STATEMENT OF OBJECTIVES AND SERVICE PERFORMANCE

Performance reporting

This section provides detailed information about the specific outputs provided and the activities carried out during 2007/08 that contributed to the Department’s intermediate outcomes and key areas of focus.

Information on the outputs are linked to the intermediate outcomes and key areas of focus, rather than the long-term goals and medium-term priorities set out in the Department’s Statement of Intent for 2007/08.

The intermediate outcomes are:

• Our place in the world: New Zealand will prosper and be enriched through its connections with the rest of the world.
• Our workplaces: New Zealand workplaces will raise the value of work and the quality of working lives.
• Our workforce: New Zealand businesses will be able to recruit and retain the skilled workers they need to be internationally competitive.
• Our people: All New Zealanders will be able to grow and develop through access to meaningful employment.

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

Vote Labour

Summary financial performance

Year ended 30 June 2008	Actual $000	Voted[1] $000	Variance Fav/(Unfav) $000
Revenue Crown (GST excl)
Policy advice – labour	12,779	12,779	-
International services	820	820	-
Services to promote and support fair and productive employment relationships	25,352	25,352	-
Services to promote and support safe and healthy people and workplaces	31,879	31,879	-
Services to promote and support the safe management of hazardous substances in the workplace and amusement devices	4,516	4,516	-
Sub total	75,346	75,346	-
Revenue Department (GST excl)
Policy advice – labour	54	54	-
International services	10	10	-
Services to promote and support fair and productive employment relationships	152	152	-
Services to promote and support safe and healthy people and workplaces	294	294	-
Services to promote and support the safe management of hazardous substances in the workplace and amusement devices	16	16	-
Sub total	526	526	-
Revenue Other (GST excl)
Policy advice – labour	-	6	(6)
International services	-	-	-
Services to promote and support fair and productive employment relationships	27	205	(178)
Services to promote and support safe and healthy people and workplaces	2	315	(313)
Services to promote and support the safe management of hazardous substances in the workplace and amusement devices	-	1	(1)
Sub total	29	527	(498)
Total	75,901	76,399	(498)
Departmental Output Expenses (GST excl)
Policy advice – labour	12,637	12,839	202
International services	804	830	26
Services to promote and support fair and productive employment relationships	25,180	25,709	529
Services to promote and support safe and healthy people and workplaces	31,734	32,488	754
Services to promote and support the safe management of hazardous substances in the workplace and amusement devices	4,538	4,533	(5)
Total	74,893	76,399	1,506
Non-Departmental Revenue (GST excl)
Employment Court, Employment Relations Authority and Employment Tribunal fees	172	193	(21)
Recovery of Remuneration Authority costs of setting local authority members’ remuneration	227	250	(23)
Health and safety in employment levy	37,977	38,608	(631)
OSH fees and licences	32	33	(1)
Infringement notice fines	28	247	(219)
Contestable fund recoveries	1	-	1
Total	38,437	39,331	(894)
Output Expenses Supplied by Other Parties (GST excl)
Employment Relations Education Contestable Fund	2,411	2,169	(242)
Health and safety in employment levy - collection services	869	869	-
Pay and Employment Equity Contestable Fund	1,270	1,326	56
Sub total	4,550	4,364	(186)
Other Expenses to be Incurred by the Crown (GST Excl)
Bad debt expense	1	15	14
Employment Relations Authority members’ salaries and allowances	2,926	3,080	154
International Labour Organisation	1,027	1,400	373
Joint Equal Employment Opportunities Trust	943	943	-
New Zealand Industrial Relations Foundation	15	15	-
Sub total	4,912	5,453	541
Total	9,462	9,817	355

Output class: Policy advice - labour

Scope

This output class includes policy advice and facilitation of policy implementation through developing and delivering tools and resources, research and evaluation about the labour market and workplace practices, ministerial servicing, and administrative and advisory support.

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcomes:

Our workplaces: New Zealand workplaces will raise the value of work and the quality of working lives.

Our people: All New Zealanders will be able to grow and develop through access to meaningful employment.

Contribution to the key areas of focus

These services contribute to supporting and promoting productive workplace cultures through:

• effective labour market regulation
• ensuring fundamental rights at work
• promoting social dialogue on workplaces of the future
• raising awareness and expectations to facilitate improved workplace practices
• focusing attention on workplace productivity
• building firm capability to support managers and workers to better develop and utilise skills.

Performance measures	Performance to 30 June 2008	Achieved/not achieved
The Minister is satisfied with the quality of the Department’s policy advice.	The Minister rated the quality of advice for 2007/08 at an average of 4.28 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
The policy process and advice is assessed as good quality through external and internal review of specific projects.	In the second quarter of 2007/08, the Department received the results of the New Zealand Institute of Economic Research (NZIER) review carried out to assess the quality of policy advice. The results for Workplace Group Policy covering Votes Labour and ACC were similar to 2006/07, i.e. between 7 and 8 out of 10. The NZIER review process means policy advice can be benchmarked across agencies.	Achieved
The Minister is satisfied with the quality of the Department’s ministerial servicing.	The Minister rated the quality of ministerial servicing for 2007/08 at an average of 4.28 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
The Department completes all ministerial correspondence in a timely manner.	The Department completed ministerial correspondence in a timely manner.	Achieved
The National Advisory Council on the Employment of Women (NACEW), National Occupational Health and Safety Advisory Committee (NOHSAC), Pay and Employment Equity (PEE) Steering Group and Employment Relations Education (ERE) Advisory Committee are satisfied with the quality of the Department’s support services.	The following satisfaction ratings were received: NACEW = 5 (scale 1-6) NOHSAC = 6 (scale 1-6) PEE= 5 (scale 1-5) ERE= 4 (scale 1-6).	Achieved
Policy advice and ministerial servicing will be delivered as agreed with the Minister of Labour.	Policy advice and ministerial servicing were delivered as agreed with the Minister of Labour and as detailed in the Vote Labour Output Plan.	Achieved

Financial performance - Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	196	-	-	-
Revenue:
Crown	12,779	12,612	12,779	100.0%
Department	54	54	54	100.0%
Other	-	-	6	-
Total Revenue	12,833	12,666	12,839	99.9%
Total Expenses	12,637	12,666	12,839	98.4%

The increase in appropriation of $0.173 million in the Supplementary Estimates was primarily due to increased support for healthy and safe workplaces funded by the ACC health and safety in employment (HSE) levy ($0.198 million).

