G.46
Annual Report
2014/ 15
for the year ended 30 June 2015
Presented to the House of Representatives pursuant
to section 44(1) of the Public Finance Act 1989.
ISSN 2357-1810 Print
ISSN 2357-1829 Online
www.mbie.govt.nz
CROWN COPYRIGHT © 2015
This work is licensed under the Creative Commons Attribution 3.0 New Zealand licence. In essence, you are free to copy, distribute
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MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Contents
1
Chief Executive's foreword
2
Highlights from our year
3
What we do
5
Key indicators
7
Better public services
8
Cross-agency collaboration
10
Intermediate outcomes
13
Better functioning markets that are more trusted and competitive
14
Safer and more skilled workplaces
17
Improved business capability and higher levels of innovation
20
More reliable infrastructure and responsible development of natural resources
23
Safer, healthier and more affordable homes and buildings
27
More productive and successful people, communities and regions
30
Improved international flows of people, ideas, investment and trade
33
Organisational environment
37
Changing environment
37
Health and capability
39
Statement of management responsibility
42
Independent Auditor’s Report
43
Statement of objectives and service performance
46
Financial statements
97
Residential Tenancies Trust Account
159
Independent Audior's Report
159
Appendices
Appendix A: Crown entities and other Crown organisations associated with the Ministry
166
Appendix B: The Ministry’s legislative framework
167
Appendix C: Non-departmental appropriations performance
170
Appendix D: Where to find us
180
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
2
ANNUAL REPORT 2014/2015
Chief Executive’s
foreword
I am pleased to present the Ministry of Business, Innovation and Employment’s
2014/15 Annual Report. The Ministry is working to Grow New Zealand for all by
supporting a better-performing economy that delivers sustainable growth and
higher incomes for New Zealanders. This report outlines how we are performing,
and the positive changes we are making for New Zealand.
The Ministry’s role is to lead the government’s
microeconomic agenda. This means developing and
implementing policies to build a competitive and
internationally focused economy and delivering services
to businesses and people.
We have defined our purpose as being to Grow New
Zealand for all. Grow refers to economic growth, which is
an important means to achieving a better quality of life.
For New Zealanders, a high quality of life depends on high
material living standards and the quality of the society
and the environment in which they live.
If the community is confident that its society and
environment will be protected or enhanced, and the
benefits of growth are fairly shared, New Zealand’s
business environment will flourish. This means New
Zealanders can access the jobs and incomes necessary
for the community to meet their aspirations.
This is complex work – our environment is dynamic and
ever changing – and delivery expectations are, quite
rightly, high.
Andrew Crisp
Acting Chief Executive,
Ministry of Business, Innovation and Employment
The Ministry’s focus is on building a resilient economy
in which businesses are able to innovate and compete
internationally, where New Zealanders have the
opportunity to work in safe, fair and productive
workplaces, and can afford housing that meets their
needs.
Over the year, the Ministry made significant investments
in many sectors and working with partners achieved
results across all. The following pages outline these
investments and our key achievements.
Looking inwards, the Ministry is now a well-established
organisation that is continually learning. I am confident
we have the strategic direction we need, and are clear
about the contributions the Ministry can make to
New Zealand’s economic prosperity.
I wish to acknowledge our people’s continued
commitment to the Ministry, and the support from our
partners across the public sector and beyond. This report
shows what we have achieved together over the last year,
and how well we are set up to do more in the year ahead.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Highlights
from our year
We have achieved a huge amount over the year in our collective endeavour to
strengthen and Grow New Zealand for all. Our contributions will make a real
difference in the quality of life of most, if not all, New Zealanders now, and overtime.
DYNAMIC BUSINESS ENVIRONMENT
SKILLED PEOPLE AND INNOVATIVE FIRMS
The Ministry has a significant role in enabling the business
environment to become conducive to doing business, and
to be working in as both an employer, and employee. Over
the year we:
›› continued to deliver towards the Better for Business
(Result 9) targets
›› increased the number of companies issued with a
New Zealand Business Number to over 1.2 million
›› reviewed immigration settings
›› advised on strengthening the enforcement of
employment standards
The success in growing New Zealand is dependent on
improving our business capability and levels of
innovation. We have enhanced the impact of the
science system through delivering the:
›› continued development of the National Statement
of Science Investment that provides a 10-year strategic
direction for effective science investments
›› National Science Challenges that support research and
development projects to help key sectors achieve their
full potential, solve key problems, and prepare New
Zealand for the future.
›› helped implement the Working Safer reform package,
the biggest such reforms in 20 years.
To help develop a more skilled workforce we:
›› held four successful job fairs in Perth, Melbourne,
Sydney and Brisbane to connect New Zealand
employers with skilled people living across the Tasman
To work towards better functioning markets we:
›› supported the reforms to the financial market to
improve New Zealanders’ financial capability and
access to quality financial advice
›› focused on better protecting consumers.
International connections provide New Zealand
businesses the resources, skills, and ideas to stimulate
innovation, boost productivity, and gain access to
international market. To improve this we:
›› implemented a number of international agreements
to better connect us with emerging, and already well
developed markets
›› continued to implement our Immigration Global
Management System to improve our customer
interface and ensure that the people entering
New Zealand are accounted for.
›› helped supply the skills needed for the Christchurch
rebuild through initiatives such as the Canterbury Skills
Shortage List, the Canterbury Skills and Employment
Hub and the Skills for Canterbury package.
STRENGTHENING OUR BUILT ENVIRONMENT
Good infrastructure is vital to a well-running economy,
supporting economic growth, social inclusion and reduces
the impact of distance, connecting us regionally and
internationally. Over the year we:
›› facilitated the roll out of ultra-fast and rural broadband
›› continued to improve competition and efficiency
in residential construction, housing supply and
electricity market
›› worked with the Ministry of Social Development to
implement social housing reform.
3
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Highlights
from our year
4
STRENGTHENING OUR NATURAL ENVIRONMENT
SUCCESSFUL SECTORS, REGIONS AND PEOPLE
New Zealand’s abundant natural resources are important
to our economic prosperity. We:
›› strengthened the regulations that underpin the
petroleum and mineral sector, and with these in place
our Block offer 2014 went very well, attracting large,
skilled companies to invest in New Zealand
Growth in income depends on productive and successful
people within communities and regions participating fully
in the economy. In 2014/15 we:
›› continued to support Māori economic development
through our work on the Māori Economic Strategy
›› completed our Pacific Economic Strategy and Action
Plan to support Pacific peoples to contribute and share
in New Zealand’s economic success
›› commissioned independent regional Economic Growth
Studies to identify opportunities for development in
four regions
›› worked to rebuild Christchurch through creating better
regulations, and facilitating the entry of the people we
need to get the job done.
›› worked with the Ministry for the Environment to
improve our resource management system to realise
greater value from our freshwater, marine and
aquaculture resources.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
What we do
The Ministry of Business, Innovation and Employment is the Government’s primary
business-facing agency. Our purpose is to Grow New Zealand for all by enabling a
higher performing economy that supports high employment, higher wages, more
affordable housing and a better quality of life.
OUR PRIORITIES
OUR PURPOSE
The Government has set four strategic priorities to deliver
a stronger and more prosperous New Zealand. These
inform our operating environment:
›› building a more productive and competitive economy
›› rebuilding Christchurch
›› delivering better public services
To help deliver the Government’s ambition for a higherperforming economy, this year, we have developed our
purpose to Grow New Zealand for all, as reflected in the
diagram on the following page.
›› managing the Government’s finances responsibly.
The Business Growth Agenda (BGA) is the framework the
Government is using to communicate, coordinate and
drive forward its work to build a more productive and
competitive economy. Ultimately the BGA aims to deliver
a stronger economy that supports more and betterpaying jobs and increased standards of living for all New
Zealanders. It is focused on the six key elements that
businesses tell us they need to grow and succeed: export
markets, investment, innovation, skills, natural resources
and infrastructure. It also captures three important crosscutting themes: Māori economic development, regional
economic development, and regulation. The Ministry
plays a critical role in leading and coordinating (with The
Treasury) and delivering the BGA.
Our purpose is supported by the aim of increasing real
median household income 40 per cent by 2025, from
$1,300 (2012) to $1,800 per week.
Supporting this target are three objectives:
›› more competitive businesses – doubling labour
productivity growth and increasing the ratio of real
exports to gross domestic product to 40 per cent
›› job opportunities for all – achieving an ongoing
unemployment rate below 4 per cent
›› affordable housing – a lower ratio of housing cost
to income.
5
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
What we do
Grow New Zealand for all
6
INCREASE
REAL HOUSEHOLD
INCOME 40% BY 2025
From a median household income
of around $1300 to $1800 a week.
OBJECTIVES
MORE
COMPETITIVE
BUSINESSES
Double labour
productivity growth
Increase exports/GDP
ratio to 40%
JOB
OPPORTUNITIES
FOR ALL
Unemployment
under 4%
AFFORDABLE
HOUSING
Lower ratio of housing
costs to income
OUR RESPONSIBILITIES
The Ministry is responsible for extensive policy and
service delivery functions that impact on the business
environment. We are responsible for key legislative
and regulatory frameworks, providing public services
onshore and offshore, managing the Crown’s interest
in some economically important natural resources, and
overseeing ownership interests in business-critical Crown
agencies. We are responsible for the following services
and activities:
›› co-leading the Government’s Business Growth Agenda
in support of Ministers
›› leading the Government Better Public Services Result 9
programme
›› co-leading – He Kai Kei Aku Ringa – the Crown-Māori
Economic Growth Partnership
›› co-leading the Regional Growth Programme
›› advising on business, enterprise, sector and regional
development policy and programmes
›› managing the public sector-wide Procurement
Functional Leadership Programme
›› managing some economically important natural
resources through regulation and advice
›› regulating the performance of the building system
›› advising on housing affordability, the built
environment, residential tenancy and
weathertightness
›› delivering tenancy, unit title and weathertight
mediation services
›› leading the Government’s Centre for Dispute
Resolution
›› advising on immigration policy settings and deliver
immigration services
›› regulating the supply and use of radio spectrum,
electricity and gas
›› overseeing the roll out of high-speed broadband
nationwide
›› providing and enforcing consumer, commercial and
occupational regulatory frameworks that support
well-functioning markets
›› investing in science and innovation and building the
skills needed to support business growth
›› providing company registration, intellectual property
and insolvency services
›› advising on tourism policy and related matters
›› administering the Major Events Investment Fund
and advising on matters related to major events
›› delivering employment mediation services and
supporting the Employment Relations Authority
and Remuneration Authority
›› advising on health and safety and employment
relations and standards policy, and enforcing
minimum employment standards
›› advising on accident compensation policy.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Key indicators
7
To demonstrate progress towards our priorities and purpose, we have a set of key
indicators that reflect how New Zealand’s economy is progressing towards the
targets we have been set.
Measure
Increase real household income by 40% from a median of around
$1,300 to $1,800 a week by 2025
Desired Trend
Result
2012/13

$1,300
2013/14
$1,358
2014/15
$1,389
Source: New Zealand Income Survey and Consumer Price Index, Statistics New Zealand
Double labour productivity growth to around 2% per year by 2025 1
2012

1%
2013
2014
2.1%
1.4%
Source: Productivity statistics, Statistics New Zealand (index of gross domestic product (GDP) per hour worked, measured by sector)
Increase value of exports of goods and services to 40% of GDP
by 20252
Jun-14

30.4%
Dec-14
28.9%
Mar-15
29.2%
Source: Gross domestic product release, Statistics New Zealand
Job opportunities for all reflected in unemployment below 4%
by 2025
Jun-13

Jun-14
Jun-15
6.5%
5.7%
5.9%
Source: Household Labour Force Survey, Statistics Survey
Improved housing affordability

The Ministry is developing a tier one official
statistic for measuring housing affordability.
The next version will be used for testing and
consultation with government agencies in the
last quarter of 2015.
1 The baseline for this indicator was 1.2 per cent.
2 This indicator draws from the chain volume series in the National Accounts (System of National Accounts) 2008 published by Statistics New Zealand,
expressed in 2009/10 prices. In previous years the chain volume measure used was 1995/96 prices. As the prices for exports and national accounts
have grown at different rates over the past 15 years, changing the pricing reference year has led to a change in exports percentage to GDP. Revising
the result down 4 per cent will mean these results can be compared with results provided in previous Annual Reports.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
8
ANNUAL REPORT 2014/2015
Better public services
New Zealand’s state sector faces increasing expectations for better public services in
the context of prolonged financial constraints. We need to improve the efficiency and
effectiveness of the services we provide through improved productivity, innovation,
and increased agility. Our stakeholders and customers have high expectations of
the Ministry’s services and the need for continual improvement.
In 2012, the Government introduced the Better Public Services programme. Ten challenging results were set for the
public sector to deliver over five years. The Ministry is responsible for leading one result area, and contributing to a
further three that other government agencies are leading.
LED RESULT 9: MAKING IT EASIER FOR BUSINESS
The Ministry is responsible for leading the Government’s
Better Public Services for Business Result 9 that focuses
on reducing the effort involved, and improving the
services for New Zealand businesses when they deal
with government agencies.
New Zealand businesses when dealing with government.
This resulted in five project teams pitching their concepts
to a panel of experienced leaders, headed by our Chief
Executive. Three progressed through to due diligence
stage.
Business customers have told us they find government
services complex and fragmented, and that dealing with
government is more costly and takes more effort than
it should.
A significant change initiative that is supported by
Result 9 is the New Zealand Business Numbers. This
enables government and other organisations to provide
more integrated services; reducing the number of times
businesses need to provide information to government,
which saves them time and resources. During the year,
we allocated 52,671 business numbers, further to the
1.1 million we issued last year.
To respond to these challenges, the Better for Business
partnership was established. The Ministry leads this
with the Accident Compensation Corporation, Callaghan
Innovation, the Inland Revenue Department, the New
Zealand Customs Service, New Zealand Trade and
Enterprise, the Ministry for Primary Industries and
Statistics New Zealand.
The Government set the public sector two challenging
targets as part of Result 9:
›› Business costs (effort) from dealing with government
will reduce by 25 per cent by 2017, through a year-onyear reduction.
›› Government services to business will have similar key
performance ratings as leading private sector firms by
July 2017.
In 2014/15, through the Better for Business partnership,
we launched New Zealand’s first Result 9 Accelerator
process for government projects. This process brings
together private sector entrepreneurs, developers and
mentors with public sector staff to work on government
projects. The purpose is to rapidly develop government
products and services to solve major pain points for
Through the Better for Business partnership, this year
we supported the following other major initiatives:
›› MyIR Mobile Application – a free mobile app for
iPhones that enables registered customers to file
GST 101 returns, pay tax by credit and debit card,
update personal details and get due date alerts
(Inland Revenue)
›› A single, customer-centric website to replace six legacy
websites (Ministry for Primary Industries)
›› Fast Track – a new service to fast track Tenancy
Tribunal applications relating to
rent arrears (Ministry of Business, Innovation and
Employment).
The latest results, released in July 2015, show a 16 per cent
drop in reported effort when dealing with government
since 2012. This is well over half-way towards the target
to reduce the effort 25 per cent by 2017.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Better public
services
New Zealand businesses have a one-stop shop for
all government advice and support
Reduction in cost to business from dealing with
government
Index
110
80
TARGET
›› The Compliance Matters tool makes managing
compliance easier for New Zealand businesses.
›› The Employee Cost Calculator was designed to help
small and medium enterprises understand the actual
cost of employing people.
›› Immigration ONLINE now allows applicants to apply,
pay fees and upload documents online for student,
work and visitor visa application forms, including
the Chinese language visitor form, and apply on
behalf functionality for third parties, for example,
immigration advisers.
CONTRIBUTED TO RESULT 3: REDUCING THE
INCIDENCE OF RHEUMATIC FEVER
50
2010 2011 2012 2013 2014 2015 2016 2017
Year
The results also showed that the gap in effort when
dealing with government and the private sector narrowed
from 17 per cent to just 7 per cent.
CONTRIBUTED TO RESULT 10: DIGITAL ENVIRONMENT
The Ministry contributes to the achievement of Result
10: New Zealanders can complete their transactions with
government easily in a digital environment.
Our work on Result 9 directly influences Result 10,
which the Department of Internal Affairs leads. Result
10’s focus is on ensuring New Zealanders can complete
their transactions with government easily in a digital
environment. Creating a one-stop online shop for all
government advice and support is a part of that digital
environment. The success of Result 10 is measured
through:
›› An average of 70 per cent of New Zealanders’ most
common transactions with government will be
completed in a digital environment by 2017.
The latest results show that the average rate of
transactions made with government in a digital
environment is at 48 per cent.
OUR INITIATIVES IMPACTING ON RESULTS 9 AND 10
Results 9 and 10 both focus on improving customer
interaction with government through digital service
delivery. However, Result 9 is unique in that it is the only
result area solely focused on business customers.
In 2014/15, Result 9 launched online and digital initiatives
that helped both Results 9 and 10 towards their targets:
›› The new Tenancy Services website provides all
tenancy-related information in one searchable
online location. The site attracts about 24,000
visitors a week.
The Ministry of Health is leading work on Result 3.
We contribute to this result through our policy work
to improve the quality of rental and social housing and
to increase the supply of affordable housing to reduce
the likelihood of overcrowding in homes. This year our
major contributions to Result 3 were:
›› the Building Amendment Act 2013, which looks to
better protect consumers by ensuring the sector
delivers quality, affordable homes and buildings
›› to create new housing Accords and opening up more
special housing areas, which has led to more houses
on the market at a faster rate that are affordable and
of a high standard
›› working with the Ministry of Social Development and
the Treasury to develop the Social Housing Reform
Programme, in particular working on policy to deliver
affordable housing to the right people in
the right places.
CONTRIBUTED TO RESULT 6: INCREASING THE
PROPORTION OF 25 TO 34-YEAR-OLDS WITH
ADVANCED TRADE QUALIFICATIONS, DIPLOMAS
AND DEGREES (AT LEVEL 4 OR ABOVE)
The Ministry of Education is leading work on Result 6.
We contribute to this result through our funding of the
Information Communication Technology (ICT) graduate
schools projects, and Māori and Pasifika Trades Training
programmes. Fourteen consortia are either contracted to
or in negotiation with the Crown for the delivery of Māori
and Pasifika Trades Training programmes.
9
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
10
ANNUAL REPORT 2014/2015
Cross-agency
collaboration
To be an efficient and effective Ministry we recognise we cannot work alone. We collaborate
with our partners and stakeholders to strengthen New Zealand’s economy. Supporting
businesses to become more productive and competitive requires leadership and
coordination across the Government and private sector.
GOVERNANCE
ƨEconomic
ƨ
Chief Executives Group
ƨAuckland
ƨ
Co-design Lab Governance Board
Our Chief Executive, along with the Secretary of the
Treasury, co-chairs the Economic Chief Executives’ Group.
The aim of this group is to examine the longer-term
economic challenges that New Zealand faces, focusing
on areas where a collective push could make a difference
to improving our economic outcomes. Throughout the
year, the group focused on opportunities to:
›› strengthen businesses’ international connections
and seize opportunities from the flows of people,
ideas, capital and trade
›› equip New Zealanders with the skills to participate
and succeed in our economy and society
›› manage our natural resources in a sustainable manner
that supports future innovation and growth
Our Chief Executive, with the Chief Executive of Auckland
Council, co-chairs the Auckland Co-design Lab Governance
Board. The Ministry set up the Auckland Co-design Lab
to provide a neutral space where government agencies
and stakeholders can explore innovative approaches to
tackling complex socio-economic and environmental
issues.
›› improve productivity through the uptake and smart
use of information and communications technology
across the economy.
ƨSkilled
ƨ
and Safe Workplaces Chief Executives Group
Along with the Secretary of Education, our Chief Executive
co-chairs the Skilled and Safe Workplaces Chief Executives
Group. The aim of this group is to provide a formal crossagency vehicle to tackle critical skills and employment
issues from a whole-of-government perspective. This
year the group agreed five strategic priorities:
›› equity and relevance of tertiary education
›› implications of an investment approach to skills
development
›› skills shortages
›› employer role, engagement and influence in
the skills system
›› South Auckland initiatives.
ƨUrban
ƨ
Chief Executives Group
With the Chief Executive of the Department of Internal
Affairs, our Chief Executive co-chairs the Urban Chief
Executives Group. This group provides leadership for
all urban development policy issues across central
government agencies. This year the group:
›› provided strategic advice to government
on urban development issues
›› ensured government priorities are executed
coherently across government agencies
›› advised government on an integrated approach
to Auckland’s urban issues
›› supported ongoing engagement with
the Auckland Council.
ƨBorder
ƨ
Sector Governance Group
The Border Sector Governance Group was reconvened
during 2014/15. It exists to co-ordinate border
management in New Zealand across agencies and
consists of the chief executives of the Ministry, the
New Zealand Customs Service, the Ministry for Primary
Industries, the Department of Internal Affairs, and the
Ministry of Transport. The group is working to develop
a system-wide, strategic approach to achieving a more
efficient and effective border and considering how to
fund it sustainably.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Cross-agency
collaboration
BUSINESS GROWTH AGENDA
FUNCTIONAL LEADERSHIP
As outlined earlier, the Business Growth Agenda (BGA) is
the framework the Government is using to communicate,
coordinate and drive forward its work to build a more
productive and competitive economy. Along with the
Treasury, we lead and coordinate the BGA, which is
focused on the six key elements that businesses tell us
they need to grow and succeed:
›› Export Markets
›› Innovation
›› Investment
›› Skilled and Safe Workplaces
›› Natural Resources
ƨGovernment
ƨ
procurement
›› Infrastructure
Each element has its own cross-agency programme
of work and we lead three of these:
›› Innovation
›› Investment
›› Skilled and Safe Workplaces
Our work on the BGA is represented in our intermediate
outcomes on pages 13–36.
HE KAI KEI AKU RINGA – CROWN-MĀORI ECONOMIC
GROWTH PARTNERSHIP
The Ministry, with Te Puni Kōkiri, leads the coordination of
the Crown’s efforts to achieve the outcomes of the Māori
Economic Development Strategy He Kai Kei Aku Ringa
(HKKAR): the Crown-Māori Economic Growth Partnership.
During the year, we supported HKKAR through:
›› Te Punaha Hiringa, the Māori Innovation Fund, which
funded 41 applications at a cost of $3.7 million
›› three pilot projects to increase financial literacy
among Māori
›› the Māori and Pasifika Trades Training programme,
which had 1,180 learners through it
›› the Regional Growth Study Programme where we,
with the Ministry for Primary Industries and the
Treasury, advised on the economic opportunities
for selected regions.
The Ministry also provided administrative support to the
Māori Economic Development Advisory Board that was
established to assist with the implementation of HKKAR.
PACIFIC ECONOMIC STRATEGY
The Ministry completed its Pacific Economic Strategy
this year, and it will be launched in 2015/16. The strategy
and accompanying action plan will help the Ministry to
prioritise areas of work that will support Pacific peoples’
economic participation in the next three to five years.
Work in the past year focused on increasing the visibility
and awareness of the Ministry’s work with Pacific
stakeholders through a series of seminars that brought
together thinkers, leaders, stakeholders and policy
makers to shape and test the different aspects of the
Pacific economy.
The public sector spends approximately $39 billion a
year on the procurement of goods and services. As the
functional leader for government procurement, our aim
is to obtain greater value for every taxpayer dollar spent
across the public sector. During the year as part of our
leadership role we:
›› extended coverage of the Government Rules of
Sourcing so 135 government agencies now use a
consistent procurement approach, making supplying
goods and services easier for businesses
›› finalised terms of accession to the World Trade
Organization (WTO) Government Procurement
Agreement, which will provide New Zealand companies
with guaranteed access to bid for approximately
US$1.7 trillion in annual overseas government
contracts across 43 WTO member countries
›› launched the new Government Electronic Tenders
Service (GETS), which is a free web-based service
that allows suppliers to view and respond to
information on current New Zealand government
tender opportunities, and since its launch has
published over 2,076 notices and awarded 623
contracts with a total value of over $290 million
›› enabled government agencies to achieve $252.7 million
in savings by accessing all-of-government contracts by
30 June 2015.
ƨGovernment
ƨ
Centre for Dispute Resolution
The Ministry has been providing functional leadership to
manage the Government Centre for Dispute Resolution
that operates across government. The centre’s focus is to
foster further use and development of alternate dispute
resolution within government by:
›› improving the coherence and consistency of existing
government alternate dispute resolution regimes
›› supporting government agencies to be good
demanders for any new alternate dispute resolution
regimes
›› conducting significant research into the cost of
disputes on the New Zealand economy and the value
of early alternate dispute resolution intervention.
CANTERBURY RECOVERY
The Canterbury recovery is a priority for all-ofgovernment. To achieve an economy that is sustainable
we need to get Christchurch as a city, and the broader
region back on its feet. This year, we focused on
facilitating opportunities for business growth in
Canterbury, such as the innovation precinct
and convention centre anchor projects.
In February 2015, Canterbury Earthquake Recovery
Authority transitioned to a departmental agency within
the Department of the Prime Minister and Cabinet. We
supported this change programme to the development
of the draft Greater Christchurch Transition Recovery
11
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Cross-agency
collaboration
12
Plan. Advice included region-specific housing
considerations, procurement advice, legislative
provisions, and strategic considerations such as
progress in revitalising the central city.
Further information can be found under our intermediate
outcomes on pages 13–36.
IMPROVED SERVICE DELIVERY WITH
THE MINISTRY OF JUSTICE
The Ministry continued to work closely with the Ministry
of Justice to further improve the tenancy services
experience for customers. We worked together on a new
online system for Tenancy Tribunal applications that
reduced processing times significantly. The improved
Tenancy Tribunal application form helps landlords and
tenants submit their application form correctly the first
time, saving them time and effort in the long run. We
continue to work with them on systems improvements
such as a new case management system for tenancy and
moving to lodging bond applications and payment online.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
13
The Ministry has identified seven intermediate outcomes3 that reflect our work
towards government priorities, better public services, the business growth agenda
and what we want to do for New Zealand. The work we do towards these outcomes
flows through to our high level outcomes, enabling us to assess our success as
a Ministry.
Better functioning
markets that are
more trusted and
more competitive
Safer, healthier and
more affordable
homes and buildings
Safer and more
skilled work places
More productive
and successful
people, communities
and regions
Improved business
capability and higher
levels of innovation
Improved international
flows of people, ideas,
investment and trade
More reliable
infrastructure
and responsible
development of
natural resources
3 For 2015/16, the Ministry has developed a new set of outcomes. These are: 1) More supportive and dynamic business environment, 2) An increased
number of highly skilled people and innovative firms, 3) The built environment supports a well-functioning economy, 4) Greater value sustainably
derived from the natural environment and 5) More productive and successful people, communities and regions.
Better-functioning markets that are
more trusted and more competitive
8
th
best labour-employer
relations in the world
16
2
%
nd
easiest country in the
world to do business
drop in the cost of dealing
with government since 2012
Well-functioning markets are the most efficient and effective means for allocating
resources to where they will generate the best economic return. Markets that work
well give certainty for businesses investment and employment decisions and protect
consumers; creating a high trust, low cost and innovative environment.
Throughout 2014/15, we prioritised the need to create an environment that is supportive and conducive for businesses
to work, grow and innovate. In particular, we have focused on maintaining a well-designed regulatory system that
better protects and increases the confidence of the investors, employers, employees, and consumers who make up
the backbone of our economy.
The Ministry is responsible for 16 regulatory systems and institutions that form a significant part of New Zealand’s
business environment, including employment standards, consumer protection, financial markets, energy, telecommunications, and building and construction. Having well-functioning markets makes for a more trusting and
competitive environment for our economy to grow.
INCREASED INVESTOR CONFIDENCE
PROTECTED CONSUMERS
The reform of our financial markets passed an important
milestone this year with the Financial Markets Conduct
Act 2013 regime coming into effect in December 2014.
Over the year, we led the passage of the second phase of
regulations that give effect to the Act. The Act improves
investment information disclosed to investors by
making documents shorter, clearer and better tailored
to investors’ needs, helping them make better informed
decisions. The reforms are also designed to provide
businesses with increased options to raise capital more
easily, allowing them to expand and thereby grow
New Zealand’s economy.
To better protect consumers we supported the enactment
and implementation of the Credit Contracts and
Consumer Finance Amendment Act 2014. The Act protects
consumers by requiring lenders to help consumers
understand what they are agreeing to and to be satisfied
that consumers can afford to repay the debt without
substantial hardship. On 6 June 2015, the amendments
came into effect and, with them, the Responsible Lending
Code to help lenders comply with the new obligations;
a broader range of enforcement practices; and tougher
consequences for those in breach of the law.
STRENGTHENED THE EMPLOYMENT SYSTEM
Certainty is an important aspect of business investment
and employment decisions. This year, we supported the
passage of the Employment Relations Amendment Bill
that implemented policies to create a fair and flexible
employment relations framework. We advised on changes
to the legislation to strengthen the enforcement of
employment standards to ensure businesses complying
with the standards are not undermined by non-compliant
competitors. A Bill seeking to strengthen enforcement in
this area is before the House.
The Ministry supported the passage of new consumer
protection measures under the Building Act 2004 that
came into force on 1 January 2015. This marks a significant
milestone in the protection of consumers, ensuring they
are well informed and can participate in the residential
building market with confidence. The new measures also
provide strong incentives for the sector to deliver good
quality homes and buildings.
The Construction Contracts Amendment Bill continued its
way through the House this year with the aim of making
it easier to use the Act to ensure timely payments and
easier dispute resolution under construction contracts.
The Bill also proposes to regulate retentions by requiring
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
them to be held in trust. This will ensure the millions held
in retentions each year are managed responsibly.
SAFEGUARDED NEW ZEALAND’S INNOVATION
The Patents Act 2013 creates a modern patent regime
for New Zealand. This new Act which came into effect
in September 2014 represents a major update of
New Zealand’s patent regime. The updated regime
significantly bolsters New Zealanders’ ability to protect
their innovations, both here and abroad. It has brought
New Zealand in line with international standards for
patents, allowing innovative New Zealand businesses
to be better protected and to transition more easily
into international markets. The Act aims to strengthen
innovation by ensuring genuine inventions are protected
so that New Zealand businesses can continue to innovate
and grow.
IMPROVED NEW ZEALAND STANDARDS
We have been supporting the progress of the Standards
and Accreditation Bill, now ready for its third reading.
The Bill’s purpose is to protect the health, safety and
wellbeing of all people, facilitate trade, and ensure
consistency with international practice. The Bill will
improve the standards system to better meet the needs
of businesses, regulators and consumers into
the future.
The Immigration Adviser Competency Standards were
revised this year and will come into force at the end
of November 2015. This is a significant milestone that
extends the immigration advisers qualification, introduces
a requirement for graduates of the qualification to be
supervised on a provisional licence for two years before
they can apply for a full licence, and requires active
continuing professional development each year.
OUR PERFORMANCE
Measure
An improvement in New Zealand’s
global competitiveness index rating
in World Economic Forum global
competitiveness reports
Desired
Trend
Result
Comment
2012/13

