Supplementary estimates of appropriations

Vote Labour - Supplementary Estimates 2014/15

Note 68

From the Estimates of Appropriations 2015/16 in Budget 2015, Vote Labour was merged into a new Vote - Vote Labour Market.

APPROPRIATION MINISTER(S): Minister for Workplace Relations and Safety (M43)

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#

  2014/15
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Employment Relations Services (M43)

This appropriation is limited to the provision of information, guidance, investigation, mediation and decision-making regarding employment rights and upholding regulatory standards including support services provided to employment relations institutions.
26,174 4,978 31,152

Shared Services Support (M43)

This appropriation is limited to the provision of support services to other agencies.
11,505 4,027 15,532

Total Departmental Output Expenses

37,679 9,005 46,684

Non-Departmental Output Expenses

     

Employment Relations Education Contestable Fund (M43)

Grant funding for programmes that promote improved employment relationships and good faith behaviour, and good health and safety practices amongst employers, unions and employees.
500 181 681

Health and Safety in Employment Levy - Collection Services (M43)

This appropriation is limited to the provision of collection services from the Accident Compensation Corporation (ACC), to collect the HSE Levy on behalf of the Crown.
869 - 869

Workplace Health and Safety (M43)

This appropriation is limited to the provision of information, education, leadership, standards, support, and enforcement services relating to the health and safety of workplaces, the safe management of hazardous substances in workplaces, the safety of gas and electricity systems, and the inspection of amusement devices.
85,591 1,470 87,061

Total Non-Departmental Output Expenses

86,960 1,651 88,611

Non-Departmental Other Expenses

     

Bad Debt Expense (M43)

To cover the expected cost of writing off hearing fees for hearings of longer than a day in length at the Employment Court (hearings pre 1 December 2004) and the Employment Relations Authority where the applicant is granted hardship or where debt recovery is unsuccessful after three months.
15 - 15

Crown Debt Write Offs (M43)

This appropriation is limited to debt write downs, including doubtful debt and write off actions for Crown debts other than Crown debts related to the Employment Court and the Employment Relations Authority.
- 25 25

Employment Relations Authority Members' Salaries and Allowances PLA (M43)

As set by the Remuneration Authority in order to administer and enforce employment-related legislation (section 171 of the Employment Relations Act 2000).
3,980 - 3,980

International Labour Organisation (M43)

New Zealand's annual subscription to the ILO.
1,400 - 1,400

Joint Equal Employment Opportunities Trust (M43)

Funding to promote EEO as a good management practice, delivered in partnership with the private sector.
450 - 450

New Zealand Industrial Relations Foundation (M43)

Funding for education to promote better industrial relations.
15 - 15

Remuneration Authority Members' Fees, Salaries and Allowances (M43)

This appropriation is limited to the fees, salaries and allowances of the members of the Remuneration Authority.
- 300 300

Total Non-Departmental Other Expenses

5,860 325 6,185

Non-Departmental Capital Expenditure

     

WorkSafe NZ capability change programme (M43)

This appropriation is limited to capital expenditure for the establishment and development of ICT business capability, motor vehicles and equipment to support the implementation of the WorkSafe NZ capability change programme.
- 8,428 8,428

Total Non-Departmental Capital Expenditure

- 8,428 8,428

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Related Outputs MCA (M43)

The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
8,286 1,500 9,786
Departmental Output Expenses
     
Ministerial Services
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
2,035 (800) 1,235
Policy Advice - Labour
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to employment relations, health and safety (including Hazardous Substances and New Organisms) and international labour commitments.
6,251 2,300 8,551

Total Multi-Category Expenses and Capital Expenditure

8,286 1,500 9,786

Total Annual and Permanent Appropriations

138,785 20,909 159,694

Supporting Information#

Part 1 - Vote as a Whole#

1.2 - Trends in the Vote

Summary of Financial Activity

  2014/15
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 124,639 9,005 1,651 10,656 135,295
Benefits or Related Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses 5,860 - 325 325 6,185
Capital Expenditure - - 8,428 8,428 8,428
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 8,286 1,500 - 1,500 9,786
Other Expenses - - - - -
Capital Expenditure - N/A - - -

Total Appropriations

138,785 10,505 10,404 20,909 159,694

Crown Revenue and Capital Receipts

         
Tax Revenue - N/A - - -
Non-Tax Revenue 78,622 N/A (33) (33) 78,589
Capital Receipts - N/A - - -

Total Crown Revenue and Capital Receipts

78,622 N/A (33) (33) 78,589

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses

Employment Relations Services (M43)

Scope of Appropriation

This appropriation is limited to the provision of information, guidance, investigation, mediation and decision-making regarding employment rights and upholding regulatory standards including support services provided to employment relations institutions.

Reasons for Change in Appropriation

This appropriation increased by $4.978 million to $31.152 million for 2014/15 due to:

  • $5.200 million in 2014/15 for an increase in expenditure funded by the Ministry of Business, Innovation and Employment's working capital, and
  • $78,000 transfer from 2013/14 for an information campaign upon the finalisation of the Employment Relations Amendment Bill.

This is partially offset by a decrease of $300,000 due to a transfer to the non-departmental other expense - Remuneration Authority Members' Fees, Salaries and Allowances for the remuneration authority members' fees, salaries and allowances.

Shared Services Support (M43)

Scope of Appropriation

This appropriation is limited to the provision of support services to other agencies.

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 and other agencies with which arrangements are made.

Reasons for Change in Appropriation

This appropriation increased by $4.027 million to $15.532 million for 2014/15 to reflect the fees (fixed and variable) for shared services provided by the Ministry of Business, Innovation and Employment to WorkSafe New Zealand.