Approval in-principle has been given to transfer $0.100 million of unspent funding to 2008/09 to fund the search and selection costs of a departmental financial management system.

Output class: International services

Scope

This output class involves managing the Department’s multilateral, bilateral and regional engagement, and influencing international labour and related employment issues.

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcome:
Our place in the world: New Zealand will prosper and be enriched through its connections with the rest of the world.

Contribution to the key areas of focus

This output class contributes predominantly to supporting New Zealand’s prosperity and reputation through building relationships and partnering with other countries including the Pacific region.

Performance measures	Performance to 30 June 2008	Achieved/not achieved
The Minister is satisfied with the quality of policy advice provided on international labour issues relating to the labour portfolio.	The Minister of Labour rated the quality of advice on international labour issues for 2007/08 at an average of 4.5 out of 5, and 4 out of 5 specifically for support and assistance provided by the Department at the 97th International Labour Conference (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
The Department manages and/or provides representation of New Zealand’s labour interests in multilateral forums, communicating domestic best practice internationally and building on our reputation.	In 2007/08, the Department attended the ILO Governing Body sessions, the International Labour Conference, an ILO Regional Pacific meeting in Fiji, an ILO skills meeting in Korea, and an APEC Human Resources Development Working Group meeting.	Achieved
New Zealand will be seen to meet its obligations under Articles 13, 19, 22 and 23 of the ILO Constitution, which provide reporting requirements and obligations for tripartite engagement.	In 2007/08, the Department submitted 12 reports on Article 22 of the ILO Constitution within agreed deadlines. A further 12 Article 22 Reports have been consulted on with the tripartite partners. These will be submitted to the Minister of Labour for approval before being sent to the ILO within agreed deadlines. A report under Article 19 of the ILO Constitution was also submitted to the Minister of Labour for approval before being sent to the ILO in May 2008. A report under Article 7 of the ILO Constitution is being prepared and will be submitted to the Minister of Labour for approval before being sent to the ILO within agreed deadlines. The annual reviews of two ILO Declaration reports on unratified Conventions were submitted to the ILO within agreed deadlines.	Achieved
The level of international interest in New Zealand law, policy and practice as examples of best practice demonstrated through formal requests for bilateral participation, visits, assistance or advice will be reported on quarterly.	During 2007/08, the Department received 44 requests for international visits, 33 of which the Department was involved in. This also included a request for technical assistance by Vanuatu and Samoa.	Achieved

Financial Performance - Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	26	-	-	-
Revenue:
Crown	820	715	820	100.0%
Department	10	10	10	100.0%
Total Revenue	830	725	830	100.0%
Total Expenses	804	725	830	96.9%

The increase in appropriation of $0.105 million in the Supplementary Estimates was primarily for travel relating to the closer economic partnership (CEP) / free trade agreement (FTA) negotiations ($0.106 million).

Approval in-principle has been given to transfer $0.010 million of unspent funding to 2008/09 to fund the search and selection costs of a departmental financial management system.

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

Scope

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

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcomes:

Our workplaces: New Zealand workplaces will raise the value of work and the quality of working lives.

Our people: All New Zealanders will be able to grow and develop through access to meaningful employment.

Contribution to the key areas of focus

These services contribute to supporting and promoting productive workplace cultures through:

• effective labour market regulation
• ensuring fundamental rights at work
• promoting social dialogue on workplaces of the future
• raising awareness and expectations to facilitate improved workplace practices
• focusing attention on workplace productivity
• building firm capability to support managers and workers to better develop and utilise skills.

Performance measures	Performance to 30 June 2008	Achieved/not achieved
Improving workplace practices following a Departmental intervention are monitored and results are analysed. Standard: report on results.	This is reported annually. The following is a summary. Of the 701 survey respondents who had engaged with the Contact Centre, 57% stated they had made or intended to make changes to workplace practices. Of the 43 respondents that engaged with the Small Business Information Unit (SBIU) (or related services), 93% said they would make changes. For labour inspector services, 69% of 64 respondents said they had made or intended to make changes to workplace practices. For mediation services, 49% of 218 respondents said they had made or intended to make changes to workplace practices.	Achieved
The percentage of customers satisfied with the Department’s services, information and tools. Standard: 80%.	Of the 701 survey respondents who contacted the Contact Centre, 93% were satisfied with the services received. For SBIU, 86% of 43 respondents were satisfied with the services received. For labour inspector services, 73% of 64 respondents were satisfied. For mediation services, 92% of 218 respondents were satisfied.	Achieved
The Chief of the Employment Relations Authority and Remuneration Authority Chair are satisfied with the quality of the Department’s support services (scale 1–5). Standard: 4 or higher.	The Chief of the Employment Relations Authority (ERA) rated the support services provided by the Department as 3.5 on a scale of 1-5. The rating received by the Chief in the third quarter was 3. Significant effort has been put in to developing a Memorandum of Understanding (MOU) between the Department and the ERA in an effort to better define respective roles and obligations and to provide a vehicle for discussions regarding the Department’s performance in supporting the ERA.  The MOU was signed at the end of July. An improvement in the Chief’s rating of the Department’s performance in this half of the year is indicative of his confidence in the MOU. With the clarity of role it provides, we expect to be able to improve on this rating.	Not Achieved
	The Remuneration Authority Chair rated the support services provided by the Department as 5 on a scale of 1-5.	Achieved
Percentage of investigations into complaints regarding breaches of minimum standards of employment legislation completed within six months of receipt. Standard: 90%.	For 2007/08, 90% of investigations were completed within six months of receipt.	Achieved
Percentage of investigations of minimum wage exemptions completed within one month of expiration of the exemption. Standard: 95%.*	For 2007/08, 97% of investigations of minimum wage exemptions were completed within one month of the expiration, and 95% were completed before the previous exemption expired.	Achieved
Percentage of forums and workplace visits undertaken by the Department that target priority areas. Standard: 90%.	For 2007/08, 94% of forums and workplace visits targeted priority areas across all output classes for the year.	Achieved
Percentage of employment relation problems settled before or at mediation. Standard: 75%.	For 2007/08, 76% of mediation requests were settled before or at mediation, and a further 2% were partially settled at mediation.	Achieved

* This standard was amended from 100% to 95% in the Output Plan 2007/08 as approved by the Minister.