2013/14
2014/15
2012/13: 144 countries
2013/14: 148 countries
2014/15: 144 countries
23
18
17
Source: Global Competitiveness Reports, World Economic Forum
A reduction in business costs
from dealing with government as
measured by the perceived effort,
in the last year, for businesses to
interact with government4
2012/13

100
2013/14
102
2014/15
16% drop in the cost of dealing
with government since the baseline
was developed in 2012, which is over
halfway to our 25% reduction target
by 2017.
84
Source: Business Reference Report, Research New Zealand, September 2014
An improvement in New Zealand’s
position in the World Economic
Forum’s Global Competitiveness
Index on the Burden of Government
Regulation
2012/13

Although the rank has deteriorated,
the change in our underlying score
is quite small – other countries have
improved more than
we have declined.
14
2013/14
13
2014/15
17
Source: Global Competitiveness Reports, World Economic Forum
Maintenance of New Zealand’s
position in the World Bank’s
Ease of Doing Business Survey


2012/13
3
2013/14
3
2014/15
2
2012/13: 183 countries
2013/14: 189 countries
2014/15: 189 countries
Our move up to second in the world
was led by New Zealand’s introduction
of the Credit Reporting Privacy Code.
Source: Doing Business Reports, World Bank Survey
4 For the 2014/15 results, the approach to the survey changed to a continuous monitor (as opposed to being asked about 2012 or 2013 in the
previous results). The sample has also been changed and weighted to better represent New Zealand industries and business size.
15
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
16
Measure
An improvement in New Zealand’s
position on ranking of level of
cooperation reported in labour –
employer relations
Desired
Trend

Result
Comment
2012/13
11
2013/14
11
2014/15
2012/13: 144 countries
2013/14: 148 countries
2014/15: 144 countries
Our labour – employee relations
improved, however this move up in
ranking was amplified because of the
drop in ranking by Austria, Iceland,
and Hong Kong.
8
Source: Global Competitiveness Report, World Economic Forum
An improvement in businesses’ access
to finance for growth (percentage of
businesses that obtained finance on
acceptable terms):
• equity finance
2012

77%
2013
84%
2014
• debt finance
80.8%
2012

The proportion of firms requesting
debt and equity financing has been
falling over the past four years, while
the proportion of firms that are
successful in their application has
been increasing.
87%
2013
91%
2014
91.2%
Source: Business Operations Survey 2014, Statistics New Zealand
An increase in or maintenance of the
proportion of employers who report
all their employees have a written
employment agreement (percentage
of employers who have)

2012/13
88%
2013/14
89%
2014/15
85%
These results came from sample
surveys. Some variance was expected
because of the margins of error
associated with all survey estimates.
The last three years reflect that the
proportion of employers who have
written employment agreements is
being maintained.
Source: National Survey of Employers, Ministry of Business, Innovation and Employment
Consumers experience a
competitive market environment
and know how to exercise their
consumer protection rights
This is a new measure that will be
estimated by survey. The survey
will explore knowledge of consumer
protection rights. Results are
expected late 2015.
Source: New survey being developed
A material improvement in
government procurement capability
and performance, leading to savings
from value-based procurement
including5:
The forecasted cumulative savings
realised over the life time of the allof-government contracts was revised
from $347.9 million to $415.1 million
in 2014/15.
• cost savings of at least $68.6
million realised from the all-ofgovernment contracts in 2014/15
(millions)

2013/14
• cost savings of at least $347.9
million realised over the life of
the all-of-government contracts
(millions)

2013/14
$76.61
2014/15
2014/15
$98.7
$154.5
$252.7
Source: Internal operations data, Government Procurement Branch, Ministry of Business, Innovation and Employment
5 These figures are calculated from quarterly reports by all-of-government suppliers on government spend and savings achieved through the
contracts. This is based on a published methodology that assesses prices through the all-of-government contracts against prices available to
government agencies outside the contracts. The methodology is dependent on market research and benchmarking against best market price or
rate. Further information on the methodology is available on the Business.govt.nz website: www.business.govt.nz/procurement/pdf-library/aog/
aog-savings-methodology-for-products-703-kb-pdf.
Safer and more skilled workplaces
85
%
62
of skilled migrants get
jobs they are qualified for
%
of workers are
in skilled jobs
80
%
return-to-work
rates after injury
Increasing the success of businesses operating in the competitive global economy
depends on skilled people who can create and sell high-value products and services
to the world; aligned to this is supporting good workplaces, including health and
safety, and employment regulations. These are important for labour productivity,
ensuring workers benefit from economic growth, and creating a level playing field
for all businesses.
Throughout 2014/15, we prioritised attracting and retaining skilled migrants, improving our health and safety regulatory
system, and utilising the skills and knowledge of New Zealanders. To achieve this we applied a living systems approach
to regulation to ensure it remains fit for purpose. We also invested in training to increase the number of skilled workers
and help individuals realise their potential.
Global mobility of labour has put pressure on New Zealand to make itself a more attractive place to work for migrants
and in doing so attract further investment to grow its economy. Although attracting migrants is important, we
understand the need to realise New Zealanders’ potential to compete on a global scale. Having a safe and healthy
workplace environment assists in making New Zealand an attractive place to work, and increases participation
and productivity.
ATTRACTED SKILLED MIGRANTS
DEVELOPED SKILLED NEW ZEALANDERS
The Skilled Migrant Category grants residency to
people who have skills that fill identified needs and
opportunities in New Zealand. Success is measured
through the migrants’ successful transfer of those skills.
During 2014/15, 85 per cent of skilled migrants under the
initiative gained employment in a job that matched their
skills and qualifications. This stretch target has been
achieved a year early.
The labour supply that New Zealand acquires is
supplementary to the development of a skilled domestic
workforce. The Ministry has been looking at options to
get the required skilled workers from domestic sources.
This is consistent with the Better Public Service target
of increasing the number of 25–34 year olds with trade
and/or tertiary education attainment.
The Ministry and Working In held job fairs in Australia
to connect New Zealand employers with skilled people
(including expatriate New Zealanders) living overseas.
For further information refer to intermediate outcome
‘More productive and successful people, communities
and regions’ on pages 30–32.
The Ministry leads two whole-of-government approaches
to improving the socio-economic outcomes of migrants
and refugees. The New Zealand Migrant Settlement and
Integration Strategy places a strong emphasis on the
economic contribution of good settlement practice,
aligning it with the Government’s Business Growth
Agenda. New governance arrangements to monitor
performance against established outcome indicators
have been introduced through the Skilled and Safe
Workplaces Chief Executives’ Group.
We supported the consortia that deliver the Māori
and Pasifika Trades Training programme that we
administer. This programme involves getting young
people successfully through trades training and into
apprenticeships and stable employment.
Fourteen consortia signed contracts with the Ministry
to deliver the initiative during 2015 and regular reports
by the consortia show that their performance against
2015 milestones has been satisfactory.
WORKED WITH SECTORS TO ADDRESS LABOUR
FORCE GAPS
The Ministry, in collaboration with the Ministry of
Education, Tertiary Education Commission and Ministry
of Social Development, has been providing policy advice
to the Government challenging the tourism sector’s
reliance on migrant skills and labour. The policy advice
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
18
focuses on developing New Zealand’s domestic pipeline
of skilled workers to fill the gaps in the tourism sector’s
labour force.
Reporting to the Skilled and Safe Workplaces Chief
Executives Group, the Ministry and Ministry of Social
Development, in partnership with Tertiary Education
Commission, have started a programme of occupational
pilots. The programme will explore the scope for industryled initiatives, in partnership with government, to address
labour market issues, such as high levels of low skilled
temporary migration, and low hires of New Zealanders
(including beneficiaries) compared with migrants.
Our first pilot is the Ashburton dairy farm worker Group
Employment and Training Scheme, which we expect to
launch in October 2015. The project aims to reduce risk
with employment arrangements for individual farmers,
introduce training-based pathways for new entrants into
the dairy sector and raise standards of compliance in
terms of employment standards and health and safety.
WORKING SAFER
One way to make New Zealand workplaces attractive is
to promote a safer working environment. This year we
continued our work with agencies and stakeholders to
deliver the Working Safer reforms.
An important part of the reforms is the ongoing passage
of the Health and Safety Reform Bill through Parliament.
The resulting Health and Safety at Work Act represents
the first major change in our health and safety system
for over 20 years. This piece of work is a major part
of implementing the Government’s workplace safety
strategy and puts New Zealand’s regulatory system up
there with the world’s best. In September 2014, as part
of our ongoing work for the package, the Health and
Safety Association of New Zealand was launched with
the aim of increasing standards across the sector.
In addition, the Immigration Amendment Act 2015
includes measures to combat migrant exploitation, with
longer jail sentences, bigger fines and even deportation
for those employers with a residence visa.
SAFETY IN ADVENTURE TOURISM
Tourism is one of New Zealand’s biggest contributors
to the economy, with a high risk level. The Ministry has
worked with WorkSafe New Zealand to overhaul and
create comprehensive safety standards for adventure
activities. We helped WorkSafe New Zealand to make sure
operators are fit for audit under the possible amendment
to the Health and Safety at Work (Adventure Activities)
Regulations 2015. The proposed regulation secures
New Zealand’s reputation for adventure tourism safety
and reflects where we want the rest of our work and
safety regulatory system to be.
FIVE STAR SAFETY
Working with WorkSafe New Zealand and the Accident
Compensation Corporation (ACC) we have developed a
safety star rating scheme in support of the Working Safer
package. The scheme will be piloted with businesses over
the coming year.
PROTECTED WORKERS IN PRIORITY SECTORS
The Labour Inspectorate continues to ensure workers
receive their minimum employment entitlements and
that all businesses are operating on a level playing field.
This year we were proactive in working with sectors to
create a fairer work environment for employees and
employers in primary industries. The Labour Inspectorate
and Immigration New Zealand focused on dairy farms for
potential non-compliance during a joined-up intelligencegathering exercise, with significant non-compliance found
in 22 of the 29 farms visited. Through the course of the
year, we audited 53 supermarkets and grocery stores, 51
fuel retailers, and 66 businesses in the kiwifruit sector to
determine whether employment legislation breaches had
occurred.
We focused on finding effective ways to connect with
small and medium-sized enterprises to improve their
workplace employment relations. In a big step towards
improving their practices, we employed six new labour
inspectors this year in the Canterbury area to advise on,
and enforce regulations. This also included support of
Worksafe’s Rebuild Safety Charter programme to support
safe rebuild practices in Canterbury.
FAIR ACCIDENT COMPENSATION SCHEME
Over the year, we worked with ACC to help maintain a
fair and effective scheme that has helped keep accident
compensation levies low. Our two most important
contributions during the year have been advising on
continued reductions in ACC levies and preparing the
Accident Compensation (Financial Responsibility and
Transparency) Amendment Bill, which seeks to improve
the governance and transparency of ACC funding and the
setting of levies.
EXTENDED PARENTAL LEAVE
We understand that families and their working
arrangements are changing, so we reviewed and
supported the extension of parental leave entitlements.
Parental leave has been extended from 14 to 16 weeks
from 1 April 2015, and to 18 weeks from 1 April 2016. The
parental tax credit has been increased to a maximum
of $220 for an increased period of 10 weeks. We also
undertook work on ways to allow a wider variety of
families to be eligible for the scheme, which is currently
before the House.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
RAISED THE MINIMUM WAGE
We administer the Minimum Wage Act 1983 and have
undertaken an annual review of the minimum wage rates.
This year’s review resulted in a new adult minimum wage
of $14.75 per hour that the Government has set to balance
protecting the lowest paid workers and ensuring there are
opportunities to help grow more jobs for New Zealanders.
Having a minimum wage that keeps up with inflation
provides further incentive for New Zealanders to enter
into the workforce, and creates more successful people,
and a stronger economy.
OUR PERFORMANCE
Measure
An increase in the proportion of
workers in skilled jobs (percentage
of workers who are in skilled jobs)
Desired
Trend

Result
Comment
Mar-2014
61.2%
Data for March 2015 is the latest data
available.
Jun-2014
61.2%
The proportion of workers in skilled
jobs increased by 0.5 percentage
points from March 2014.
Mar-2015
61.7%
Source: Detailed Estimate of Employment, Ministry of Business, Innovation and Employment
A decrease in the proportion of
employers who find it harder to
get skilled staff (percentage of
employers who do)
Jun-2013

Jun-2014
Jun-2015
This indicator is affected by the
strength of the labour market. Pockets
of skill shortages will emerge, but
these are moderated by population
growth.
27%
32%
30%
Source: Quarterly Survey of Business Opinion, New Zealand Institute of Economic Research
At least a 25% reduction in
workplace fatalities by 2020 with
an interim target of 10% reduction
in workplace fatalities by 2016 (per
100,000 workers)6

2011/12
2012/13
This is the age-standardised rate of fatal
work-related injury.
3.63
The rate fell 15% between 2011 and 2012.
2012/13 data is the latest available.
3.08
Source: Serious Injury Outcome Indicators, Statistics New Zealand
At least a 25% reduction in serious
workplace injuries by 2020, with an
interim target of 10% reduction in
serious workplace injuries by 2016
(per 100,000 workers)7

2012/13
16.1
This is the age-standardised rate of
serious non-fatal work-related injury.
2013/14
15.8
The rate of serious non-fatal workrelated injury fell 2% between 2012/13
and 2013/14.
The 2013/14 data is provisional, with a
95% confidence level.
Source: Serious Injury Outcome Indicators, Statistics New Zealand
An increase in durable return-towork rates after injury (percentage of
those who have returned to work)8

Jun-2013
78%
Jun-2014
77%
Jun-2015
80%
The durable return-to-work rates have
remained relatively consistent over
the last three years. There was a slight
increase from 77% in 2013/14 to 80%
in 2014/15.
Source: Australia and New Zealand Return to Work Monitor, Campbell Research and Consulting
An increase in the proportion of
employers with a formal system for
employee participation in managing
health and safety (percentage of
employers who do)
2012/13

2013/14
2014/15
58%
56%
48%
The standard has stayed around
50% over the last two years, with
a statistically significant decrease
from 2012/13 to 2014/15. Under the
Health and Safety in Employment Act
workplaces are only required to have
a formal system if they have 30+ staff
(or if requested in smaller workplaces).
Informal participation is also important
and the survey found that around half
of employers included health and safety
as a regular team meeting item (49%).
Source: National Survey of Employers, Ministry of Business, Innovation and Employment
6 The workplace fatality baseline is the average rate for 2008–2010. The 29 deaths from the Pike River Coal Mine tragedy in 2010 are excluded from the
fatality baseline figure.
7 The serious workplace injury baseline is the average rate for 2008–2010.
8 The durable return-to-work rate refers to the proportion of injured workers who returned to work and were working at the time of the interview, seven
to nine months after their claim. It is measured by the injured workers self-reporting their work status.
19
Improved business capability
and higher levels of innovation
46
%
of businesses report
innovative activity
19
th
in the world for quality
of scientific institutes
6
new national science
challenges launched
Success in growing New Zealand for all depends on improving the productivity
and competitiveness of businesses and key sectors. To compete successfully in
international markets, New Zealand needs to build up its ideas and innovative
businesses.
Throughout 2014/15, we have put in place mechanisms that will increase the value and impact of the science and
innovation system on our economy. Through the development of a strategic approach to our science and innovation
system, and the funding of major science initiatives, we have been able to generate strong relationships across
New Zealand that will facilitate the development of this crucial facet of New Zealand’s economy.
Innovation enables firms to produce new products and services more efficiently. Despite big steps undertaken over
past years, New Zealand does not invest in research and development (as a percentage of GDP) as much as other
developed countries in the OECD do.
CREATED A VISION AND DIRECTION
ENGAGED FOR A STRONG INNOVATION SYSTEM
This year we have set a clear plan and direction for the
Government’s investment in science and innovation
with the continued development of the draft National
Statement of Science Investments (NSSI) that included
extensive consultation. Once completed, the NSSI will
give a 10-year outlook for the science and innovation
system, including priorities to guide public investment.
The NSSI will ensure government spending is invested
effectively for long-term impact on our health, economy,
environment and society and is aligned with the economy.
Our ongoing engagement this year in the Small Advanced
Economies Initiative has improved our understanding of
innovation systems and policies in other small advanced
economies such as Ireland, Singapore, Denmark and
Finland. New Zealand produces only 0.5 per cent of the
world’s science, as measured by citable output. Therefore,
much of the science and technology we rely on is
produced overseas. We are taking action to strengthen
our international science cooperation and to better
connect to the global innovation system, helping to
inform the development of our own International
Science and Innovation Strategy.
A state of play report on the science and innovation
system was completed this year to better inform our
ongoing strategy development. Alongside the strategy
development we are reframing our international
relationships funding to maximise opportunities for
New Zealand’s science and innovation international
engagement.
The Ministry initiated the refresh of the Business Growth
Agenda (BGA) Innovation chapter. It is structured to
achieve three objectives: increasing business expenditure
on research and development; making the most of the
digital economy; and increasing the value and impact of
investment in public science.
Good progress has been made across the BGA Innovation
workstream. Out of 95 total projects, we have completed
33, implemented 15 and 13 are in progress.
INCREASED RELEVANCE AND IMPACT
Awarding science research funding to high-performing
research institutions is crucial to spending our money
wisely. We continued with our Contestable Science
Funding where organisations compete for grants. We
select those who have provided a clear picture of where
they want to take their innovative organisation, and who
we believe have the potential to significantly benefit
our economy. This year 48 research organisations were
funded $139 million to deliver research programmes of
two to six years duration to create new ways
of growing New Zealand’s economy.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
SUPPORTED SMALL BUSINESS
SUPPORTED INNOVATION IN CHRISTCHURCH
Small and medium-sized enterprises make up a significant
part of the economy, playing their part in generating jobs,
innovation and overseas income. Our aim is to help small
businesses progress from an initial stage of development
to making a substantial contribution to New Zealand’s
economy. The Ministry supported the Small Business
Development Group to provide feedback to government
on a variety of policy issues affecting small businesses.
The group’s work included visiting regions to gain a better
understanding of the relative problems or opportunities
arising out of operating a small business in a provincial
centre.
The GreenHouse hub, a new innovation hub in
Christchurch’s innovation precinct, was officially opened
this year. The hub is a joint partnership between the
Canterbury Development Corporation and the Ministry.
It is designed to support early-stage and start-up
businesses by providing the necessary technological and
social infrastructure for the organisations to grow. Four
groups are currently located in the hub including Debtor
Daddy, an automated credit control system; Maprogress,
adventure race tracking software; Staff Buddy Limited,
a health and safety alert provider; and Xeal Mobile, a
website builder for small and medium-sized enterprises.
COMMENCED NATIONAL SCIENCE CHALLENGES
SUPPORTED MĀORI INNOVATION
Implementation of the 11 National Science Challenges
continued this year with all challenges receiving funding.
Each challenge targets a series of goals that if achieved
will have major and enduring benefits for New Zealand.
The challenges align and focus New Zealand’s research on
large and complex issues. They draw scientists together
from different institutions and disciplines to achieve a
common goal through collaboration.
It is important to look at how best to support continued
growth of the Māori economy as a growing part of
New Zealand’s economy, including tools to support
innovation. Supporting the broader objectives of the He
Kai Kei Aku Ringa – the Crown-Māori Economic Growth
Partnership, the Ministry completed the second and
third investment rounds of Te Pūnaha Hihiko – Vision
Mātauranga Capability Fund in 2014/15. The fund invests
in the development of skilled people and organisations
undertaking research that support the four themes of
the Vision Mātauranga policy. It aims to develop skills
and connections between research organisations and the
distinctive contributions or needs of Māori businesses
and communities. This year $3.7 million over two years
was announced for 30 new projects. Under Te Pūnaha
Hihiko, an appropriation of $1.98 million was also
allocated to the Health Research Council of New Zealand
to support hauora (wellbeing) – a health-related project
focused on Māori needs and contribution.
In 2014/15, with the involvement of many stakeholders,
we launched six new challenges to push New Zealand’s
boundaries of innovation:
›› Deep South – focused on understanding the Antarctic
and Southern Ocean in determining New Zealand’s
climate and future environment.
›› New Zealand’s Biological Heritage – focused on
protecting and managing the country’s biodiversity,
improving biosecurity and enhancing the country’s
resilience to harmful organisms.
›› Building Better Homes, Towns and Cities – focused
on improving the quality and supply of housing and
creating smart and attractive urban environments.
›› Sustainable Seas – focused on enhancing the
utilisation of New Zealand’s marine resources within
environmental and biological constraints.
›› Ageing Well – focused on harnessing science to
sustain health and wellbeing into the later years of life.
›› Resilience to Nature’s Challenges – focused on
enhancing New Zealand’s resilience to natural
disasters.
LAUNCHED SCIENCE IN SOCIETY
A Nation of Curious Minds – He Whenua HihiriI Te Mahara
– is a national strategic plan for Science in Society that
was launched in July 2014. The plan sets out the objectives
and outcomes the Government wishes to achieve over
the next 10 years, and specific actions for the next three
years to encourage and enable better engagement with
science and technology across all sectors of New Zealand.
We funded a pilot of the Participatory Science Platform
with $0.9 million to support three pilot programmes in
South Auckland, Taranaki and Otago. Under a new pilot
contestable fund, Unlocking Curious Minds, we also
provided $0.98 million to 28 innovative new projects
aimed at lifting engagement with ‘harder to reach’
groups, in particular, young people.
TARGETED TOURISM
Tourism is an important part of New Zealand’s economy.
Promoting innovation in the sector will support the
sustained growth of New Zealand. The Tourism Growth
Partnership aims to boost productivity and innovation
in the sector with the ultimate goal of producing greater
monetary return from international visitors. We have
completed the second and third funding round this
year with $8 million on offer for tourism operators who
presented proposals to us. Funding was granted to:
›› World Spa Limited to create a world-class spa
development in Rotorua
›› Christchurch International Airport to develop its
Welcome China project
›› Blenheim’s Omaka Aviation Heritage Centre to support
a new exhibition
›› Southern World Vacation’s Limited to better attract
high-profile sport hunters and fishing enthusiasts.
WORKED WITH CALLAGHAN INNOVATION
Callaghan Innovation is the Government’s lead agency
responsible for supporting New Zealand businesses to
innovate and to successfully commercialise their new
ideas. The Ministry has worked with Callaghan Innovation
21
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
22
to create a performance measurement framework
that provides timely and relevant information on
Callaghan Innovation’s activities and the early effects
of these activities on recipient business' research
and development performance.
We have partnered with Callaghan Innovation and
New Zealand Trade and Enterprise this year to create
a whole-of-government approach to New Zealand’s
research and development attraction.
During the year we revised the Incubator Support
Programme and Repayable Grants for Start-ups.
Callaghan Innovation, which administers the programme,
approved eight new incubators as early-stage firms with
the potential to generate large employment growth,
commercialise their intellectual property and/or grow
some of the country’s emerging sectors. Seven high-tech
start-ups are on their way to commercialising valuable
new intellectual property after each received repayable
grants of up to $450,000 over two years ago.
OUR PERFORMANCE
Measure
An increase in business expenditure
on research and development with
a long-term aim of this increasing
to at least 1% of gross domestic
product (GDP)
Desired
Trend

Result
2012
2014
Comment
Research and development has
increased by 0.06% of GDP since
the baseline was set in 2002.
0.57%
0.54%
Research and development has
increased from 2012 to 2014, however
as GDP is increasing faster than
research and development investment
is, this has led to the slight drop shown.
Source: Research and Development Survey 2014, Statistics New Zealand
An increase in the share of the
world’s top 1% most-cited science
and innovation publications that are
attributed to New Zealand research
2012

2.6%
2013
This measure reflects the proportion
of exceptional research produced by
New Zealand researchers.
2.5%
2014
2.8%
Source: Scimago Journal Ranking
An increase in the percentage of
businesses reporting innovation
activity

2011/12
46%
2013/14
46%
The percentage of businesses
reporting innovation activity remained
at 46% for 2011/12 and 2013/14, which
is offset by the number of businesses
in New Zealand growing. The next
Business Operations Survey result
will be available in 2016.
Source: Business Operations Survey, Statistics New Zealand
An improvement in New Zealand’s
ranking for quality of scientific
research institutions in the
World Economic Forum global
competitiveness index
2012/13

2013/14
2014/15
24
18
Although the rank dropped, the
underlying score has only changed
from 5.4 out of 7 to 5.3 out of 7 over
the period.
19
Source: Global Competitiveness Reports, World Economic Forum
An increase in Crown research
institutes (CRI) commercially
focused research as measured by
the proportion of CRI revenue that
comes from the private sector
2012/13

42.5%
2013/14
45.1%
2014/15
44.8%
On 1 February 2013, Industrial Research
Limited became part of Callaghan
Innovation, a Crown entity. This
resulted in drop in CRI total revenues
and a change in the proportion that is
commercially sourced.
Source: Crown Research Institutes statistics (annual update), Statistics New Zealand
An increase or maintenance of the
greater profitability of innovative
businesses compared to noninnovative businesses (average
increased profit per employee)

