




                                                                                                                                                   33
Quarterly Performance Report
for the quarter ending 30 September 2010




                  Vision:
Contents

Executive summary.................................................................................................3
A    Our outcome contribution .................................................................................6
B    Output performance ...................................................................................... 16
C    Financial performance .................................................................................... 19
D    Maintaining and developing capability .............................................................. 21
Appendix 1: Vote Labour output schedule report ....................................................... 25
      Output class 1: International services .............................................................. 25

      Output class 2: Policy advice – Labour.............................................................. 26
      Output class 3: Services to promote and support fair and productive employment
      relationships ................................................................................................. 28
      Output class 4: Services to promote and support safe and healthy people and
      workplaces ................................................................................................... 33
      Output class 5: Services to promote and support the safe management of hazardous
      substances in the workplace and amusement devices ......................................... 36
Appendix 2: Vote Immigration output schedule report ............................................... 38

      Output class 1: Immigration Advisers Authority ................................................. 38
      Output class 2: Services to increase the capacity of New Zealand through
      immigration.................................................................................................. 39
      Output class 3: Services to position New Zealand as an international citizen with
      immigration-related interests and obligations .................................................... 45
Appendix 3: Vote Employment output schedule report ............................................... 49
      Output class 1: Labour market analysis and knowledge ...................................... 49
      Output class 2: Policy, research and evaluation ................................................. 51
Appendix 4: Vote ACC output schedule report ........................................................... 53

      Output class 1: Policy and monitoring .............................................................. 53
      Output class 2: Regulatory services ................................................................. 55




                                                                                                                     2
Executive summary

Our outcome contribution

Intermediate outcome 1: A more effective immigration system
  ·   In September 2010, Cabinet approved the paper setting out the strategic direction
      for immigration.
  ·   In August 2010, Cabinet confirmed the core sets of immigration regulations
      required for the Immigration Act implementation. Immigration Instructions have
      been certified and the Immigration Act training has commenced for all staff.
  ·   The Department is developing a sustainable funding strategy that will cover a three
      to five year time horizon. Work is progressing, with a draft report expected in
      November 2010.
  ·   Work began on two reviews examining the strengthening of pathways from study-
      to-work, and work-to-residence.
  ·   The review of business policies guided by the long-term immigration strategy
      started.


Intermediate outcome 2: More productive workplaces and sectors
  ·   The Holidays Act and Employment Relations Act Amendment Bills have been
      introduced to Parliament and the Department is servicing the Transport and
      Industrial Relations Committee. The Government introduced a draft Holidays
      Amendment Bill which has been before the Transport and Industrial Relations
      Committee. A departmental report will be presented in mid-October 2010.
  ·   A senior officials group from the Department, the Ministry of Education, the Tertiary
      Education Commission, the Ministry of Economic Development, The Treasury, the
      Ministry of Social Development, and Department of Prime Minister and Cabinet has
      been established to coordinate work on skills in those different agencies.
  ·   Safety in Adventure Tourism became a Ministerial priority in early 2010. Cabinet
      has agreed in principle to set up a compulsory registration scheme. The
      Department will continue to work with the industry to develop the makeup of the
      industry-led entity, before the Minister of Labour reports back to Cabinet in
      November 2010.
  ·   The Department provided advice to the Minister for Social Development and
      Employment about the employment and skills impacts of key policy and programme
      changes across government, in particular the broadband roll-out and the joint
      venture with construction industry.


Intermediate outcome 3: More people in quality work
  ·   The Renewed Health and Safety Strategy is under consultation, and the
      Department is working with the five priority sectors to develop individual sector
      action plans.
  ·   The Department provided advice to the Minister for Social Development and
      Employment on likely areas of growth in employment opportunities, that can be
      taken to address identified areas of weakness or maximise opportunities for
      growth, now and into the future.



                                                                                          3
   ·   The Department worked with other government agencies on actions that can be
       taken to ensure the availability of skilled labour needed to fuel economic growth.


Intermediate outcome 4: A better performing accident
compensation system
   ·   The Department provided advice on changes to entitlements related to hearing
       loss.
   ·   The Department began developing advice on ACC board’s recommendations for
       2011/12 levies, and on the introduction of experience rating.
   ·   The Department provided advice to Minister for ACC and Cabinet on some
       recommendations of the Stocktake Steering Group.
   ·   The Department’s advice on options for introducing competition and choice to the
       ACC scheme was progressed to Cabinet through a series of papers.
   ·   The Department began work on options for improving dispute resolution services.
       Further work will be progressed as part of the advice on choice and competition, or
       separately, if the choice and competition work does not proceed.