Financial Performance - Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	351	-	-	-
Revenue:
Crown	25,352	25,332	25,352	100.0%
Department	152	152	152	100.0%
Other	27	202	205	13.2%
Total Revenue	25,531	25,686	25,709	99.3%
Total Expenses	25,180	25,686	25,709	97.9%

Approval in-principle has been given to transfer $0.500 million of unspent funding to 2008/09 to fund the search and selection costs of a departmental financial management system.

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

Scope

This output class includes the provision of information, education and support for workplaces regarding effective workplace health and safety practice, and enforcement action to promote compliance with the Health and Safety in Employment Act 1992 (HSE Act).

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcomes:

Our workplaces: New Zealand workplaces will raise the value of work and the quality of working lives.

Our people: All New Zealanders will be able to grow and develop through access to meaningful employment.

Contribution to the key areas of focus

These services contribute to supporting and promoting productive workplace cultures through:

• effective labour market regulation
• ensuring fundamental rights at work
• promoting social dialogue on workplaces of the future
• raising awareness and expectations to facilitate improved workplace practices
• focusing attention on workplace productivity
• building firm capability to support managers and workers to better develop and utilise skills.

Performance measures	Performance to 30 June 2008	Achieved/not achieved
Improving workplace practices following a Departmental intervention are monitored and results are analysed. Standard: report on results.	This is reported annually. The following is a summary. Of the 701 survey respondents who had engaged with the Contact Centre, 57% stated they had made or intended to make changes to workplace practices. Of the 211 respondents that engaged with health and safety services, 80% stated they had made changes or intended to make changes as a result of their contact with the Department.	Achieved
Percentage of customers satisfied with the Department’s services, information and tools. Standard: 80%.	Of the 701 survey respondents that contacted the Contact Centre, 93% were satisfied with the services received, and 76% of 228 clients that engaged on health and safety matters were satisfied.	Achieved
Percentage of forums and workplace visits undertaken by the Department that target priority areas. Standard: 90%.	For 2007/08, 94% of forums and workplace visits targeted priority areas across all output classes.	Achieved
Percentage of investigations completed within five months of notification of the event. Standard: 90%.	For 2007/08, 96% of investigations were completed within five months of notification of the event.	Achieved

Financial Performance - Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	441	-	-	-
Revenue:
Crown	31,879	27,134	31,879	100.0%
Department	294	624	294	100.0%
Other	2	300	315	0.6%
Total Revenue	32,175	28,058	32,488	99.0%
Total Expenses	31,734	28,058	32,488	97.7%

The increase in appropriation of $4.430 million in the Supplementary Estimates was primarily due to increased support for healthy and safe workplaces funded by the ACC health and safety in employment (HSE) levy ($4.863 million).

Approval in-principle was given to transfer $0.754 million of unspent funding to 2008/09. This covers health and safety information and promotion ($0.200 million), occupational health projects ($0.100 million), and the search and selection costs of a departmental financial management system.

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

Scope

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

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcome:

Our workplaces: New Zealand workplaces will raise the value of work and the quality of working lives.

Contribution to the key areas of focus

These services contribute to supporting and promoting productive workplace cultures through:

• effective labour market regulation
• ensuring fundamental rights at work
• promoting social dialogue on workplaces of the future
• raising awareness and expectations to facilitate improved workplace practices
• focusing attention on workplace productivity
• building firm capability to support managers and workers to better develop and utilise skills.

Performance measures	Performance to 30 June 2008	Achieved/not achieved
Percentage of customers satisfied with the Department’s services, information and tools. Standard: 80%.	Most clients that were engaged about hazardous substances also received health and safety services from the Department and would be unlikely to distinguish the service. Hence, health and safety results applied here also. Of the 701 survey respondents that contacted the Contact Centre, 93% were satisfied with the services received, and 76% of 228 clients that engaged on health and safety matters were satisfied.	Achieved
The Environmental Risk Management Authority (ERMA) is satisfied with the quality of the Department’s support services.	ERMA New Zealand has rated the Department’s delivery of support services with a rating of 3 on a scale of 1-5. (Note: a rating scale and target was not agreed prior to the above feedback from ERMA).	Achieved

Financial Performance - Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	(6)	-	-	-
Revenue:
Crown	4,516	4,527	4,516	100.0%
Department	16	16	16	100.0%
Other	-	-	1	-
Total Revenue	4,532	4,543	4,533	99.9%
Total Expenses	4,538	4,543	4,533	100.1%

The appropriation for this output expense was exceeded as a result of a technical change to recognition of the long service leave provisions. Subsequent to Supplementary Estimates, Cabinet approved changes in the collective bargaining parameters to be introduced before 1 July 2009. This created a constructive obligation that needed to be recognised as at 30 June 2008.

Vote Immigration

Summary financial performance

Year ended 30 June 2008	Actual $000	Voted[2] $000	Variance Fav/(Unfav) $000
Revenue Crown (GST excl)
Immigration Advisers Authority	2,305	2,305	-
Services to increase the capacity of New Zealand through immigration	56,675	56,675	-
Services to position New Zealand as an international citizen with immigration-related interests and obligations	14,183	14,183	-
Sub total	73,163	73,163	-
Revenue Department (GST excl)
Immigration Advisers Authority	-	-	-
Services to increase the capacity of New Zealand through immigration	1,752	1,752	-
Services to position New Zealand as an international citizen with immigration-related interests and obligations	1,006	1,006	-
Sub total	2,758	2,758	-
Revenue Other (GST excl)
Immigration Advisers Authority	7	-	7
Services to increase the capacity of New Zealand through immigration	107,602	108,219	(617)
Services to position New Zealand as an international citizen with immigration-related interests and obligations	1,365	1,364	1
Sub total	108,974	109,583	(609)
Interest – non-NZDMO (GST n/a)	1,198	150	1,048
Total (incl interest)	186,093	185,654	439
Departmental Output Expenses (GST excl)
Immigration Advisers Authority	1,819	2,305	486
Services to increase the capacity of New Zealand through immigration	151,949	158,277	6,328
Services to position New Zealand as an international citizen with immigration-related interests and obligations	16,599	16,553	(46)
Total	170,367	177,135	6,768
Crown Revenue (GST excl)
Migrant levy	10,418	11,528	(1,110)
Other receipts[3]	795	-	795
Total	11,213	11,528	(315)
Other Expenses to be Incurred by the Crown (GST Excl)
RRB, RRA and RSAA members’ salaries and allowances	2,309	2,577	(268)
Total	2,309	2,577	(268)