2011/12
$13,000
2013/14
$13,000
Source: Business Operations Survey, Statistics New Zealand
The average increased profit per
employee remained at $13,000 for
2011/12 and 2013/14. The next Business
Operations Survey result will be
available in 2016.
More reliable infrastructure
and responsible development
of natural resources
10
th
in the world for
energy sustainability
54%
80%
of new zealanders
have access to fibre
of new zealand's generated
electricity is renewable
Reliable and efficient infrastructure networks and services help create a well-running
economy. They enable the movement of people, goods and information; provide services
to households; and improve New Zealanders’ overall quality of life. New Zealand has
abundant natural resources and significant untapped renewable energy potential. The
responsible development of petroleum and mineral resources will support employment
and raise incomes.
Throughout 2014/15, we have worked to attract investors to New Zealand to invest in its natural resources, from
petroleum and minerals to geothermal resources. We have focused on environmental wellbeing and the entrance
of high-quality organisations into New Zealand’s markets. We have also continued to support the development and
enhancement of infrastructure to support new and existing investment and New Zealand’s ability to compete offshore.
New Zealand’s natural resources are central to both its economic prosperity and national identity. The abundance and
quality of many of these resources provide the country with a competitive advantage relative to many other countries.
INCREASED INVESTMENT IN NATURAL RESOURCES
DEVELOPED RENEWABLE RESOURCES
This year, we began a review of the Minerals Promotion
and Investment Strategy, with a view to creating a
five year strategy for the minerals estate; and working
towards having only the safest and best companies
working in our country with our resources.
New Zealand’s contribution to the growth of geothermal
energy worldwide was highlighted at the World
Geothermal Congress in May this year. We partnered
with New Zealand Trade and Enterprise, the Ministry of
Foreign Affairs and Trade, and key industry players to
develop a full programme of events and activities where
we promoted New Zealand’s geothermal industry’s
experience and expertise. This activity reinforced
New Zealand’s standing as a leader in the international
geothermal community being the fourth largest producer
of geothermal energy in the world.
To take advantage of New Zealand’s resources it is
important that we attract fit-for-purpose companies
to undertake exploration. The Government allocates
petroleum exploration permits in an annual tender called
a Block Offer. Through Block Offer 2014, the Government
awarded 15 new petroleum exploration permits and
gained new players into the market, including Chevron
and ONGC Videsh Limited. These companies have
committed $110 million to explore for petroleum in
New Zealand with the potential to significantly benefit
our economy.
Block Offer 2015 was announced in March 2015. To
generate more confidence for potential investors we
have started an investment of $8 million over the
next four years in a variety of petroleum and mineral
exploration data-acquisition projects. The investment
will create data that is fundamental to advancing the
way in which we explore for minerals in New Zealand.
PROTECTED OUR ENVIRONMENT
With investment in New Zealand’s resources growing
we took strides to significantly strengthen, coordinate
and integrate a regulatory system to better protect
the environment. We supported the Ministry for the
Environment in amending the Resource Management
Act 1991 to streamline the planning and resource consent
process and address unnecessary regulatory and
information barriers.
With more prospecting occurring in New Zealand’s waters
we were involved in the steering group to develop the
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
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New Zealand Marine Oil Spill Response Strategy 2015–
2019. This strategy ensures all parties involved in
an oil spill incident know what to do, and when to do it.
The strategy provides reassurance for New Zealanders.
We also increased New Zealand’s energy security by
supporting the passage of the Energy (Fuels, Levies and
References) Amendment Bill. The Bill provides for a levy
to recover costs of meeting the country’s 90 day oil stock
obligation with further levy regulations being consulted
on currently.
FUTURE-PROOFED INFRASTRUCTURE
Future proofing New Zealand’s infrastructure took a giant
leap this year with the continued deployment of ultra-fast
broadband (UFB) and the improvement of New Zealand’s
connectivity through mobile communications. Having
fast, dependable communication channels is crucial for
communities and businesses to connect across New
Zealand and the world. Being up to speed with the rest
of the world allows us to better support the growth of
high-tech, high-value industries, and better equip primary
industries with cutting edge technology.
This year, more than 724,000 end users across 33 UFB
candidate areas now have access to fibre. The uptake
of UFB grew across the year and as at the end of June
2015 over 106,000 UFB subscribers are connected,
placing uptake at 14.6 per cent. Over 96 per cent of the
2,400 schools across New Zealand have access to fibre
now. Investing in high speed internet is important for
the country’s future, enabling a wider range of services
to operate for the good of New Zealand’s economy,
while lifting productivity, competitiveness and enabling
superior health and education services.
Improved connectivity across New Zealand eradicates
the isolation of rural communities and those travelling
through them. Our Rural Broadband Initiative, with an
uptake of 33.1 per cent as at 30 June 2015, has been in
full swing this year with the installation of 27 new mobile
towers (116 new towers in total since the beginning of the
programme) and the upgrade of 52 others (314 towers
upgraded in total) by Vodafone. The new and upgraded
towers allow more than 242,000 rural households to
have access to wireless broadband. New towers are also
extending mobile coverage across rural and remote areas
of New Zealand. Chorus has upgraded over 93,000 copper
lines to provide new or improved high-speed broadband
to communities. Over 269,000 rural households are now
able to connect to new or improved broadband.
ADVANCED NEW ZEALAND’S DIGITAL ECONOMY
Given the importance of information and communications
technology (ICT) to all sectors, we have a taken a crossportfolio approach when considering how best to support
the development of the ICT sector and the uptake and
smart use of ICT economy-wide. Digital economy matters
are now being considered as part of the Business Growth
Agenda (BGA) Innovation workstream, recognising the
importance of ICT in fostering an environment that
supports innovation and growth.
This has provided a platform from which ministers can
discuss a variety of digital economy matters at BGA
Innovation meetings, including GST on cross-border
services, business uptake, the impacts of technological
change on policies and regulations, and the role of
ICT in health.
To support this work, we have established an eight
workstream framework for thinking about ICT and digital
economy matters across government, which is receiving
increasing buy-in across agencies. We also contributed
to the creation of an inter-agency forum to share
information and co-ordinate digital economy policies
and research interests.
PROVIDED SCOPE FOR INNOVATION
Making New Zealand’s radio spectrum available to new
technologies advances the country’s infrastructure and
enables competition in the market. After seven years
of cross-agency work New Zealand has transitioned to
digital television and has freed up the radio spectrum to
enable its use by 4G services. Auctioning off the 700MHz
spectrum brought forward three competitors (Vodafone,
Spark and 2 Degrees) that will now invest heavily in new
technology.
PROMOTED COMPETITION
Our monitoring of electricity prices across New Zealand
has shown slowing increases in electricity prices across
the year. Information about prices is a key step to
promoting competition in New Zealand’s electricity
market. At the forefront of this is the WhatsMyNumber
campaign, which this year began a targeted look at those
groups less responsive to change. The number of retail
brands reached a new high (27 in 2014), and all regions
now have a more diverse and competitive market as
smaller retail brands entered new areas. These smaller
brands increased their market share by 23 per cent
in 2014.
The work of the Electricity Authority has improved
transparency of the data available to retailers and
consumers. Residential consumers continue to switch
companies (20 per cent on average per year) and savings
from switching increased from an average of $155 in
2013 to $162 in 2014.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
25
OUR PERFORMANCE
Measure
Desired
Trend
A continued improvement in
New Zealand’s broadband and
telecommunications services
through:
• At least 90% of New Zealanders
have access to a 4G network by
2019
Result
Comment
Year to June 2015:

63 to 66 per cent have access
to 4G networks
We are on track to achieve the target
of 4G network deployment by 2019.
600,000 premises 10
The target by end of 2014/15 was
550,000. The result of 600,000
premises represents the 52% of the
estimated total premises target by
December 2019.
93,000 premises
The target by end of 2014/15 was
91,000. The result of 93,000 premises
represents the 93% of the estimated
total premises target by December
2019.
724,000 end users
The target by the end
of 2014/15 was 647,000. The result of
724,000 represents the 54% of the
estimated target by December 2019.
• 242,814 premises able to access Rural
Broadband Initiative (RBI wireless
broadband)
The total number of premises able to
access new or improved RBI broadband
takes into account both the wireless
and fixed line broadband services, as
there is some overlap.
• Ultra-Fast Broadband (UFB)
(capable of speeds of at least 100
megabits per second): 9
• the number of premises
handed over by Partners to
Crown Fibre Holdings (CFH)
or applicable Local Fibre
Company (LFC)
• the number of priority user
premises 11 handed over
by Partners to CFH or the
applicable LFC
• the number of broadband end
users (such as households and
businesses) able to connect
to UFB
• increase the percentage of
non-UFB premises able to access
broadband capable of peak
speeds of at least
5 megabits per second




• 93,348 lines upgraded to RBI fixed line
broadband
• 269,820 premises able to access new or
improved broadband under the RBI
Source: Quarterly Broadband Deployment Reports, Ministry of Business, Innovation and Employment and Crown Fibre Holdings Annual Report
An annual increase in New Zealand
average fixed line broadband
download speed (Mbps)

Q1-2014
This is a new measure, so the Ministry
is reporting on this for the first time.
5.6
Q1-2015
8.4
Source: Akamai’s quarterly State of the Internet report
An improvement in naked
broadband pricing (for 60GB),
as measured in the Commerce
Commission’s monitoring reports 12
2012

$96
2013
2014
$56
The pricing for naked broadband
decreased 41.7% from 2011 to 2013.
The decrease between 2013/14 and
2014/15 was 1.8%.
$55
Sources: Commerce Commission, International Price Comparison Fixed Line and Mobile Services 2011; International Retail Price Comparison Fixed Line
Services December 2013; 2014 Annual Telecommunications Monitoring Report
Longer-term growth in petroleum
liquid production:
• oil, condensate and naphtha
production (million barrels)

MY13-2013
14.7
MY-2014
13.3
MY-2015
13.93
The 4.7% increase in oil production
from the 12 months ended March
2014 was because the Maari oil field
returned to production after being
shut for 4½ months in late 2013.
9 The Ministry has amended the Ultra-Fast Broadband roll out portion of the measure to align with the Crown Fibre Holdings reporting and the results
are in line with the Crown Fibre Holdings Annual Report for 2014/15.
10Each premises is a single building or structure located on a defined geographical site (as evidenced by a certificate of title), which has a unique physical
address recognised by New Zealand Post and is occupied by, or could readily be occupied by, a potential end user or users. To clarify, multi-tenanted
buildings, such as an apartment block or office building, constitutes a single premise for the purpose of the CFH funding of its Partners.
11 Priority users are businesses, schools and health services providers.
12 The measure has been altered from the SOI 2014–2018 measure of “An improvement in naked broadband pricing, as measured in the Commerce
Commission’s International Price Comparison for Retail Fixed-line Telecommunications Services report” as the documents the Commerce Commission
reports this standard in differs over the years.
13 MY refers to March year.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
26
Measure
• net gas production (billion
cubic feet)
Desired
Trend

Result
Comment
MY-2013
155
MY-2014
162.6
MY-2015
This 9.1% increase from the 12 months
ended March 2014 reflects successful
development activities at the Maui
and Mangahewa fields.
177.4
Source: New Zealand Energy Quarterly, Ministry of Business, Innovation and Employment
An improvement in, or maintenance
of, New Zealand’s energy
sustainability as measured by:
• Country ranking

2013/14
New Zealand’s ranking as energy
sustainable country has dropped
from 8th in 2013/14 to 10th in 2014/15.
However, New Zealand still holds a
top 10 position for energy sustainable
countries (129 countries).
8
2014/15
10
• Balance Score
New Zealand has maintained its score
of AAB for its Balance Score Card.
A
A
B
• Energy Security
• Energy Equity
• Environmental Sustainability
Source: Energy Sustainability Index, World Energy Council
A reduction in New Zealand’s
industrial and residential electricity
prices relative to the OECD average
price:
• industrial (percentage of
the OECD average)
The way the data is displayed has
changed from previous years to better
demonstrate that we are below the
OECD average.

• household (percentage of
the OECD average)

2012
2013
The 2014/15 result for the industrial
electricity price relative to the OECD
average price is not available until
early October 2015.
58.3%
61%
2012
110.5%
2013
110.9%
2014
107.5%
The way the data is displayed has
changed from previous years to better
demonstrate that we are above the
OECD average.
New Zealand’s electricity cost per unit
(in purchasing power parity terms) in
the 2014 calendar year was 3.0% higher
than in 2013. Over the same period, the
OECD average household electricity cost
per unit increased 6.2%.
Source: International Comparisons data table, Ministry of Business, Innovation and Employment
An improvement in New Zealand’s
energy intensity over time
by an average 1.14% per year14
2011/12

2012/13
2013/14
This measure compares our energy
intensity improvement since 1990.
New Zealand’s energy intensity has
reduced as the economy has become
28% less energy intensive since 1990.
1.24%
1.20%
1.11%
Source: Energy in New Zealand, Ministry of Business, Innovation and Employment
Progress towards 90% renewable
electricity generation by 2025
2012

2013
72.8%
75.1%
2014
79.9%
This was the highest contribution
from renewable generation since
1996. The reason for this increase
was additional geothermal electricity
generation capacity coming online and
more favourable hydro conditions in
2014 than in 2013.
Source: New Zealand Energy Quarterly – Electricity data table, Ministry of Business, Innovation and Employment
A reduction in electricity system
interruptions according to the
system average interruption
duration index (minutes per year)
2012/13

2013/14
2014/15
The System Average Interruption
Duration Index was higher in 2014/15
than in 2013/14, because of, in part,
several extreme weather events.
195
177
218
Source: Reports on electricity distributers’ performance, Commerce Commission
14 The measure “An improvement in New Zealand’s energy intensity over time by an average 1.3% per year (since 1990)” has changed due to update in the
methodology, which also consequentially adjusted the target (to 1.14 per cent).
Safer, healthier and more affordable
homes and buildings
17
%
increase in the value
of non-residential
building consents
362
social and affordable
housing units built
25,154
building consents
this year
New Zealanders need to have confidence in the safety of the buildings in which
they work and live. Households and firms need homes and buildings that meet their
needs and are fit for purpose. Well-functioning housing and construction markets
that deliver safe, affordable and fit-for-purpose residential and commercial buildings
are critical to both the wellbeing of individuals and households and the performance
of the economy as a whole.
Throughout 2014/15, we helped to remove regulatory barriers to supply and increase supply in high demand areas.
We have worked with the building sector to improve technical and professional knowledge with a view to improving
building quality and safety, learning from the Canterbury situation. We have also introduced initiatives to grow the
social housing sector and improve Māori housing and to deliver market data for better forecasts.
Affordable housing is not just about increasing incomes and building more houses – we also need to do things
differently if we are to address New Zealand’s housing needs over the longer term. We have to make sure that
enough ‘shovel-ready’ land is available to accommodate the housing we require. We need a construction industry
that is well-managed, innovative and skilled in providing both simple and complex buildings that are safe and healthy.
We require construction firms that are better-equipped to manage through the booms and busts of the construction
cycle. There is also a need to have a regulatory system that delivers quality and safe buildings without unduly
constraining development or pushing up prices. These four elements together drive the affordability of our houses –
not one element in isolation.
ASSISTED FIRST HOME BUYERS
We continued to support first-home buyers. This year,
we supported the implementation of the new KiwiSaver
HomeStart package that provides assistance for members
of KiwiSaver by subsidising deposits on their first home.
CREATED HOUSING ACCORDS AND SPECIAL
HOUSING AREAS
Housing Accords enable a tailored approach to working
with councils to identify barriers to housing supply,
land supply and affordability through the establishment
of Special Housing Areas (SHAs). SHAs are discrete
geographic locations identified as suitable for fasttracked planning and resource consenting processes.
In September 2014, the Auckland Housing Accord had
exceeded the year 1 target of 9,000, with 11,060 new
sections and dwellings consented. This means more
houses are getting to the market faster, growing supply
and helping affordability.
With the success of the Auckland Housing Accord, more
Accords have been created. As at 30 June 2015, we had
agreed Accords with Auckland, Christchurch, Wellington,
Tauranga, Western Bay of Plenty, Queenstown Lakes,
Nelson and Tasman District councils. Across the Accords
we have established 117 SHAs, of which 85 are in Auckland,
where demand is more acute.
INCREASED LAND SUPPLY FOR HOUSING
We are working on initiatives to increase the amount
of land available for housing and looking for ways to
increase the pace of the land development. Part of this is
the continued development on Crown land in Christchurch
at Awatea/Carrs Road, Welles Street and Colombo Street
to create a better housing market.
A housing development on Riccarton Racecourse,
Christchurch, was announced in March 2015. This will
enable the development of 600 homes to support the
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
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28
Christchurch post-earthquake housing market recovery.
A minimum of 180 homes are to be priced below the
$450,000 cap to qualify for the KiwiSaver HomeStart
scheme.
On top of this as part of an all-of-government
programme, we are facilitating the development of
housing on Crown owned land in Auckland to increase
supply.
SUPPORTED SOCIAL HOUSING
We have been working to grow a fair, efficient and
transparent community housing sector. Working with
the Treasury we are aiming to increase the supply of
housing, including social housing, by looking for largescale development opportunities from the redevelopment of Housing New Zealand Corporation land.
With more social housing developments across New
Zealand, we have created the Community Housing
Regulatory Authority (CHRA) to register and regulate
community housing providers seeking to access Income
Related Rent Subsidies (IRRS). To date, 33 community
housing providers have been registered. To stay
registered, providers have to adhere to standards and
criteria, lifting the standards of community housing
across New Zealand.
IMPROVED MĀORI HOUSING
At the beginning of the year, we released the Māori
Housing Strategy that was created in conjunction with
our stakeholders with the view of improving Māori
housing over the next 10 years. It sets out two outcomes:
improving housing for Māori and their whānau and
increasing housing choices for Māori by growing the
Māori housing sector.
The Māori Housing Fund of $4 million per annum first
became available on 1 July 2014 for housing repair,
capacity building, new supply of social housing; and to
improve housing on the Chatham Islands. The Northland
Housing Regeneration Pilot was agreed as the first
community based housing repair initiative and we have
funded a community provider to oversee housing repairs
in the community of Te Hapua. We have also invested
in capacity support for three Māori organisations, two
whānau based house repair initiatives and as capital
grants supporting the construction of 17 new social rental
units in Wellington and Hawke's Bay. In respect of the
Chatham Islands, funding was set aside for investing in
a new entity and a new housing approach. The Chatham
Islands community is currently developing its business
case for the investment. This year the Putea Māori Grant
ended its tenure after supporting Māori groups to be
housing providers for the last four years. As part of the
Social Housing Fund the grant helped distribute close to
$17.6 million for the development of 105 new houses by
Māori developers on Māori land.
IMPROVED THE BUILDING SYSTEM
The building system governs the way professionals,
technicians and tradespeople work in the construction
sector. This year we initiated an ongoing funding
development programme for standards that are most
important to the New Zealand Building Code, reducing
cost as a barrier to complying with the code. We also
commenced development of a web-based portal to
improve access to building information, increasing the
confidence of the sector in the building information that
it is using.
LEARNED FROM CANTERBURY
We are using the lessons from the Canterbury earthquakes to improve the standards and performance of
new and existing buildings across the country and have
made good progress in addressing the recommendations
of the Royal Commission of Inquiry into Building Failure
Caused by the Canterbury Earthquakes.
We progressed the Building (Earthquake-prone Buildings)
Amendment Bill that seeks to achieve balance between
managing the risk posed by buildings in earthquakes, the
costs of strengthening or removing them, and impacts
on heritage buildings. We have supported Parliament’s
extensive public consultation process on the Bill, which
is expected to be enacted late 2015.
Over the year, we released guides for building
professionals on evaluating buildings after a natural
disaster. These guides were supported by an updated
placard system to indicate building status. We have also
provided training to create a national pool of building
assessors who can be deployed after a natural disaster
that has caused building risk.
The responsibility for the Canterbury Geotechnical
Database was transferred from the Canterbury
Earthquake Recovery Authority to the Ministry during
the first half of 2015. It is an online database that enables
sharing of new geotechnical information so more
informed development and planning decisions can be
made. In time this will be rolled out as a national tool.
HELPED PROTECT CONSUMERS
We have been working on initiatives to improve the
quality of rental accommodation. These initiatives will
require landlords to install insulation (where feasible) and
smoke alarms. Initially, this will apply to social housing,
and from 2019 it will also apply to private rentals. Existing
powers under the Residential Tenancies Act 1986 will be
strengthened so that where severe alleged breaches of
the Act have occurred and significant health risks are
evident, the Ministry is able to take cases directly to the
Tenancy Tribunal.
The Guide to Tolerances, Materials and Workmanship in
New Residential Construction was published in May 2015.
The guide supports the consumer protection measures
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
for residential building work under the Building Act
2004. The guide is a great tool to make sure all parties
understand and agree acceptable levels of tolerances,
materials and workmanship for new residential building
work.
Pacifecon NZ Ltd. The report forecasted demand for
construction until 2019. It predicted that by 2017 the
market would be totalling around $100 billion, with a six
year high in building consents issued. The report also
allows construction firms to better foresee and respond
to changes in demand.
We continued an ongoing education campaign targeted
at getting homeowners and building contractors up to
speed with the new consumer protection measures
for residential building work that came into force on
1 January 2015. The campaign includes guidance for both
homeowners and building contractors on the contracting
and disclosure requirements as well as important tips for
undertaking residential building work.
INTRODUCED BIM
FORECASTED CONSTRUCTION DEMAND
The Ministry published the National Construction Pipeline
Report, which was jointly prepared with BRANZ and
Our introduction of the New Zealand Building Information
Modelling (BIM) Practitioners Handbook this year is a big
step. The BIM draws from aspects from across the world,
specifically addressing the needs of New Zealand. The
idea is to create a virtual building before it is constructed.
Experience overseas has shown that BIM can increase
productivity in the building sector by as much as 20 per
cent through the idea of ‘building it right the
first time'.
OUR PERFORMANCE
Measure
Progress towards 890 social and
affordable housing units that are
completed by community housing
providers15
Desired
Trend
Result
2012/13

2013/14
2014/15
Comment
Completions are cumulative and relate
to houses allocated from the Social
Housing Fund between 2011/12 and
2014/15. Based on the latest estimates
from Community Housing Providers,
the last houses are expected to be
completed in December 2017.
33
177
362
Source: Financial and operational data, Housing New Zealand, Social Housing Unit (Te Wahanga Painga Papori) and the Ministry of Social Development
An improvement in the performance
of the construction industry
(commercial and residential)
measured by the number of
buildings consented per year:
• value of non-residential building
consents (billion dollars)
2012/13

2013/14
$4.1
$4.6
2014/15
• new dwellings consented
per year
2012/13

2013/14
2014/15
The value for non-residential building
consents increased $0.8 billion
between 2013/14 and 2014/15, an
increase of 17%.
$5.4
18,783
In 2014/15, the number of new dwelling
consents granted was 25,154, an
increase of 7.8% from 2013/14.
23,316
25,154
Source: Building Consents Issued, Statistics New Zealand
15 The measure has been changed from `An improvement in social housing through an increase in the number of social housing properties owned or
managed by registered community housing providers’ to better clarify what we are measuring.
29
More productive and successful
people,communities and regions
69
2.5
of working age
new zealanders participate
in the labour market
increase in median
weekly income for mĀori
%
%
64
%
of pacific people participate
in the labour market
Growing New Zealand for all involves improving economic performance across all
sectors, regions and groups of people, including regions and communities of need
or potential. It also involves developing industry towards more knowledge-intensive
manufacturing and service activities. Sector and region perspectives can identify
areas of competitive advantage, and provide insights into where the greatest
opportunities for economic growth might lie.
Throughout 2014/15, we continued our work in partnership with key regions, cities and people, doing a lot of work on
the He Kai Kei Aku Ringa – the Crown-Māori Economic Growth Partnership, and the Pacific Economic Strategy.
We recognise that to create a growing economy we must put time and effort into creating well-functioning and vibrant
communities, regions and cities. To achieve this, we analysed economic activity, identified areas of potential competitive
advantage, and generally looked to find the greatest opportunities for economic growth by applying a sector's lens.
Māori play a big role in the country’s future, and we have continued our work in partnership with Māori to create a
more productive, innovative and internationally connected Māori economic sector.
FOUND SKILLED WORKERS FOR CANTERBURY
Historically, New Zealand has needed to supplement
its domestic labour force with workers from overseas.
New Zealand has permanent and temporary immigration
policies aimed at ensuring foreign workers complement
and supplement local workers. Successfully rebuilding the
Canterbury region is very important for New Zealand’s
economic future, and we are using immigration settings
to support the rebuild, while also ensuring opportunities
for local people. It is estimated that the rebuild's need for
skilled construction workers will peak at an extra 20,000
from December 2016 through to early 2019. As at March
2015, the construction workforce needs to grow by only
a further 2,000 workers to meet that peak level.
During the year, support included regularly updating
the Canterbury Skill Shortage List (which facilitates the
entry of workers in specific occupations in shortage).
We also deployed the Canterbury Skills and Employment
Hub which, in partnership with the Ministry of Social
Development, helps test the labour market for available
sources of skills and labour and helps fast-track
businesses to access migrant labour, helping employers
save time and effort.
The Hub also represented Canterbury employers at the
four trans-Tasman job fairs held in Perth, Melbourne,
Sydney and Brisbane that the Ministry undertook in
late 2014 and early 2015. The purpose of these job fairs
was to attract New Zealand expatriates and Australian
job seekers to fill shortages, not just in Canterbury, but
across New Zealand.
We implemented changes to immigration policy
specifically for Canterbury aimed at providing more
flexibility and more certainty for foreign workers and
employers (by extending the length of some visas, and
making it easier to move between jobs).
SUPPORTED THE REBUILD
In April 2015, we issued updated ground improvement
solutions. These solutions were developed following the
results of the Earthquake Commission’s science trials in
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
the residential red zone and will be used to inform the
Commission’s land repair payments.
Aware of concerns regarding quality of repairs to some
earthquake damaged homes, we surveyed 101 homes
where repairs had been exempt from the need to get a
building consent. Individual reports were prepared for the
homeowners, and we will release a report on the quality
of repairs in August 2015.
PROCURED THE REBUILD
We have continued to support the Canterbury Earthquake
Recovery Authority as it implemented procurement of
the rebuild and, in particular, the government rebuild
programme. We have paid particular attention to the
scale and pace of construction delivery to better plan
ahead and meet labour, skills and material needs across
Canterbury.
REALISED AUCKLAND’S POTENTIAL
Auckland represents New Zealand’s gateway to the
world. Realising the potential of its scale, density and
international connections will stimulate innovation,
competitiveness and invigorate the job market. We have
been working across government and with Auckland
Council and local businesses. We have participated in the
Urban Chief Executives Group, the Auckland Joint Officials
Group, the Auckland Priority Steering Group, and the
Auckland Business Leadership Group.
This year we continued working with partner agencies to
support the Southern Initiative as part of the Auckland
Economic Development Strategy. The Initiative looks to
better grow Auckland, targeting four local board areas
with growing youthful populations of 300,000 where
three quarters of residents are Māori, Pasifika or Asian.
The Southern Initiative includes plans to build a further
5,000 new homes, and greatly improve the transport
options in South Auckland. It also includes stronger crossagency regulatory enforcement to protect vulnerable
groups. We are applying our broader work on labour force
participation and skills to the education initiatives in the
Southern Initiative including supporting the Manukau
Institute of Technology and Māori and Pasifika Trades
Training programme, and working with schools to remove
barriers to youth employment.
PACIFIC ECONOMIC STRATEGY
With the Pacific population growing in New Zealand,
particularly in Auckland, we have worked this year to
develop the Ministry’s Pacific Economic Strategy. This has
included extensive consultation across the public sector
and among key internal and external Pacific stakeholders.
This strategy provides a blueprint for the next five years
on how to work with Pacific groups to improve Pacific
people’s participation in growing New Zealand’s economy.
The strategy focuses on work programmes that have
the greatest potential to accelerate Pacific economic
outcomes, including more sustainable job opportunities,
and improved housing for Pacific people, as well as more
sustainable Pasifika owned businesses.
To increase the visibility and awareness of our work
with Pacific stakeholders, we ran Le Tanoa – a seminar
series in Wellington and Auckland. This series looked at
skills and employment opportunities, housing solutions,
business development, and Pacific women’s participation
in the economy. The five seminars brought together
key thinkers, leaders, stakeholders and policy makers to
discuss the different aspects of the Pacific economy and
inform the development of the strategy.
MĀORI ECONOMIC DEVELOPMENT STRATEGY
This year we continued our leadership role in coordinating
the Crown’s efforts on the Māori economic development
strategy He Kai Kei Aku Ringa: the Crown-Māori Economic
Growth Partnership. Māori have enormous potential for
growing New Zealand, so we have jointly developed a
blueprint for a productive, innovative and export-oriented
Māori economy. Over the year, we sought advice from
the Māori Economic Development Advisory Board and
brought together a group of stakeholders to examine the
opportunities for Māori economic development. Through
our use of the Regional Growth Study Programme and
work with the Treasury and the Ministry for Primary
Industries, our understanding continually develops.
Initiatives to date include trades training, the Māori
Innovation Fund, and financial literacy.
To better understand the potential of, and barriers to,
Māori economic development, a report on Māori in the
labour market was completed and published on the
Ministry website in mid-March 2015, receiving
positive feedback.
AUCKLAND CO-DESIGN LAB
TEAMED UP WITH REGIONS
Involving a wide variety of parties in government decision
making creates more successful communities and
regions. This year, alongside the Auckland City Council we
launched the Auckland Co-design Lab. The Lab provides
a neutral space where clients and other government
agencies can explore ways to tackle our more intractable
socio-economic and environmental issues. To begin with,
five projects will be run over a 27 month period as a proofof-concept.
During the year, we continued to collaborate with regional
partners and stakeholders on the implementation of
the Business Growth Agenda in all regions to support
economic prosperity. Alongside the Ministry for Primary
Industries, we completed Regional Economic Growth
Studies for the Bay of Plenty, the Tai Tokerau Northland,
and the Manawatū-Whānganui. These reports help to
identify the opportunities for economic growth and the
barriers to be removed to achieve growth at a faster rate.
31
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
32
OUR PERFORMANCE
Measure
An increase in the rates of overall
labour participation and labour
participation of young people, Māori
and Pacific people16:
• Total
Desired
Trend

• Māori
Comment
Jun-2013
67.9%
Jun-2014
68.7%
Jun-2014
69.3%
Jun-2013

• Pacific people

Generally participation has returned to
pre-Global Financial Crisis (GFC) levels,
but the long standing differences in
outcomes for Māori and Pacific people
remain. Participation for the two latest
quarters has been at record levels.
Levels of participation for Māori have
now returned to pre-GFC levels.
63.9%
Jun-2014
65.7%
Jun-2015
65.7%
Jun-2013

• Young people
(15–24 years)
Result
The past two years have shown growth
in participation from Pacific people.
59.4%
Jun-2014
63%
Jun-2015
63.5%
Jun-2013
57.1%
Jun-2014
58.5%
Jun-2015
60.6%
Youth labour market outcomes have
essentially returned to pre-GFC levels.
Source: Labour Market Statistics Quarterly Update, Statistics New Zealand
An increase in the median weekly
income for Māori with a longterm aim that this should equal
the national median by 2040
(percentage of national median)17

Jun-2012
84.8%
Jun-2013
84.5%
Jun-2014
In 2014/15, the median weekly income
for Māori was $525 (87.5%) compared
to the weekly median income for all
ethnic groups of $600.
87.5%
Source: New Zealand Income Survey, Statistics New Zealand
A decrease in the proportion
(percentage) of young people
(15–24 years) not in employment,
education and training