Output performance
Of the 64 Output Plan performance measures reported on this quarter, 59 (92%) were
rated as ‘On Track’, three (5%) ‘Not on track’, and two (3%) `Not applicable’. Of the 60
activities reported on this quarter, 31 (52%) had their activity level within the forecast
range.

The not on track performance measures included:
   Vote Labour
   ·   The percentage of workplace assessments targeted at industries identified in the
       Workplace Health and Safety Strategy Action Plan is slightly below standard. The
       measure is new and systems and data practices are being established. The
       standard is expected to be met by year end.


   Vote Immigration
   ·   71% of new Immigration Adviser licence applications are processed within 50
       working days of receiving a full application, against a standard of 90%. The quality
       of new applications continued to drop and many have substantive issues that
       extend processing times. Processes and resourcing are being reviewed to address
       these issues.
   ·   87% of student applications have been decided within 60 days against a standard
       of 95%. Extra resources have been applied to clearing a large back log of
       applications from 2009/10. The inflow of applications has reduced and work is
       underway to improve timeliness, as additional resources will be made available to assist
       with processing, and new interim visas under the Immigration Act 2009 will mitigate the
       effect.


Financial performance
At 30 September 2010, the Department was $3.801 million (5%) below forecast against
the budget in the Main Estimates. This was mainly due to significant variances in:


                                                                                                 4
   ·   Vote Labour of $1.205 million (6%) largely due to work on planned projects
       running behind the original budget, and staff vacancies
   ·   Vote Employment of $0.413 million (13%) largely due to policy projects being put
       on hold pending the Policy, Research and Evaluation, and Employment (PREE)
       decisions being implemented
   ·   Vote ACC of $0.342 (25%) largely due to expenditure on professional services
       relating to project work running behind schedule. The work is expected to increase
       over the next few months and be on track by March 2011.


Maintaining and developing capability
The Department responded promptly to the magnitude 7.1 Canterbury earthquake –
maintaining core services and supporting other agencies, while reinstating accommodation
and supporting affected staff.

A number of key initiatives have been progressed to improve organisational capability.
   ·   Since 1 July 2010, the Department has been operating under a new corporate
       model with centralised corporate functions.
   ·   The decision document for the Policy, Research and Evaluation, and Vote
       Employment review was released on 22 September 2010. The implementation of
       the decisions will take effect on 1 December 2010.
   ·   On 16 September 2010, the ‘Lifting Performance – Delivering Results: Review of
       the Immigration Group Structure’ consultation document was made available for
       staff for consideration and feedback. A decision document and implementation of
       decisions is expected in November 2010.
   ·   The outcome of the Workplace Business Processes and Management Structure
       Practices Review identified six priorities to improve the Workplace Group’s service
       delivery to employers and workers, and the management structure supporting
       service delivery. A work programme has been developed as part of Workplace’s
       Business Plan 2010/11 to address the priorities.
   ·   The participation rates of the third annual staff engagement survey improved on
       the previous two years, as well as satisfaction with the Department as a place to
       work.
   ·   The upgrading of the Department’s ICT infrastructure, implementation of the
       Financial Management Information System, and upgrading the Human Resources
       Management Information System are on track.
   ·   The Information Systems Strategic Plan (ISSP) has been signed-off. It is being
       refreshed to reflect the new structure within the Business Services Group, which
       included Information Management.
   ·   The Department held a National Hui at Tūrangawaewae marae in Ngāruawahia on
       10 August 2010 to discuss the Māori Strategy 2008-2013 activity, and how to
       further progress the Strategy and improve service delivery for Māori.
   ·   The Pacific Fono on the Department’s Pacific Strategy was held at the University of
       Auckland Pasifika Fale on 31 August – 1 September 2010. The Fono presented the
       first draft of the Department’s Pacific Strategy to staff, and discussed how to tie it
       into business planning processes.