Output class: Immigration Advisers Authority

Scope

Regulation of persons who give immigration advice, and facilitation of education and professional development and of public awareness by the Immigration Advisers Authority, pursuant to the functions described in section 35 of the Immigration Advisers Licensing Act 2007.

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcome:

Our place in the world: New Zealand will prosper and be enriched through its connections with the rest of the world.

Contribution to the key areas of focus

This service contributes to supporting New Zealand’s prosperity and reputation through immigration services that add to the productivity of our economy and to the richness of our society.

This new appropriation was established in 2007/08 arising from the Immigration Advisers Licensing Act 2007 which established a statutory body – the Immigration Advisers Authority - serviced by the Department. The Authority began accepting licence applications in May 2008. Performance will be measured in the 2008/09 Annual Report.

Financial Performance - Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	493	-	-	-
Revenue:
Crown	2,305	-	2,305	100.0%
Department	-	-	-	-
Other	7	-	-	-
Total Revenue	2,312	-	2,305	100.3%
Total Expenses	1,819	-	2,305	78.9%

Approval in-principle was given to transfer $0.438 million of establishment funding to 2008/09.

Output class: Services to Increase the Capacity of New Zealand Through Immigration

Scope

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

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcomes:

Our place in the world: New Zealand will prosper and be enriched through its connections with the rest of the world.

Our workforce: New Zealand business will be able to recruit and retain the skilled workers they need to be internationally competitive.

Contribution to the key areas of focus

These services contribute to supporting New Zealand’s prosperity and reputation through:

• immigration services that add to the productivity of our economy and to the richness of our society
• border security arrangements that manage risk.

They also influence the supply of skilled labour by:

• targeting immigration to assist New Zealand businesses to access the skills they need.

Advising the Government on immigration and workforce policy

Performance measures	Performance to 30 June 2008	Achieved/not achieved
Policy advice, ministerial servicing and research and evaluation will be delivered as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	Policy advice, ministerial servicing and research and evaluation were delivered as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	Achieved
The Minister of Immigration is satisfied with the timing and quality of the Department's policy advice.	The Minister rated the quality of advice for 2007/08 at an average of 3.55 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
The Minister of Immigration is satisfied with the timing and quality of the Department’s ministerial servicing.	The Minister rated the quality of the Department’s ministerial servicing for 2007/08 at an average of 3.55 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
The policy development process and resultant advice provided is assessed as high-quality through external and internal review of projects.	The internal and external review of 2007/08 papers will be completed by the end of September 2008.	Not applicable
The content of research and evaluation reports are assessed as high-quality through external and internal review of projects.	The internal and external review of 2007/08 papers will be completed by the end of September 2008.	Not applicable

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

Performance measures	Performance to 30 June 2008	Achieved/not achieved
Report on the assistance provided to employers to aid them in recruiting skilled workers. Standard: report quarterly.	This is reported quarterly. The following is a summary. Onshore relationship managers are constantly working with employers to assist them with facilitation of applications, ensuring they understand policy and educating them so that their applicants provide relevant documentation upfront to ensure timely decision-making. During the year: Eight regional employer seminars were held across New Zealand in 2007/08 by the Relationship Managers and Settlement Division. The seminars were attended by 499 people from a wide range of employment sectors. The Relationship Managers, in partnership with Accelerating Auckland and Auckland Chamber of Commerce, ran a second targeted IT recruitment event. This brought together IT employers/recruiters and those migrants (graduates, working holidays makers and so on) already in New Zealand with the right skills. Eight large events were held in April 2008 in the UK, the Netherlands, USA and Germany alongside seven smaller specialist events. A total of 35 employers and economic development agencies actively took part in the events, which were attended by 28,000 potential migrants.	Achieved
The Immigration Programme, including the New Zealand Residence Programme, will be delivered as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	The Immigration Programme, including the New Zealand Residence Programme, was delivered as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	Achieved
Report on the work undertaken to support the education and tourism industries in promoting New Zealand to international students and tourists. Standard: report quarterly.	This is reported quarterly. The following is a summary. During the year, a number of initiatives have been undertaken to support the education and tourism industries to promote New Zealand to international students and tourists. These include: Working alongside the careers and student support departments at New Zealand's major tertiary institutes to provide seminars focused on promoting work and residency options to graduating international students. Developing a trusted partnership scheme with education agents operating in Russia, which will provide a faster service for student applications. The agents provide an undertaking on the verification and checks that they have done. This should improve the service delivered to students by improving the quality of decision-making as well as speeding up processing times. Meetings being held with student agents, including the Pakistan Student Network in June 2008 to educate the agents regarding the Department’s requirements. The network has been set up as an initiative from New Zealand education providers, with the aim of promoting New Zealand education in Pakistan. Attendance at CeBIT as part of the New Zealand Trade and Enterprise presence, with the focus on the German Working Holiday Scheme, education/study and direct recruitment of those with IT skills for the New Zealand market. Participating in the China International Education Exhibition Tour (the CIEET fairs).	Achieved
95% of visa and permit decisions are decided in accordance with immigration policy.	98% of temporary entry and residence decisions were made in accordance with critical elements of Government policy. This is calculated by checking a random sample of temporary entry and residence decisions made at each branch on a monthly basis.	Achieved
Removal Review Authority members are satisfied with the quality of the Department’s Secretariat services (greater than 3.75 on a scale of 1-5).	The member satisfaction rating for the year was 4.97 out of 5.	Achieved
The number of Removal Review Authority appeals received and finalised. Standard: 175 received and 190 finalised.	The number of new appeals received totalled 195, and 211 appeals were finalised.	Activity as noted
Residence Review Board members are satisfied with the quality of the Department’s Secretariat services (greater than 3.75 on a scale of 1-5).	The member satisfaction rating for the year was 4.97 out of 5.	Achieved
The number of Residence Review Board appeals received and finalised. Standard: 375 received and 390 finalised.	The number of new appeals received totalled 364, and 407 appeals were finalised.	Activity as noted
Customers are satisfied with the Department’s service.	The 2008 Annual Customer Satisfaction Survey has been completed. The results of the survey are due in November 2008.	Not applicable