Jun-2013
12.2%
Jun-2014
11.2%
Jun-2015
11.4%
The slight increase is, in part, because
of a strong increase in the population
aged 15–24 years.
Source: Labour Market Statistics Quarterly Update, Statistics New Zealand
16The overall participation rate is seasonally adjusted, whereas the rates for Māori, Pacific people, and young people are not.
17 This measure is reported in June quarter.
Improved international flows of
people, ideas, investment and trade
2.85
$
4
billion contribution from
international students
to our economy
th
in the world for
enabling trade
$
10.3
billion contribution
from tourism to
our economy
International connections give businesses access to resources, skills, knowledge,
ideas, investment and trade that can stimulate innovation and boost productivity.
Connections are particularly important for New Zealand as business growth is
constrained by the country’s size (small domestic market) and distance.
Throughout 2014/15, we have further realised our potential, and understood our challenges. Being in such an isolated
space, it is important for New Zealand to attract international people, ideas, and investment to further our economy.
To achieve this we continued to revamp our immigration systems, and worked to improve the economic impact of
immigration.
We are making good progress on achieving Immigration New Zealand’s Vision 2015 programme. The programme
aims to deliver outstanding immigration services, including Immigration ONLINE supporting our overall objective of
increasing the economic impact of the immigration system. Other initiatives to improve our international connections
have included better managing immigration risk, attracting investors and entrepreneurs, preventing exploitation and
trafficking, and implementing the New Zealand Refugee Resettlement Strategy.
PROGRESSED VISION 2015
Creating an industry-leading immigration system began
in 2013, and this year the development of Immigration
ONLINE continued. When fully implemented, Immigration
ONLINE will mean we will have more flexibility to respond
better to customers’, and New Zealand’s needs and
expectations. The 2015 Visa Processing Operating Model
is a management tool guiding the process, people and
technology change as we move progressively towards the
future state set out in Vision 2015.
In June 2015, we marked the successful roll out of more
online services for Immigration New Zealand’s customers;
60 per cent of visa applications can now be submitted
online. Immigration ONLINE allows applicants to apply,
pay fees and upload documents online for:
›› student visa applications
›› work and visitor visa applications
›› Chinese language visitor applications.
At the end of June 2015, almost 5,500 applications had
been received online from nearly 90 countries, indicating
good uptake.
We have deployed eMedical, a new processing system
to replace our paper-based medical certificates. Around
80 per cent of health cases for offshore visa applicants
and 100 per cent for onshore visa applicants are being
processed through eMedical. We are aiming for most of
these cases to be auto-cleared by the immigration health
system, allowing the medical assessment to occur within
minutes of submission.
The introduction of the first tranche of label-less visas
(eVisas) will remove the need for a large portion of
applicants to submit passports. By December 2015,
eVisas will be extended to Immigration ONLINE-Student
visa applicants onshore and offshore, and to Immigration
ONLINE-Work and Visitor visa applicants offshore from
visa-waiver countries.
MANAGED IMMIGRATION RISK
Creating a contactless immigration system provides
us with additional risks to manage. We introduced a
progressive global roll out of our new risk triage and
verification model during the year. The new systems
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
34
have identified what is low-risk work and reduced the
amount of time we spend processing those applications.
The systems were successfully piloted in Bangkok,
Mumbai and Wellington and gradually implemented
throughout the remainder of the calendar year to all
other Visa Services offices.
The Immigration Amendment Act 2015 included
measures to combat migrant exploitation. The legislation
strengthens penalties for those caught exploiting
migrants, including imprisonment for up to seven years
and/or a fine of $100,000, and the potential for employers
who are recent migrants to be deported.
As part of Immigration New Zealand’s Immigration
ONLINE implementation, we completed the design
and development phase of the Identity Management
Engine (IDme). IDme will enable online lodgement and
automated matching of biometric information. This
will improve identity assurance and reduce fraud as
higher-risk applicants will eventually need to enrol using
fuller identity information, including a photograph and
fingerprints.
ATTRACTED SKILLED PEOPLE
We have relaunched Immigration New Zealand’s
New Zealand Now website after a major redevelopment.
The site is an important part of our effort to attract and
retain migrants with the skills and investment that
New Zealand’s businesses need, and support the
country’s ability to compete on the global stage. The
changes are fully optimised for mobile and tablet viewing
with content that is customer-centric and Google-friendly.
The dairy sector is one of the priority sectors that has
a shortage of skilled workers. We source skilled dairy
workers from the Philippines. To further enhance a
transparent recruitment processes from the Philippines
we continued to work with our Filipino counterparts to
improve these processes.
We also supported the dairy sector by introducing a
Primary Sector Trainees Work visa. The visa enables
trainees from countries with which New Zealand has an
agreement to study and work in New Zealand for up to
12 months. The visa supports both export education and
helps to fill labour shortages in the primary sector.
SUPPORTED EXPORT EDUCATION
Immigration New Zealand is trialling an industry
partnership pilot (IPP) initiative with 25 education
providers that can offer streamlined processing of
nomination letters to offshore student visa applicants.
The trial runs until the end of September 2015.
ATTRACTED BUSINESS VISITORS AND TOURISTS
Tourism revenue this year exceeded $10.3 billion from
three million visitors. It is fair to say this is a significant
sector of our economy.
The Ministry works closely with Tourism New Zealand
(TNZ) to attract high-value visitors and support the
initiatives to grow the business events sector. This year
we entered into new tourism industry partnership visa
arrangements with 20 Chinese business event agencies
(streamlining visitor visa processing for Chinese business
events visitors), and China UnionPay (streamlining
visitor visa processing for platinum and diamond credit
card holders). A new arrangement was also signed with
China Southern Airlines, further streamlining visitor visa
processing for gold and silver status frequent fliers.
Outside China, we have established new partnership
arrangements with six Indian and three Thai business
event travel agencies.
Working holiday schemes were made more attractive by
allowing working holiday makers to study for up to six
months while in New Zealand to support New Zealand’s
tourism industry.
New Zealand is recognised globally as a screen
destination. Through the year we worked with the
New Zealand Film Commission, Film New Zealand and
the Ministry for Culture and Heritage to review the
New Zealand Screen Production Grant. Our findings
showed that the new grant incentives were increasing
the levels of interest in New Zealand as a screen
destination with expected flow-on benefits to our
economy.
Cycling is now being promoted as one of six special
interest activities in New Zealand. We continually
supported Great Rides of Nga Haerenga, the New Zealand
Cycleway Trail Project this year. We have now opened
18 of the 23 planned Great Rides. Governance of the
New Zealand Cycleway Trail project was transferred
from the Ministry to the New Zealand Cycleway Trail
Incorporated.
We have supported the development of three convention
centres this year:
›› New Zealand International Convention Centre (NZICC)
– we led the implementation of the NZICC Agreement,
negotiated a supplementary NZICC Agreement, and
worked with Sky City on the design and construction
programmes.
›› Christchurch Convention Centre – we provided support
with the request for proposal and design processes,
and undertook programme monitoring.
›› Queenstown Convention Centre – we engaged with
the process for designing and funding the proposed
centre.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
PROMOTED VISITING DRIVER SAFETY
SUPPORTED MAJOR EVENTS
As part of ongoing government and industry-foreign
driver safety initiatives, the Ministry has worked with
the New Zealand Police-led China Market Partners Group
(comprising the Ministry, the Ministry of Transport, New
Zealand Transport Agency, New Zealand Police, Tourism
New Zealand, the Ministry of Foreign Affairs and Trade,
and the Chinese Embassy) to develop a Chinese language
driver safety leaflet.
Over the year we have worked to improve New Zealand’s
reputation as an attractive destination for global events,
including administering investments through the Major
Events Development Fund. The major events that took
place during the year included World of Wearable Art
Awards Show, Fast5 World Netball Series, ICC Cricket
World Cup (jointly with Australia), and FIFA Under 20
Men’s World Cup. We developed and implemented
visa arrangements, for example the Cricket World Cup
trans-Tasman visa, and collaborated across government
and with other partners to ensure the success of all
the events, facilitated travel and managed risk to
New Zealand’s borders.
MOVED CLOSER TO CHINA
We understand the impact China has had, and will
continue to have, on New Zealand’s economy. The number
of Chinese tourists has grown annually by around 30 per
cent in recent years. This year we opened our fifth Visa
Application Centre in China to facilitate the increasing
number of Chinese visitor applicants. To encourage highvalue Chinese visitors, the Ministry entered a Tourism
Industry Partnerships with China Union Pay and China
Southern Airlines.
We amended the China working holiday scheme to extend
the length of time working holiday makers can work for
a single employer to six months. This was particularly
welcomed by the tourism industry.
We are also looking to improve our connections with
Asia as a whole. Working alongside the Ministry of
Foreign Affairs and Trade we negotiated a new free trade
agreement with South Korea, marking our 10th such
agreement.
COMBATTED TRAFFICKING AND SMUGGLING
Our collaboration with our partners continued to
support the prevention of human trafficking and migrant
exploitation. During the year, the country’s first human
trafficking-related charges were laid against three foreign
nationals. Other charges were brought against five
defendants who were found guilty of exploitation of
foreign chefs.
New Immigration Adviser Competency Standards were
created this year and will come into force on 26 November
2015. This is a significant milestone that introduces a
requirement for new licensed immigration advisers to
be supervised for two years.
RESETTLED REFUGEES
ATTRACTED FOREIGN INVESTMENT
As at 30 June 2015, over $470 million has been invested
under the Migrant Investor Categories, funds that are
now in New Zealand’s capital markets. Key to this has
been several investor events held across the globe,
such as in Japan, the United States, Malaysia, Singapore
and England.
The capital markets workstream of the Business Growth
Agenda shifted focus this year to attracting investment.
To support this shift we partnered with several other
agencies to develop the Investment Attraction Strategy.
The strategy outlines our approach to foreign direct
investment, attracting multi-national corporations to
undertake research and development in New Zealand,
and attracting high-quality migrant investors.
To ensure we achieve good outcomes from international
investment and trade, we supported the passage of the
Trade (Safe-guard Measures) Bill. The Bill aligns our trade
safeguards with new World Trade Organization rules that
were given assent in November 2014.
With the number of refugees increasing across the
world we have continued to implement the Refugee
Resettlement Strategy, specifically this year commencing
the rebuilding of the Mangere Refugee Resettlement
Centre in Auckland. This will improve the experience of
refugees during their six-week stay at the centre when
they first arrive. The new and improved facility can
accommodate up to 196 beds, and includes a provision
to accommodate up to 300 individuals in the event of a
maritime mass arrival.
On behalf of government agencies that support refugee
resettlement, the Ministry facilitated the 2015 National
Refugee Resettlement Forum in June 2015. The forum
provided an opportunity to discuss the work that has
taken place implementing phase 2 of the National Refugee
Resettlement Strategy. This includes integrating changes
to support former refugees to become self-sufficient
at the earliest opportunity. The forum also provided an
opportunity to identify priorities for phase 3 which will
focus on access to interpreter services.
35
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Intermediate
outcomes
36
OUR PERFORMANCE
Measure
An improvement in the levels of
migrant investors’ investment in
New Zealand (in millions starting
from 2009)
Desired
Trend

Result
Comment
2012/13
In 2014/15, the total migrant investment
since July 2009, was $1.7 billion;
between 2013/14 and 2014/15
investment increased $494 million.
$671
2013/14
$1,187
2014/15
$1,681
Source: Operational data from Immigration New Zealand, Ministry of Business, Innovation and Employment
An increase in the contribution
to New Zealand’s economy from
(in billions)18:
• International Students

• Tourists
2012/13
$2.6
2014/15
$2.85
Contribution from international
students continues to rise; however,
modelling estimates is only
undertaken every two years.
2012

$9.781
2013
Contribution from tourism increased
$0.7 billion in 2014, now making up
4.0% of New Zealand’s GDP.
$9.602
2014
$10.311
Source: Education New Zealand and Tourism Satelite Account
An improvement in
New Zealand’s ranking in the
World Economic Forum enabling
trade index

2011/12
2013/14
5
4
The 2013/14 result is the latest World
Economic Forum enabling trade index
available. The next report is due in
2015/16.
Source: Enabling Trade Index, World Economic Forum
An increase in the proportion of
innovating businesses that have
international linkages

2011/12
51%
The information on firms’ international
engagement will be available from the
Business Survey to be published in 2016.
Source: Innovation in New Zealand (2012), Statistics New Zealand
An improvement in international
engagements as measured by
the adoption of an agreed set
of priorities for all the Ministry’s
international engagement
Partially achieved

The Ministry has adopted a number
of initiatives to measure against the
indicator.
The development and roll out of a
business planning tool for branches
that are undertaking or contemplating
international engagement is underway.
Source: Ministry of Business, Innovation and Employment
18The figures have changed from previous years to better represent the contribution of international students and tourists.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Organisational
environment
Becoming an integrated high-performing organisation that works effectively
across the whole agency and with those outside will allow us to move towards our
ambitious targets quickly. To better prepare we must constantly look at our internal
processes, being innovative about how we go about our work from the top to the
bottom. A big aspect of this is creating a culture among and commitment within our
people that, ultimately, will influence our ability to deliver the outcomes we want for
New Zealand. Having an organisation that is adaptable to a changing environment
and understands where we want to go underpins a healthy and capable one.
Changing environment
Our aim of growing New Zealand for all is a long-term outcome. By regularly reviewing our internal
processes we can draw out our organisation’s potential. Over three years we have been able to better
understand businesses and markets, what New Zealand needs from us, and how best to achieve this.
REDUCING OUR ACCOMMODATION FOOTPRINT
CREATED A CLEAR DIRECTION
Our Strategic Property Plan, approved by the Property
Management Centre of Expertise (PMCoE), continues to
guide the management of our property related projects
and assists in implementing new ways of working within
our building fit outs and reducing our overall footprint per
Full Time Equivalent staff. In August 2014, we completed
our Wellington National Office consolidation bringing
together 1,800 people into Stout Street with an expected
savings of $40–$50 million over the next 20 years.
This year we have been able to better identify our key
priorities, and the ways in which we will plan to better
achieve them. The finalisation of the Ministry’s economic
narrative – The MBIE Story, Grow New Zealand for all has
set out what a successful economy looks like, helping our
internal teams link what they do to the overall outcome
of a successful New Zealand economy. By creating a
narrative we can now effectively identify areas of focus
and activities that will provide long-term economic
performance with a line of sight we have never had
before, linking to our five new outcomes.
We have initiated a review of our Auckland property needs
and are one of the four lead agencies for the Christchurch
Integrated Government Accommodation (CIGA)
programme which will see some of our people return to
the Christchurch CBD in 2016/17. Work has continued on
the rebuild of the Mangere Refugee Resettlement Centre,
with Stage One (Administration and Accommodation
Blocks) due for completion in June 2016, and with
the Education Blocks due for completion in early 2017.
BETTER UNDERSTOOD ECONOMIC GROWTH
To grow New Zealand’s economy we first needed to
better understand the causes of economic growth. In
October 2014 ‘What We Know (and Don’t Know) about
Economic Growth in New Zealand’ was published. This
37
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Organisational
environment
38
document summarises the causes of economic growth,
how growth affects New Zealand’s varying population,
and why New Zealand’s income levels have not been able
to keep pace with those of other OECD countries; in effect
it underlines the Ministry’s narrative. The document is a
collection of evidence that will be updated regularly as we
learn more about New Zealand’s economy and where and
how to better grow it. Having a centralised document of
knowledge allows our entire organisation to set better
medium-term goals, and understand how the work we
do aligns with the Ministry’s narrative.
FOCUSED OUR INFLUENCE
With the knowledge of where we want to go, and our
high-level outcomes set in place, we understood the need
to break the overall aspect of growing New Zealand down
into outcomes over which we have direct influences.
Our Organisational Evaluation team developed a layer
of intermediate outcomes that support our high-level
outcomes. By linking the intermediate outcomes to our
performance framework we are now able to see our
progress with the knowledge that if we progress our
intermediate outcomes, our high level outcomes will
follow suit in due course.
LEADERSHIP
In 2014/15, our Chief Executive was supported by seven
Deputy Chief Executives. Together they make up Senior
Leadership Team (SLT). SLT was supported by the Chief
Financial Officer, Chief Information Officer and Chief
Legal Advisor.
In support of SLT’s work, three subcommittees were
established during the year:
›› Finance Subcommittee – this committee was
responsible for the functioning of the Ministry’s shortto medium-term finances
›› Human Resources Subcommittee – this committee
was responsible for overseeing the Ministry’s human
resources strategies and HR’s work programme
›› Capital Portfolio Subcommittee – this committee
was responsible for the Ministry’s capital investment
decisions, ensuring they were aligned to the
organisation’s strategy and delivered value for money.
This year, our Chief Executive received additional support
from the Ministry’s Audit and Risk Committee. This
committee is a governance body with an independent
chair, three independent members, SLT members, and
the Chief Financial Officer. The committee operates
independently from SLT, providing expert advice directly
to the Chief Executive.
The role of the Committee is to advise on:
›› risks and risk management practices
›› internal and external audit activity
›› financial and non-financial external reporting
›› Ministry governance processes
›› ethical practices
›› strategic and organisational development.
MANAGED RISK
The Ministry continues to build on its approach to risk
management. During the year, the foundation of the
Ministry’s Risk Management Framework was completed.
This framework provided SLT with more visibility over
organisational risk. In support of this, a position of Chief
Risk Officer was created to lead the risk management
function at the Ministry which will result in ensuring
risks are managed effectively in the achievement of the
Ministry’s objectives.
Part of managing risk is focusing on our ICT operations,
searching to continually improve our capability within
security and risk constraints. This year we rolled out an
integrated security accreditation process, implemented
PKI security of our wireless infrastructure, and put in
place AppLocker security on all desktop computers.
PERFORMANCE IMPROVEMENT FRAMEWORK
To support the Ministry’s response to the Performance
Improvement Framework review findings published in
December 2014, the Senior Leadership Team developed
an Action Plan. The plan brought together their thinking
and commitment in a set of detailed actions to lift
performance and move beyond the challenges highlighted
in the PIF Review, and to deliver on the four year horizon.
As at 30 June 2015, around 90 per cent of the 54 actions
had been completed. The remaining actions have been
rolled up into the High Performing MBIE work programme
and the Ministry’s Engagement Plan, and work is now
being undertaken on a set of Ministry core competencies.
IMPROVED POLICY CAPABILITY
As the biggest and most diverse policy shop in the public
sector we constantly look to improve our policy advice
capabilities. This year we formed the Policy Capability
Project Team. This team is focusing on ways to lift policy
capability so that the Ministry consistently provides high
quality policy advice, effectively implements and delivers
policy, and effectively partners with others.
DIGITAL BY DEFAULT
Significant progress has been made since the Ministry’s
formation in 2012 to bring together and consolidate the
infrastructure and systems from the former agencies.
The focus has now shifted to placing significant effort into
developing its digital channels for customer interaction,
to access the Ministry's services and enhance core
stakeholder interactions making them highly effective
and cost effective. During the last two years ICT has been
supporting a business led multi-phased Digital Channel
Strategy programme – the outcome being to enhance the
channels we utilise.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Organisational
environment
The business has already played and will continue to play
a critical part in the overall channel journey. For example,
the Ministry has a group responsible for gaining customer
insights and through this designing and providing more
customer-centric services.
MANAGED INFORMATION AS AN ASSET
Information has been identified as an asset that needs
to be better managed and utilised to inform decision
making. In 2014/15, an organisational wide Information
and Data Strategy and Action Plan got underway,
with a view to 2017; aiming to transform how the
Ministry manages and extracts value from our data and
information assets. The strategy defines a future state of
improved information for decision making through better
access, management and use of information and data.
To further our information and data capability a dedicated
Information and Data Team has been established to
lead the strategy work and embed ongoing policies,
processes and tools for improved information and
data management. This work includes implementing
information and data governance; improved compliance
management (for records, security and privacy);
continued contribution to the Open Data programme by
consolidating and automating Ministry owned open data
listings on data.govt.nz; enabling and encouraging more
use of information and data, for example by integrating
several Ministry wide data sets into a Data Lake that
assists in efficiency and accuracy of analytics and
reporting.
PROCURED SUPPLIES AND SERVICES
The Ministry continues to consolidate and maximise
our purchasing power in key areas particularly travel,
insurance and recruitment. Work continues on further
refining our supply channels particularly in the preferred
supplier/panel pathways and in supporting business
owners to consolidate these common spend areas.
The Procurement and Projects team has further evolved
from the ‘consolidate and maximise strategy’ to one of
delivering targeted procurement services to the Ministry
for high-value, high-risk spend areas. Our commercial
leads have been engaged and positioned on high-value,
high-risk and strategic initiatives to provide confidence
to the business around achieving desired outcomes and
manage procurement risks.
The Procurement and Projects team has applied greater
commercial rigour, reduced procurement risk, aligned
processes and practices to government procurement
branch best practices, and exceeded the Ministry’s
savings targets set down and agreed in 2014/15.
Health and capability
Creating a high-performing ministry that has engaged staff is our goal. We want
everyone within our organisation to understand their part in our overall outcomes,
be treated with respect, understand success, and foster new leaders to take
New Zealand forward as a country.
HIGH PERFORMING
STRENGTHENED OUR CULTURE
Late this year we completed a High Performing MBIE ideas
generating phase that sought to step up our performance
in several key areas to make us a more effective ministry.
On completion of this phase, we implanted a new way of
doing business, with plans on our culture and behaviour
underway. This, and the consolidation of key branches
of our structure and how they are supported all focus on
four recommendations:
›› operate collaboratively
›› be customer centric
›› be flexible and responsive
›› think lean.
As part of the High Performing MBIE programme,
recommendations have been made on ‘how we work’.
Initial planning on steps the Ministry will take around
this includes:
›› reassessing and redefining the expected role of
senior leaders, and providing a clear set of leadership
expectations and accountabilities
›› increasing collaboration across the Ministry including
developing opportunities for senior leaders to be
exposed to other parts of the Ministry through
movements and project work – working across the
Ministry will be incentivised in the expectations we set
and will be embedded within our people systems
›› launching People Leaders Forums to build the
leadership expectations and behaviours needed to
create and sustain a high-performing organisation.
39
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Organisational
environment
40
BUILT A MORE ENGAGED ENVIRONMENT
CONNECTED WITH STAKEHOLDERS
We have created a more engaged environment to better
deliver a successful growing New Zealand economy. We
have completed our People Strategy that clearly sets
out the focus over the next four years to enhance our
workforce capability. Four areas of in-depth focus include
leadership, talent management, being a role model
employer, and our culture and engagement.
In September 2014, a Stakeholder Engagement Survey
was undertaken to see how well we were communicating
and working with our key stakeholders such as private
businesses, industry and business representative bodies,
and Crown and statutory bodies. Of these stakeholders
we received 186 surveys with positive results:
›› Our staff were seen as accessible and engaged with
stakeholders in a friendly and transparent manner
and welcomed stakeholder input.
›› Our staff were seen to understand industry and
stakeholder needs and have technical knowledge
and capability.
At the end of this year, we completed our second Staff
Engagement Survey. The results show our People
Strategy is working. It had an 83 per cent response rate,
with a 3 per cent increase in engaged staff, and 1.5 per
cent decrease in disengaged staff from the previous year.
The meaningful increase of the engagement index score
from the previous engagement survey shows we are
heading in the right direction with an increase from
66.2 per cent to 67.7 per cent this year.
›› We were seen as providers of quality research and
evaluation, policy advice, and services in a timely
manner.
POSITIVE AND STABLE INDUSTRIAL RELATIONS
CELEBRATED SUCCESS
We achieved a milestone in ratifying a single collective
employment agreement between the Ministry and the
New Zealand Public Service Association (PSA) in 2014.
It replaced what used to be a complex network of
separate employment arrangements with our employees.
This has established the basis for a constructive ongoing
relationship with the PSA. It helps to simplify the process
of employing people and helps to manage current staff’s
terms and conditions.
Having staff that are acknowledged for their success is
pivotal to creating a high performing ministry. Over the
year we have moved to create a ministry wide way of
recognising achievements, leading to the creation of
the MBIE Awards and CE Recognition programmes.
DEVELOPED LEADERS
Key to the environment we are building has been the
ongoing development of leadership within the Ministry.
In July 2014, the Management in Action Programme for
Leaders of People was introduced to better acclimatise
new managers for their first-time role as a manager.
This has been crucial in our development as a leading
organisation, with new managers being able to hit the
ground running and immediately have a positive effect
on our performance.
OUR PEOPLE
We are an international organisation with operations in
49 locations around New Zealand and 20 locations
overseas, with 2,822 full-time equivalent staff working
in New Zealand, and 374.5 full-time equivalent staff
working outside of New Zealand; making up 6.2 per cent
of New Zealand’s public sector.
Identification of future leaders has also taken a big step
with the introduction of the Aspiring Leaders programme
that kicked off in October 2014. The programme brings
together like-minded people from around the country to
learn about what it means to lead, share their knowledge,
and start on the leadership pathway.
We are committed to having a workforce that reflects
the diversity of the whole community (as seen below)
and are a member of the Equal Employment
Opportunities Trust.
ƨOur
ƨ
people's profile
62%
60%
5%
Female
representation
17%
Māori
representation
7%
8%
Pacific
representation
Ministry of Business, Innovation and Employment (June 2015)
16%
8%
Asian
representation
Public Sector (June 2014)
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Organisational
environment
41
OUR PERFORMANCE
Measure
Desired
Trend
Result
Comment
Ranked in the top
quartile for:
• Ministerial satisfaction

• The quality of our
policy advice

2012/13
7.13
2013/14
The Ministry’s upper quartile for ministerial
satisfaction is a rating of 7.5 and above, and
8 and above for the quality of policy advice. The
upper quartile for both is the Ministry’s internal
ranges, and not a comparison with other entities.
7.46
2014/15
7.12
2012/13
7.40
2013/14
7.30
2014/15
7.34
Source: Ministerial satisfaction ratings, and New Zealand Institute of Economic Research Overview Reports
Improved results from
stakeholders evaluations:
• Does well or very
well with shaping
• Displays real or
genuine collaboration
well or very well


2012/13
50%
2014/15
68%
2012/13
This is a composite measure from the stakeholder survey showing that staff demonstrate a
knowledge and understanding of businesses and
markets, the impacts of decisions for the Ministry,
and the development of new and pragmatic
approaches.
61%
2013/14
72%
Source: Ministry of Business, Innovation and Employment Stakeholder Engagement Surveys
Improved results for
Crown entity monitoring

2014/15
69.3%
This year the baseline of 69.3% was established.
This represents how satisfied ministers are with
the Ministry's Crown entity monitoring.
Source: Ministerial satisfaction ratings June 2015
Staff engagement
improves annually

2013/14
66.2%
2014/15
67.7%
Due to the source of this information reporting
differently in the following years, we have aligned
our reporting to how the information will be
shown. Previously we reported on the percentage
of staff engaged, the information here is our
Staff Engagement Index score, which is a better
representation of how engaged our staff are.
Source: Ministry of Business, Innovation and Employment Kenexa Staff Engagement Surveys
A reduction in our
administrative and
support service costs
as a proportion of total
running costs