                                                                                             5
A        Our outcome contribution
Intermediate outcome 1: A more effective immigration
system

Immediate Outcomes
·       The delivery of immigration services is improved.
·       Facilitation of entry for migrants, international students and tourists is improved.
·       Settlement of migrants is improved.
·       The integrity of New Zealand’s immigration system is maintained.
·       New Zealand’s international reputation is maintained.

Vote contributing: Vote Immigration


1.1 Vote Immigration Ministerial Priority: A long-term
immigration strategy that supports sustained economic growth
In September 2010, Cabinet approved a paper setting out a strategic direction for
immigration. This provides a long-term direction for New Zealand’s immigration to
support New Zealand’s economic growth. It also contains focus areas for policy
formulation over the next five years. Work currently underway on policy reviews is being
informed by the strategic direction, in particular the reviews of business policies and the
capped family stream.


1.2 Vote Immigration Ministerial Priority: Improved Immigration
New Zealand systems and delivery of services
1.2.a: Immigration global management system (IGMS)
This project is focussing on planning, scope confirmation, establishing project relationships
with other agencies, and on review and updating of business requirements to support the
Request for Proposal (RFP) that will be issued later this year.

Over the last six months there have been a couple of factors contributing to the delay in
the IGMS Project Milestones, including completing the Investment Proposal for a February
2011 Cabinet report back.
    ·    Business Requirements gathered during the Immigration Business Transformation
         Project (IBT) lacked consistency and depth in some places, resulting in a greater
         workload to IGMS than was originally assumed.
    ·    There have been developments across a number of projects which will impact on
         the future of Immigration New Zealand (INZ) and the requirements for IGMS.
         These include the Review of INZ Service Delivery Model, the Immigration Systems
         Programme, Immigration Act implementation, Five Country Conference
         commitments, collaborative or dependent work with other agencies (e.g. JBMS,
         iGovt), and the Business Process Diagnostic and Design.
It is critical that IGMS requirements reflect the changes arising from other projects to
ensure the future IT system supports business needs, and significant work is required to
do this. A request has been made to the Minister of Immigration to move the milestone
dates and to seek funding out of the budget cycle.




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The second stage of the Immigration Biometric Evaluation project plan to develop and plan
project deliverables, milestones and timelines with a vendor partner was completed by 15
September 2010. Daon (Australia) Pty Limited has been selected as the vendor partner
for the technical stage of the biometrical trial.
1.2.b: Implementing the Immigration Act 2009
In August 2010, Cabinet confirmed           the   core   sets   of   regulations   required   for
implementation of the Immigration Act.

Work started with the Department of Internal Affairs on extending VisaView to enable
employers to check the status of New Zealand passport holders. This functionality has
been requested by key stakeholders, such as Business New Zealand, and is expected to be
completed when the Act comes into force on 29 November 2010.

The Immigration Instructions have now been certified. This represents a significant
milestone for the Immigration Act Implementation Project.

Immigration Act training with an online training package for all staff started. Facilitated
training sessions began in September 2010, with the first sessions being run for the
Immigration Contact Centre.
1.2.c: Business process and diagnostics design (BPDD)- Phase 3
This project will implement a number of Service Delivery process improvements which will
enable consistencies and efficiencies within existing operational constraints.
PricewaterhouseCoopers are assisting with Phase 3 of the Project.

The first stage (detailed design) and second stage (construct stages) of Phase 3 of the
Project have been completed. The Project Board met and agreed to the initiatives to be
implemented, and the order of their implementation. Due to resource constraints and
request for change, some initiatives will require further work and/or decision before they
can proceed to implementation.


1.3 Vote Immigration Ministerial Priority: A sustainable funding
strategy for Immigration New Zealand
The work on analysing potential levy options has been discontinued because the
Department has been advised by the Minister of Immigration’s office that new levies are
no longer an option.

The Department will undertake two pieces of work over the next few months to identify
the value that Immigration Advisors could add to INZ processes. The outcome of this
work should provide a basis to either reduce processing costs or fund a portion of the
Immigration Advisers Authority (IAA) regime costs from fees revenue.

A draft paper outlining the proposed sustainable funding strategy has been completed.
This identifies potential cost savings in the service delivery area and will form the basis of
a sustainable funding strategy. The strategy will propose to manage future costs within
existing baselines by changing the Immigration Service Delivery model and moving to
lower cost delivery and processing channels. The report will also outline the options to
reduce Crown funding which have been identified over the course of the project. The
report will be provided to the Minister of Immigration by the end of November 2010.




