Vote Labour

Summary financial performance

Year ended 30 June 2009	Actual $000	Voted [4-6] $000	Variance Fav/(Unfav) $000
Revenue Crown (GST excl)
International services	946	946	-
Policy advice - labour	12,643	12,643	-
Services to promote and support fair and productive employment relationships	24,190	24,190	-
Services to promote and support safe and healthy people and workplaces	35,158	35,158	-
Services to promote and support the safe management of hazardous substances in the workplace and amusement devices	5,106	5,106	-
Sub total	78,043	78,043	-
Revenue Department (GST excl)
International services	15	12	3
Policy advice - labour	141	129	12
Services to promote and support fair and productive employment relationships	275	237	38
Services to promote and support safe and healthy people and workplaces	740	682	58
Services to promote and support the safe management of hazardous substances in the workplace and amusement devices	33	29	4
Sub total	1,204	1,089	115
Revenue Other (GST excl)
International services	-	-	-
Policy advice - labour	-	-	-
Services to promote and support fair and productive employment relationships	19	202	(183)
Services to promote and support safe and healthy people and workplaces	2	300	(298)
Services to promote and support the safe management of hazardous substances in the workplace and amusement devices	-	-	-
Sub total	21	502	(481)
Total Departmental Revenue	79,268	79,634	(366)
Departmental Output Expenses (GST excl)
International services	874	958	84
Policy advice - labour	11,582	12,772	1,190
Services to promote and support fair and productive employment relationships	24,521	24,629	108
Services to promote and support safe and healthy people and workplaces	36,002	36,140	138
Services to promote and support the safe management of hazardous substances in the workplace and amusement devices	5,121	5,135	14
Total Departmental Expenses	78,100	79,634	1,534
Non-Departmental Revenue (GST excl)
Employment Relations Authority fees	171	193	(22)
Recovery of remuneration authority costs of setting local authority members' remuneration	227	250	(23)
Health and safety in employment levy	41,138	40,142	996
OSH fees and licences	37	33	4
Infringement notice fines	10	247	(237)
Total Non-Departmental Revenue	41,583	40,865	718
Non-Departmental Output Expenses (GST excl)
Employment Relations Education Contestable Fund	2,382	2,429	47
Health and safety in employment levy - collection services	869	869	-
Pay and Employment Equity Contestable Fund	374	945	571
Sub total	3,625	4,243	618
Non-Departmental Other Expenses (GST Excl)
Bad debt expense	5	15	10
Employment relations authority members' salaries and allowances (PLA)	3,009	3,080	71
International Labour Organisation	1,206	1,249	43
Joint Equal Employment Opportunities Trust	943	943	-
New Zealand Industrial Relations Foundation	15	15	-
Sub total	5,178	5,302	124
Total Non-Departmental Expenses	8,803	9,545	742

Intermediate outcomes and key areas of focus

Intermediate outcomes and key areas of focus	Appropriation
Intermediate outcome: New Zealand will prosper and be enriched through its connections with the rest of the world.Key areas of focus: Supporting New Zealand's prosperity and reputation through: Contributing to effective international standards Building relationships and partnering with other countries including those in the Pacific region.	International Services
Intermediate outcome: New Zealand workplaces will raise the value of work and the quality of working lives. Key areas of focus: 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.	Policy advice - labour
	Services to promote and support fair and productive employment relationships
	Services to promote and support safe and healthy people and workplaces
	Services to promote and support the safe management of hazardous substances in the workplace and amusement devices

Output class: International Services

Scope of appropriation

Managing the Department's multilateral, bilateral and regional engagement and influence on labour and related employment issues, including the Government's obligations and interests through the International Labour Organisation, and the Government's trade agenda as it relates to the labour portfolio.

Performance measure	Budget standard	Actual
International events and meetings attended including: International Labour Organisation meetings multilateral and bilateral meetings trade labour agreement negotiations rounds.	9-16 meetings and events attended	Achieved During 2008/09, Departmental staff attended 13 meetings and events including the ILO Governing Body meetings in November 2008 and March 2009, and the International Labour Conference in June 2009. Departmental staff also attended trade labour negotiation rounds throughout this period.
Proceedings held or coordinated including: assistance-based activities cooperative activities incoming international visits by overseas delegates.	15-25 proceedings held or coordinated	Achieved During 2008/09, over 15 cooperative activities and meetings were held or coordinated, including visits, with domestic and international delegations.
All reports and questionnaires are coordinated and submitted as required.	15-25 reports and questionnaires coordinated and submitted	Achieved During 2008/09, the Department completed and submitted 23 reports and questionnaires. This included 12 ILO Article 22 reports on labour and employment Conventions New Zealand has ratified, an ILO Article 19 Report on un-ratified Conventions and Recommendations, and responses to questionnaires such as the OECD Questionnaire on Labour Market Responses to the Crisis.
Delegates' and stakeholders' satisfaction with the quality and timeliness of support provided by International Services.	Average score of 3 or better on survey's received	Achieved Average score of 4 out of 5 achieved on annual satisfaction survey.
All relevant and necessary parties are adequately consulted and deadlines are met.	Achieved / Not Achieved	Achieved Average score of 4 out of 5 achieved on annual stakeholder satisfaction survey.
Policy advice provided on international labour issues relating to the labour portfolio will be delivered as agreed with the Minister of Labour.	As detailed in the 2008/09 Output Plan	Achieved Policy advice on international labour issues was provided to the Minster of Labour when required.