2012/13
2013/14
15.03%
13.21%
The results for the period are consistent
with the resources and investment required
to realise Ministry’s objectives, and bring
together a number of critical core systems
including ICT, finance, payroll and HR systems.
Ministry’s support costs are broadly in line with
comparator agencies.
Source: Ministry of Business, Innovation and Employment statement of accounts and Benchmarking Administrative and Support Services reporting to
the Treasury
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
42
ANNUAL REPORT 2014/2015
Statement of
management
responsibility
I am responsible, as Acting Chief Executive of the Ministry of Business, Innovation and Employment (the Ministry) for:
›› the preparation of the Ministry’s financial statements, and statements of expenses and capital expenditure, and for
the judgements expressed in them
›› having in place a system of internal control designed to provide reasonable assurance as to the integrity and
reliability of financial reporting
›› ensuring that end-of-year performance information on each appropriation administered by the Ministry is provided
in accordance with sections 19A to 19C of the Public Finance Act 1989, whether or not that information is included in
this annual report
›› the accuracy of any end-of-year performance information prepared by the Ministry, whether or not that information
is included in the annual report.
In my opinion:
›› the financial statements fairly reflect the financial position of the Ministry as at 30 June 2015 and its operations for
the year ended on that date.
›› the forecast financial statements fairly reflect the forecast financial position of the Ministry as at 30 June 2016 and
its operations for the year ending on that date.
Andrew Crisp
Acting Chief Executive,
Ministry of Business, Innovation and Employment
25 September 2015
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Independent
Auditor's Report
To the readers of Ministry of Business, Innovation and Employment’s annual report
for the year ended 30 June 2015.
The Auditor-General is the auditor of Ministry of Business, Innovation and Employment (the Ministry). The AuditorGeneral has appointed me, Ajay Sharma, using the staff and resources of Audit New Zealand, to carry out the audit
on her behalf of:
›› the financial statements of the Ministry on pages 97 to 125, that comprise the statement of financial position,
statement of commitments, statement of contingent liabilities and assets as at 30 June 2015, the statement of
comprehensive revenue and expense, statement of changes in equity, statement of cash flows, and the statement
of trust monies for the year ended on that date and the notes to the financial statements that include accounting
policies and other explanatory information;
›› the performance information prepared by the Ministry for the year ended 30 June 2015 on pages 7, 15, 16, 19, 22, 25,
26, 29, 32, 36, 41, 46–96, and 170–179;
›› the statement budgeted and actual expenses and capital expenditure incurred against appropriations, multi-year
appropriations, statement of expenses and capital expenditure incurred without, or in excess of, appropriation or
other authority, and statement of departmental capital injections of the Ministry for the year ended 30 June 2015
on pages 141 to 158; and
›› the schedules of non-departmental activities which are managed by the Ministry on behalf of the Crown on pages
126 to 140 that comprise:
–– the schedules of: assets; liabilities; contingent liabilities and contingent assets; expenses; and revenue for the
year ended 30 June 2015; and
–– the notes to the schedules that include accounting policies and other explanatory information
OPINION
In our opinion:
›› the financial statements of the Ministry:
–– present fairly, in all material respects:
••
its financial position as at 30 June 2015;
••
its financial performance and cash flows for the year ended on that date; and
••
its trust monies
–– comply with generally accepted accounting practice in New Zealand and have been prepared in accordance with
Public Benefit Entity Reporting Standards.
›› the performance information of the Ministry:
–– presents fairly, in all material respects, for the year ended 30 June 2015:
••
what has been achieved with the appropriation; and
•• the actual expenses or capital expenditure incurred compared with the appropriated or forecast expenses or
capital expenditure;
–– complies with generally accepted accounting practice in New Zealand.
43
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Independent
Auditor's Report
44
›› the statement budgeted and actual expenses and capital expenditure incurred against appropriations, multi-year
appropriations, statement of expenses and capital expenditure incurred without, or in excess of, appropriation or
other authority, and statement of departmental capital injections of the Ministry on pages 141 to 158 are presented
fairly, in all material respects, in accordance with the requirements of section 45A of the Public Finance Act 1989.
›› the schedules of non-departmental activities which are managed by the Ministry on behalf of the Crown on pages
126 to 140 present fairly, in all material respects, in accordance with the Treasury Instructions:
–– the assets; liabilities; commitments; contingent liabilities and assets; expenses; and revenue for the year ended
30 June 2015.
Our audit was completed on 25 September 2015. This is the date at which our opinion is expressed.
The basis of our opinion is explained below. In addition, we outline the responsibilities of the Chief Executive and our
responsibilities, and we explain our independence.
BASIS OF OPINION
We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the
International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements
and plan and carry out our audit to obtain reasonable assurance about whether the information we audited is free from
material misstatement.
Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to
influence readers’ overall understanding of the information we audited. If we had found material misstatements that
were not corrected, we would have referred to them in our opinion.
An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the
information we audited. The procedures selected depend on our judgement, including our assessment of risks of
material misstatement of the information we audited, whether due to fraud or error. In making those risk assessments,
we consider internal control relevant to the Ministry’s preparation of the information we audited in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Ministry’s internal control.
An audit also involves evaluating:
›› the appropriateness of accounting policies used and whether they have been consistently applied;
›› the reasonableness of the significant accounting estimates and judgements made by the Chief Executive;
›› the appropriateness of the reported performance information within the Ministry’s framework for reporting
performance;
›› the adequacy of the disclosures in the information we audited; and
›› the overall presentation of the information we audited.
We did not examine every transaction, nor do we guarantee complete accuracy of the information we audited. Also, we
did not evaluate the security and controls over the electronic publication of the information we audited.
We believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.
RESPONSIBILITIES OF THE CHIEF EXECUTIVE
The Chief Executive is responsible for preparing:
›› financial statements that present fairly the Ministry’s financial position, financial performance, and its cash flows,
and that comply with generally accepted accounting practice in New Zealand and Public Benefit Entity Reporting
Standards.
›› performance information that presents fairly what has been achieved with each appropriation, the expenditure
incurred as compared with expenditure expected to be incurred, and that complies with generally accepted
accounting practice in New Zealand.
›› statements of budget and actual expenses and capital expenditure incurred against appropriations of the Ministry,
that are presented fairly, in accordance with the requirements of the Public Finance Act 1989.
›› schedules of non-departmental activities, in accordance with the Treasury Instructions, that present fairly those
activities managed by the Ministry on behalf of the Crown.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Independent
Auditor's Report
The Chief Executive’s responsibilities arise from the Public Finance Act 1989.
The Chief Executive is responsible for such internal control as is determined is necessary to ensure that the annual
report is free from material misstatement, whether due to fraud or error. The Chief Executive is also responsible for the
publication of the annual report, whether in printed or electronic form.
RESPONSIBILITIES OF THE AUDITOR
We are responsible for expressing an independent opinion on the information we are required to audit, and reporting
that opinion to you based on our audit. Our responsibility arises from the Public Audit Act 2001.
INDEPENDENCE
When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate
the independence requirements of the External Reporting Board.
Other than the audit, we have no relationship with or interests in the Ministry.
Ajay Sharma
Audit New Zealand
On behalf of the Auditor-General
Wellington, New Zealand
45
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
46
ANNUAL REPORT 2014/2015
Statement of
objectives and
service performance
This section provides summaries, for the year ended 30 June 2015, of the actual
performance of the Ministry against the performance standards set out in the
Statements of Forecast Service Performance in the Information Supporting the
Estimates for the 10 Votes for which the Ministry is responsible.
The 10 Votes the Ministry administered in 2014/15 provided policy advice and services to our intermediate outcomes:
Vote
Contributes to:
ACC
• Safer and more skilled workplaces
Commerce and Consumer Affairs
• Better functioning markets that are more trusted and more competitive
• Improved business capability and higher levels of innovation
• Improved international flows of people, ideas, investment and trade
Communications
• More reliable infrastructure and responsible development of natural resources
Economic Development
and Employment
•
•
•
•
•
Energy
• More reliable infrastructure and responsible development of natural resources
• Safer, healthier and more affordable homes and buildings
• Improved international flows of people, ideas, investment and trade
Housing
• Safer, healthier and more affordable homes and buildings
• More productive and successful people, communities and regions
Immigration
• Safer and more skilled workplaces
• More productive and successful people, communities and regions
• Improved international flows of people, ideas, investment and trade
Labour
•
•
•
•
Science and Innovation
• Improved business capability and higher levels of innovation
• Improved international flows of people, ideas, investment and trade
Tourism
• Improved international flows of people, ideas, investment and trade
Better functioning markets that are more trusted and more competitive
Safer and more skilled workplaces
Improved business capability and higher levels of innovation
More productive and successful people, communities and regions
Improved international flows of people, ideas, investment and trade
Better functioning markets that are more trusted and more competitive
Safer and more skilled workplaces
More productive and successful people, communities and regions
Improved international flows of people, ideas, investment and trade
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
47
Vote ACC
REGULATORY SERVICES
ƨScope
ƨ
This appropriation is limited to the management of the residual long-term responsibility related to the Crown’s ongoing
risks resulting from the introduction of the competitive accident insurance market during 1999/2000.
ƨIntention
ƨ
This appropriation is intended to achieve timely policy advice that manages the Crown’s risk and contributes to skilled
and safe workplaces and trusted, competitive and well-functioning markets, as measured by our response to enquiries.
ƨNon-financial
ƨ
performance
Performance Measure
Standard
2014/15 Actual
100%
100%
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
119
119
119
Total Revenue
119
119
119
Total Expenses
119
119
97
–
–
22
The Accident Insurance Regulator responds to all complaints and enquiries, including notices of
insurers failing to comply with their obligation under the Accident Insurance
Act 1998, within five days of receipt
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
POLICY ADVICE AND RELATED OUTPUTS MCA19
ƨOverarching
ƨ
purpose
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.
ƨIntention
ƨ
This appropriation is intended to achieve effective and efficient ministerial services and high-quality policy advice that
contribute to skilled and safe workplaces, and trusted, competitive and well-functioning markets, through an effective
accident compensation system that seeks to prevent injury and rehabilitate those who are injured.
19 Multi-Category Expenses and Capital Expenditure.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
48
CATEGORY
ƨOutput
ƨ
Category – Ministerial Services
Scope
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio
(other than policy decision-making) responsibilities.
Intention
This category is intended to achieve effective and efficient ministerial services related to the accident
compensation system.
Non-financial performance
Performance Measure
Standard
2014/15 Actual
95% or above
95% or above
95% or above
100%
100%
100%
Ministerial Services
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial
Official Information Act 198220 requests are to be completed within either specified or statutory
timeframes21:
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
ƨOutput
ƨ
Category – Policy Advice – ACC
Scope
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 the accident
compensation system.
Intention
This category is intended to achieve high-quality policy advice that contributes to skilled and safe workplaces and
trusted, competitive and well-functioning markets, as measured by compliance with Cabinet and State Services
Commission requirements, the satisfaction of the Minister for ACC, an external review of policy advice and the cost
of policy advice.
Non-financial performance
Performance Measures
Standard
2014/15 Actual
Managed in
accordance with
Cabinet and State
Services
Commission
requirements
Achieved
At least 70%22
63%
At least an
average of 73%
81%
At most $155
$15223
Policy Advice – ACC
Fairway Resolution Limited Board appointments, and appointments to any other
advisory groups, are managed in accordance with Cabinet and State Services
Commission requirements
The satisfaction of the Minister for ACC with the policy advice service, as per the common
satisfaction survey
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
The total cost per hour of producing outputs
The Ministry received a 63 per cent rating from the Minister for ACC for the policy advice service, against the standard
of at least 70 per cent. The Ministry is continuing to implement its policy capability development programme.
20 Vote ACC received one Parliamentary Question, 31 items of Ministerial correspondence and 5 Ministerial Official Information Act 1982 requests.
21 Ministerial Servicing timeframes vary across Ministerial Offices and Votes. The timeframe for draft replies to written Parliamentary Questions is
usually 5 or 6 days; for Ministerial correspondence it is 10, 15 or 20 days or a specific time agreed with a Minister’s Office; and for Ministerial Official
Information Act 1982 requests it is 10 or 15 days or a specific time agreed with a Minister’s Office.
22 Satisfaction ratings are on a scale from 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
23 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
49
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
501
501
501
Crown
2,001
2,001
2,001
Total Revenue
2,502
2,502
2,502
Ministerial Services
501
501
501
Policy Advice – ACC
2,001
2,001
2,001
Total Expenses
2,502
2,502
2,441
Ministerial Services
501
501
445
Policy Advice – ACC
2,001
2,001
1,996
Net Surplus/(Deficit)
–
–
61
Ministerial Services
–
–
56
Policy Advice – ACC
–
–
5
$000
Revenue
Ministerial Services
Crown
Policy Advice – ACC
The $56,000 underspend for the Ministerial Services category was due to fewer Parliamentary Questions, less
Ministerial correspondence and fewer Ministerial Official Information Act 1982 requests compared with last year.
The under-spend was also a result of the Ministry implementing more effective cost controls.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
50
Vote Commerce and Consumer Affairs
CONSUMER INFORMATION
ƨScope
ƨ
This appropriation is limited to the development and delivery of information and programmes that increase the ability
of consumers to transact with confidence.
ƨIntention
ƨ
This appropriation is intended to achieve a trading environment in which consumers are well informed and adequately
protected, trading is fair, and there is effective competition.
ƨNon-financial
ƨ
performance
Performance Measure
Standard
2014/15 Actual
80% of surveyed
clients are satisfied
or very satisfied
with the advice,
information and
education received
95%
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
1,985
2,233
2,233
Other
392
294
212
Total Revenue
2,377
2,427
2,445
Total Expenses
2,277
2,427
2,011
100
100
434
Deliver an advice, information and education programme to consumers, businesses and key
stakeholders to raise their awareness of consumer rights and responsibilities under consumer law
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
The surplus of $434,000 was mainly due to reduced costs as a result of work programmes being reviewed and reshaped
to meet the needs of consumers.
OFFICIAL ASSIGNEE FUNCTIONS
ƨScope
ƨ
This appropriation is limited to the carrying out of statutory functions of the Official Assignee under the Insolvency
Act 2006, the Companies Act 1993, the Proceeds of Crime Act 1991 and the Criminal Proceeds (Recovery) Act 2009.
ƨIntention
ƨ
This appropriation is intended to achieve the provision of a formal process for dealing with unmanageable debt, which
balances the rights of creditors and debtors, and that business can have confidence in. It also is intended to achieve
the provision of a mechanism for the custody and control of assets restrained and forfeited by an order of the court.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
51
ƨNon-financial
ƨ
performance
Performance Measure
High quality and timely administration is consistently provided by all Insolvency and Trustee
Service (ITS) offices
Standard
2014/15 Actual
The annual
average internal
quality assurance
rating across
all its offices is
between 1–2
1.2
Possible ratings are: 1 – a high level of compliance, 2 – an acceptable level of compliance, 3 – a marginal level of
compliance, 4 – an unacceptable level of compliance, 5 – the office does not comply.
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
11,703
11,703
11,703
Other
3,441
3,441
4,146
Total Revenue
15,144
15,144
15,849
Total Expenses
14,428
14,428
14,424
716
716
1,425
$000
Revenue
Net Surplus/(Deficit)
The surplus of $1.425 million, compared with the Estimates surplus of $716,000, was a result of increased recoveries
from bankruptcies and liquidations.
REGISTRATION AND GRANTING OF INTELLECTUAL PROPERTY RIGHTS
ƨScope
ƨ
Administering legislation providing for the protection of intellectual property rights by the granting of patents and
plant variety rights, the registration of trademarks and designs.
ƨIntention
ƨ
This appropriation is intended to achieve the protection of robust intellectual property rights to allow New Zealand
businesses to grow domestically and internationally.
ƨNon-financial
ƨ
performance
Performance Measure
Standard
2014/15 Actual
99%
100%
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
85
85
85
Other
16,957
19,032
23,176
Total Revenue
17,042
19,117
23,261
Total Expenses
15,537
17,612
14,447
1,505
1,505
8,814
Decisions to accept grant or register intellectual property rights made by the Intellectual Property
Office and the Plant Variety Rights Office will be upheld
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
52
The surplus of $8.814 million was due to an increase in trademark, design and patent application volumes, delays
to information and communications technology projects and system enhancements, and expected cost pressures
not eventuating.
REGISTRATION AND PROVISION OF STATUTORY INFORMATION
ƨScope
ƨ
This appropriation is limited to the administration of legislation providing for the registration and provision of
documents and information services in respect of corporate entities and business registers.
ƨIntention
ƨ
This appropriation is intended to achieve management of the registries for corporate entities (particularly companies),
capital market registers, and personal property securities, and to provide small to medium business owners the access
to information that allows them to interact with government efficiently and effectively.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
Online Company name approvals and consents are processed within 35 minutes of receipt during
normal business hours
95%
99%
The Companies and PPSR (Personal Property Securities Register) online registers are available
(excluding agreed outages for scheduled maintenance)
95%
99%
Increase in the use of Business.govt.nz for access to information and advice, and to interact or
transact with Government
5% increase
in use of
business.govt.nz
portal from
previous year
29%
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
2,494
2,494
2,494
227
227
–
Other
20,649
21,249
31,030
Total Revenue
23,370
23,970
33,524
Total Expenses
25,562
26,162
25,472
Net Surplus/(Deficit)
(2,192)
(2,192)
8,052
ƨFinancial
ƨ
performance
$000
Revenue
Crown
Department
The surplus of $8.052 million is a result of price increases introduced in 2012 that were aimed at rectifying the deficit in
the memorandum account.
TRADING STANDARDS
ƨScope
ƨ
This appropriation is limited to compliance and enforcement activities to ensure a supportive measurement and
product safety infrastructure for business and consumers.
ƨIntention
ƨ
This appropriation is intended to achieve a trading environment in which businesses and consumers are well informed,
adequately protected, trading is fair, and there is effective competition.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
53
ƨNon-financial
ƨ
performance
Performance Measure
Standard
2014/15 Actual
At least an
acceptable
level of compliance
Achieved
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
3,777
3,527
3,527
Other
160
160
88
Total Revenue
3,937
3,687
3,615
Total Expenses
3,937
3,687
3,648
–
–
(33)
Quality and timeliness of administration of product safety and weights and measures legislation
demonstrated by an internal audit and assurance rating24
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
UPGRADING AND PROMOTING THE CONSUMER POWERSWITCH WEBSITE
ƨScope
ƨ
This appropriation is limited to upgrading the capability of Consumer New Zealand’s Powerswitch website and
promoting and facilitating the use of the website to consumers.
ƨIntention
ƨ
The intent of this appropriation was to give consumers enhanced access to information in order to make well
informed decisions.
ƨNon-financial
ƨ
performance
Performance Measure
Standard
2014/15 Actual
350,000 visits by
June 2015
355,353 visits
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Other
–
4
–
Total Revenue
–
4
–
Total Expenses
–
4
–
Net Surplus/(Deficit)
–
–
–
Powerswitch is promoted to the public as a tool to identify whether savings can be made by
switching electrical power companies
ƨFinancial
ƨ
performance
$000
Revenue
A $4,000 transferred in the Supplementary Estimates was the surplus of 2013/14, which was not required to be
expensed in 2014/15.
24 The rating scale for the level of compliance is high, acceptable, marginal and unacceptable.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
54
POLICY ADVICE AND RELATED OUTPUTS MCA
ƨOverarching
ƨ
purpose
The single 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.
ƨIntention
ƨ
This appropriation is intended to achieve policy advice of high technical quality relating to commerce and
consumer affairs.
CATEGORY
ƨOutput
ƨ
Category – Investigative Services – Trade Remedies
Scope
This category is limited to investigative services to support advice to the Minister of Commerce to establish whether
New Zealand industries require remedies to prevent injury caused by dumped or subsidised imports or sudden
import surges.
Intention
This category is intended to provide a fair international trading environment for NZ manufacturers through the
imposition of anti-dumping and countervailing duties on imported goods, and to allow NZ manufacturers time to
adjust to competition from surges of imported goods through the imposition of temporary safeguard measures,
where an investigation has established that either action is justified.
Non-financial performance
Performance Measures
Standard
2014/15 Actual
Number of product-by-country investigations, reviews and reassessments actioned following
applications from New Zealand industries
Demand led,
but estimate 4
6
Timeliness of interested parties being advised of essential facts and conclusions on which a final
determination will be based
100% no later
than 150 days
from initiation
100%
100% no later
than 180 days
from initiation of
an investigation
100%
No successful court
challenges
or successful
WTO dispute
settlement actions
Achieved
Investigative Services – Trade Remedies
Timeliness of reports to allow the Minister of Commerce to make final determinations
Quality of investigations as indicated by them being recognised by the parties involved as
consistent with the requirements of either the Dumping and Countervailing Duties Act 1988 or
the Temporary Safeguard Authorities Act 1987, and by the lack of grounds for successful court
challenges or successful World Trade Organisation (WTO) dispute settlement action
ƨOutput
ƨ
Category – Ministerial Services – Consumer Affairs
Scope
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio
responsibilities (other than policy decision-making) relating to Consumer Affairs.
Intention
This category is intended to achieve effective and efficient ministerial services related to consumer affairs.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
55
Non-financial performance
Performance Measure
Standard
2014/15 Actual
95% or above
100%
95% or above
100%
95% or above
100%
Ministerial Services – Consumer Affairs
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests25 are to be completed within either specified or statutory
timeframes26
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
ƨOutput
ƨ
Category – Ministerial Services and Crown Entity Monitoring – Commerce
Scope
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio
responsibilities (other than policy decision-making) including monitoring of Crown entities and Statutory Bodies
relating to Commerce.
Intention
This category is intended to achieve effective and efficient ministerial services related to commerce.
Non-financial performance
Performance Measure
Standard
2014/15 Actual
Ministerial Services and Crown Entity Monitoring – Commerce
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests27 are to be completed within either specified or statutory
timeframes
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
95% or above
94%
95% or above
100%
95% or above
100%
In 2014/15, 94 per cent of Parliamentary Questions (62 out of 66) were responded to within the specified timeframes,
which was below the standard of 95 per cent. The four Parliamentary Questions that were late were responded to one
day after the specified deadline. The Ministry is continuing to develop its processes so all standards can be achieved.
This includes centralising the management of Ministerial Services.
ƨOutput
ƨ
Category – Policy Advice – Commerce
Scope
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 Commerce.
Intention
This category is intended to achieve policy advice of high technical quality that contributes to trusted, competitive and
well-functioning markets, improved business capability and higher levels of innovation and improved international
flows of people, investment and trade, as measured by the satisfaction of the Minister, external review of MBIE’s policy
advice and hourly cost of policy advice.
25 Vote Commerce and Consumer Affairs received 1 Parliamentary Question, 70 items of Ministerial correspondence and 6 Ministerial Official Information
Act 1982 requests for Output Category – Ministerial Services Consumer Affairs.
26 Ministerial Servicing timeframes vary across Ministerial Offices and Votes. The timeframe for draft replies to written Parliamentary Questions is
usually 5 or 6 days; for Ministerial correspondence it is 10, 15 or 20 days or a specific time agreed with a Minister’s Office; and for Ministerial Official
Information Act 1982 requests it is 10 or 15 days or a specific time agreed with a Minister’s Office.
27 Vote Commerce and Consumer Affairs received 66 Parliamentary Questions, 126 items of Ministerial correspondence and 13 Ministerial Official
Information Act 1982 requests for Output Category Ministerial Services and Crown Entity Monitoring – Commerce.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
56
Non-financial performance
Performance Measures
Standard
2014/15 Actual
The satisfaction of the Minister of Commerce with the policy advice service, as per the common
satisfaction survey
At least 70%28
72%
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
At least an
average of 73%
74%
At most $155
$15229
Policy Advice – Commerce
The total cost per hour of producing outputs
ƨOutput
ƨ
Category – Policy Advice – Consumer Affairs
Scope
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 Consumer Affairs.
Intention
This category is intended to achieve policy advice of high technical quality that contributes to trusted, competitive and
well-functioning markets, as measured by the satisfaction of the Minister; external review of MBIE’s policy advice, and
hourly cost of policy advice.
Non-financial performance
Performance Measures
Standard
2014/15 Actual
At least 70%30
72%
At least an
average of 73%
74%
At most $155
$15231
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
562
562
562
200
200
200
1,046
1,296
1,296
6
6
–
Policy Advice – Consumer Affairs
The satisfaction of the Minister of Consumer Affairs with the policy advice service, as per the
common satisfaction survey
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
The total cost per hour of producing outputs
ƨFinancial
ƨ
performance
$000
Revenue
Investigative Services – Trade Remedies
Crown
Ministerial Services – Consumer Affairs
Crown
Ministerial Services and Crown Entity Monitoring – Commerce
Crown
Department
28 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
29 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
30 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
31 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
19
19
–
8,420
9,420
9,420
Department
–
37
–
Other
71
191
–
Crown
819
1,419
1,419
Other
186
36
–
11,329
13,186
12,897
Investigative Services – Trade Remedies
562
562
562
Ministerial Services – Consumer Affairs
200
200
200
Ministerial Services and Crown Entity Monitoring – Commerce
1,071
1,321
1,296
Policy Advice – Commerce
8,491
9,648
9,420
Policy Advice – Consumer Affairs
1,005
1,455
1,419
Total Expenses
11,329
13,186
13,112
Investigative Services – Trade Remedies
562
562
526
Ministerial Services – Consumer Affairs
200
200
415
Ministerial Services and Crown Entity Monitoring – Commerce
1,071
1,321
1,693
Policy Advice – Commerce
8,491
9,648
9,030
Policy Advice – Consumer Affairs
1,005
1,455
1,448
Net Surplus/(Deficit)
–
–
(215)
Investigative Services – Trade Remedies
–
–
36
Ministerial Services – Consumer Affairs
–
–
(215)
Ministerial Services and Crown Entity Monitoring – Commerce
–
–
(397)
Policy Advice – Commerce
–
–
390
Policy Advice – Consumer Affairs
–
–
(29)
Other
$000
Policy Advice – Commerce
Crown
Policy Advice – Consumer Affairs
Total Revenue
57
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
58
Vote Communications
COMMUNICATIONS AND ICT OPERATIONAL POLICY, MINISTERIAL SERVICING AND CROWN ENTITY MONITORING
ƨScope
ƨ
This appropriation is limited to the development of operational policies in relation to information technology,
New Zealand’s digital capability, telecommunications markets and regulation, broadband investment, postal services,
and international for a related to New Zealand’s ICT interests, services to support the Minister, and monitoring the
performance and compliance of Crown Entities.
ƨIntention
ƨ
This appropriation is intended to achieve effective and efficient ministerial services, and monitoring of the performance
and compliance of Crown entities.
ƨNon-financial
ƨ
performance
Performance Measure
Standard
2014/15 Actual
95% or above
100%
95% or above
100%
95% or above
100%
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
586
186
186
Total Revenue
586
186
184
Total Expenses
586
186
184
–
–
2
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests32 are to be completed within either specified or statutory
timeframes33
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
MANAGEMENT AND ENFORCEMENT OF THE RADIOCOMMUNICATIONS ACT 1989
ƨScope
ƨ
Management of the radio spectrum, including technical arrangements for the allocation of spectrum, representation
of New Zealand’s international radio spectrum interests, and management of spectrum sales including costs associated
with financial assistance for transition of radio licences when a management right is created or spectrum is allocated
to a different use.
ƨIntention
ƨ
This appropriation is intended to achieve the provision of effective and efficient allocation and licensing of the
radio spectrum.
32 Vote Communications received 29 Parliamentary Questions, 287 items of Ministerial correspondence and 10 Ministerial Official Information Act 1982
requests.
33 Ministerial Servicing timeframes vary across Ministerial Offices and Votes. The timeframe for draft replies to written Parliamentary Questions is
usually 5 or 6 days; for Ministerial correspondence it is 10, 15 or 20 days or a specific time agreed with a Minister’s Office; and for Ministerial Official
Information Act 1982 requests it is 10 or 15 days or a specific time agreed with a Minister’s Office.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
59
ƨNon-financial
ƨ
performance
Performance Measure
Standard
2014/15 Actual
95%
100%
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
320
320
320
Department
454
454
–
Other
6,431
6,431
7,450
Total Revenue
7,205
7,205
7,770
Total Expenses
9,641
9,641
7,583
(2,436)
(2,436)
187
Submitted applications are correctly registered or granted, and documented interference
complaints are actioned within the work programme timeframe34
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
There was a surplus of $187,000 compared with an expected deficit of $2.436 million. This was due, in part, to an
increase of $1.019 million in other revenue related to demand for 4G technology licences, which was stronger than
forecast. In addition, expenses were $2.058 million lower than expected as a result of the switch to online licensing
and fewer complaints of interference following the switch to digital television, which required fewer resources to service
this appropriation.
MANAGEMENT OF EMERGENCY TELECOMMUNICATIONS SERVICES
ƨScope
ƨ
This appropriation is limited to the management of upgrades to the telecommunications capabilities of the emergency
response services.
ƨIntention
ƨ
This appropriation is intended to achieve the management of upgrades to the telecommunications capabilities of the
emergency response services in order to provide improved access to quality communications service.
ƨNon-financial
ƨ
performance
Performance Measure
Milestones achieved as per the project plan
Standard
2014/15 Actual
Achieved
Achieved
34 A total of 2,325 applications were correctly registered or granted within the work programme timeframe and 139 interference complaints were
actioned and closed.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
60
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
–
251
251
Total Revenue
–
251
251
Total Expenses
–
251
75
Net Surplus/(Deficit)
–
–
176
$000
Revenue
POLICY ADVICE – COMMUNICATIONS
ƨScope
ƨ
This appropriation 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.
ƨIntention
ƨ
This category is intended to achieve the provision of high quality policy advice to Ministers.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
The satisfaction of the Minister for Communications and Information Technology with the policy
advice service, as per the common satisfaction survey