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1.4 Vote Immigration Ministerial Priority: Optimising potential
and building on existing initiatives (particularly export education
and business migration)
The Department began work on two reviews examining the strengthening of pathways
from study-to-work, and work-to-residence. Both of these reviews aim to enhance the
integrity and economic outcomes of immigration.

The review of business policies guided by the long-term immigration strategy also started.


1.5    Other intermediate outcome key SOI activities
1.5.a Facilitating entry to New Zealand
At the end of the quarter, the number of licensed immigration advisers was 514 and has
continued to increase in excess of expectations. Twenty three warning letters have been
issued in this financial year, and a number of offence investigations are underway. Two
complaints have been prepared and sent to the Tribunal.

Work has been completed on scoping the immigration advisers qualification and will go to
tender in the second quarter. The IAA continues to build close working relations with the
New Zealand Association for Migration and Investment and has made a number of
presentations to meetings of their members.
1.5.b Migrant settlement
Refugee and migrant settlement – Canterbury earthquake
Since the Canterbury earthquake on 4 September 2010, the Department has been in
regular contact with the Chief Executive of Refugee Services Aotearoa to ensure that
recently-resettled refugees in Christchurch are being provided with the right support,
including counselling services.
Auckland regional settlement strategy
The 2010/11 Auckland Settlement Action Plan was updated and the Auckland Settlement
Monitoring Framework drafted in September 2010. Strong engagement exists with
agencies and sectors to ensure the Action Plan retains good substance moving forward.
Planning for a settlement event in November 2010 is underway to promote the stronger
future focus on Auckland’s economic growth. The event will showcase the Auckland
Regional Settlement Strategy’s achievements since its launch in 2007.
Wellington regional settlement strategy
The Wellington Regional Settlement Strategy Working Group held their eighth meeting on
16 September 2010, attended by 11 participating organisations. The results of the
Strategy’s evaluation were presented. The Working Group formed an ESOL subcommittee
to consider English language provision for newcomers.
1.5.c Border management
Delivering value for money border services
The Department submitted a paper to the Officials Expenditure Control Committee which
reports on work to develop a more integrated and responsive border management system,
and identify risks and opportunities around the border sector. The Minister of Immigration
will be meeting with the Ministers of Customs, and Agriculture and Forestry in October
2010 to sign off the final paper.




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1.5.d Meeting international commitments and maintaining confidence
The Department coordinated and submitted reports on International Labour Organisation
(ILO) conventions including conventions related to seafaring and maritime activities,
employment policy, tripartite approaches to labour and employment policy, and issues
related to equity and discrimination.

The Department participated in:
    ·    Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting of the Human
         Resources Development Working Group (HRDWG). The outcome of the meeting
         included an action plan which sets priorities for the HRDWG focussed on promoting
         employment and inclusive growth in the region.
    ·    United Nations High Commissioner for Refugees (UNHCR) Annual Tripartite
         Consultations on Resettlement.
    ·    3rd APEC Senior Officials’ Meeting for the Business Mobility Group (BMG). One of
         the outcomes of the BMG is the enhancement of the APEC Business Travel Card,
         which supports APEC’s goals related to regional economic integration and human
         security.


Intermediate Outcome 2: More productive workplaces and
sectors

Immediate Outcomes
·       Adoption of high-performance workplace practices by New Zealand workplaces is
        increased.
·       Employers’ access to the skills they need is increased.
·       Employers’ access to the workers they need is increased.
·       Productivity in workplaces is improved.
·       Productivity in key sectors is improved.

Votes contributing: Vote Labour, Vote Immigration, Vote Employment and Vote
ACC


2.1      Vote Labour Ministerial Priority: Holidays Act Review
The Government introduced a draft Holidays Amendment Bill on 16 August 2010 which
was read for the first time on 24 August 2010. The Bill gives effect to the Government’s
decisions on the review of the Holidays Act, including the tradability of a week of holidays
for cash and a reformation of the calculation of holiday pay. The Bill was referred to the
Transport and Industrial Relations Committee for consideration and the Department has
been supporting the Committee. The Department will be presenting a departmental report
in mid-October 2010 and the Committee is due to report the Bill back to the House on 5
November 2010.