Financial performance Figures are GST exclusive

Year ended 30 June 2009	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Revenue:
Crown	946	947	946	100.0%
Department	15	10	12	125.0%
Total Revenue	961	957	958	100.3%
Total Expenses	874	957	958	91.2%
Net Surplus/(Deficit)	87	-	-

Output class: Policy advice - Labour

Scope of appropriation

Provides policy advice and facilitation of policy implementation through developing and delivering tools and resources, research and evaluation about the labour market and workplace practices and includes ministerial servicing and administrative and advisory support to NACEW, NOHSAC and the PaEE Steering Group^[7] and ERE Advisory Committee^[8].

Performance measure	Budget standard	Actual
The policy process and advice is assessed as good quality through external and internal review of specific projects.	Meet or exceed standard	Achieved The New Zealand Institute of Economic Research assessed the quality of the Department's policy advice. Overall it found that advice had met the expected standard and has improved to the level of middle-high quality.
The Department completes all ministerial correspondence in a timely manner.	Meet or exceed standard	Partially Achieved Ministerial correspondence is generally completed within times agreed with the Minister's office. Feedback from the Ministers office indicated that in some instances correspondence was not completed within expected timeframes.
The National Advisory Council on the Employment of Women (NACEW), National Occupational Health and Safety Advisory Council (NOSHAC), Pay and Employment Equity (PaEE) Steering Group, Employment Relations Education (ERE) Advisory Committee and Workplace Health and Safety Council (WHSC) are satisfied with the quality of the Department's support services.	Meet standard	Achieved The following satisfaction ratings were received: NACEW = 4 (scale 1-5) WHSC = 5 (scale 1-5) NOSHAC, the PaEE Steering Group, and the ERE Advisory Committee were dis-established during the year.
Policy advice will be delivered as agreed with the Minister of Labour.	As detailed in the 2008/09 Output Plan	Partially Achieved The Department completed the work detailed in the Output Plan as agreed with the Minister of Labour. However some of the work was completed outside of the agreed timelines.
Ministerial servicing will be delivered as agreed with the Minister of Labour.	As detailed in the 2008/09 Output Plan	Not Applicable The Department measures its performance through formal Ministerial feedback on papers and correspondence provided to the Minister of Labour. During the year, specific feedback on each of the papers has not been received from the Minister.

Financial performance Figures are GST exclusive

Year ended 30 June 2009	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Revenue:
Crown	12,643	12,213	12,643	100.0%
Department	141	54	129	109.3%
Total Revenue	12,784	12,267	12,772	100.1%
Total Expenses	11,582	12,267	12,772	90.7%
Net Surplus/(Deficit)	1,202	-	-

The increase in appropriation of $0.505 million in the Supplementary Estimates was primarily due to funding for a Skills Strategy Programme Office ($1.140 million), partly offset by a fiscally neutral adjustment to align the Department's cost allocation model ($0.501 million) and a fiscally neutral adjustment to Vote ACC Policy and Monitoring to enable the Department to undertake a stock-take of each of the ACC accounts ($0.175 million).

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

Scope of Appropriation

Provision of information, guidance, investigation, mediation and decision-making regarding employment rights and upholding minimum standards including support services provided to employment relations institutions.

Performance measure	Budget standard	Actual
Improving workplace practices following a departmental intervention are monitored and results are analysed.	Report on results	Achieved Contact Centre: 47% Labour Inspector: 57% Results show the proportion of respondents by each service group, as applicable to this output class, who indicated they had made a change or intend to make a change following contact with the Department.
The percentage of customers satisfied with the services, information and tools provided by the Department.	80%	Contact Centre: Achieved 81% of customers in the Contact Centre were satisfied with the services, information and tools provided by the Department. Labour Inspection: Not Achieved Of the 129 Labour Inspection Services customers surveyed, 75% were satisfied with the services, information and tools provided by the Department. The Department is investigating areas to focus on to improve customer satisfaction.
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).	4 or higher	Chief of the Employment Relations Authority: Achieved The Chief of the Employment Relations Authority rated the support services provided by the Department as 4 on a scale of 1-5. Remuneration Authority Chair: Not Achieved The Remuneration Authority Chair rated the support services provided by the Department as 3 on a scale of 1-5.
Percentage of investigations into complaints regarding breaches of minimum standards of employment legislation completed within six months of receipt.	90%	Achieved 92% of investigations were completed within six months of receipt.
Percentage of investigations of minimum wage exemptions completed before the previous exemption expires.	95%	Achieved 99% of investigations of minimum wage exemptions were completed before the previous exemption expired.
The percentage of forums and workplace visits undertaken by the Department targeting priority areas.	90%	Achieved 100% of forums and workplace visits targeted priority areas across all output classes for the year.
Percentage of requests for mediation settled before or at mediation.	75%	Achieved 78% of mediation requests were settled before or at mediation, and a further 2% were partially settled at mediation.

