Vote Labour Market - Supplementary Estimates 2019/20

Vote Labour Market#

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast 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#

ACC - Regulatory Services (M1)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation decreased by $0.018 million to $0.122 million for 2019/20 due to the reallocation of funding for the implementation and on-going costs of a new payroll system (approved through Budget 2019) to better reflect where operational expenses will be incurred.

Employment - Employment Sector Analysis and Facilitation (M95)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $1.157 million to $4.146 million for 2019/20 due to:

• a $1.030 million increase to implement the All of Government Employment Strategy and Youth Employment Action Plan;
• a $0.087 million increase due to delays in the Sector Workforce Engagement Programme; and
• a $0.043 million increase to fund a new remuneration framework (Collective Employment Agreement).

This was offset by a $0.003 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved through Budget 2019) to better reflect where operational expenses will be incurred.

Immigration - Regulation of Immigration Advisers (M38)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $0.026 million to $3.998 million for 2019/20 due to:

• a $0.004 million increase to reallocate funding for the implementation and on-going costs of a new payroll system (approved through Budget 2019) to better reflect where operational expenses will be incurred; and
• a $0.022 million increase to fund a new remuneration framework (Collective Employment Agreement).

Workplace Relations and Safety - Employment Relations Services (M43)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $2.050 million to $41.876 million for 2019/20 due to:

• a $0.215 million increase as a result of delays in delivering the ISO certified Quality Management system;
• a $0.771 million increase due to delays with passing legislation in the Employment Bill, Domestic Violence Act 1995 and Employment Relations Authority bills;
• a $0.150 million increase attributable to delays in legal settlements for the Holidays Act 2003;
• a $0.057 million increase to reallocate funding for the implementation and on-going costs of a new payroll system (approved through Budget 2019) to better reflect where operational expenses will be incurred;
• a $0.357 million increase to fund a new remuneration framework (Collective Employment Agreement; and
• a $0.500 million increase to address operating cost pressures.

Workplace Relations and Safety - Shared Services Support (M43)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted in relation to performance in respect of services provided to other departments (specifically Te Kahui Whakamana Rua Tekau ma Iwa - Pike River Recovery Agency and the Ministry of Housing and Urban Development) under s15D(1) of the Public Finance Act 1989, as the appropriation relates to outputs supplied by a department to 1 or more other departments.

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 - Rehabilitation Entitlements and Services (M1)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $5.114 million to $711.561 million for 2019/20 due to a transfer from Vote Health to contribute funding for the delivery of emergency ambulance services.

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

Workplace Relations and Safety - Workplace Health and Safety (M43)

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Reasons for Change in Appropriation

This appropriation increased by $0.351 million to $105.764 million for 2019/20 to increase WorkSafe New Zealand's capacity to support the Kigali Amendment to the Montreal Protocol.

3.4 - Non-Departmental Other Expenses#

Crown Debt Write Offs (M25)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $0.100 million to $0.225 million for 2019/20 to account for higher expected write-offs for the financial year.

Employment - He Poutama Rangatahi (M95)

Scope of Appropriation

Expenses

How Performance will be Assessed and End of Year Reporting Requirements

Note: He Poutama Rangatahi is a new appropriation that was created to reflect a broadening of the regional scope for expenditure on training and employment programmes. The original funding, as shown in the Employment - Youth Employment Pathways/He Poutama Rangatahi appropriation, was limited to programmes for young people in Te Tai Tokerau, Eastern Bay of Plenty, Tairawhiti and Hawke's Bay. Following further funding being provided through Budget 2019, these particular regional restrictions were removed. Both appropriations are reflected in the Supplementary Estimates 2019/20 because the broader regional scope was actioned part-way through the 2019/20 financial year, by which time spending under the previous regional restrictions had already occurred.

Reasons for Change in Appropriation

This appropriation increased by $16.529 million to $16.529 million for 2019/20 due to the expansion of the Employment - He Poutama Rangatahi/Youth Employment Pathways appropriation to account for a change in the scope during the financial year.

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

Scope of Appropriation

How Performance will be Assessed and End of Year Reporting Requirements

Note: He Poutama Rangatahi is a new appropriation that was created to reflect a broadening of the regional scope for expenditure on training and employment programmes. The original funding, as shown in the Employment - Youth Employment Pathways/He Poutama Rangatahi appropriation, was limited to programmes for young people in Te Tai Tokerau, Eastern Bay of Plenty, Tairawhiti and Hawke's Bay. Following further funding being provided through Budget 2019, these particular regional restrictions were removed. Both appropriations are reflected in the Supplementary Estimates 2019/20 because the broader regional scope was actioned part-way through the 2019/20 financial year, by which time spending under the previous regional restrictions had already occurred.