At least 70%35
78%
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
At least an
average of 73%
72%
At most $155
$15236
The total cost per hour of producing outputs
The New Zealand Institute of Economic Research reported that 72 per cent of Vote Communications policy papers
achieved required standard compared to the target of 73 per cent. The Ministry is continuing to implement its policy
capability development programme with a focus on improved quality.
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
3,658
4,658
4,658
Total Revenue
3,658
4,658
4,658
Total Expenses
3,658
4,658
4,644
–
–
14
$000
Revenue
Net Surplus/(Deficit)
35 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
36 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
61
Vote Economic Development
and Employment
CANTERBURY RECOVERY
ƨScope
ƨ
This appropriation is limited to the co-ordination, and management of the Ministry’s contribution to the
Canterbury recovery.
ƨIntention
ƨ
This appropriation is to coordinate the Ministry’s contribution to the Canterbury recovery to contribute to
productive and successful people, communities and regions.
ƨNon-financial
ƨ
performance
Performance Measure
Standard
2014/15 Actual
Satisfied or
very satisfied
Satisfied37
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
2,557
2,557
2,557
Total Revenue
2,557
2,557
2,557
Total Expenses
2,557
2,557
2,263
–
–
294
The satisfaction of the Minister for Economic Development with the policy advice service, as per
the common satisfaction survey
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
The surplus of $294,000 was mainly due to longer phasing of the government Canterbury rebuild work programme.
EMPLOYMENT SECTOR ANALYSIS AND FACILITATION
ƨScope
ƨ
This appropriation is limited to the provision of employment information, facilitation and matching services, analysis
of the functioning of the labour market, and of the economic performance of sectors and regions.
ƨIntention
ƨ
This appropriation is intended to achieve the provision of labour market information to support productive and
successful people, communities and regions.
37 The Ministry received 74 per cent score on the policy advice service satisfaction survey. A score of 70 per cent or above is deemed satisfactory.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
62
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
The percentage of labour market information (such as the Household Labour Force
Survey and Jobs Online) published on the Ministry’s website within agreed timeframes
100%
100%
The percentage of labour market scorecard reports delivered quarterly within
agreed timeframes
100%
100%
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
2,894
4,619
4,619
Total Revenue
2,894
4,619
4,619
Total Expenses
2,894
4,619
4,394
–
–
225
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
IMPLEMENTATION OF IMPROVEMENTS IN PUBLIC SECTOR PROCUREMENT AND SERVICES TO BUSINESS
ƨScope
ƨ
This appropriation is limited to improving and leading the public sector procurement reform programme and reducing
the costs for and improving the service experience of businesses interacting with government.
ƨIntention
ƨ
This appropriation is intended to achieve better public services and encourage business growth.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
80%
79%
80%
73%
75%
64%
$68.6m
$98.7m
$11.9m
Uptake of all-of-government contracts by public service agencies
Eighty per cent for public service agencies within 12 months of contract establishment.
Participation in all-of-government contracts by state sector agencies (excluding boards
of trustees) to increase year on year
• rental vehicles contracts
• reticulated gas contracts
Seventy-five per cent of participating agencies satisfied or very satisfied
Meet the financial targets identified through the Government Procurement Reform Agenda38
• Agency savings over financial year
• All-of-government Income over financial year
Reduce business costs (using effort as proxy for costs) from dealing with government
by 25% by 2017, government services to business have similar key performance ratings
and leading private sector firms by 201739
$7.248m
On going to
30 June 2017
On track40
Seventy nine per cent of public service agencies took up all-of-government contracts for rental vehicles and
73 per cent for reticulated gas. The market rate for reticulated gas has decreased to a level that reduces the
incentives for government agencies to participate in all-of-government contracts. Rental vehicles was another
area that did not achieve the target of 80 per cent for all-of-government contract participation.
38 These figures are calculated from quarterly reports by all-of-government suppliers on government spend and savings achieved through the contracts.
This is based on a published methodology that assesses prices through the all-of-government contracts against prices available to government
agencies outside the contracts. The methodology is dependent on market research and benchmarking against best market price or rate. Further
information on the methodology is available on the Business.govt.nz website: www.business.govt.nz/procurement/pdf-library/aog/aog-savingsmethodology-for-products-703-kb-pdf.
39 Result 9 is government programme to make it easier and cheaper for business customers by reducing the time, effort and cost of dealing with the
public sector. Result 9 measures the change in effort (as a proxy for cost) from dealing with government using a survey that asks businesses to rate
effort on an 11-point scale.
40 A 16 per cent drop in reported effort when dealing with government since 2012 baseline.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
63
During the year, 64 per cent of agencies surveyed indicated they were satisfied or very satisfied with the uptake of
the all-of-government contracts (against a standard of 75 per cent).
The Ministry is working with agencies to realise the full benefits of all-of-government contracts.
ƨFinancial
ƨ
Performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
10,915
6,813
6,813
–
56
–
Other
6,602
16,281
12,809
Total Revenue
17,517
23,150
19,622
Total Expenses
17,517
23,150
20,295
–
–
(673)
$000
Revenue
Crown
Department
Net Surplus/(Deficit)
The increase of $5.633 million between the Main Estimates and the Supplementary Estimates was mainly to fund the:
›› cross-agency work to manage the procurement for telecommunications
›› all-of-government contract work by establishing new contracts for banking services, consultancy services, and
insurance and building materials
›› prototype Dispute Resolution Centre of Excellence
›› Better Public Services – Seed Fund.
The deficit of $673,000 was due to a delay in streamlining non-government organisation ICT project. The delay was
due to the cloud-based nature of the software as a service technology requiring appropriate due diligence and requisite
government security and privacy clearances. This multi-agency due diligence and validation process has taken longer
than expected and will not be completed until 2015/16.
POLICY ADVICE AND RELATED OUTPUTS MCA
ƨOverarching
ƨ
Purpose
The single 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.
ƨIntention
ƨ
This appropriation is to provide effective and efficient ministerial services and policy advice of high quality
contributing to trusted, competitive and well-functioning markets; improved business capability and higher levels
of innovation; and productive and successful people, communities and regions.
CATEGORY
ƨOutput
ƨ
Category – Ministerial Services – Employment
Scope
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio
responsibilities (other than policy-making) relating to Employment.
Intention
This category is intended to achieve effective and efficient ministerial services.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
64
Non-financial performance
Performance Measure
Standard
2014/15 Actual
95% or above
100%
Ministerial Services – Employment
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests41 are to be completed within either specified or statutory
timeframes42
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
95% or above
98%
95% or above
100%
ƨOutput
ƨ
Category – Ministerial Services – Small Business
Scope
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio
responsibilities (other than policy decision-making) relating to Small Business.
Intention
This category is intended to achieve effective and efficient ministerial services.
Non-financial performance
Performance Measure
Standard
2014/15 Actual
Ministerial Services – Small Business
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests43 are to be completed within either specified or statutory
timeframes
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
95% or above
92%
95% or above
100%
95% or above
100%
Ninety-two per cent of Small Business Parliamentary Questions were responded to within specified timeframes
compared with the standard of 95 per cent. One out of 13 Parliamentary Questions completed was not within the
agreed timeframe. The Ministry is continuing to develop its processes so all ministerial standards can be achieved.
This includes centralising the management of Ministerial Services.
ƨOutput
ƨ
Category – Ministerial Services and Crown Entity Monitoring – Economic Development
Scope
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio
responsibilities (other than policy decision-making) including monitoring of Crown Entities and Statutory Bodies,
relating to Economic Development.
Intention
This category is intended to achieve effective and efficient ministerial services.
41 Vote Economic Development and Employment received 22 Parliamentary Questions, 60 items of Ministerial correspondence and 3 Ministerial Official
Information Act 1982 requests for Output Category Employment.
42 Ministerial Servicing timeframes vary across Ministerial Offices and Votes. The timeframe for draft replies to written Parliamentary Questions is
usually 5 or 6 days; for Ministerial correspondence it is 10, 15 or 20 days or a specific time agreed with a Minister’s Office; and for Ministerial Official
Information Act 1982 requests it is 10 or 15 days or a specific time agreed with a Minister’s Office.
43 Vote Economic Development and Employment received 13 Parliamentary Questions, 32 items of Ministerial correspondence and 1 Ministerial Official
Information Act 1982 requests for Output Category Small Business.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
65
Non-financial performance
Performance Measures
Standard
2014/15 Actual
Ministerial Services and Crown Entity Monitoring – Economic Development
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests44 are to be completed within either specified or statutory
timeframes
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
Ministers receive advice on entities’ Statement of Intents, Annual Report and Quarterly Reports
within 2 weeks of receipt
95% or above
97%
95% or above
99%
95% or above
86%
100%
100%
Eighty-six per cent of Official Information Act 1982 requests were responded to within statutory timeframes compared
with the standard of 95 per cent. Five out of 37 Official Information Act 1982 requests were not completed within the
specified timeframe. The Ministry is continuing to develop its processes so all ministerial standards can be achieved.
This includes centralising the management of Ministerial Services.
ƨOutput
ƨ
Category – Policy Advice – Economic Development
Scope
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
Economic Development.
Intention
This category is intended to achieve policy advice of high technical quality relating to Economic Development.
Non-financial performance
Performance Measures
Standard
2014/15 Actual
The satisfaction of the Minister for Economic Development with the policy advice service, as per
the common satisfaction survey
At least 70%45
74%
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
At least an
average of 73%
72%
At most $155
$15246
Policy Advice – Economic Development
The total cost per hour of producing outputs
The New Zealand Institute of Economic Research reported that 72 per cent of Economic Development policy papers
achieved required standard compared to the target of 73 per cent. The Ministry is continuing to implement its policy
capability development programme.
ƨOutput
ƨ
Category – Policy Advice – Employment
Scope
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.
Intention
This category is intended to achieve policy advice of high technical quality relating to Employment.
44 Vote Economic Development and Employment received 60 Parliamentary Questions, 89 items of Ministerial correspondence and 37 Ministerial Official
Information Act 1982 requests for Output Category Ministerial Services and Crown entity monitoring.
45 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
46 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
66
Non-financial performance
Performance Measures
Standard
2014/15 Actual
At least 70%47
74%
At least an
average of 73%
65%
At most $155
$15248
Policy Advice – Employment
The satisfaction of the Minister for Tertiary Education, Skills and Employment with the policy
advice service, as per the common satisfaction survey
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
The total cost per hour of producing outputs
The New Zealand Institute of Economic Research reported that 72 per cent of Economic Development policy papers
achieved required standard compared to the target of 73 per cent. The sample selected for review was eight papers.
The Ministry is continuing to implement its policy capability development programme.
ƨOutput
ƨ
Category – Policy Advice – Small Business
Scope
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 Small Business.
Intention
This category is intended to achieve policy advice of high technical quality relating to Small Business.
Non-financial performance
Performance Measures
Standard
2014/15 Actual
At least 70%49
52%
At least an
average of 73%
Not applicable50
At most $155
$15251
Policy Advice – Small Business
The satisfaction of the Minister for Small Business with the policy advice service, as per the
common satisfaction survey
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
The total cost per hour of producing outputs
The Ministry received 52 per cent satisfaction rating from the Minister for the policy advice service, against the standard
of 70 per cent. The Ministry is continuing to implement its policy capability development programme.
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
1,504
504
504
217
217
217
Crown
4,385
6,343
6,343
Other
750
750
758
$000
Revenue
Ministerial Services – Employment
Crown
Ministerial Services – Small Business
Crown
Ministerial Services and Crown Entity Monitoring – Economic Development
Policy Advice – Economic Development
47 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
48 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
49 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
50 The Ministry is unable to report on the technical quality of policy advice as the samples the New Zealand Institute of Economic Research tested did not
include any papers from the Small Business portfolio.
51 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
4,548
12,178
12,178
–
506
520
5,900
155
73
5,701
2,151
2,151
1,234
1,234
1,234
24,239
24,038
23,978
1,504
504
504
217
217
217
5,135
7,093
7,101
10,448
12,839
12,771
Policy Advice – Employment
5,701
2,151
2,151
Policy Advice – Small Business
1,234
1,234
1,234
24,239
24,038
21,713
1,504
504
415
217
217
172
5,135
7,093
6,555
10,448
12,839
11,494
Policy Advice – Employment
5,701
2,151
1,900
Policy Advice – Small Business
1,234
1,234
1,177
Net Surplus/(Deficit)
–
–
2,265
Ministerial Services – Employment
–
–
89
Ministerial Services – Small Business
–
–
45
Ministerial Services and Crown Entity Monitoring – Economic Development
–
–
546
Policy Advice – Economic Development
–
–
1,277
Policy Advice – Employment
–
–
251
Policy Advice – Small Business
–
–
57
Crown
Department
Other
$000
Policy Advice – Employment
Crown
Policy Advice – Small Business
Crown
Total Revenue
Ministerial Services – Employment
Ministerial Services – Small Business
Ministerial Services and Crown Entity Monitoring – Economic Development
Policy Advice – Economic Development
Total Expenses
Ministerial Services – Employment
Ministerial Services – Small Business
Ministerial Services and Crown Entity Monitoring – Economic Development
Policy Advice – Economic Development
The surplus of $2.265 million was due to delay in the Regional Growth Studies being completed, establishing
seed funding for the Auckland Innovation Lab, and determining the money relating to design and approval of
the New Zealand International Conference Centre based in Auckland.
67
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
68
Vote Energy
ADMINISTRATION OF FUEL QUALITY MONITORING PROGRAMME
ƨScope
ƨ
This appropriation is limited to ensuring New Zealand’s retail fuel supply meets the Engine Fuel Specification
regulations.
ƨIntention
ƨ
This appropriation is intended to achieve a trading environment in which consumers are well informed, adequately
protected, trading is fair and consumers and businesses participate with confidence.
ƨNon-financial
ƨ
performance
Performance Measure
Standard
2014/15 Actual
Annual publication
of the Fuel Quality
Monitoring Report
Achieved
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
972
1,007
1,006
Total Revenue
972
1,007
1,006
1,007
1,007
998
(35)
–
8
Administration and maintenance of the Fuel Quality Monitoring Programme enforcing compliance
with the Engine Fuel Specifications Regulations 2011 to promote and maintain confidence in the
quality of the retail fuel supply
ƨFinancial
ƨ
performance
$000
Revenue
Total Expenses
Net Surplus/(Deficit)
ENERGY AND RESOURCE INFORMATION SERVICES
ƨScope
ƨ
Provision of information and technical advice on energy and resources, the management of the response to any
international disruption in oil supplies, and the management of New Zealand’s energy-related international relations.
ƨIntention
ƨ
This appropriation is intended to achieve the provision of information and technical advice on energy and resources.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
69
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
All international
requirements
are met. Data is
provided to the
international
organisations
by their stated
deadlines
Achieved
All publications
are reviewed for
completeness
and accuracy
before publication.
Methodologies
are reviewed
externally on an asrequired basis and
published on the
Ministry’s website
Achieved
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
1,019
819
819
Total Revenue
1,019
819
819
Total Expenses
1,019
819
664
–
–
155
New Zealand’s obligations for reporting energy information to international organisations,
including the International Energy Agency (IEA), Asia Pacific Economic Cooperation (APEC) and
United Nations Framework Convention on Climate Change (UNFCCC) are met
All publications and information provided on projections of energy supply and demand
and energy sector greenhouse gas emissions are reliable
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
ENERGY AND RESOURCE INFORMATION SERVICES RDA52
ƨScope
ƨ
Provision of information and technical advice on energy and resources, the management of the response to any
international disruption in oil supplies, and the management of New Zealand’s energy-related international relations.
ƨIntention
ƨ
This appropriation is intended to achieve the provision of information and technical advice on energy and resources.
ƨNon-financial
ƨ
performance
Performance Measures
New Zealand’s obligations for reporting energy information to international organisations,
including the International Energy Agency (IEA), Asia Pacific Economic Cooperation (APEC) and
United Nations Framework Convention on Climate Change (UNFCCC) are met
52 Revenue Dependent Appropriation.
Standard
2014/15 Actual
All international
requirements
are met. Data is
provided to the
international
organisations
by their stated
deadlines
Achieved
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
70
Performance Measures
Standard
2014/15 Actual
All publications
are reviewed for
completeness
and accuracy
before publication.
Methodologies
are reviewed
externally on an asrequired basis and
published on the
Ministry’s website
Achieved
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Other
1,827
1,827
1,827
Total Revenue
1,827
1,827
1,827
Total Expenses
1,827
1,827
1,827
–
–
–
All publications and information provided on projections of energy supply
and demand and energy sector greenhouse gas emissions are reliable
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
ENERGY AND RESOURCES OPERATIONAL POLICY, MINISTERIAL SERVICING AND CROWN ENTITY MONITORING
ƨScope
ƨ
This appropriation is limited to the development of operational policies in relation to the operation of energy and
resource markets (electricity, oil, gas, geothermal, coal, minerals and natural related resources) and energy efficiency
and conservation issues, services to support the Minister, and monitoring the performance and compliance of Crown
entities.
ƨIntention
ƨ
This appropriation is intended to achieve the provision of effective and efficient ministerial services and the monitoring
of the performance and compliance of Crown entities.
ƨNon-financial
ƨ
performance
Performance Measure
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests53 are to be completed within either specified or statutory
timeframes54
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
Standard
2014/15 Actual
95% or above
100%
95% or above
99%
95% or above
100%
53 Vote Energy received 93 Parliamentary Questions, 254 items of Ministerial correspondence and 21 Ministerial Official Information Act 1982 requests.
54 Ministerial Servicing timeframes vary across Ministerial Offices and Votes. The timeframe for draft replies to written Parliamentary Questions is
usually 5 or 6 days; for Ministerial correspondence it is 10, 15 or 20 days or a specific time agreed with a Minister’s Office; and for Ministerial Official
Information Act 1982 requests it is 10 or 15 days or a specific time agreed with a Minister’s Office.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
71
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
1,476
2,226
2,226
Total Revenue
1,476
2,226
2,226
Total Expenses
1,476
2,226
2,216
–
–
10
$000
Revenue
Net Surplus/(Deficit)
MANAGEMENT OF THE CROWN MINERAL ESTATE
ƨScope
ƨ
Allocation and management of Crown-owned petroleum, coal and mineral resources under the Crown Minerals Act 1991
and minerals programmes issued under the Act.
ƨIntention
ƨ
This appropriation is intended to achieve the efficient allocation and management of Crown-owned petroleum and
mineral resources.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
100%
Not achieved55
95%
77%
80%
97%
90%
78%
100%
100%
100%
100%
100%
98%
Timeliness of decision making on the acceptance of petroleum mining permit applications
The percentage of petroleum mining permit applications accepted or declined within
120 working days
Timeliness of assessment of completeness of new minerals permit applications
The percentage of new permit applications for minerals assessed for completeness and
the applicant contacted within 5 working days. If the application is incomplete, the applicant is
advised (within the 5 working days) to meet its obligations
Timeliness of processing of new minerals permit applications
The percentage of new minerals permit applications granted or declined within 6 months
Timeliness of processing of minerals permit change applications
The percentage of minerals permit change applications granted or declined within 3 months
Timeliness of assessment of new petroleum exploration permit applications in Block Offer
The percentage of petroleum exploration permit applications assessed in accordance with the Block
Offer initiative for bids and accepted or declined within 5 months
Timeliness of processing of petroleum exploration permit applications (with the exception of
new exploration permit applications)
The percentage of petroleum exploration permit applications accepted or declined within
90 working days
Timeliness of processing of royalty returns
The percentage of permit holders’ royalty returns receipted within 30 days
In 2014/15, the following results did not achieve their standards:
›› Seventy-seven per cent of new permit applications for minerals were assessed for completeness and the applicant
contacted within five working days compared with a standard of 95 per cent. The standard was not met because
of transitional issues with the introduction of our new online permitting technology platform.
›› Seventy-eight per cent of mineral permit change applications were granted or declined within three months
compared with a standard of 90 per cent. The Ministry is reviewing its process to identify the reason for delays
in assessing permits.
›› Ninety-eight per cent of royalty returns were processed within 30 days compared with the standard of 100 per cent.
The standard was not met because of transitional issues with the introduction of our new online permitting
technology platform.
55 The decision to decline one application exceeded the standard timeframe of 120 working days because of protracted negotiations with the applicant.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
72
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
11,303
11,303
11,303
Other
6,162
6,162
5,385
Total Revenue
17,465
17,465
16,688
Total Expenses
17,458
17,458
17,451
7
7
(763)
$000
Revenue
Net Surplus/(Deficit)
The deficit of $763,000 was due to fewer licences being issued for petroleum, coal and mineral resources. This was
influenced by the reduction in commodity prices for those resources.
POLICY ADVICE – ENERGY AND RESOURCE ISSUES
ƨScope
ƨ
This appropriation 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.
ƨIntention
ƨ
This category is intended to achieve timely, high quality policy advice as measured by the satisfaction of the Minister,
external review of the Ministry’s policy advice, and hourly cost of policy advice.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
At least 70%56
70%
At least an
average of 73%
73%
At most $155
$15257
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
4,789
4,239
4,239
22
22
73
Total Revenue
4,811
4,261
4,312
Total Expenses
4,811
4,261
4,064
–
–
248
The satisfaction of the Minister of Energy and Resources with the policy advice service,
as per the common satisfaction survey
Technical quality of policy advice papers assessed by a survey with a methodological robustness of
80%
The total cost per hour of producing outputs
ƨFinancial
ƨ
performance
$000
Revenue
Crown
Department
Net Surplus/(Deficit)
56 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
57 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
73
Vote Housing
BUILDING REGULATION AND CONTROL
ƨScope
ƨ
This appropriation is limited to activities associated with the setting of performance standards for buildings and
the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met.
ƨIntention
ƨ
This appropriation is intended to achieve the development and regulation of performance standards to ensure safe,
healthy and affordable home and building construction.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
At least 70%
72%
80%
87%
100%
100%
Less than 2%
0%
Implementation of the Building Act Review recommendations
The satisfaction of the Minister of Housing with the policy advice service, as per the
common satisfaction survey
Provide information, advice and guidance
Provide information, advice and guidance to the building sector on regulatory schemes under the
Building Act 2004:
• Provide technical and regulatory advice, information and education on a variety of schemes
and services
The percentage of users surveyed satisfied or very satisfied with the advice, information or
education received
Product assurance
Provide product assurance support, including administration of the product
certification scheme:
• Publish approved Product Certification Bodies and product certificates within
10 working days of receipt
Investigate and issue determinations
Investigate and issue determinations under the Building Act 2004. These are demand driven, and
the Ministry expects to complete about 135 determinations per year:
• Determinations successfully appealed
• Determinations subject to clarification because of inadequate coverage of issues
• Determinations completed within the statutory timeframe (60 days) without agreement of the
parties to extend timeframes
Less than 3%
0%
100%
98%58
Achieved
Achieved
Multi-proof service
Deliver multi-proof approvals of designs indicated to be replicated. These are demand
driven, and the Ministry expects to process about 20 multi-proof applications
• No declined applications appealed successfully to the District Court
58 Ninety-eight per cent of determinations were completed within the statutory timeframe of 60 days compared with the standard of 100 per cent.
The standard was not met because one determination was not settled between parties within the specified timeframe
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
74
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
–
1,150
1,150
Other
21,687
26,989
29,810
Total Revenue
21,687
28,139
30,960
Total Expenses
21,659
28,111
24,012
28
28
6,948
$000
Revenue
Net Surplus/(Deficit)
The increase of $6.452 million between the Main Estimates and the Supplementary Estimates was mainly to:
›› support the National Building Consent System programme ($3.080 million)
›› cover additional costs relating to the Canterbury rebuild implementation of the Royal Commission recommendations
($2.222 million)
›› support the post-disaster building management programme ($1 million).
The surplus of $6.948 million was due to the number of new building consents issued (25,154) exceeding the Ministry’s
forecast, a $4.099 million underspend because of the reduced scope of the National Building Consenting System, and
delays in extending contracts with external providers for the Building System Improvement (Canterbury) project.
CANTERBURY RECOVERY: BUILDING AND HOUSING ASSISTANCE
ƨScope
ƨ
This appropriation is limited to accommodation matching and placement services to people displaced during the
Canterbury recovery.
ƨIntention
ƨ
This appropriation is intended to achieve assistance to Cantabrians affected by the earthquakes to find safe and
healthy temporary accommodation.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
90%
85%
80%
87%
Canterbury Earthquake Temporary Accommodation Service
Identify and manage the temporary accommodation needs for households displaced by the
Canterbury earthquakes by working across agencies and communities to provide best fit solutions
for communities:
• Village occupancy rates indicate the resource is being utilised to accommodate
displaced households
The percentage of village units are occupied at all times
• Client satisfaction with the matching and placement service (including support to transition)
The percentage of customers report that they are satisfied or very satisfied with the temporary
accommodation services
The Canterbury earthquake temporary accommodation occupancy rate was 85 per cent against a standard of
90 per cent. The main reasons this standard was not met were that demand declined for accommodation at
the Kaiapoi Village and four bedroom units were not popular.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
75
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
1,482
1,532
1,532
Total Revenue
1,482
1,532
1,532
Total Expenses
1,482
1,532
1,414
–
–
118
$000
Revenue
Net Surplus/(Deficit)
OCCUPATIONAL LICENSING
ƨScope
ƨ
This appropriation is limited to the development, implementation and maintenance of the registration and licensing
regimes for building practitioners and electrical workers.
ƨIntention
ƨ
This appropriation is intended to achieve certainty and confidence for the industry and the public that licensed
practitioners and workers in the building, construction, and electrical sectors are competent and contribute to safe,
healthy and affordable homes and buildings.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
90%
98%
95%
99%
The percentage of correctly completed registration or licensing application processed within
10 working days of receipt
95%
99%
Conduct examinations of electrical workers and release results within 6 weeks from date of
examination
100%
100%
85%
93%
Licensing of Building Practitioners
Administration and development of the occupational licensing scheme for building practitioners
under the Building Act 2004 to increase competency in the building and construction sector:
• Relicensing building practitioners
The percentage of correctly completed relicensing applications processed within
5 working days
• License building practitioners
The percentage of correctly completed new license applications processed within
35 working days of receipt
Licensing of Electrical Workers
Administer the electrical occupational licensing requirements under the Electricity Act 1992 to
increase competency in the sector:
• Register electrical workers and issue practising licenses
Complaints against non-Registered and Registered Electrical Workers will be investigated and
a report provided to the Registrar within 12 weeks of receipt of the complaint
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
76
ƨFinancial
ƨ
performance33
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
–
691
691
Other
8,844
8,153
8,143
Total Revenue
8,844
8,844
8,834
Total Expenses
9,266
9,266
8,957
(422)
(422)
(123)
$000
Revenue
Net Surplus/(Deficit)
PROFESSIONAL ENGINEERING INPUT TOWARD THE RESOLUTION OF CANTERBURY RESIDENTIAL
REBUILD DESIGN UNCERTAINTY
ƨScope
ƨ
This appropriation is limited to the provision of professional engineering advice and support for either third parties
or the general public to support the Canterbury residential rebuild.
ƨIntention
ƨ
This appropriation is intended to achieve independent technical advice from geotechnical, structural engineering and
quantity surveying professionals in support of the Residential Advisory Service.
ƨNon-financial
ƨ
performance
Performance Measure
Standard
2014/15 Actual
Achieved
Achieved
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
700
700
700
Total Revenue
700
700
700
Total Expenses
700
700
390
–
–
310
All payments to professional engineering advisors will be made in accordance with
agreed procedures
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
The surplus of $310,000 was due to lower than expected demand for professional engineering advice.
RESIDENTIAL TENANCY AND UNIT TITLE SERVICES
ƨScope
ƨ
This appropriation is limited to the provision of residential tenancy and unit title dispute resolution services,
information, education, and advice; administration and investment of residential tenancy bond monies; provision
of administrative support to the State Housing Appeals Authority.
ƨIntention
ƨ
This appropriation is intended to achieve the provision of information, education, advice, bond processing and
mediation services, and an environment in which consumers and businesses are well informed and understand
their rights and regulatory obligations.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
77
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
80% of surveyed
clients are
satisfied or very
satisfied
88%
95%
100%
95%
100%
85% or better
94%
80% satisfied or
very satisfied
92%
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Other
17,788
21,088
23,983
Total Revenue
17,788
21,088
23,983
Total Expenses
21,523
24,823
24,753
Net Surplus/(Deficit)
(3,735)
(3,735)
(770)
Residential Tenancies Act 1986 and Unit Titles Act 2010 statutory functions
Manage bond lodgements, refunds and investment as required under the Residential Tenancies Act
1986 and over 53,000 tenancy tribunal applications. Provide advice, education and information and
dispute resolution as required under the Unit Titles Act 2010.
• Clients are satisfied with departmental advice and information provided via a range of channels
for Residential Tenancies Services (RTS), Boarding House Tenancies and Unit Titles
• Process bond lodgements within 10 business days with less than 1.5% error rate
• Process bond refunds within 2 business days with less than 1% error rate
• Internal Audit of building and housing related calls assessed are to the agreed standard
• Satisfaction of customers with overall quality and timeliness of mediation services
ƨFinancial
ƨ
performance
$000
Revenue
The deficit of $770,000 compared with the estimated deficit of $3.735 million was due to an increase in other revenue
from higher tenancy bond volumes and expenses for the Tenancy Service not increasing in relation to higher volumes.
SOCIAL HOUSING UNIT
ƨScope
ƨ
This appropriation is limited to the administration costs of the Social Housing Unit.
ƨIntention
ƨ
This appropriation is intended to achieve social and affordable homes.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