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

Performance measures	Performance to 30 June 2008	Achieved/not achieved
Report on initiatives that facilitate the entry of people with the legal right to enter New Zealand and prevent the entry of people without the legal right to enter New Zealand. Standard: report annually.	This is reported annually. The following is a summary. Initiatives undertaken to facilitate the entry of people with the legal right to enter New Zealand during 2007/08 include: Smoother processes being developed to provide an over-ride facility for the APP system automatically. This was implemented in July 2008. As well as providing a smoother process, this new over-ride facility will reduce the risk of misdocumented persons travelling to New Zealand.   Further development of the Regional Movement Alert System positive validation is continuing.	Achieved
Activities offshore and at the border to prevent the entry of people without the legal right to enter New Zealand will be delivered as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	Activities offshore and at the border to prevent the entry of people without the legal right to enter New Zealand were delivered as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	Achieved
95% of border activities are assessed as meeting immigration policy.	95% of border activities were assessed as meeting critical elements of immigration policy.	Achieved
Activities to investigate and enforce compliance with the Immigration Act will be delivered as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	Activities to investigate and enforce compliance with the Immigration Act 1987 were delivered as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	Achieved
The level and composition of the overstayer population will be reported. Standard: reports provided.	An overstayer estimate was calculated twice during 2007/08. The estimated number of overstayers in New Zealand as at 30 April 2008 was 16,980. This compares to 17,485 as at 31 October 2007.	Achieved
95% of immigration compliance activities are assessed as meeting immigration policy.	97% of immigration compliance activities were conducted in accordance with critical elements of Government policy.	Achieved

Financial Performance - Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	14,080	(8,956)	8,369	168.2%
Revenue:
Crown	56,675	52,076	56,675	100.0%
Department	1,752	1,076	1,752	100.0%
Other	107,602	81,183	108,219	99.4%
Total Revenue	166,029	134,335	166,646	99.6%
Total Expenses	151,949	143,291	158,277	96.0%

The increase in appropriation of $14.986 million in the Supplementary Estimates was primarily due to funding from the Immigration Fees Review ($9.409 million), funding from the 2007/08 Migrant Levy Review and Allocation ($2.548 million), funding for Immigration Business Transformation to implement an immigration programme management office, complete a Stage-2 Business Case and plan the development of the single client view and identify management workstreams ($3.300 million). Fiscally neutral adjustments to recognise the allocation of funds from the Pacific Security Fund ($0.417 million) and the Bali Process Workshop ($0.163 million).

Approval in-principle was given to transfer unspent funding to 2008/09 for the Immigration Act implementation ($0.164 million), Information Business Transformation – Programme Management Office ($0.464 million), Information Business Transformation – Stage-2 Business Case and development of single client view ($1.103 million) and the search and selection costs of a departmental financial management system.

Output class: Services to position New Zealand as an International Citizen with Immigration-related interests and obligations

Scope

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

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcome:

Our place in the world: New Zealand will prosper and be enriched through its connections with the rest of the world.

Contribution to the key areas of focus

These services contribute to supporting New Zealand’s prosperity and reputation through:

• assisting migrants to settle
• building relationships and partnering with other countries including strengthening capacity in the Pacific region.

Performance measures	Performance to 30 June 2008	Achieved/not achieved
Settlement information and services will be provided as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	Settlement information and services were delivered as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	Achieved
Report on the pre-settlement programmes provided to people from Pacific nations. Standard: report annually.	This is reported annually. The following is a summary. For workers recruited under the Samoan Quota and Pacific Access Category, the pre-departure seminars were delivered by Pacific branches. The seminars included information on housing, employment, education, cost of living and general information about life in New Zealand.	Achieved
The Samoan Quota and Pacific Access Category will be filled. Standard: quota filled.	1,117 people were approved residence under the Pacific Access Category, and 1,202 people were approved under the Samoan Quota. This also includes approvals made under previous years’ quotas and the residual places policy.	Achieved
Report on the work undertaken to contribute to and influence the development of international protection systems and resolution of the region's refugee issues. Standard: report quarterly.	This is reported quarterly. The following is a summary. During 2007/08, the Department was involved in information sharing on best practices with a number of other resettlement states (such as Australia, Denmark, Norway, US and Canada). Almost all refugees considered for resettlement under the New Zealand quota programme for 2008/09 were from protracted refugee situations – many from the region, including Malaysia and Nepal. The Department also assisted refugee pressure points in other parts of the world (such as Syria, Sudan and Colombia). New Zealand was the first country to complete a selection mission in Nepal, and this work has led the way for a number of other countries (US, Australia, Canada and Norway) to plan selection missions to Nepal to try and facilitate the situation for Bhutanese refugees currently living in Nepal. Department representatives also attended the Annual Tripartite Consultations on Resettlement in Geneva in June 2008. This provided a valuable opportunity to share and learn from other countries best practices and start some strategic planning for the future.	Achieved
External consultation on the composition of the 2008/09 UNHCR-mandated refugee quota will be completed, taking into account settlement factors and infrastructure impacts. Standard: report annually.	This is reported annually. The following is a summary. The 2008/09 quota composition paper was signed by the Minister of Immigration and Acting Minister of Foreign Affairs at the end of June 2008. The focus for the 2008/09 quota will be on refugee resettlement from places where we can make the most difference – with a focus on protracted refugee situations and maintaining a regional outlook.	Achieved
The number of UNHCR-mandated refugees who travel to New Zealand and attend an initial settlement programme. Number: 675-825.	The total number of UNHCR-mandated refugees that travelled to New Zealand and attended the initial settlement programme at the Mangere Refugee Resettlement Centre in 2007/08 was 750.	Achieved
UNHCR-mandated refugees are satisfied with the level of support and security arrangements provided.	Those UNHCR refugees who completed customer satisfaction surveys gave a rating of 3.8 out of 5 for the year.	Achieved
The number of new refugee status claims, including subsequent claims, received and determined. Standard: 320 claims received and 340 claims decided.	During the year, 267 new refugee status claims were received, and 274 decisions on claims were made.	Activity as noted
The average age of undecided refugee status claims. Standard: 20 weeks.	At the end of the year, the average age of undecided refugee status claims was 11.5 weeks.	Achieved
Successful refugee claimants are satisfied with the level of service and procedures used during the determination process.	The satisfaction rating at the end of the year was 4.7 out of 5.	Achieved
Refugee Status Appeals Authority members are satisfied with the quality of the Department’s secretariat services (greater than 3.75 on a scale of 1-5).	The member satisfaction rating for the year was 4.85 out of 5.	Achieved
The number of new Refugee Status Appeals Authority appeals and cancellations received and finalised. Standard: 200 received and 205 finalised.	The number of new appeals received totalled 177 (including 22 cancellations), and 200 appeals were finalised (including 24 withdrawals).	Activity as noted
Policy advice and ministerial servicing will be delivered as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	Policy advice and ministerial servicing were delivered to the Minister as agreed and detailed in the Vote Immigration Output Plan.	Achieved
The Minister of Immigration is satisfied with the timing and quality of the Department’s ministerial servicing.	The Minister rated the quality of ministerial servicing for 2007/08 at an average of 3.55 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
The Minister of Immigration is satisfied with the timing and quality of the Department's policy advice.	The Minister rated the quality of advice for 2007/08 at an average of 3.55 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved

