1. Chief Executive's Overview

THIS HAS BEEN A SIGNIFICANT YEAR FOR THE DEPARTMENT OF LABOUR. THREE MAJOR REVIEWS OF ASPECTS OF IMMIGRATION NEW ZEALAND'S OPERATIONS HAVE BEEN COMPLETED. THE PACIFIC DIVISION REVIEW, THE STATE SERVICES COMMISSION REVIEW AND THE OFFICE OF THE AUDITOR GENERAL'S INQUIRY HAVE HAD A MAJOR IMPACT ON US IN TERMS OF RESOURCES, TIME AND THE EFFECT THEY HAVE HAD ON THE STAFF INVOLVED.

We have faced these challenges with honesty and fortitude. Importantly, the reviews found that Immigration New Zealand is fundamentally sound; its staff hardworking and committed. The reviews have however identified a number of areas where improvements can be made. We are the stronger for this experience and committed to addressing these issues as the Department enters into a new stage in its development.

The Department is focussed on rebuilding its capabilities and reshaping itself to better meet the challenges ahead. During this transitional phase, it is critically important that the Department's business as usual continues to function efficiently. While this has certainly been the case we now face additional pressures in terms of the economic situation and changed expectations of the public service. Like all government agencies we must demonstrate that our services provide value for money. We must create new ways of working and new ways of addressing these challenges.

The world economy has contracted dramatically in the past year and this has had an inevitable impact on the New Zealand labour market. We must deliver strategies that will lead to economic growth by limiting job losses and stimulating the labour market. This is vital if we are to minimise the immediate social and economic impact of the recession. It is also an important part of ensuring that New Zealand is well positioned to take advantage of opportunities that will occur when the global economy begins to recover. To achieve this it is essential that we continue to maintain focus on the effective operation of the labour market as the foundation of economic growth.

The demands placed on the public sector in terms of improving performance, delivering better value for money and re-thinking how and why we do things are no different from the demands being placed on New Zealand businesses. In this difficult fiscal climate we must play our part - we must adopt new ways of thinking and doing things.

We have made a start on this and I believe are moving in the right direction. We have refined our outcomes, better identified our organisational and developmental goals and defined our vision and values.

This refocusing has already had a practical impact on our everyday operations. A new Executive Branch and Departmental Portfolio Management Office have been established and these innovations have already significantly improved the Department's governance and efficiency. I am confident that we are now becoming better positioned to ensure that our future service delivery is fully aligned with the Government's requirements.

However, an organisation gains its real strength from its unity of purpose. There are enormous organisational and operational benefits to be obtained from the full integration of resources. Achieving this level of integration is a lengthy process. Although progress has been made much remains to be done. To harness our collective efforts we need effective leadership at all levels of the Department. We need to provide leadership that builds and consolidates a strong integrated and aligned organisation. This demands high levels of managerial autonomy but this must also be matched by high levels of performance.

The Department is an organisation in transition. To move successfully through this process, we need to constantly reinforce the organisation's values and continue to build a shared culture. The work to fully implement the corporate model across the Department is a core part of this process. It is essential that the Department has the right corporate services delivered in the right way- using its resources cost-effectively and achieving savings where possible.

In this context, the operational reviews that drew to a close this year have put forward a number of practical recommendations concerning the way Immigration New Zealand does business. The Department's Strategic Leadership Team is continuing to work through these recommendations with a view to fully implementing them within the next two years.

We will continue to scrutinise our general operations and look at ways of improving our overall performance. To do this effectively we must achieve a real unity of purpose. Our customers and stakeholders must know and experience us as a single, responsive entity that provides timely and effective services. Our perceived ability to create tangible public value will be the true measure of our success. This is the challenge that faces us and all public sector agencies. With the events of recent years behind us, it is a challenge that we are now better positioned to meet.

Christopher Blake

SECRETARY OF LABOUR