2.2 Vote Labour Ministerial Priority: Employment Relations Act
Review (including review of personal grievances provisions and
reducing business compliance costs)
The Government introduced a draft Employment Relations Amendment Bill on 16 August
2010 which was read for the first time on 19 August 2010. The Bill gives effect to


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government policy on employment relations, and includes provisions extending the 90-day
trial period to businesses of all sizes and a change to the test for personal grievances. The
Bill was referred to the Transport and Industrial Relations Committee for consideration and
the Department has been supporting the Committee. The Department will be presenting a
departmental report in mid-October 2010 and the Committee is due to report the Bill back
to the House on 5 November 2010.


2.3    Vote Labour Ministerial Priority: Skills Forum
A senior officials group has been established from the Department, Ministry of Education
(MOE), Tertiary Education Commission (TEC), Ministry of Economic Development (MED),
The Treasury, Ministry of Social Development (MSD), and Department of Prime Minister
and Cabinet to coordinate work on skills between different agencies. The group’s focus
over the next quarter will be on literacy, language and numeracy, vocational pathways,
and matching skills with demand.


2.4    Vote Labour Ministerial Priority: Safety in Adventure Tourism
Safety in adventure tourism became a Ministerial priority in early 2010. Cabinet has made
decisions on the preferred package of initiatives for health and safety in adventure tourism
which includes an industry-led entity to strengthen the safety management framework.
Cabinet has agreed in principle to set up a compulsory registration scheme and the
Cabinet report back will contain detailed proposals on the scheme. The Department will
continue to work with the industry to develop the makeup of the industry-led entity before
the Minister of Labour reports back to Cabinet in November 2010.


2.5 Vote Employment Ministerial Priority: Monitoring Labour
Market Trends
The Department monitored the labour market and regularly assessed areas of weakness or
opportunity. It also provided the following major pieces of advice to the Minister for Social
Development and Employment:
   ·   The Quarterly State of Labour Market Scorecard report for August 2010 containing
       data on employment, unemployment, migration, education and capital investment
       provided a wide range of indicators showing the strength of the recovery in the
       labour market. The report also included indicators that link the performance of the
       labour market to the Government’s Economic Growth Agenda.
   ·   The Quarterly Assessment of Policy Responses to the Current State of the Labour
       Market report for August 2010 identified areas of strength and weakness across the
       labour market that require attention to optimise the functioning of the labour
       market to support economic growth.
   ·   The Economic Growth report examined the latest gross domestic product figures
       and their implications for the labour market. The report aimed to provide an
       evidence base to inform policy advice, and to enable the users to be better
       informed about the labour market.


2.6 Vote Employment Ministerial Priority: Maximising Impacts of
Government Investment
The Department, with MED, provided a briefing to the Minister for Social Development and
Employment, and the Minister of Communications and Information Technology on the
Skills and Employment Implications of the Broadband Roll-Out. The briefing provided
advice on skills and employment implication of the government’s broadband roll-out

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project. The Department consulted with the Department of Building and Housing (DBH),
and key firms and sector bodies, who indicated their broad confidence that any skills
shortages can be managed over the roll-out period.

The Department, with DBH and the construction and housing sector, has been working to
produce a skills action plan and encourage training through changes to procurement
practices. Its objective is to maximise impacts of government investment and its
procurement activity to improve sector productivity, grow employment and training
opportunities, and to minimise the risk of future skill shortages.


2.7 Vote Employment Ministerial Priority: Ensuring a Capable
Workforce
The Department has worked with other government agencies on actions that can be taken
to ensure the availability of skilled labour needed to fuel economic growth. The
Department, with MOE, MED, MSD, TEC, and The Treasury, continued work on a number
of projects relating to skills, including contributing to policy development (e.g. Youth
Guarantee scheme, Review of Qualifications). These agencies have been working jointly to
match skills with demand and provide Ministers with cross-agency advice on the skills
needed to support economic growth over the longer term.


2.8    Other intermediate outcome key SOI activities
2.8.a Supporting employers to have relationships with workers that lead to
higher performance and productivity
The Department is supporting the leadership of significant New Zealand firms to lead
health and safety via the Business Leaders Forum. The Department provides secretariat
support services to the Forum’s Steering Group to enable it to develop an executive safety
leadership programme and a health and safety benchmarking initiative. The Forum’s two
key projects (benchmarking and safety leadership) are on track for delivery in 2010.

