FOREWORD FROM THE MINISTER OF LABOUR
The Government wants to improve the living standards and wellbeing of all New Zealanders by raising our standard of living to the top half of the OECD. That’s what will put money in people’s pockets and deliver the social services we need.
We can be proud of our achievements. Over the past six years, we have experienced good economic growth, averaging close to 3.5 percent per annum. New Zealand’s performance is not only better than OECD averages, but exceeds that of our top three trading partners – Australia, Japan and the United States. Our most recent employment figures (released February 2006) show that 289,000 more New Zealanders are in work now than was the case six years ago, so there is good reason to celebrate.
It’s now time to move into the next phase in the economic transformation agenda. To do this, we need to focus on more globally-competitive firms, higher productivity, increased business investment, improved skill levels and more innovation in our economy.
The productivity message is simple. If we are to become a high-wage, high-skilled and high-value economy we need to maintain our focus on getting more people participating in paid work and on lifting our productivity through increasing the value of each hour we work.
To improve and maintain labour utilisation, this government is focusing on reducing functional illiteracy in the workforce, increasing industry training, building business confidence in tertiary education and addressing skill shortages. We also have a specific programme of work for improving workplace productivity, supported by business leaders, employer groups and unions, which aims to achieve:
• significant increases in labour productivity
• higher skill levels and better use of those skills
• maintaining and improving labour market participation
• improving the quality of labour market information.
In addition to contributing to successful economic performance at a national level, we want all New Zealanders to have security – a quality of life that offers better prospects and decent wages. All people engaged in work need to feel that their efforts are valued and important. In the current environment of labour and skill shortages, it is especially critical that workplaces are attractive places to be.
High-quality workplaces are those where attention is given to building positive employment relationships, including through involving employees in decision-making, and retaining and developing staff. Good practice concerning workplace health and safety, the way that work is organised and Work-Life balance, creates the environment in which innovation and productivity can flourish to the benefit of both the individuals concerned and the economy as a whole.
This government is making significant improvements to the quality of working life. From April 2007, every New Zealand employee will be entitled to four weeks minimum annual leave. We have also raised the minimum wage every year since coming into office in 1999.
Equally, we will continue to focus on improving health and safety in the workplace. While the number of workplace deaths and injuries are trending down, there is still work to be done. I’m pleased to be able to say the Department is actively out there doing that work and has clocked up more than 23,000 workplace visits over the past year to provide health and safety advice.
While improving people’s lives at work is critical, we also need to focus on enabling people to enjoy other aspects of life that matter to them. We need to continue to achieve productivity gains, but not by increasing our hours of work. Achieving a successful work-life balance is a reasonable expectation, not only for those with family responsibilities, but for all working New Zealanders.
Productivity and high-performing workplaces are not the only areas on which to focus our attention. We also need to develop the skills of our existing workforce, as well as enhance our capabilities through carefully targeted migration.
Our immigration legislation needs to be robust yet flexible enough to respond to whatever lies ahead for New Zealand. The upcoming review of the Immigration Act 1987 will focus on ensuring that we have the systems in place to operate effectively in a global environment where flows of people have increased and diversified, the world economy has globalised and populations everywhere have become more mobile.
We are facing new and more sophisticated risks
at our borders – illegal activities such as people smuggling and identity
fraud are on the rise.The Department is developing a new immigration service
delivery model to attract those people
we want, and smarter border processes to avoid potential risks. Effective
support for those who come here to settle will also help new New Zealanders
to make a successful contribution to New Zealand’s social fabric, as well
as our economic development.
As Minister of Labour, I am looking forward to making the productivity message a reality, as well as ensuring that we have the investment, infrastructure and support systems in place to enable New Zealand to work better. I am satisfied that this Statement of Intent is consistent with the policies and performance expectations of the Government.
Hon Ruth Dyson
Minister of Labour