Vote Labour Market - Supplementary Estimates 2017/18

Vote Labour Market#

APPROPRIATION MINISTER(S): Minister for ACC (M1), Minister for Economic Development (M25), Minister of Immigration (M38), Minister for Workplace Relations and Safety (M43), Minister of Employment (M95)

APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment

RESPONSIBLE MINISTER FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Workplace Relations and Safety - Employment Relations Services (M43)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $1.751 million to $36.994 million for 2017/18 due to:

• a transfer of $900,000 from Policy Advice and Related Outputs MCA Policy Advice - Workplace Relations and Safety category to address funding pressures relating to the Labour Inspectorate system and personnel costs
• a transfer of $600,000 from Policy Advice and Related Outputs MCA Policy Advice - ACC category to address funding pressures relating to the Labour Inspectorate system and personnel costs

• funding of $175,000 to correct historical non-compliance with the Holidays Act 2003

• a transfer from 2016/17 of $76,000 for the Labour Inspectorate Transformation programme.

Workplace Relations and Safety - Shared Services Support (M43)#

Scope of Appropriation#

What is Intended to be Achieved with this Appropriation#

This appropriation is intended to achieve the provision of corporate services on behalf of WorkSafe New Zealand, Pike River Recovery Agency and other agencies with which arrangements are made.

How Performance will be Assessed and End of Year Reporting Requirements#

Reasons for Change in Appropriation#

This appropriation increased by $750,000 to $11.750 million for 2017/18 due to:

• $700,000 to reflect estimated salary costs for MBIE staff being seconded to other government agencies
• $300,000 to reflect the estimated property costs recovered from other agencies tenanting office space, and
• $250,000 to reflect corporate shared services recovery costs to the newly established Pike River Recovery Agency as agreed in the Master Services Agreement.

The increase was partly offset by a reduction of $500,000 to reflect WorkSafe New Zealand moving some of their corporate services in-house so the value of recovered costs will be lower this financial year.
 

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

ACC - Case Management and Supporting Services (M1)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

ACC - Case Management and Supporting Services - Treatment Injuries for Non-Earners (M1)#

Scope of Appropriation#

How Performance will be Assessed and End of Year Reporting Requirements#

ACC - Public Health Acute Services (M1)#

Scope of Appropriation#

How Performance will be Assessed and End of Year Reporting Requirements#

ACC - Public Health Acute Services - Treatment Injuries for Non-Earners (M1)#

Scope of Appropriation#

How Performance will be Assessed and End of Year Reporting Requirements#

ACC - Rehabilitation Entitlements and Services (M1)#

Scope of Appropriation#

How Performance will be Assessed and End of Year Reporting Requirements#

ACC - Rehabilitation Entitlements and Services - Treatment Injuries for Non-Earners (M1)#

Scope of Appropriation#

How Performance will be Assessed and End of Year Reporting Requirements#

3.4 - Non-Departmental Other Expenses#

Employment - He Poutama Rangatahi/Youth Employment Pathways (M95)#

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve support for communities to link Rangatahi directly to employers and support those employers willing to invest in employing them in the four target regions.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - The measure is an interim measure that focuses on the annual evaluation of the pilot projects. Further measures that show the effectiveness of the programme will be added once they are developed.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Employment in the Vote Labour Market Non-Departmental Appropriations Report.

Reasons for Change in Appropriation

This appropriation was established in 2017/18 with funding of $5.275 million. This was due to new funding of $13.275 million for the continuation of the He Poutama Rangatahi programme working to actively support communities to help young people become ready for work while supporting employers to bring local young people into employment in the four target regions.

This was partly offset by a transfer from 2017/18 to 2018/19 of $8 million to enable due contracting processes to be followed for funding community groups and matches the timing of funding with the capacity for providers to deliver on programmes that will commence but will not be able to be completed in 2017/18.

Workplace Relations and Safety - Employment Relations Authority Members' Salaries and Allowances PLA (M43)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $200,000 to $4.180 million for 2017/18 due to Remuneration Authority determinations on the remuneration of members of the Employment Relations Authority.

Workplace Relations and Safety - International Labour Organisation (M43)#

Scope of Appropriation#

Reasons for Change in Appropriation#

This appropriation increased by $59,000 to $1.459 million for 2017/18 due to exchange rate fluctuations.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Immigration Services (M38)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

What is Intended to be Achieved with each Category and How Performance will be Assessed

Reasons for Change in Appropriation

This appropriation increased by $51.472 million to $347.025 million for 2017/18 due to:

Assessment and Processing Services

This category increased by $34.687 million to $243.420 million for 2017/18 due to:

• funding of $20.789 million to address funding pressures in supporting Immigration New Zealand's new operating model in visa services processing
• a fiscally neutral transfer of $9.004 million from 2016/17 for the Immigration Global Management System and to address funding pressures due to payroll remediation
• new funding of $4 million relating to Visa Services 2020: Benefits Realisation and Customer Excellence in a Digital World
• new funding of $500,000 to create a system that will allow the provision of visa and other information to support changes to administering the Overseas Investment Regime
• a fiscally neutral transfer of $356,000 relating to the recovery of salary costs from secondment of employees to other public sector agencies, and
• a fiscally neutral transfer of $38,000 relating to the recovery of costs associated with administering the Immigration Bond Scheme.