Pursuing New Zealand’s international immigration and related security interests

Performance measures	Performance to 30 June 2008	Achieved/not achieved
Report on activities to build and maintain relationships with multilateral organisations and other nations to promote New Zealand's immigration and related security interests. Standard: report quarterly.	This is reported quarterly. The following is a summary. The Department participated in numerous initiatives that build and maintain relationships with multilateral organisations. During 2007/08 work in this area included the following: Furthering work in the area of refugees including meetings as part of: UNHCR Standing Committee and UNHCR Annual Tripartite Consultations IGC Working Group on Asylum and Refugees IGC Working Group on Country of Origin Information. Policy development with other government agencies includes: contributing to recommendations made by the United Nations in reference to compliance with the Convention on the Elimination of Racial Discrimination (CERD) IGC Working Group on Integration OECD/DELSA Working Party on Migration. Pacific engagement – contributing to: decisions made on Pacific Security Fund bids PIDC Strategic Review and Development Working Group meeting continued successful engagement with Pacific Island countries in relation to the implementation of Pacific Region Immigration Identity Project (PRIIP) Phase II further input into the stock-take of activities undertaken with the Cook Islands as part of the development of a Cook Island’s whole-of-government strategy. Security and facilitation related activities including: hosting the Australia New Zealand Immigration Forum (ANZIF) attending the IGC Working Group on Technology, and IGC Workshop on Automated Border Crossing Systems APEC SOM II – Business Mobility Group and Regional Movement Alert System Governance Board Forum Working Group on Counter-Terrorism and Forum Regional Security Committee Annual Meeting Bali Process Workshop on Threat Assessment and Risk Analysis 4CC Annual Conference. Hosting visitors including: the former US Ambassador, who was subsequently successful in his campaign for the appointment of Director-General, International Organisation for Migration meeting with the ILO Director of the Pacific. Other meetings included: IGC Annual Full Round meeting IGC Steering Group IOM 105th Executive Committee and IOM 95th Special Council.	Achieved
Report on activities undertaken to ensure that New Zealand's immigration interests are advanced in the negotiation of trade agreements and closer economic partnerships. Standard: report quarterly.	This is reported quarterly. The following is a summary. The Department was closely involved in the negotiations of the China free trade agreement, particularly during the closing rounds. Since the finalisation of the agreement, the Department has been involved in developing and presenting communications materials and working on the implementation of the FTA, which comes into effect in October 2008. The ASEAN/Australia/New Zealand free trade agreement has also been ongoing during 2007/08, with the Department representing the Government’s immigration interests in those negotiations.	Achieved
Policy advice, ministerial servicing, and research and evaluation will be delivered as agreed with the Minister of Immigration and as detailed in the Vote Immigration Output Plan.	Policy advice, ministerial servicing, and research and evaluation were delivered to the Minister as agreed and detailed in the Vote Immigration Output Plan.	Achieved
The policy development process and resultant advice provided is assessed as high-quality through external and internal review of projects.	The internal and external review of 2007/08 papers will be completed by the end of September 2008.	Not applicable
The content of research and evaluation reports are assessed as high-quality through external and internal review of projects.	The internal and external review of 2007/08 papers will be completed by the end of September 2008.	Not applicable
The Minister of Immigration is satisfied with the timing and quality of the Department’s ministerial servicing.	The Minister rated the quality of ministerial servicing for 2007/08 at an average of 3.55 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
The Minister of Immigration is satisfied with the timing and quality of the Department's policy advice.	The Minister rated the quality of advice for 2007/08 at an average of 3.55 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved

Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	(45)	13	-	-
Revenue:
Crown	14,183	13,801	14,183	100.0%
Department	1,006	1,006	1,006	100.0%
Other	1,365	762	1,364	100.1%
Total Revenue	16,554	15,569	16,553	100.0%
Total Expenses	16,599	15,556	16,553	100.3%

The increase in appropriation of $0.997 million in the Supplementary Estimates was primarily due to a forecast change for increased costs of maintaining effective relationships and partnerships with other government agencies and external stakeholders, both in New Zealand and through our offshore branches ($0.600 million), an expense transfer from 2006/07 to 2007/08 for Pacific facilitation funding for the Temporary Work Policy: RSE scheme ($0.175 million) and location of the Immigration and Protection Tribunal ($0.108 million).