Financial performance Figures are GST exclusive

Year ended 30 June 2009	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Revenue:
Crown	24,190	26,385	24,190	100%
Department	275	152	237	116.0%
Other	19	202	202	9.4%
Total Revenue	24,484	26,739	24,629	99.4%
Total Expenses	24,521	26,739	24,629	99.6%
Net Surplus/(Deficit)	(37)	-	-

The decrease in appropriation of $2.110 million in the Supplementary Estimates was primarily due to a fiscally neutral adjustment to align the Department's cost allocation model ($1.851 million), a reduction in funding for the Employment Relations Education Contestable Fund ($0.242 million) and a transfer from 2008/09 to 2009/10 relating to the Corporate Model Implementation Project ($0.021 million).

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

Scope of appropriation

Provision of information, education and support for workplaces regarding effective workplace health and safety practice, and enforcement action to promote compliance with the HSE Act.

Performance measure	Budget standard	Actual
Improved workplace practices following a departmental intervention are monitored and results analysed.	Report on results	Achieved Contact Centre: 47% SBIU: 60% Health and Safety: 79% Results show respondents by each service group, as applicable to this output class, who indicated they had made a change or intend to make a change following contact with the Department.
The percentage of customers satisfied with the services, information and tools provided by the Department.	80%	Contact Centre: Achieved 81% of customers in the Contact Centre were satisfied with the services, information and tools provided by the Department. Health and Safety Inspection Services: Not Achieved Of the 526 Health and Safety Inspection Services customers surveyed, 73% were satisfied with the services, information and tools provided by the Department. The Department is investigating areas to focus on to improve customer satisfaction.
The percentage of forums and workplace visits undertaken by the Department targeting priority areas.	90%	Achieved 100% of forums and workplace visits targeted priority areas across all output classes.
Percentage of investigations completed within five months of notification of the event.	90%	Achieved 96% of investigations were completed within five months of notification of the event.

Financial performance Figures are GST exclusive

Year ended 30 June 2009	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Revenue:
Crown	35,158	33,825	35,158	100.0%
Department	740	624	682	108.5%
Other	2	300	300	0.6%
Total Revenue	35,900	34,749	36,140	99.3%
Total Expenses	36,002	34,749	36,140	99.6%
Net Surplus/(Deficit)	(102)	-	-

The increase in appropriation of $1.391 million in the Supplementary Estimates was primarily due to a fiscally neutral adjustment to align the Department's cost allocation model ($1.185 million) and a transfer from 2007/08 for health and safety information and promotion ($0.200 million).

Approval in-principle was given to transfer $0.066 million of unspent funding to 2008/09. This covers Energy Safety funding.

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

Scope of appropriation

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.

Performance measure	Budget standard	Actual
The Environmental Risk Management Authority (ERMA) is satisfied with: the quality of the Department's support services the Department's delivery of the activities identified within the 2007/08 Intentions Report agreed between the Department and ERMA.	Meet standard	Not Achieved ERMA under section 99(1) of the HSNO Act formally notified the Minister of Labour of their concerns of insufficient inspection and enforcement of hazardous substances, particularly in workplaces. While the Department agrees with the general concerns around the need to increase regulatory and enforcement performance, it does not accept some of ERMA's specific conclusions, including concerns of poor Departmental performance. The Department is working with ERMA and the Ministry for the Environment to ensure a coordinated approach to achieving future improvements in the HSNO regime - both in the immediate and wider sector.
The percentage of customers satisfied with the services, information and tools provided by the Department.	80%	Not Achieved Of the 526 Health and Safety Inspection Services customers surveyed, 73% were satisfied with the services, information and tools provided by the Department. The Department is investigating areas to focus on to improve customer satisfaction.

Financial performance Figures are GST exclusive

Year ended 30 June 2009	Actual $000	Main Estimates $000	Supp. Estimates $000	Actual as a % of Supp. Estimates
Revenue:
Crown	5,106	4,566	35,158	100.0%
Department	33	16	682	113.8%
Total Revenue	5,139	4,582	5,135	100.1%
Total Expenses	5,121	4,582	5,135	99.7%
Net Surplus/(Deficit)	18	-	-

The increase in appropriation of $0.553 million in the Supplementary Estimates was primarily due to a fiscally neutral adjustment to align the Department's cost allocation model ($0.552 million).

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Footnotes

^[4-6] Voted figures include adjustments made in the Supplementary Estimates and transfers under the Public Finance Act 1989.

^[7] Pay and Employment Equity Steering Group

^[8] Employment Relations Education Advisory Committee