Integrity and Security of the New Zealand Immigration System

This category increased by $11.440 million to $53,460 million for 2017/18 due to:

• new funding of $6.435 million to correct historical non-compliance with the Holidays Act 2003
• a transfer of $2 million from Vote Business, Science and Innovation: Economic Development: Implementation of Improvements in Public Sector Procurement and Services to Business' appropriation to support funding pressures in the service design, performance, compliance, risk and intelligence services
• a transfer of $1.540 million from Vote Police relating to the Joint Initiatives across the Justice Sector to improve identity verification
• a transfer of $750,000 from Policy Advice and Related Outputs MCA - Policy Advice - Immigration category to address funding pressures resulting from front line volume increases
• a transfer of $348,000 from the Ministry of Foreign Affairs and Trade relating to Strengthening the Pacific Immigration Directors Conference and the Pacific Security Fund
• a fiscally neutral transfer of $242,000 relating to the recovery of salary costs from secondment of employees to other public sector agencies, and
• funding of $125,000 to address funding pressures in supporting Immigration New Zealand's new operating model in visa services processing.

Services for the Attraction of Immigrants

This category increased by $2.104 million to $11.669 million for 2017/18 due to a transfer from the Ministry of Foreign Affairs and Trade relating to the Recognised Seasonal Employer Strengthening Pacific Partnership.

Settlement and Integration of Refugees and Other Immigrants

This category increased by $3.241 million to $38.476 million for 2017/18 due to:

• funding of $767,000 to meet contractually obliged regional settlement activity for Migrant Settlement Services
• a transfer of $700,000 from Policy Advice and Related Outputs MCA - Related Services to Ministers - Immigration category to address funding pressures relating to service design, performance, compliance, risk and intelligence services
• new funding of $500,000 for the Welcoming Communities Pilot
• new funding of $335,000 to address funding pressures in the Refugee and Protection Unit relating to an increase in claims for asylum and protection; and both housing supply shortages and increased complexity of finding affordable housing for the incoming quota refugees
• new funding of $300,000 for the development of a cross-Government Cultural Competency Capability Development Programme
• new funding of $254,000 relating to costs associated with the implementation of the pilot intake of sponsored refugees
• a transfer of $200,000 from Policy Advice and Related Outputs MCA - Policy Advice - ACC category to address funding pressures relating to service design, performance, compliance, risk and intelligence services
• a transfer of $100,000 from Policy Advice and Related Outputs MCA - Related Services to Ministers - Workplace Relations and Safety category to address funding pressures relating to service design, performance, compliance, risk and intelligence services, and
• a fiscally neutral transfer of $85,000 from the Ministry of Social Development relating to recovery of costs for refugees staying longer than the usual six weeks at the Mangere Refugee Centre.

Policy Advice and Related Outputs (M43)#

Overarching Purpose Statement#

Scope of Appropriation#

Expenses, Revenue and Capital Expenditure#

Reasons for Change in Appropriation#

This appropriation decreased by $2.135 million to $19.378 million for 2017/18 due to:

Policy Advice - ACC

This category decreased by $800,000 to $1.626 million for 2017/18 due to:

• a transfer of $600,000 to Departmental Output Expense Employment Relations Services to address funding pressures relating to the system and personnel costs for the Labour Inspectorate, and

• a transfer of $200,000 to Immigration Services MCA to address funding pressures to support service design, performance, compliance, risk and intelligence services.

Policy Advice - Immigration

This category increased by $300,000 to $6.450 million for 2017/18 due to:

• a transfer from 2016/17 of $750,000 for the Immigration Research Data Reporting System project, and
• a transfer from 2016/17 of $300,000 for the Joint Border Agency and Statistics New Zealand research project.

The increase was partly offset by a transfer of $750,000 to Immigration Services MCA to address funding pressures resulting from front line volume increases.

Policy Advice - Workplace Relations and Safety

This category decreased by $900,000 to $6.594 million for 2017/18 due to a transfer of $900,000 to Departmental Output Expense Employment Relations Services to address funding pressures relating to the system and personnel costs for the Labour Inspectorate.

Related Services to Ministers - Immigration

This category decreased by $700,000 to $676,000 for 2017/18 due to a transfer to Immigration Services MCA to address funding pressures to support service design, performance, compliance, risk and intelligence services.

Related Services to Ministers - Workplace Relations and Safety

This category decreased by $35,000 to $700,000 for 2017/18 due to new funding of $65,000 relating to ministerial servicing to support the Pike River Recovery Agency.

This was partly offset by a transfer of $100,000 to Immigration Services MCA to address funding pressures to support service design, performance, compliance, risk and intelligence services.