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses

Employment Relations Education Contestable Fund (M43)

Scope of Appropriation

Grant funding for programmes that promote improved employment relationships and good faith behaviour, and good health and safety practices amongst employers, unions and employees.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in skills and knowledge of employment relations matters to enable employers, employees and unions to deal with each other in good faith and build productive relationships, and to provide health and safety representatives with the skills and knowledge needed to promote the successful management of health and safety issues.

Reasons for Change in Appropriation

This appropriation increased by $181,000 to $681,000 for 2014/15 due to a transfer from 2013/14 for $791,000 to maintain staffing levels for the Safe Canterbury Rebuild and to fund training for health and safety representatives in the new framework, so they can effectively understand new concepts and carry out their new functions under the new legislation.

This was partially offset by a transfer of funding to 2015/16 of $610,000 due to a delay in delivering transition training to health and safety representatives.

Health and Safety in Employment Levy - Collection Services (M43)

Scope of Appropriation

This appropriation is limited to the provision of collection services from the Accident Compensation Corporation (ACC), to collect the HSE Levy on behalf of the Crown.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the payment of the costs charged by ACC for collection of the Health and Safety in Employment Levy.

Workplace Health and Safety (M43)

Scope of Appropriation

This appropriation is limited to the provision of information, education, leadership, standards, support, and enforcement services relating to the health and safety of workplaces, the safe management of hazardous substances in workplaces, the safety of gas and electricity systems, and the inspection of amusement devices.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve safer and more skilled workplaces by reducing death, injury, exposure to hazardous substances, and improving safety of the supply of electricity and gas.

Reasons for Change in Appropriation

This appropriation increased by $1.470 million to $87.061 million for 2014/15 due to funding of $1.970 million for the establishment of a package of initiatives to accelerate the implementation of the Adventure Activities regulatory regime.

The increase was partly offset by a transfer to Vote Environment of $500,000 due to a reduction of the final number of functions transferred to WorkSafe New Zealand.

3.4 - Non-Departmental Other Expenses

Bad Debt Expense (M43)

Scope of Appropriation

To cover the expected cost of writing off hearing fees for hearings of longer than a day in length at the Employment Court (hearings pre 1 December 2004) and the Employment Relations Authority where the applicant is granted hardship or where debt recovery is unsuccessful after three months.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the write off of debts owed to the Crown that are deemed doubtful or unreliable.

Crown Debt Write Offs (M43)

Scope of Appropriation

This appropriation is limited to debt write downs, including doubtful debt and write off actions for Crown debts other than Crown debts related to the Employment Court and the Employment Relations Authority.

Expenses

  2014/15
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 25 25

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the write off of debt owed to the Crown that are deemed doubtful or unreliable.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.

Reasons for Change in Appropriation

This appropriation was established in 2014/15 to accommodate the expense of write offs.

Employment Relations Authority Members' Salaries and Allowances PLA (M43)

Scope of Appropriation

As set by the Remuneration Authority in order to administer and enforce employment-related legislation (section 171 of the Employment Relations Act 2000).

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the fulfilment of the Employment Relations Authority's statutory responsibilities.

Joint Equal Employment Opportunities Trust (M43)

Scope of Appropriation

Funding to promote EEO as a good management practice, delivered in partnership with the private sector.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve equal employment opportunities practices in workplaces (promoted by the Trust) in order to increase the success of New Zealand businesses.

New Zealand Industrial Relations Foundation (M43)

Scope of Appropriation

Funding for education to promote better industrial relations.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of new knowledge about employment relations in order to help the labour market work more effectively.

Remuneration Authority Members' Fees, Salaries and Allowances (M43)

Scope of Appropriation

This appropriation is limited to the fees, salaries and allowances of the members of the Remuneration Authority.

Expenses

  2014/15
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 300 300

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the fulfilment of the Remuneration Authority's statutory responsibilities.

End of Year Performance Reporting

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.

Reasons for Change in Appropriation

This appropriation was established in 2014/15 due to a transfer from departmental output expense - Employment Relations Services for remuneration authority members' fees, salaries and allowances.

3.5 - Non-Departmental Capital Expenditure

WorkSafe NZ capability change programme (M43)

Scope of Appropriation

This appropriation is limited to capital expenditure for the establishment and development of ICT business capability, motor vehicles and equipment to support the implementation of the WorkSafe NZ capability change programme.

Capital Expenditure

  2014/15
  Estimates
$000
Supplementary Estimates
$000
Total
$000
Total Appropriation - 8,428 8,428

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the collection, analysis, and sharing of data leading to better prioritisation of risk areas by WorkSafe New Zealand.

End of Year Performance Reporting

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

Reasons for Change in Appropriation

This appropriation was established in 2014/15 to provide for ICT business capability, motor vehicles, and equipment for WorkSafe New Zealand.

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

Multi-Category Expenses and Capital Expenditure

Policy Advice and Related Outputs (M43)

Overarching Purpose Statement

The overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.

Scope of Appropriation

Departmental Output Expenses

Ministerial Services
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.

Policy Advice - Labour
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to employment relations, health and safety (including Hazardous Substances and New Organisms) and international labour commitments.

Reasons for Change in Appropriation

Ministerial Services

This category decreased by $800,000 to $1.235 million for 2014/15 due to a transfer to the MCA category Policy Advice - Labour to meet cost pressures from increased activity in this area.

Policy Advice - Labour

This category increased by $2.300 million to $8.551 million for 2014/15 due to:

  • $1.500 million in 2014/15 from Vote Housing departmental output expense - Weathertight Services to meet cost pressures from increased activity in this area, and
  • $800,000 in 2014/15 from MCA category Ministerial Services to meet cost pressures from increased activity in this area.