Reasons for Change in Appropriation

This appropriation decreased by $11.181 million to $2.094 million for 2019/20 due a $5.348 million increase to account for delays in development and recruitment of the programme, which was offset by a $16.529 million decrease to transfer the remaining funding to the newly created Employment - He Poutama Rangatahi appropriation as a result of a change in scope during the financial year.

Workplace Relations and Safety - Concession Expense for Loans to WorkSafe New Zealand (M43)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of concessional loans to WorkSafe New Zealand for supporting the delivery of its function as the health and safety at work regulator.

End of Year Performance Reporting

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989 as additional performance information is unlikely to be informative because any expenses associated with fair value write-down are non-cash and for accounting purposes only.

Reasons for Change in Appropriation

The increase in this appropriation by $0.788 million is to increase WorkSafe New Zealand's capacity to support the Kigali Amendment to the Montreal Protocol.

Workplace Relations and Safety - International Labour Organisation (M43)

Scope of Appropriation

Reasons for Change in Appropriation

This appropriation increased by $0.250 million to $1.715 million for 2019/20 due to foreign exchange fluctuations in the membership fee for the International Labour Organisation which is payable in Swiss Francs.

Workplace Relations and Safety - Remuneration Authority Members' Fees, Salaries and Allowances (M43)

Scope of Appropriation

Expenses

Reasons for Change in Appropriation

This appropriation increased by $0.159 million to $0.459 million for 2019/20 due to delays with passing new employment (Pay Equity & Equal Pay) legislation.

3.5 - Non-Departmental Capital Expenditure#

Workplace Relations and Safety - Capital for WorkSafe New Zealand (M43)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the design and implementation of an appropriate Information Technology system for WorkSafe New Zealand that supports the processing of licences and authorisations, and to enable WorkSafe New Zealand to administer the refrigeration licensing scheme in advance of fees being received.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this annual appropriation for capital expenditure is less than $15 million.

Reasons for Change in Appropriation

The appropriation increased by $1.185 million for 2019/20 to increase WorkSafe New Zealand's capacity to support the Kigali Amendment to the Montreal Protocol.

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

Reasons for Change in Appropriation

This appropriation increased by $52.212 million to $421.720 million for 2019/20 due to:

• a $31.291 million increase due to additional Visa and Electronic Travel Authority (ETA) volumes;
• a $5.098 million increase due to delays in various immigration projects and programmes;
• a $4.810 million increase to fund a new remuneration framework (Collective Employment Agreement);
• a $3.649 million increase due to the implementation of reforms to the Employer-Assisted Temporary Work Visa;
• a $1.800 million increase to ensure compliance with Chinese tax law for employees based in Beijing;
• a $1.400 million increase to support security upgrades to the Mangere Refugee Resettlement Centre;
• a $0.900 million increase to fund the post-pilot expansion & on-going implementation of the Welcoming Communities programme;
• a $0.765 million increase to reflect the transfer of responsibility for costs associated with the Refugee Quota programme, from Vote Health to Vote Labour Market;
• a $0.500 million increase to fund proposed changes to the Parent Resident Visa (Parent Category);
• a $0.480 million increase to fund employer-assisted work visas and regional workforce planning;
• a $0.457 million increase to cover the increased capital charge due to the revaluation of the Mangere Refugee Centre;
• a $0.400 million increase to reflect the estimated secondee salary costs recovered from the other agencies;
• a $0.370 million increase to reallocate funding for the implementation and on-going costs of a new payroll system (approved through Budget 2019) to better reflect where operational expenses will be incurred;
• a $0.154 million increase due to the drawdown of a contingency to fund an increase in the refugee quota; and
• a $0.138 million increase for a capital to operating swap for Maritime Mass Arrivals.

Memorandum Account

Policy Advice and Related Outputs (M43)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

How Performance will be Assessed for this Appropriation

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

Reasons for Change in Appropriation

This appropriation increased by $1.534 million to $23.118 million for 2019/20 due to:

• a $1.425 million increase to provide funds relating to the Job Gateway approach to employer-assisted temporary work visas and regional workforce planning;
• a $0.300 million increase attributable to delays in the work to develop an online tool-kit to support employing older workers;
• a $0.300 million increase due to delays with the Migrant Worker Exploitation initiative;
• a $0.158 million increase to reflect the estimated secondee salary costs recovered from the other agencies; and
• a $0.127 million increase to fund a new remuneration framework (Collective Employment Agreement).

This was offset by decreases in the appropriation due to:

• a $0.276 million decrease to reallocate funding for the implementation and on-going costs of a new payroll system (approved through Budget 2019) to better reflect where operational expenses will be incurred; and
• a $0.500 million decrease to address operating cost pressures.