Meets government
and probity
requirements
Not applicable59
Guidelines and
requirements met
Achieved
Contribute to growth in the supply of social and affordable housing through the provision of
effective operational policy advice and the efficient and effective delivery of the Social Housing
Fund and stock transfer and sector development initiatives
• Process developed for allocating the Social Housing Fund and possible stock transfers
• Develop various engagement mechanisms with the non-government providers
59 This measure is no longer applicable as funding to the Social Housing Fund and possible stock transfers stopped before 2014/15 and the stock
transfer was completed in October 2013.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
78
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
2,303
2,453
2,453
Total Revenue
2,303
2,453
2,453
Total Expenses
2,303
2,453
2,363
–
–
90
$000
Revenue
Net Surplus/(Deficit)
SPECIAL HOUSING AREAS
ƨScope
ƨ
This appropriation is limited to the provision of policy advice on the establishment of special housing areas, the
negotiation of housing accords with local councils and the costs of providing resource consenting processes in
special housing areas.
ƨIntention
ƨ
This appropriation is intended to achieve provision of a resource consenting function in Special Housing Areas
declared outside of the provisions of a Housing Accord.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
Seven
Eight
At least 70%60
72%
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
1,963
2,513
2,513
Other
3,000
750
-
Total Revenue
4,963
3,263
2,513
Total Expenses
4,963
3,263
2,207
–
–
306
Territorial authorities identified in Schedule 1 of the Housing Accords and Special Housing
Act 2013 enter into housing accords with the Government
The satisfaction of the Minister of Housing with the policy advice service, as per the common
satisfaction survey
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
The surplus of $306,000 was due to the implementation scheme in areas covered by a housing accord not commencing
in 2014/15.
60 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
79
WEATHERTIGHT SERVICES
ƨScope
ƨ
This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical
assessment of claims, including reports on actual and probable damage with estimated costs of repair; administration
of the financial assistance package; claim management until repair or claim lodged with the Weathertight Tribunal;
provision of mediation services; and advice, information and education to support more informed consumer decisions.
ƨIntention
ƨ
This appropriation is intended to achieve an increase in the number of weathertight homes in New Zealand and
contribute to safe, healthy and affordable homes and buildings.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
70% satisfied or
very satisfied
80%
500
1,000
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
18,418
12,233
12,233
Other
113
113
36
Total Revenue
18,531
12,346
12,269
Total Expenses
18,418
12,233
10,210
113
113
2,059
Claims assessment, management and financial assistance package administration
Satisfaction of customers with the overall quality of weathertight mediation services
Over 500 homeowners have been able to repair, or start repairing their leaky homes helped by the
Financial Assistance Package contributions by 30 June 2015
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
The decrease of $6.185 million between the Main Estimates and the Supplementary Estimates was due to the lower than
expected use of Weathertight Services.
The surplus of $2.059 million was due to the costs of Weathertight Services being lower than estimated as a result of
demand for its services being lower than estimated.
POLICY ADVICE AND RELATED OUTPUTS MCA
ƨOverarching
ƨ
Purpose
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.
ƨIntention
ƨ
This appropriation is intended to provide effective and efficient ministerial services and high quality policy advice
relating to building, construction and housing sectors.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
80
CATEGORY
ƨOutput
ƨ
Category – Related Services to Ministers – Building and Housing
Scope
This category is limited to the provision of support, information and services to Ministers to enable them to discharge
their portfolio (other than policy decision-making) responsibilities on matters relating to building and housing including
social housing.
Intention
This category is intended to achieve the provision of effective and efficient ministerial services to enable Ministers to
discharge their building and housing portfolio responsibilities.
Non-financial performance
Performance Measures
Standard
2014/15 Actual
100%
87%
Related Services to Ministers – Building and Housing
Responses to Official Information Act 1982 and Privacy Act 1993 requests comply with legislation
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests61 are to be completed within either specified or statutory
timeframes62
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
95% or above
97%
95% or above
96%
95% or above
86%
Eighty-seven per cent of the responses to Official Information Act 1982 and Privacy Act 1993 requests complied with
legislation against a standard of 100 per cent. Seven out of 54 Official Information Act 1982 requests did not comply
with legislative requirements.
Eighty-six per cent of responses to Official Information Act 1982 requests occurred within the statutory timeframe
against a standard of 95 per cent. Seven out of 57 Official Information Act 1982 requests were responded to late
because of high volumes.
The Ministry is continuing to develop its processes so all standards can be achieved. This includes centralising the
management of Ministerial Services.
ƨOutput
ƨ
Category – Building and Construction Policy
Scope
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 Building
and Construction.
Intention
This category is intended to achieve policy advice of high technical quality relating to Building and Construction.
Non-financial performance
Performance Measures
Standard
2014/15 Actual
At least an
average of 73%
73%
At most $155
$15263
At least 70%64
72%
Building and Construction Policy
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
The total cost per hour of producing outputs
The satisfaction of the Minister for Building and Construction with the policy advice
service, as per the common satisfaction survey
61 Vote Housing received 105 Parliamentary Questions, 226 items of Ministerial correspondence and 57 Ministerial Official Information Act 1982 requests.
62 Ministerial Servicing timeframes vary across Ministerial Offices and Votes. The timeframe for draft replies to written Parliamentary Questions is
usually 5 or 6 days; for Ministerial correspondence it is 10, 15 or 20 days or a specific time agreed with a Minister’s Office; and for Ministerial Official
Information Act 1982 requests it is 10 or 15 days or a specific time agreed with a Minister’s Office.
63 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
64 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
81
ƨOutput
ƨ
Category – Housing Policy Advice
Scope
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 Housing.
Intention
This category is intended to achieve policy advice of high technical quality relating to Housing.
Non-financial performance
Performance Measures
Standard
2014/15 Actual
At least an
average of 73%
73%
At most $155
$15265
At least 70%66
72%
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
282
–
–
2,540
2,915
2,915
6,914
7,742
7,742
–
282
282
9,736
10,939
10,939
282
–
–
Building and Construction Policy
2,540
2,915
2,915
Housing Policy Advice
6,914
7,742
7,742
–
282
282
9,736
10,939
10,112
282
–
134
Building and Construction Policy
2,540
2,915
231
Housing Policy Advice
6,914
7,742
9,747
–
282
–
Housing Policy Advice
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
The total cost per hour of producing outputs
The satisfaction of the Minister of Housing with the policy advice service, as per the common
satisfaction survey
ƨFinancial
ƨ
performance
$000
Revenue
Building and Construction Ministerial Servicing
Crown
Building and Construction Policy
Crown
Housing Policy Advice
Crown
Related Services to Ministers – Building and Housing
Crown
Total Revenue
Building and Construction Ministerial Servicing
Related Services to Ministers – Building and Housing
Total Expenses
Building and Construction Ministerial Servicing
Related Services to Ministers – Building and Housing
65 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour
could therefore range between $147 and $157, the higher of which would result in the target not being achieved.
66 S
atisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely
satisfied.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
82
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Net Surplus/(Deficit)
–
–
827
Building and Construction Ministerial Servicing
–
–
(134)
Building and Construction Policy
–
–
2,684
Housing Policy Advice
–
–
(2,005)
Related Services to Ministers – Building and Housing
–
–
282
$000
The surplus of $827,000 was due to Building and Construction Policy advice costs being lower than forecast as a result
of a smaller policy work programme.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
83
Vote Immigration
IMMIGRATION SERVICES
ƨScope
ƨ
This appropriation is limited to the provision of immigration services that include facilitating and processing visa
applications, attracting and supporting migrants, managing immigration risks, and maintaining the integrity of the
immigration operating model.
ƨIntention
ƨ
This appropriation is intended to achieve efficient and effective international flows of people to New Zealand.
ƨNon-financial
ƨ
performance
Performance measures
Standard
2014/15 Actual
The percentage of people that are entered on the New Zealand Now database whose occupations
match those listed under the Skilled Migrant Category
70%
77%
The percentage of people from priority markets entered on the New Zealand Now database
60%
60%
The percentage of customers satisfied with overall service delivery
75%
83%
The percentage of audited visa decisions rated as accurate
90%
83%67
The percentage of all paid deportations that meet the high priority Compliance
Deportation criteria
70%
92%
The percentage of successful prosecutions
80%
81%
The percentage of migrants who are satisfied with the settlement services they
have accessed
75%
93%
The percentage of Recognised Seasonal Employer (RSE) scheme employers satisfied with the
overall quality of service provided by the Ministry’s Relationship Managers
70%
Not available68
The percentage of visitor visa applications decided within 30 days
95%
96%
The percentage of work visa applications decided within 30 days
80%
89%
The percentage of student visa applications decided within 30 days
90%
90%
40,000–50,000
43,085
The number of visitor visa application decisions made
255,000–265,000
275,332
The number of work visa application decisions made
180,000–200,000
196,621
85,000–95,000
116,572
The number of people approved for residence under the New Zealand
Residence Programme
Activity Information (demand driven and outside the control of the Ministry)69
The number of student visa application decisions made
The proportion of audited visa decisions assessed as accurate was 83 per cent (the latest result) compared with a
standard of 90 per cent. Immigration New Zealand is scoping an initiative to improve the quality of decision making in
residence applications in the next financial year in an effort to improve the overall quality of decision making.
67 This result is for the first three quarters of 2014/15 only as the year-end result was not available. The full year result for 2013/14 was 84.5 per cent,
which was not available for the 2013/14 Annual Report.
68 The result for this measure will be available in October 2015.
69 Activity information relates to output volume measures that are demand driven, so are outside the Ministry’s control.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
84
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
51,280
44,780
44,780
132
1,130
1,773
157,379
164,415
175,409
Total Revenue
208,791
210,325
221,962
Total Expenses
210,554
218,799
217,257
(1,763)
(8,474)
4,705
$000
Revenue
Crown
Department
Other
Net Surplus/(Deficit)
The increase in expenses of $8.2 million between the Main Estimates and the Supplementary Estimates was due to
the continued increase in visa volumes and the delivery of the Pacific Regional Immigration Identity Project, Pacific
Customs initiative, and the Police Intelligence Officer Programme.
The overall increase in revenue was $11.636 million, but this was offset by a one-off operating to capital swap of
$5 million for the Immigration Global Management System and a $1.5 million transfer to Refugee and Protection
Services to reflect additional legal costs.
The surplus of $4.705 million was due to revenue being higher than expected as a result of greater demand for visas,
particularly from China and India.
REFUGEE AND PROTECTION SERVICES
ƨScope
ƨ
This appropriation is limited to the provision of refugee and protection services that include selecting and resettling
quota refugees and determining protection for claimants.
ƨIntention
ƨ
This appropriation is intended to achieve implementation of New Zealand’s international obligations to refugees and
protected persons.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
675–825
755
75%
84%
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
15,620
17,120
17,120
The annual quota of United Nations High Commissioner for Refugees (UNHCR) mandated
refugees and their immediate families who travelled to New Zealand
The percentage of refugee and protection claims decided within 140 days
ƨFinancial
ƨ
Performance
$000
Revenue
Crown
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Department
1,676
1,676
756
Other
1,233
1,233
2
Total Revenue
18,529
20,029
17,878
Total Expenses
18,690
20,190
20,124
(161)
(161)
(2,246)
$000
Revenue
Net Surplus/(Deficit)
The increase of $1.5 million between the Main Estimates and the Supplementary Estimates was due to a change
in the overhead allocation cost to reflect additional legal costs.
The deficit of $2.246 million was due to a realignment of the Ministry’s Crown and third-party funding.
REGULATION OF IMMIGRATION ADVISERS
ƨScope
ƨ
This appropriation is limited to: the regulation of persons who provide immigration advice, facilitating the education
and professional development of Immigration Advisers and increasing public awareness of the Immigration Advisers
Authority, pursuant to the functions described in section 35 of the Immigration Advisers Licensing Act 2007.
ƨIntention
ƨ
This appropriation is intended to achieve certainty and confidence for the industry and public that immigration advisors
are fully competent and contribute to bringing the best people to New Zealand with ease.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
The percentage of new licence applications for immigration advisers processed within 20 working
days of receiving the full application
90%
96%
The percentage of fast-track renewal licence applications for immigration advisers processed
within 10 working days of receiving the full application
90%
98%
The percentage of standard renewal licence applications for immigration advisers processed
within 30 working days of receiving the full application
80%
93%
The percentage of upgrade licence applications for immigration advisers processed within
50 working days of receiving the full application
80%
91%
The percentage of complaint cases (received from 1 July 2014) closed within 5 months
80%
63%
The percentage of files submitted to Legal Services for prosecution that meet the agreed
standard as defined in the Immigration Advisers Authority (IAA) prosecution file rating
80%
100%
80–100
143
The number of complaint cases closed70
The proportion of complaint cases closed within five months was 63 per cent compared with the standard of
80 per cent. The standard was not met due to the backlog of complaints carried forward from 2013/14. These
complaints were prioritised ahead of new complaints, which affected our ability to close new complaints within
five months. All complaints from 2013/14 have been closed, and a small number (13) of complaints from 2014/15
have been carried forward to 2015/16.
70 Activity information relates to output volume measures that are demand driven, so are outside the Ministry’s control.
85
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
86
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
1,511
1,971
1,971
Other
745
745
623
Total Revenue
2,256
2,716
2,594
Total Expenses
2,516
2,716
2,674
Net Surplus/(Deficit)
(260)
–
(80)
$000
Revenue
POLICY ADVICE AND RELATED OUTPUTS MCA
ƨOverarching
ƨ
Purpose
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.
ƨIntention
ƨ
This appropriation is intended to contribute to improved international flows of people, ideas, investment and trade;
trusted, competitive and effectively regulated markets; skilled and safe workplaces; and productive and successful
people, communities and regions.
CATEGORY
ƨOutput
ƨ
Category – Ministerial Services
Scope
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other
than policy decision-making) responsibilities.
Intention
This category is intended to achieve effective and efficient ministerial services.
Non-financial performance
Performance Measure
Standard
2014/15 Actual
Ministerial Services
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests71 are to be completed within either specified or statutory
timeframes72
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
95% or above
91%
95% or above
96%
95% or above
90%
Ninety-one per cent of Parliamentary Questions and 90 per cent of Ministerial Official Information Act 1982
requests were responded to within specified or statutory timeframes compared with the standard of 95 per cent.
Eight parliamentary questions were responded to late (out of 94) and three Ministerial Official Information Act 1982
requests were late (out of 39). The Ministry is continuing to develop its processes so all Ministerial standards can be
achieved. This includes centralising the management of Ministerial Services.
71 Vote Immigration received 94 Parliamentary Questions, 368 items of Ministerial correspondence and 29 Ministerial Official Information Act 1982
requests.
72 Ministerial Servicing timeframes vary across Ministerial Offices and Votes. The timeframe for draft replies to written Parliamentary Questions is
usually 5 or 6 days; for Ministerial correspondence it is 10, 15 or 20 days or a specific time agreed with a Minister’s Office; and for Ministerial Official
Information Act 1982 requests it is 10 or 15 days or a specific time agreed with a Minister’s Office.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
87
ƨOutput
ƨ
Class – Policy Advice – Immigration
Scope
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 immigration
policy and international immigration commitments.
Intention
This category is intended to achieve policy of high technical quality relating to immigration and to international
immigration commitments.
Non-financial performance
Performance Measures
Standard
2014/15 Actual
At least 70%73
76%
At least an
average of 73%
75%
At most $155
$15274
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
1,376
1,176
1,176
Crown
6,023
6,023
6,023
Total Revenue
7,399
7,199
7,199
Ministerial Services
1,376
1,176
1,176
Policy Advice – Immigration
6,023
6,023
6,023
Total Expenses
7,399
7,199
5,598
Ministerial Services
1,376
1,176
1,082
6,023
6,023
4,516
Net Surplus/(Deficit)
–
–
1,601
Ministerial Services
–
–
94
Policy Advice – Immigration
–
–
1,507
Policy Advice – Immigration
The satisfaction of the Minister of Immigration with the policy advice service, as per the common
satisfaction survey
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
The total cost per hour of producing outputs
ƨFinancial
ƨ
performance
$000
Revenue
Ministerial Services
Crown
Policy Advice – Immigration
Policy Advice – Immigration
73 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
74 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
88
Vote Labour
EMPLOYMENT RELATIONS SERVICES
ƨScope
ƨ
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.
ƨIntention
ƨ
This appropriation is intended to achieve well-functioning workplaces through services to educate and advise employers
and employees about their obligations and entitlements, to enforce minimum employment standards, and to resolve
employment problems where they arise.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
The percentage of investigations into suspected breaches of regulatory standards
of employment legislation completed within 6 months of receipt
90%
81%
Satisfaction of customers with overall quality and timeliness of mediation services
80% satisfied or
very satisfied
80%
Satisfaction of customers with the overall quality of contact centre services
80% satisfied or
very satisfied
96%
2,500–3,000
2,500
The number of interventions aimed at ensuring compliance with minimum standards
of employment legislation75
The Ministry completed 81 per cent of its investigations within six months receipt of a complaint compared with a
standard of 90 per cent. The standard was not achieved due to a significant increase in the proportion of complex and
time-intensive investigations. A major new programme of work commenced around proactive audits, which required
staff to become familiar with new processes and the new work programme.
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
26,174
25,952
25,952
Other
–
–
23
Total Revenue
26,174
25,952
25,975
Total Expenses
26,174
31,152
30,915
–
(5,200)
(4,940)
$000
Revenue
Net Surplus/(Deficit)
The increase of $4.978 million between the Main Estimates and the Supplementary Estimates was due to:
›› an increase in operating expenditure ($5.200 million)
›› an increase for an information campaign on the Employment Relations Amendment Bill ($78,000)
›› a decrease of $300,000 following a transfer from this appropriation to the non-departmental other expense
appropriation Remuneration Authority Members’ Fees, Salaries and Allowances for the remuneration authority
members’ fees, salaries and allowances.
75 The number of interventions is demand driven, so is outside the Ministry’s control. Due to process changes, straightforward cases are no longer
classified as investigations, but are managed through other processes. Only the more complex cases are now classified as investigations, which this
has pushed out the average timeframe for completing investigations.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
The deficit of $4.940 million is due to the difference between the amount appropriated and the cost of the services from
this appropriation being funded by the Ministry’s working capital. This approach was approved by the Treasury during
the year. Budget 2015 has resolved the problem where the appropriated amount was not covering the cost of
the appropriation.
SHARED SERVICES SUPPORT
ƨScope
ƨ
This appropriation is limited to the provision of support services to other agencies.
ƨIntention
ƨ
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.
ƨNon-financial
ƨ
performance
Performance Measure
Standard
2014/15 Actual
Achieved
Achieved76
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Other
11,505
15,532
14,183
Total Revenue
11,505
15,532
14,183
Total Expenses
11,505
15,532
14,312
–
–
(129)
Service level standards are met to the standards and timeframes agreed with WorkSafe
New Zealand
ƨFinancial
ƨ
performance
$000
Revenue
Net Surplus/(Deficit)
POLICY ADVICE AND RELATED OUTPUTS MCA
ƨOverarching
ƨ
Purpose
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.
ƨIntention
ƨ
This appropriation is intended to achieve policy advice of high technical quality relating to employment relations,
health and safety, and international labour commitment and to achieve effective and efficient ministerial services.
CATEGORY
ƨOutput
ƨ
Category – Ministerial Services
Scope
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other
than policy decision-making) responsibilities.
76 All services delivered to WorkSafe New Zealand under the Shared Services Appropriation by the Ministry were reviewed by the Ministry/WorkSafe
Governance Team in June 2015 and assessed as overall delivering the outcomes required and meeting the agreed Service Level Standards.
89
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
90
Intention
This category is intended to achieve effective and efficient ministerial services.
Non-financial performance
Performance Measure
Standard
2014/15 Actual
95% or above
100%
95% or above
98%
95% or above
94%
Ministerial Services
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests77 are to be completed within either specified or statutory
timeframes78
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
Ninety-four per cent of Ministerial Official Information Act 1982 requests were responded to within the statutory
timeframe compared with the standard of 95 per cent. One Ministerial Official Information Act 1982 request was late
(out of 17). The Ministry is continuing to develop its processes so all Ministerial standards can be achieved. This includes
centralising the management of Ministerial Services.
ƨOutput
ƨ
Category – Policy Advice – Labour
Scope
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.
Intention
This category is intended to achieve policy advice of high technical quality relating to employment relations, health
and safety, and international labour commitments.
Non-financial performance
Performance Measures
Standard
2014/15 Actual
At least 70%79
72%
At least an
average of 73%
76%
At most $155
$15280
100% met
100%
Satisfied
Satisfied
Support provided
as requested
Achieved
Policy Advice – Labour
The satisfaction of the Minister of Labour with the policy advice service, as per the common
satisfaction survey
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
The total cost per hour of producing outputs
Meet New Zealand’s International Labour Organisation’s related commitments through
protecting and promoting New Zealand’s labour interest, including submitting all required reports
and questionnaires within specified timeframes
Tripartite partners and senior officials are satisfied with the quality of support, and
representation, including stakeholder consultation, provided to meet New Zealand’s labourrelated international commitments
Provide support to the Ministry of Foreign Affairs and Trade in negotiation of trade labour
agreements as part of all free trade agreements, and implemented in accordance with each
agreement
77 Vote Labour received 49 Parliamentary Questions, 186 items of Ministerial correspondence and 17 Ministerial Official Information Act 1982 requests.
78 Ministerial Servicing timeframes vary across Ministerial Offices and Votes. The timeframe for draft replies to written Parliamentary Questions is
usually 5 or 6 days; for Ministerial correspondence it is 10, 15 or 20 days or a specific time agreed with a Minister’s Office; and for Ministerial Official
Information Act 1982 requests it is 10 or 15 days or a specific time agreed with a Minister’s Office.
79 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
80 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
91
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
2,035
1,235
1,235
6,251
8,551
8,551
Total Revenue
8,286
9,786
9,786
Ministerial Services
2,035
1,235
1,235
Policy Advice – Labour
6,251
8,551
8,551
Total Expenses
8,286
9,786
9,440
Ministerial Services
2,035
1,235
1,205
Policy Advice – Labour
6,251
8,551
8,235
Net Surplus/(Deficit)
–
–
346
Ministerial Services
–
–
30
Policy Advice – Labour
–
–
316
$000
Revenue
Ministerial Services
Crown
Policy Advice – Labour
Crown
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
92
Vote Science and Innovation
ADVICE AND SUPPORT ON SHAPING THE SCIENCE AND INNOVATION SYSTEM MCA
ƨOverarching
ƨ
purpose
The overarching purpose of this appropriation is to provide advice and support to Ministers and leadership in matters
of the science and innovation sector.
ƨIntention
ƨ
This appropriation is intended to achieve effective policy advice and support to Ministers and ensure Crown entities
are appropriately monitored.
CATEGORY
ƨOutput
ƨ
Category – Policy Advice
Scope
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.
Intention
This category is intended to contribute to improved business capability and higher levels of innovation; and improved
international flows of people, ideas, investment and trade.
Non-financial performance
Performance Measures
Standard
2014/15 Actual
At least an
average of 73%
73%
The satisfaction of the Minister of Science and Innovation with the policy advice service, as per
the common satisfaction survey
At least 70%81
71%
The total cost per hour of producing outputs
At most $155
$15282
Policy Advice
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
ƨOutput
ƨ
Category – Science and Innovation Contract Management
Scope
This category is limited to contract management, planning, monitoring and evaluating science and innovation outputs
and impacts.
Intention
This category is intended to contribute to improved business capability and higher levels of innovation.
81 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
82 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
93
Non-financial performance
Performance Measures
Standard
2014/15 Actual
100%
100%
Percentage of contracts assessed to achieve their objectives and critical steps
100%
100%
Maturing science contracts assessed against contract outputs
100%
100%
Science and Innovation Contract Management
Applications are processed in accordance with specific guidelines
83
84
ƨOutput
ƨ
Category – Strategic Leadership in the Science and Innovation Sector
Scope
This category is limited to ministerial services and leadership of the science and innovation sector.
Intention
This category is intended to contribute to improved business capability and higher levels of innovation.
Non-financial performance
Performance Measure
Standard
2014/15 Actual
95% or above
100%
Strategic Leadership in the Science and Innovation Sector
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests85 are to be completed within either specified or statutory
timeframes86
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
95% or above
94%
95% or above
100%
Ninety-four per cent of Ministerial correspondence requests were responded to within the specified timeframe
compared with the standard of 95 per cent. Two Ministerial correspondence requests were late (out of 36). The
Ministry is continuing to develop its processes so all Ministerial standards can be achieved. This includes centralising
the management of Ministerial Services.
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
4,836
6,286
6,286
Other
–
–
35
10,624
12,404
12,404
Department
400
–
–
Other
150
26
–
Crown
11,144
9,074
9,074
Other
–
45
–
$000
Revenue
Policy Advice
Science and Innovation Contract Management
Crown
Strategic Leadership in the Science and Innovation Sector
83 The measure reflects the number of contracts monitored. The monitoring determines whether each contract has achieved its specific objectives
and critical steps.
84 Assessment criteria are predetermined. For the 2013/14 investment rounds these are criteria set out in the relevant Gazette notice and in the
corresponding sector investment plan and request for proposals. The outputs are those defined in the contract to be achieved by the end of the
contract. Most reviews will be in the science system.
85 Vote Science and innovation received 83 Parliamentary Questions, 36 items of Ministerial correspondence and 12 Ministerial Official Information Act
1982 requests.
86 Ministerial Servicing timeframes vary across Ministerial Offices and Votes. The timeframe for draft replies to written Parliamentary Questions is
usually 5 or 6 days; for Ministerial correspondence it is 10, 15 or 20 days or a specific time agreed with a Minister’s Office; and for Ministerial Official
Information Act 1982 requests it is 10 or 15 days or a specific time agreed with a Minister’s Office.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
94
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Total Revenue
27,154
27,835
27,799
Policy Advice
4,836
6,286
6,321
Science and Innovation Contract Management
11,174
12,430
12,404
Strategic Leadership in the Science and Innovation Sector
11,144
9,119
9,074
Total Expenses
27,154
27,835
26,620
Policy Advice
4,836
6,286
6,024
Science and Innovation Contract Management
11,174
12,430
11,547
Strategic Leadership in the Science and Innovation Sector
11,144
9,119
9,049
Net Surplus/(Deficit)
–
–
1,179
Policy Advice
–
–
297
Science and Innovation Contract Management
–
–
857
Strategic Leadership in the Science and Innovation Sector
–
–
25
$000
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
95
Vote Tourism
POLICY ADVICE – TOURISM
ƨScope
ƨ
This appropriation 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.
ƨIntention
ƨ
This appropriation is intended to contribute to improved international flows of people, ideas, investment and trade.
ƨNon-financial
ƨ
performance
Performance Measures
The satisfaction of the Minister of Tourism with the policy advice service, as per the common
satisfaction survey
Technical quality of policy advice papers assessed by a survey with a methodological robustness
of 80%
The total cost per hour of producing outputs
Standard
2014/15 Actual
At least 70%87
80%
At least an
average of 73%
71%
At most $155
$15288
The New Zealand Institute of Economic Research reported that 71 per cent of Vote Tourism policy papers achieved
standard compared to the target of 73 per cent. The Ministry is continuing to implement its policy capability
development programme with a focus on improved quality.
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
Crown
2,552
3,252
3,252
Total Revenue
2,552
3,252
3,252
Total Expenses
2,552
3,252
3,040
–
–
212
$000
Revenue
Net Surplus/(Deficit)
The increase of $700,000 between the Main Estimates and the Supplementary Estimates was due to an increase in
the level of staff required to deliver the services for this appropriation. The surplus of $212,000 was due to delays in
recruiting staff into vacancies.
87 Satisfaction ratings are on a scale of 10 per cent to 100 per cent, where 10 per cent is extremely dissatisfied and 100 per cent is extremely satisfied.
88 This cost was calculated using survey results and was based on a 90 per cent confidence level with a 3.6 per cent error rate. The cost per hour could
therefore range between $147 and $157, the higher of which would result in the target not being achieved.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Statement of objectives
and service performance
96
TOURISM DATA AND OPERATIONAL POLICY, MINISTERIAL SERVICING AND CROWN ENTITY MONITORING
ƨScope
ƨ
This appropriation is limited to collection, processing, analysis and dissemination of data on tourism, development
of operational policies in relation to tourism issues, research support, services to support the Minister, monitoring
the performance and compliance of Crown entities, and administering grants programmes.
ƨIntention
ƨ
This appropriation is intended to achieve improved international flows of people, ideas, investment and trade.
ƨNon-financial
ƨ
performance
Performance Measures
Standard
2014/15 Actual
Meet Statistics New Zealand’s Official Statistics standards for all core tourism data sets published Maintain conformity
by the Ministry
with Official
Statistics standards
Not achieved
Responses to Parliamentary Questions, Ministerial correspondence and Ministerial Official
Information Act 1982 requests89 are to be completed within either specified or statutory
timeframes90
• Parliamentary Questions
• Ministerial correspondence
• Ministerial Official Information Act 1982 requests
95% or above
100%
95% or above
100%
95% or above
100%
We did not achieve our performance measure to meet Official Statistics standards for all core tourism data sets
published by the Ministry. The publication of the domestic Regional Tourism Indicators and Convention Delegates
Survey was delayed due to data challenges that had to be resolved and additional data analysis.
ƨFinancial
ƨ
performance
2014/15
Main
Estimates
$000
2014/15
Supplementary
Estimates
$000
2014/15
Actual
4,664
4,520
4,520
84
109
–
–
30
143
Total Revenue
4,748
4,659
4,663
Total Expenses
4,748
4,659
3,750
–
–
913
$000
Revenue
Crown
Department
Other
Net Surplus/(Deficit)
89 Vote Tourism received 81 Parliamentary Questions, 98 items of Ministerial correspondence and 9 Ministerial Official Information Act 1982 requests.
90 Ministerial Servicing timeframes vary across Ministerial Offices and Votes. The timeframe for draft replies to written Parliamentary Questions is
usually 5 or 6 days; for Ministerial correspondence it is 10, 15 or 20 days or a specific time agreed with a Minister’s Office; and for Ministerial Official