Information provision to industry association, business networks, trusted advisors and
small and medium enterprises (SME) has focussed on increasing awareness of
Department's new tools and resources. These include the Department’s online web
resource for businesses, health and safety contracting guidelines, an online resource
explaining what employers need to do in relation to health safety and employment
relations, parental leave changes and continued good workplace practices, and
productivity messages.

The High Performing Working Initiative will provide support by partially funding specialist
business consultants to help firms develop high performance working processes.
Expression of interest for projects to be funded through the initiative will be called for in
November 2010.
2.8.b Working with sector groups, social partners and industry training
organisations to develop skills plans and address barrier to workforce capacity
The Department supported the Hospitality Association of New Zealand to develop a new
online tool Hospro. The tool was launched in September 2010 and will measure and
benchmark profitability and productivity of SME hospitality businesses. This will help to
raise the importance of productivity among hospitality businesses by providing a tangible
way of measuring it. The Retail Institute has shown interest in adapting the tool for the
retail sector.




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2.8.c Providing resources to improve literacy, numeracy and other essential
skills of New Zealand’s workforce
The final evaluation of the Upskilling Partnership Programme report (workplace literacy)
was released. The Department presented the evaluation findings to the Employer
Champions Forum and the Literacy Alliance who provided positive feedback on the
presentations and expressed interest in contributing to the on-going research programme.

The Department’s Skill Highway Programme has been providing resources to improve
workplace literacy. The Programme has participated in business exhibitions to promote
the importance of workplace literacy for improving productivity, and sponsored the Skills
Highway Award through Equal Employment Opportunities Trust’s Work and Life Awards.
The award recognises initiatives taken by employers to improve employees’ reading,
maths and communication skills, leading to better business outcomes. The winner was
announced on 28 October 2010.

Puataunofo is a Manukau based project involving the Ministry of Pacific Island Affairs, the
Department, and ACC, Manukau City Council, the Engineering Printing and Manufacturing
Union, and Pasifika groups. The project aims to raise awareness of health and safety
among Pacific Island workers and their communities. As part of this series, the
Department provided health and safety training to support their mainly Pacific Island
workers improve their literacy and numeracy.
2.8.d Targeted immigration to meet shortages in New Zealand’s skills base
The Department has sent out a joint communication, with MSD, setting out roles and
responsibilities in the allocation process in the regions for the coming Recognised Seasonal
Employer (RSE) season. This has been well-received and RSE employers are now
proactively engaging with both agencies as a result of the letter.


Intermediate outcome 3: More people in quality work

Immediate Outcomes
·    Workplaces provide healthier and safer environments.
·    Employer/employee relationships are more effectively managed.
·    People have the right skills to improve their employment opportunities.
·    Access to work is increased.
·    Quality work in New Zealand continues to be supported by fair international
     labour practices.

Votes contributing: Vote Labour, Vote Employment and Vote ACC


3.1 Vote Labour Ministerial Priority: Renewed Health and Safety
Strategy
The draft National Action Agenda was published on 20 July 2010 and the Department is
consulting with key stakeholders and industry groups. The Department is working with
industry health and safety leadership groups of the priority sectors to develop the Sector
Action Plans for the period 2010 to 2013. The work on the fishing sector plan is being led
by Maritime New Zealand.

The Department will roll-out three harm reduction projects over the next financial year.
These projects relate to injuries caused by quad bikes on farms, falls from heights in
construction, and employment problems in the agricultural industry, and the low use of


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employment agreements. These projects draw heavily on a method for reducing
persistent harms developed by an international expert in the management of regulation
and compliance.

The quad bike project will be launched by the Minister of Labour in the near future and
consequently, information sharing and engagement will commence in the regions. New
quad bike guidelines have been approved for consultation, and will be up on the
Department’s website to coincide with the launch.

The project to reduce harm from the non-use and mis-use of employment agreements in
agriculture has been defined and an approach agreed. The Department has been
undertaking external stakeholder engagement and baseline research. The aim of this
phase is to agree on intervention action with employers and employees of dairy, lamb and
beef farming.

The final project, construction falls from height, is in a research phase with the
Department developing the base information to start identifying root causes of falls
resulting in serious harm.