The appropriation for this output expense was exceeded as a result of a technical change to recognition of the long service leave provisions. Subsequent to Supplementary Estimates, Cabinet approved changes in the collective bargaining parameters to be introduced before 1 July 2009. This created a constructive obligation that needed to be recognised as at 30 June 2008.

Vote Employment

Summary financial performance

Year ended 30 June 2008	Actual $000	Voted[4] $000	Variance Fav/(Unfav) $000
Revenue Crown (GST excl)
Labour market analysis and knowledge	10,520	10,520	-
Policy, research and evaluation	7,010	7,010	-
Sub Total	17,530	17,530	-
Revenue Department (GST excl)
Labour market analysis and knowledge	92	92	-
Policy, research and evaluation	75	75	-
Sub Total	167	167	-
Revenue Other (GST excl)
Labour market analysis and knowledge	-	1	(1)
Policy, research and evaluation	-	-	-
Sub Total	-	1	(1)
Total Revenue	17,697	17,698	(1)
Departmental Output Expenses (GST excl)
Labour market analysis and knowledge	10,131	10,613	482
Policy, research and evaluation	4,959	7,085	2,126
Total	15,090	17,698	2,608
Non-Departmental Revenue (GST excl)
Programme recoveries[5]	4	-	4
Total	4	-	4

Output class: Labour market analysis and knowledge

Scope

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

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcomes:

Our place in the world: New Zealand will prosper and be enriched through its connections with the rest of the world.

Our workforce: New Zealand business will be able to recruit and retain the skilled workers they need to be internationally competitive.

Our people: All New Zealanders will be able to grow and develop through access to meaningful employment.

Contribution to the key areas of focus

These services contribute to supporting and promoting productive workplace cultures through:

• effective labour market regulation
• ensuring fundamental rights at work
• promoting social dialogue on workplaces of the future
• raising awareness and expectations to facilitate improved workplace practices
• focusing attention on workplace productivity
• building firm capability to support managers and workers to better develop and utilise skills.

Influencing the supply of skilled labour by:

• targeting immigration to assist New Zealand businesses to access the skills they need
• working with industry and education sectors to help match education and training to the needs of our workers and employers.

Supporting increased labour market participation by advising government on:

• enhancing parents’ and other carers’ choices about work and family arrangements
• enabling youth to transition into employment and to access relevant education and training
• transitioning people back to work and independence after an injury
• enhancing employment for groups under-represented in the labour force.

Performance measures	Performance to 30 June 2008	Achieved/not achieved
Customers and stakeholders are satisfied with the Department’s information on labour market issues at national, sector and regional levels.	Survey results showed that customers and stakeholders were satisfied with the Department’s information on labour market issues.	Achieved
The Department communicates the labour market story at a national, sector and regional level through a variety of media to a variety of recipients.	The Department communicates the labour market story through a number of mediums, for example, reports on the labour market. See www.dol.govt.nz/publications/lmr.	Achieved
Positive progress will be made towards labour market development in all regions.	In 2007/08, progress has been made in further developing and implementing labour market strategies in every region, consistent with the Government’s employment and labour strategy Better Work, Working Better. Each region is at a different stage in this activity, so progress is defined in a way that is specific to each region.	Achieved
Work with a broad range of regional and sector stakeholders to develop and implement regional and sector labour market strategies.	The Department worked with a wide range of stakeholders to develop and implement labour market strategies. Stakeholders include the New Zealand regions, iwi, food and beverage, horticulture and viticulture, and tourism.	Achieved

Financial Performance - Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	481	-	-	-
Revenue:
Crown	10,520	6,933	10,520	100.0%
Department	92	92	92	100.0%
Other	-	-	1	-
Total Revenue	10,612	7,025	10,613	100.0%
Total Expenses	10,131	7,025	10,613	95.5%

The increase in appropriation of $3.588 million in the Supplementary Estimates was primarily due to funding for the Department’s knowledge role ($2.800 million) and an expense transfer from 2006/07 to 2007/08 to ensure existing commitments are fulfilled ($0.800 million).

Approval in-principle transfer was given to transfer funding to 2008/09 for the search and selection costs of a departmental financial management system ($0.210 million).

Output class: Policy, research and evaluation

Scope

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

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcomes:

Our workforce: New Zealand business will be able to recruit and retain the skilled workers they need to be internationally competitive.

Our people: All New Zealanders will be able to grow and develop through access to meaningful employment.

Contribution to the key areas of focus

Under this intermediate outcome, our key area of focus is influencing the supply of skilled labour by:

• working with industry and education sectors to help match education and training to the needs of our workers and employers.

These services contribute to supporting increased labour market participation by advising government on:

• enhancing parents’ and other carers’ choices about work and family arrangements
• enabling youth to transition into employment and to access relevant education and training
• transitioning people back to work and independence after an injury
• enhancing employment for groups under-represented in the labour force.

Performance measures	Performance to 30 June 2008	Achieved/not achieved
The Minister responsible for employment, and related labour market Ministers, are satisfied with the quality of the Department’s employment policy advice.	The Minister for Social Development and Employment rated the quality of advice for 2007/08 at an average of 3.75 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
The Minister is satisfied with the quality of the Department’s ministerial servicing.	The Minister rated the quality of ministerial servicing for 2007/08 at an average of 3.75 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
The policy development process and resultant advice provided is assessed as high-quality through external and internal review of projects.	The internal and external review of 2007/08 papers will be completed in the first quarter of 2008/09.	Not applicable

Financial Performance - Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	2,126	-	-	-
Revenue:
Crown	7,010	7,796	7,010	100.0%
Department	75	75	75	100.0%
Other	-	-	-	-
Total Revenue	7,085	7,871	7,085	100.0%
Total Expenses	4,959	7,871	7,085	70.0%

The decrease in appropriation of $0.786 million in the Supplementary Estimates was primarily due to transfers of funding from 2007/08 to 2008/09 for the Skills Action Plan Initiative – Linked Employer-Employee Dataset (LEED) to ensure that the maximum long-term benefits are derived from the planned dataset enhancements over the next year and staffing constraints. This resulted in work progressing more slowly than anticipated ($0.350 million) and for Upskilling Partnership Programme research and evaluation due to the research and evaluation needs to take place after the completion of the delivery of the Upskilling Partnership Programme, which has been delayed ($0.430 million).