3.2 Vote Employment Ministerial Priority: Growing Employment
and the Economy
The Department provided advice to the Minister for Social Development and Employment
about actions that can be taken to address identified areas of weakness or maximise
opportunities for growth, now and into the future.
3.2.a: Advice on employment opportunities
The quarterly report on Likely Areas of Growth in Employment Opportunities includes the
Department’s employment growth forecast for the period 2010–2014. Particular attention
has been given to prospects in the construction, manufacturing, hospitality, retail, and
agriculture and forestry industries, as they were all negatively impacted by the recession.
3.2.b: Labour market issues paper
The Department was commissioned by the Welfare Working Group (WWG) to prepare a
report on the key trends in the New Zealand labour market, and the implications for
individuals on a working-age benefit who wish to move into work. The aim is to improve
WWG’s understanding on raising the labour market outcomes for long-term beneficiaries.
The report also considers some of the labour market issues in matching beneficiaries to
employment. The final report Labour Market Dynamics and Future Challenges was
published on the WWG website.


3.3    Other intermediate outcome key SOI activities
3.3.a Development of national and international policy and regulatory standards
The Department ensured that employment and skills needs were taken into account in
infrastructure projects by providing advice to the Minister for Social Development and
Employment about the employment and skills impacts of key policy and programme
changes across Government, in particular the broadband roll-out and the joint venture
with construction industry.
3.3.b Provision of advice and information to enable the resolution of
employment problems and health and safety issues
The Department presented some key messages at a seminar and workshop for
stakeholders in the upcoming roll-out of ultra-fast broadband in the transport corridor.


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The Department’s presentation featured Workplace health and safety and the
Department’s ability to support the recruitment of skilled workers. The Department also
presented on the need for contractors and subcontractors to have employment
agreements and clear processes for dispute resolution and performance management.
3.3.c Promotion of quality work practices and environments, and removal of
barriers
The Partnership Resource Centre Board work programme continues to focus on
productivity and workplace quality improvement. The projects include work with the new
Auckland Council, with KiwiRail, and the development of relationships with business
improvement and staff engagement strategies including the new High Performance
Working Initiative.

Promotion during the quarter included working with key organisations and business
stakeholders such as Business Mentors and Tourism Industry Association to reach small to
medium sized business to help them improve work place practices.

Other work included identifying potential relationships to establish partnership initiatives
that improve workplace practices.

The Department provided advice on policy work carried out by other government agencies
that aim to remove barriers to participation in the labour market. These included:
   ·   agreeing on an increasing employment focus on the Training Opportunities
       programmes managed by MSD and TEC.
   ·   emphasising the need to reflect the impact of prisoner employment schemes on
       local businesses on a paper Prisoner Skills and Employment Strategy.
   ·   supporting the need for clear pathways for young people with regard to Youth
       Guarantee scheme.
3.3.d Provision of relevant labour market information to employers and job-
seekers to inform business and career choice decision-making
The monthly Jobs Online reports were published on the Department’s website presenting
the results of monitoring of changes in job advertisements drawn from the major internet
job boards. Jobs Online provides an indicator of changes in the demand for labour, and
has been used by employers as a source of information.
3.3.e Negotiation of the trade labour and immigration components of
international trade agreements and actively maintaining relationships with trade
partners
The Department met with Indonesian officials to discuss a Trade-Labour memorandum of
understanding in a lead up to a meeting on a Trade and Investment Framework. This
forms part of the Australia-ASEAN New Zealand Free Trade Agreement negotiations.

The Department is participating in the ongoing negotiations on Trans Pacific Partnership,
Pacific Agreement on Closer Economic Relations Plus with Pacific Forum Island Countries,
and India New Zealand Closer Economic Partnership. The meetings are set for October
2010.

The Department is also participating in the two-year review of the China New Zealand Free
Trade Agreement (FTA). The review meeting will be held in November 2010. In
consultation with Chinese officials, the Department has made amendments to the China
Working Holiday Scheme (negotiated alongside the China FTA) to improve the operation of
the scheme.



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The Department met with Thai officials to discuss progress under the New Zealand Trade
Labour Arrangement which was agreed in 2005.
3.3.f    Participation for groups under-represented in the labour market
The Tū Mai Iwi tool was updated to include ethnicity data from the Household Labour Force
Survey. The data includes demographic indicators such as age and gender, in