The $2.140 million under expenditure includes an approved in-principle transfer of funding to 2008/09 for the search and selection costs of a departmental financial management system ($0.100 million) and an underspend of $1.700 million for the Upskilling Partnership Programme. Initially, a Budget bid for the Upskilling Partnership Programme was prepared in early 2006, preceding the programme’s detailed design. The Budget bid assumed that the programme would pay the costs of training for participating employees. The subsequent detailed design clarified that training costs would be met by the TEC.

Vote ACC

Summary financial performance

Year ended 30 June 2008	Actual $000	Voted[6] $000	Variance Fav/(Unfav) $000
Revenue Crown (GST excl)
Policy and monitoring	2,348	2,348	-
Regulatory services	99	99	-
Sub total	2,447	2,447	-
Revenue Department (GST excl)
Policy and monitoring	31	31	-
Sub total	31	31	-
Revenue Other (GST excl)
Policy and monitoring	1	15	(14)
Regulatory services	-	-	-
Sub total	1	15	(14)
Total Revenue	2,479	2,493	(14)
Departmental Output Expenses (GST excl)
Policy and monitoring	2,328	2,394	66
Regulatory services	65	99	34
Total Departmental Output Expenses	2,393	2,493	100
Output Classes Supplied by Other Parties (GST excl)
Case management and supporting services	53,570	53,570	-
Claim entitlements and services	460,170	460,170	-
Public health acute services	208,934	208,934	-
Sub total	722,674	722,674	-
Benefits and Other Unrequited Expenses (GST n/a )
Other compensation	145,271	145,271	-
Sub total	145,271	145,271	-
Total Non-Departmental Expenses	867,945	867,945	-

Output class: Policy and monitoring

Scope

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

The following elements will be required to achieve high-performing workplaces:

• Parties having a shared understanding of the factors that lead to workplace productivity and agreement on goals.
• Labour market participants having information and guidance that is tailored, targeted and useful to increase awareness and uptake of excellent workplace practices, in order to effectively reduce occupational injuries and disease.
• Responsive regulation of the ACC scheme that supports economic and social development.
• More investment in research, evaluation, analysis and performance data about what is working or not working in the labour market.

The Department contributes to these goals by:

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

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcomes:

Our workplaces: New Zealand workplaces will raise the value of work and the quality of working lives.

Our workforce: New Zealand business will be able to recruit and retain the skilled workers they need to be internationally competitive.

Our people: All New Zealanders will be able to grow and develop through access to meaningful employment.

Contribution to the key areas of focus

These services contribute to supporting and promoting productive workplace cultures through:

• effective labour market regulation
• ensuring fundamental rights at work
• promoting social dialogue on workplaces of the future
• raising awareness and expectations to facilitate improved workplace practices
• focusing attention on workplace productivity
• building firm capability to support managers and workers to better develop and utilise skills.

Performance measures	Performance to 30 June 2008	Achieved/not achieved
The Minister for ACC is satisfied with the quality of the Department’s policy advice.	The Minister rated the quality of advice for 2007/08 at an average of 4.29 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
The Minister for ACC is satisfied with the quality of the Department’s purchase advice and monitoring.	The Minister rated the quality of advice for 2007/08 at an average of 4.29 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
The Minister for ACC is satisfied with the quality of the Department’s ministerial servicing.	The Minister rated the quality of ministerial servicing for 2007/08 at an average of 4.29 out of 5 (where 3 is average, 4 is good and 5 is excellent). This is based on feedback received from the Minister.	Achieved
Policy, purchase advice, monitoring and ministerial servicing will be delivered as agreed with the Minister for ACC.	Policy, purchase advice, monitoring and ministerial servicing were delivered as agreed with the Minister for ACC and as detailed in the Vote ACC Output Plan.	Achieved

Financial Performance - Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	52	-	-	-
Revenue:
Crown	2,348	2,351	2,348	100.0%
Department	31	31	31	100.0%
Other	1	-	15	6.7%
Total Revenue	2,380	2,382	2,394	99.4%
Total Expenses	2,328	2,382	2,394	97.2%

Output class: Regulatory services

Scope

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

Contribution to the intermediate outcomes

These services contribute to the Department’s intermediate outcomes:

Our workplaces: New Zealand workplaces will raise the value of work and the quality of working lives.

Our people: All New Zealanders will be able to grow and develop through access to meaningful employment.

Contribution to the key areas of focus

These services contribute to supporting and promoting productive workplace cultures through focusing attention on workplace productivity.

Performance measures	Performance to 30 June 2008	Achieved/not achieved
The Regulator will respond to complaints and enquiries within five days of receipt, including responding within five days of receipt to notices of insurers failing to comply with their obligation under the 1998 Act.	One complaint was received for the 2007/08 year.  An interim telephone response was provided to the original requestor to clarify issues within five working days of the original request being made.	Achieved

Financial Performance - Figures are GST exclusive

Year ended 30 June 2008	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Net Surplus/(Deficit)	34	-	-	-
Revenue:
Crown	99	99	99	100.0%
Total Revenue	99	99	99	100.0%
Total Expenses	65	99	99	65.7%

Quality standards for policy advice

Policy advice

Ministers expect to receive policy advice consistent with the following quality standards:

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

Application of standards

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

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^[1] Voted figures include adjustments made in the Supplementary Estimates and transfers under the Public Finance Act 1989.

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

^[3] Crown Revenue Other receipts comprise of immigration visitor bonds, immigration bonds forfeited and prepaid ESOL tuition fees forfeited.

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

^[5] Community employment activities were repositioned to the Ministry of Social Development in 2005/06. Revenue relating to prior year contracts was still collected and will be returned to Vote Social Development.

^[6] Voted figures include adjustments made in the Supplementary Estimates and transfers under the Public Finance Act 1989.

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