Information Act 1982 requests it is 10 or 15 days or a specific time agreed with a Minister’s Office.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial statements
97
STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE
Actual
2014
$000
Notes
For the year ended 30 June 2015
Actual
2015
$000
Unaudited
Budget
2015
$000
Unaudited
Forecast ^
2016
$000
270,733
269,510
286,934
REVENUE
307,452
2,709
297,731
89
607,981
Crown
Department
Other revenue
2
Finance income
Total revenue
3,139
3,001
3,733
340,159
296,144
339,770
167
–
–
614,198
568,655
630,437
302,467
301,550
379,784
EXPENDITURE
306,109
29,889
Personnel costs
3
Depreciation and amortisation
9, 10
27,887
30,612
32,734
12,021
Capital charge
4
14,731
14,248
14,024
356
Finance costs
5
183
–
–
136
Restructuring costs
6,050
–
–
(Gains)/losses
6
(1,445)
–
–
229,058
1,907
Other operating expenses
7
232,298
219,180
197,235
579,476
Total expenditure
582,171
565,590
623,777
Net surplus/(deficit)
32,027
3,065
6,660
–
–
–
32,027
3,065
6,660
28,505
–
28,505
Other comprehensive revenue and expense
Total comprehensive revenue and expense
Explanations of major variances against the original 2014/15 budget are provided in Note 23.
^The statement of accounting policies provides explanations of these figures which are not subject to audit.
The accompanying notes form part of these financial statements.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
STATEMENT OF FINANCIAL POSITION
As at 30 June 2015
Actual
2014
$000
2015
$000
Unaudited
Budget
2015
$000
Unaudited
Forecast ^
2016
$000
61,480
121,790
52,275
73,689
58,362
35,005
3,177
2,510
2,048
47
468
247
Actual
Notes
98
ASSETS
Current assets
84,163
Cash and cash equivalents
56,146
Debtors and other receivables
2,048
247
–
142,604
8
Prepayments
Inventory
Derivatives
Total current assets
4,490
–
–
142,883
183,130
89,575
557
–
–
Non-current assets
824
Debtors and other receivables
8
43,576
Property, plant and equipment
9
52,042
55,989
58,185
118,142
Intangible assets
10
146,461
99,575
240,623
Total non-current assets
199,060
155,564
298,808
Total assets
341,943
338,694
388,383
162,542
305,146
LIABILITIES
Current liabilities
48,284
Creditors and other payables
11
47,839
57,638
55,807
16,905
Unearned revenue
12
17,245
18,364
18,264
8,629
Return of operating surplus
13
–
–
6,660
4,926
Provisions
14
5,120
9,373
4,909
Employee entitlements
15
18,859
18,548
31,247
29,669
–
108,413
Derivatives
Total current liabilities
4,330
–
–
93,393
103,923
116,887
Non–current liabilities
2,083
Provisions
14
1,159
381
2,121
5,505
Employee entitlements
15
6,557
8,715
1,716
7,588
Total non-current liabilities
116,001
Total liabilities
189,145
Net assets
7,716
9,096
3,837
101,109
113,019
120,724
240,834
225,675
267,659
221,095
263,079
EQUITY
179,573
Taxpayers' funds
16
197,182
4,992
Memorandum accounts
22
39,072
–
–
4,580
Property revaluation reserves
16
4,580
4,580
4,580
240,834
225,675
267,659
189,145
Total equity
Explanations of major variances against the original 2014/15 budget are provided in Note 23.
^The statement of accounting policies provides explanations of these figures which are not subject to audit.
The accompanying notes form part of these financial statements.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
99
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2015
2014
$000
144,459
2015
$000
Unaudited
Budget
2015
$000
Unaudited
Forecast ^
2016
$000
189,145
179,888
221,891
32,027
3,065
6,660
–
–
(6,660)
Actual
Notes
Actual
Balance at 1 July
28,505
Total comprehensive revenue and expense
(8,629)
Return of operating surplus to the Crown
33,493
Capital contributions
19,700
49,045
48,768
(8,671)
Capital withdrawal
(38)
(6,323)
(3,000)
(12)
Other movements
–
–
–
240,834
225,675
267,659
2015
$000
Unaudited
Budget
2015
$000
Unaudited
Forecast ^
2016
$000
258,998
269,510
286,934
189,145
Balance at 30 June
16
Explanations of major variances against the original 2014/15 budget are provided in Note 23.
STATEMENT OF CASH FLOWS
For the year ended 30 June 2015
2014
$000
Actual
Notes
Actual
Cash flows from operating activities
322,339
Receipts from the Crown
282,540
Receipts from other revenue
(240,484)
(304,911)
(12,021)
(1,358)
46,105
Payments to suppliers
344,035
298,810
350,008
(239,012)
(219,906)
(199,607)
(318,112)
(300,823)
(380,391)
(14,731)
(14,248)
(14,024)
2,340
8,425
334
33,518
41,768
43,254
Payments to employees
Payments for capital charge
Goods and services tax
Net cash flows from operating activities
17
Cash flows from investing activities
3,982
89
Receipts from sale of property, plant and equipment
130
–
–
Interest from other than New Zealand Debt Management Office
167
–
–
(17,792)
Purchase of property, plant and equipment
(22,729)
(17,914)
(21,025)
(52,119)
Purchase of intangibles assets
(45,907)
(25,858)
(92,038)
(68,339)
(43,772)
(113,063)
(65,840)
Net cash flows from investing activities
Cash flows from financing activities
33,493
–
(4,000)
(149)
(8)
29,336
9,601
Capital injections
19,700
49,045
48,768
(8,629)
–
–
Capital withdrawal
–
(6,323)
(3,000)
Payments of finance leases
–
–
–
Return of operating surplus
Interest paid
(211)
–
–
Net cash flows from financing activities
10,860
42,722
45,768
Net (decrease)/increase in cash
(23,961)
40,718
(24,041)
84,163
81,072
76,316
1,278
–
–
61,480
121,790
52,275
76,469
Cash at the beginning of the year
(1,907)
Effect of foreign exchange movements on cash balances
84,163
Cash at the end of the year
Explanations of major variances against the original 2014/15 budget are provided in Note 23.
^The statement of accounting policies provides explanations of these figures which are not subject to audit.
The accompanying notes form part of these financial statements.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
100
STATEMENT OF COMMITMENTS
As at 30 June 2015
Actual
2015
$000
Actual
2014
$000
Capital commitments
–
Residential buildings
898
Intangible assets
898
Total capital commitments
15,047
–
15,047
Non-cancellable operating lease commitments
38,343
Not later than one year
23,457
81,434
Later than one year and not later than five years
53,684
59,966
Later than five years
49,244
179,743
Total non-cancellable operating lease commitments
126,385
180,641
Total commitments
141,432
Non-cancellable operating lease commitments
The Ministry’s non-cancellable operating leases have
varying terms, escalation clauses, and renewal rights.
There are no restrictions placed on the Ministry by
any of its leasing arrangements.
The amounts disclosed as future commitments are
based on current lease payments.
Capital commitments
Capital commitments are the aggregate amount of capital
expenditure contracted for the acquisition of property,
plant and equipment and intangible assets that have not
been paid for, or recognised as a liability at balance date.
Immigration New Zealand (INZ) is leading the Mangere
Refugee Resettlement Centre rebuild project after having
its detailed business case approved within Budget 2013.
The scope of the rebuild project includes demolition of
the existing resettlement centre and the construction of
a new purpose-built centre in a staged programme which
enables existing operations to be maintained.
Downer NZ were contracted in September 2014 to design
and build the new Centre, with completion of Phase 1
and occupation by INZ due in July 2016.
STATEMENT OF CONTINGENT LIABILITIES AND ASSETS
As at 30 June 2015
ƨQuantifiable
ƨ
contingent liabilities
Actual
2015
$000
Actual
2014
$000
26,718
50
26,768
Legal proceedings and disputes
2,800
30
Personal grievances
Total quantifiable contingent liabilities
2,830
Legal proceedings and disputes
Personal grievances
Legal proceedings and disputes represent amounts
claimed by plaintiffs in relation to the performance
of the Ministry’s statutory roles and associated
estimated legal costs. The Ministry was defending
9 legal proceedings and disputes as at 30 June 2015 (2014:
21 legal proceedings and disputes). One new issue has
been raised regarding an Immigration Investigation.
Personal grievances represent amounts claimed by
employees for personal grievance cases. The Ministry
was defending three claims as at 30 June 2015 (2014:
five claims).
^The statement of accounting policies provides explanations of these figures which are not subject to audit.
The accompanying notes form part of these financial statements.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
101
ƨUnquantifiable
ƨ
contingent liabilities
The Ministry has given indemnities in relation to
the Canterbury Earthquake Building Performance
Technical Investigation. These indemnities cover the
four consultants carrying out the investigations and
the twelve members of the expert panel including one
member representing each consultant. The indemnities
cover costs from claims by third parties against the
contractors or their staff in relation to the reports
produced, as well as media releases made by the expert
panel chair. There is no stated limit on the amount of
each indemnity. The indemnities only apply where the
contractor has complied with all obligations under
the contract.
These unquantifiable contingent liabilities are
substantially unchanged from 13/14.
Contingent assets
The Ministry has no contingent assets as at 30 June 2015
(2014: nil).
STATEMENT OF TRUST MONIES
For the year ended 30 June 2015
The Ministry operates trust accounts as an agent under section 66 of the Public Finance Act 1989. They are not
included in the Ministry’s own financial statements. Movements in these accounts during the year ended 30 June 2015
were as follows:
Opening
Balance
1 July 2014
$000
Capital
Increase
$000
Distributions
Made
$000
Receipts
Expenditure
$000
$000
Coal and Minerals Deposits Trust
77
60
73
–
–
64
Criminal Assets Management and
Enforcement Regulators Association Trust
15
–
–
1
–
16
Employment Relations Act Security
of Costs Trust
Employment Relations Service Trust
New Zealand Immigration Trust
Closing
Balance
30 June 2015
$000
4
–
–
–
–
4
28
129
89
1
11
58
1,543
2,055
2,324
30
2
1,302
23,776
42,351
12,162
1,586
27,144
28,407
Patent Co-operation Treaty Fees Trust
99
1,177
1,143
5
4
134
Petroleum Deposits Trust
81
10
10
–
–
81
48,104
29,961
5,652
1,569
10,431
63,551
226
–
–
–
–
226
420,750
208,162
171,377
23,204
23,204
457,535
–
3,799
3,799
–
–
–
Official Assignee's Office Trust
Proceeds of Crime Trust
Radio Frequencies Tender Trust
Residential Tenancies Trust
Weathertight Financial
Assistance Package
Coal and Minerals Deposits Trust Account
Employment Relations Act Security of Costs Trust1
This Trust account was established in its present form
following the introduction of the Crown Minerals Act 1991.
Pursuant to the Mining Act 1971, the Coal Mines Act 1979
or the Crown Minerals Act 1991, all existing mining and
exploration licensees are required to lodge a bond with
the Ministry. These bonds are returned with interest once
the license has expired, cancelled or declined provided
that all license conditions have been complied with.
This Trust account was established in February 1990
for monies at the direction of the Employment
Relations Authority.
Criminal Assets Management and Enforcement
Regulators Association Trust Account
This Trust account was established to hold contributions
from member nations of the Criminal Assets Management
and Enforcement Regulators Association.
Employment Relations Service Trust
This Trust account was established in September 1988
for monies received by labour inspectors on behalf
of workers.
New Zealand Immigration Trust
This Trust account was established in 1999 for bonds
paid by visitors with a higher risk profile.
1 Previously called the Employment Court Trust
^The statement of accounting policies provides explanations of these figures which are not subject to audit.
The accompanying notes form part of these financial statements.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
102
Official Assignee’s Office Trust
This Trust account was established to hold monies
for individuals or companies subject to bankruptcy or
liquidation proceedings. All financial matters of declared
bankrupts and companies in liquidation are handled
by the Official Assignee’s Office. All distributions and
settlements are processed through this account. This
Trust combines the No Asset Procedure Account,
Summary Instalment Order Account and Official
Assignee Account.
Patent Co-operation Treaty Fees Trust
This Trust account was established in December 1992 to
collect and distribute fees under the Patent Co-operation
Treaty Rules. The fees are collected from International
Patent Authorities and remitted to the World Intellectual
Property Organisation, which administers the Treaty.
Petroleum Deposits Trust
This Trust account was established in the 1970s for
deposits pursuant to sections 8, 16 and 47 (h) of the
Petroleum Act 1937. Applicants are required to lodge
bonds for all petroleum prospecting and mining licenses
issued under the Act. These bonds are returned with
interest once the license has ended, provided that all
conditions of the license have been met.
Proceeds of Crime Trust
This Trust account was established following the
introduction of the Proceeds of Crime Act 1991 to
manage the financial arrangements of restraining
and forfeiture orders made by the courts. Under the
Act, the Court has the power to seize certain assets of
individuals and companies that are accumulated through
the proceeds of criminal activities and place them in the
authority of the Official Assignee. These assets are then
sold or disposed of by the Official Assignee and all of
the resulting monies transferred to the Crown.
Radio Frequencies Tender Trust
This Trust account was established in February 1990
for deposits paid by bidders for radio frequencies and
monies held pending assessments of resource rentals
for radio frequency licenses. Once a successful tender
is established, the deposit is then deemed to be Crown
money and is transferred to the Crown. All unsuccessful
tenderers have their deposits refunded with interest.
Residential Tenancies Trust
This Trust account was established to hold bonds
lodged under the Residential Tenancies Act 1986.
A full set of audited financial statements for the
Residential Tenancies Trust Account, prepared on an
accrual accounting basis in conformity with generally
accepted accounting practice, is provided on pages
159 to 165.
Weathertight Financial Assistance Package
This Trust account is used to temporarily hold the
building consent authorities’ 25 per cent share of repair
costs claimed by eligible leaky home owners under the
Government’s Weathertight Financial Assistance Package,
once approved, but prior to payment to the eligible
home owners.
^The statement of accounting policies provides explanations of these figures which are not subject to audit.
The accompanying notes form part of these financial statements.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
Notes to the financial statements
For the year ended 30 June 2015
NOTE 1: STATEMENT OF ACCOUNTING POLICIES
ƨReporting
ƨ
Entity
Unaudited forecast financial statements
The Ministry of Business, Innovation and Employment
(The Ministry) is a government department as defined
by section 2 of the Public Finance Act 1989 (PFA),
and is domiciled and operates in New Zealand. The
relevant legislation governing the Ministry’s operations
includes the PFA. The Ministry’s ultimate parent is the
New Zealand Crown.
The forecast financial statements have been prepared
in accordance with the PBE FRS 42 Prospective Financial
Statements and comply with PBE FRS 42.
In addition, the Ministry has reported the Crown
activities and trust monies that it administers.
The Ministry’s primary objective is to provide services
to the public. The Ministry does not operate to make
a financial return.
The Ministry has designated itself as a public benefit
entity (PBE) for financial reporting purposes. The financial
statements cover all activities of the Ministry as set
out in the 2015 Main Estimates and include Votes: ACC,
Commerce and Consumer Affairs, Communications,
Economic Development and Employment, Energy,
Housing, Immigration, Labour, Science and Innovation,
and Tourism.
The financial statements of the Ministry are for the year
ended 30 June 2015. They were authorised for issue by
the Chief Executive of the Ministry on 25 September 2015.
ƨBasis
ƨ
of Preparation
The financial statements have been prepared on a going
concern basis, and the accounting policies have been
applied consistently throughout the period.
Statement of compliance
The financial statements have been prepared in
accordance with the requirements of the Public Finance
Act 1989, which includes the requirement to comply with
New Zealand Generally Accepted Accounting Practice
(NZGAAP), Treasury Instructions.
The financial statements of the Ministry have been
prepared in accordance with Tier 1 PBE accounting
standards.
These financial statements comply with PBE
accounting standards.
These financial statements are the first financial
statements presented in accordance with the new
PBE accounting standards.
The purpose of the forecast financial statements is to
facilitate Parliament's consideration of the appropriations
for, and planned performance of the department. Use
of this information for other purposes may not be
appropriate. Readers are cautioned that actual results
are likely to vary from the forecast information presented
and that the variations may be material.
Measurement base
The financial statements have been prepared on the
historical cost basis modified by the revaluation of
land and buildings.
Functional and presentation currency
The financial statements are presented in New Zealand
dollars and all values are rounded to the nearest thousand
dollars ($000). The functional currency of the Ministry is
New Zealand dollars.
Changes in Accounting Policies
There have been no changes in accounting policies
during the financial year.
Standards, amendments and interpretations
issued that are not yet effective and have not
been adopted early
Standards, amendments, and interpretations issued
but not yet effective that have not been adopted early,
and which are relevant to the Ministry, are:
›› In May 2013, the External Reporting Board issued a new
suite of PBE accounting standards for application by
public sector entities for reporting periods beginning
on or after 1 July 2014. The Ministry has applied these
standards in preparing the 30 June 2015 financial
statements.
›› In October 2014, the PBE suite of accounting standards
updated to incorporate requirements and guidance
for the not-for-profit sector. These updated standards
apply to PBEs with reporting periods beginning on
or after 1 April 2014. The Ministry will apply these
updated standards in preparing its 30 June 2016
financial statements. The department expects there
will be minimal or no change in applying these
updated accounting standards.
103
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
104
ƨSignificant
ƨ
Accounting Policies
The following significant accounting policies have
been applied.
reference to completion of specific transactions,
assessed on the basis of actual services provided as
a proportion of the total services to be provided.
Revenue
Capital charge
Revenue from the Crown
The capital charge is recognised as an expense in the
period to which it relates.
Revenue from the Crown is measured based on the
Ministry’s funding entitlement for the reporting period.
The funding entitlement is established by Parliament
when it passes the Appropriation Acts for the financial
year. The amount of revenue recognised takes into
account any amendments to appropriations approved
in the Appropriation (Supplementary Estimates) Act
for the year and certain other unconditional funding
adjustments formally approved prior to balance date.
There are no conditions attached to the funding from
the Crown. However, the Ministry can incur expenses
only within the scope and limits of its appropriations.
The fair value of Revenue Crown has been determined
to be equivalent to the funding entitlement.
Revenue – Department
The Ministry derives revenue through the provision of
goods and services to other departments or ministries.
This revenue is recognised at the fair value of the
consideration received or receivable when earned.
Revenue – Other
Statutory levies
Revenue from statutory levies is recognised as revenue
when obligation to pay the levy is incurred. Although
there are restrictions on how levy funding may be
spent, there are no conditions attached to the levies
that could readily give rise to obligations to return
levies to levy payers.
Application fees
Revenue from application fees is recognised to the extent
that the application has been processed by the Ministry.
Application fees received in advance are recognised as
unearned revenue in the Statement of Financial Position.
Annual fees
Revenue from annual fees is recognised on a straight line
basis over the 12 months to which the fee relates.
Interest – Residential Tenancies Trust Account
Under the Residential Tenancies Act 1986, the
Ministry administers a trust account for tenancy bond
investments. Interest is payable to the Ministry and
recognised on an accrual basis using the effective
interest method.
Shared services recoveries
Shared services recoveries are recognised in the
accounting period the services are provided in, by
Foreign currency transactions
Foreign currency transactions, including those for
which forward foreign exchange contracts are held,
are translated to New Zealand dollars at the rate
applicable on the day of settlement.
Monetary assets and liabilities denominated in foreign
currencies at balance date are translated to New Zealand
dollars at the foreign exchange rate at balance date.
Foreign exchange gains or losses arising from the
settlements of such transactions and from the translation
at year end exchange rates of monetary assets and
liabilities denominated in foreign currencies are
recognised in the surplus or deficit.
Leases
Operating leases
An operating lease is a lease that does not transfer
substantially all the risks and rewards incidental to
ownership of an asset. Lease payments under an
operating lease are recognised as an expense on a
straight-line basis over the lease term. Lease incentives
for accommodation are recognised evenly over the term
of the lease as a reduction in rental expense.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, cash in
transit and bank accounts. The Ministry is only permitted
to expend its cash and cash equivalents within the scope
and limits of its appropriations.
Debtors and other receivables
Debtors and other receivables are recorded at face value,
less any provision for impairment.
Impairment of a receivable is recognised when there is
objective evidence that the Ministry will not be able to
collect amounts due according to the original terms of the
receivable. Significant financial difficulties of the debtor,
probability that the debtor will enter into bankruptcy,
receivership or liquidation, and default in payments are
considered indicators that the debt is impaired.
The amount of the impairment is the difference between
the asset’s carrying amount and the present value of
estimated future cash flows. The carrying amount of
the asset is reduced through the use of a provision
for impairment account, and the amount of the loss
is recognised in the surplus or deficit.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
Derivative financial instruments
Derivative financial instruments are used to manage
exposure to foreign exchange risk arising from the
Ministry’s operational activities. The Ministry does
not hold or issue derivative financial instruments for
trading purposes. The Ministry has not adopted
hedge accounting.
Derivatives are initially recognised at fair value on the date
a derivative contract is entered into and are subsequently
re-measured at their fair value at each balance date.
Movements in the fair value of derivative financial
instruments are recognised in the surplus or deficit.
Foreign exchange derivatives are classified as current
if the contract is due for settlement within 12 months
of balance date. Otherwise, the full fair value of foreign
exchange derivatives are classified as non-current.
Property, plant and equipment
Property, plant and equipment consists of land, buildings,
leasehold improvements, computer hardware, furniture
and fittings, office equipment and motor vehicles. Land
and buildings are stated at fair value as determined by
an independent registered valuer. All other property,
plant and equipment are measured at cost or valuation,
less accumulated depreciation and impairment losses.
Individual assets, or groups of similar assets, are
capitalised if their cost is greater than $5,000 or $500
if they are an attractive item.
Revaluation
Land and buildings are revalued at least once every
three years to ensure that their carrying amount does
not differ materially from their fair value. All other assets
are carried at depreciated historical cost.
The carrying value of revalued assets is assessed annually
to ensure that they do not differ materially from fair
value. If there is a material difference they are revalued.
Additions between revaluations are recorded at cost.
The Ministry accounts for revaluations of property,
plant and equipment on a class of asset basis.
The net revaluation results are included in other
comprehensive revenue and expense and an asset
revaluation reserve in equity for that class of asset.
However, if this would result in a debit balance in the
asset revaluation reserve, then it is recognised in the
surplus or deficit. Any subsequent increase on revaluation
that reverses a previous decrease in the surplus or deficit
will be recognised first in the surplus or deficit up to the
amount previously recognised, and then recognised in
other comprehensive revenue and expense.
Work in progress is recognised at cost less any
impairment and is not depreciated.
In most instances, an item of property, plant and
equipment is recognised at cost. Where an asset
is acquired at no cost, or for a nominal cost, it is
recognised at fair value as at the date of acquisition.
Disposals
Gains and losses on disposal are determined by
comparing the proceeds with the carrying amount of
the asset and recognising the difference in the surplus
or deficit. When a revalued asset is sold, the amount
included in the asset revaluation reserve in respect of
the disposed asset is transferred to taxpayers' funds.
Subsequent costs
Costs incurred subsequent to initial acquisition are
capitalised only when it is probable that future economic
benefits or service potential associated with the item
will flow to the Ministry and the cost of the item can be
measured reliably.
The costs of day-to-day servicing from property, plant
and equipment are recognised in the surplus or deficit
as they are incurred.
Depreciation
Depreciation is charged on a straight-line basis on all
property, plant and equipment, other than land and
work in progress, at rates that will write off the cost
(or valuation) of the assets to their estimated residual
value over their useful lives.
The useful lives of major categories of property, plant
and equipment have been estimated as follows:
Asset Class Useful Life
Buildings
30–50 years
Computer Hardware
3–6 years
Furniture and Fittings
3–7 years
Leasehold Improvements
2–12 years
Motor Vehicles
4–6 years
Office Equipment
3–10 years
The useful life of buildings is reassessed following any
revaluation.
Leasehold improvements are depreciated over the
unexpired period of the lease or the estimated remaining
useful lives of any improvements, whichever is the shorter.
Intangible assets
Additions
Software acquisition and development
The cost of an item of property, plant and equipment
is recognised as an asset if it is probable that future
economic benefits or service potential will flow
to the Ministry and if the cost of the item can be
measured reliably.
Software acquisition and development is measured at
cost or valuation, less accumulated amortisation and
any impairment losses.
Acquired computer software licenses are capitalised on
the basis of the costs incurred to acquire and bring to
use the software.
105
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
106
Costs that are directly associated with the development
of software for internal use by the Ministry are recognised
as an intangible asset. Direct costs include the software
development, employee costs and an appropriate portion
of relevant overheads.
Costs associated with maintaining computer software
are recognised in the surplus or deficit.
Amortisation
The carrying value of an intangible asset with a finite life
is amortised on a straight-line basis over its useful life.
The amortisation charge for each year is recognised in
the surplus or deficit.
The useful lives of major classes of intangible assets
have been estimated as follows:
Asset Class Useful Life
Purchased computer software
3–8 years
Developed computer software
4–7 years
Impairment of property, plant and equipment and
intangible assets
The Ministry does not hold any cash-generating assets.
Assets are considered cash-generating where their
primary objective is to generate a commercial return.
Non-cash-generating assets
Intangible assets that have indefinite useful lives, or are
not yet available for use are not subject to amortisation
and are tested annually for impairment.
Property, plant and equipment and intangible assets
that have a finite useful life are reviewed for impairment
whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An
impairment loss is recognised if the carrying amount
exceeds the recoverable service amount. The recoverable
service amount is the higher of an asset’s fair value less
costs to sell and value in use.
Value in use is the present value of the asset’s remaining
service potential. Value in use is determined using an
approach based on either a depreciated replacement
cost approach, restoration cost approach, or a service
units approach. The most appropriate approach used
to measure value in use depends on the nature of the
impairment and availability of information.
If an asset’s carrying amount exceeds its recoverable
service amount, the asset is regarded as impaired and
the carrying amount is written down to the recoverable
service amount. The impairment loss is recognised
against the revaluation reserve for that asset class. Where
that results in a debit balance in the revaluation reserve
the balance is recognised in the surplus or deficit.
For assets not carried at a revalued amount, the total
impairment loss is recognised in the surplus or deficit.
The reversal of an impairment loss is also recognised in
the surplus or deficit.
The reversal of an impairment loss on a revalued asset is
credited to the revaluation reserve. However, where the
loss was previously recognised in the surplus or deficit,
the reversal is also recognised in the surplus or deficit.
Creditors and payables
Short-term creditors and other payables are recorded
at face value.
Employee entitlements
Short-term employee entitlements
Employee benefits expected to be settled within
12 months of balance date are measured at nominal
values based on accrued entitlements at current rates
of pay. These include salaries and wages accrued up to
balance date, annual leave earned but not yet taken at
balance date, retiring and long service leave entitlements
expected to be settled within 12 months, and sick leave.
A liability for sick leave is recognised to the extent that
absences in the coming year are expected to be greater
than the sick leave entitlements earned in the coming
year. The amount is calculated based on the unused sick
leave entitlement that can be carried forward at balance
date, to the extent that the Ministry anticipates it will be
used by staff to cover those future absences.
A liability and an expense are recognised for performance
payments where the Ministry has a contractual obligation
or where there is a past practice that has created a
constructive obligation.
Long-term employee entitlements
Employee benefits that are due to be settled beyond
12 months after the end of the reporting year in which
the employee renders the related service, such as long
service leave and retiring leave, are calculated on an
actuarial basis. The calculations are based on:
›› likely future entitlements accruing to staff, based on
years of service, years to entitlement, the likelihood
that staff will reach the point of entitlement, and
contractual entitlements information; and
›› the present value of the estimated future cash flows.
Presentation of employee entitlements
Sick leave, annual leave, vested long service leave
and retirement gratuities expected to be settled within
12 months of balance sheet date are classified as a current
liability. All other employee entitlements are classified as
a non-current liability.
Termination benefits
Termination benefits are recognised in the surplus or
deficit only when there is a demonstrable commitment
to either terminate employment prior to normal
employment date or to provide such benefits as a result
of a position becoming redundant. Termination benefits
settled within 12 months are reported at the amount
expected to be paid.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
Superannuation schemes
Memorandum accounts
Defined contribution schemes
Memorandum accounts reflect the cumulative surplus or
deficit of those departmental services that are intended
to be fully cost recovered from third parties through
fees, levies or charges. The balance of each memorandum
account is expected to trend towards zero over time.
Obligations for contributions to the State Services
Retirement Savings Scheme (SSRSS), Kiwisaver and the
Government Superannuation Fund (GSF) are recognised
in the surplus or deficit as incurred.
Provisions
The Ministry recognises a provision for future
expenditure when there is a present obligation, either
legal or constructive, as the result of a past event but
the timing or the amount of obligation is uncertain.
Accident Compensation Corporation (ACC) Accredited
Employer Programme
The Ministry belongs to the ACC Accredited Employer
Programme whereby the Ministry accepts the
management and financial responsibility of work-related
illnesses and accidents to employees. Under the ACC
Accredited Employer Programme, the Ministry is liable
for all its claims costs for a period of two years from the
date of the accident up to a specified maximum. At the
end of the two-year period, the Ministry pays a premium
to ACC for the value of residual claims, and the liability
for ongoing claims from that point passes to ACC.
The liability for the ACC Accredited Employer Programme
is measured using actuarial techniques at the present
value of expected future payments to be made in respect
of the employee injuries and claims up to the balance
date. Consideration is given to anticipated future wage
and salary levels and experience of employee claims and
injuries. Expected future payments are discounted using
market yields on government bonds at balance date with
terms to maturity that match, as closely as possible, the
estimated future cash outflows.
Restructuring provisions
The restructuring provision arises from internal
restructuring programmes in Visa Services, Market
Services and Auckland Call Centre. In addition a major
internal restructuring programme – Building a High
Performing MBIE Programme was announced in March
2015. The provision relates to personnel costs expected
to arise from the programme.
Make-good provision
The Ministry is required at the expiry of its leases to
make-good any damage caused and remove any fixture or
fittings installed by it. In many cases the Ministry has
the options to renew these leases, which may change
the timing of the expected cash outflows to make-good
the premises.
Equity
Equity is the Crown’s investment in the Ministry and
is measured as the difference between total assets and
total liabilities. Equity is disaggregated and classified
as taxpayers’ funds, memorandum accounts and
revaluation reserves.
Revaluation reserves
Revaluation reserves relate to the revaluation of land
and buildings to fair value.
Commitments
Expenses yet to be incurred on non-cancellable contracts
that have been entered into at balance date are disclosed
as commitments. Commitments relating to employment
contracts are not disclosed.
Cancellable contracts that have penalty or exit costs are
included in the Statement of Commitments at the lower
of the remaining contractual commitment or the value
of the penalty or exit costs.
Contingent liabilities
Contingent liabilities are disclosed at the point at
which the contingency is evident and, for each class
of contingent liability, a brief description of the nature
of the contingent liability is provided at balance date.
Contingent liabilities are not disclosed if the possibility
is remote.
Goods and services tax (GST)
All items in the financial statements, including
appropriation statements, are stated exclusive of GST,
except for receivables and payables, which are stated on
a GST inclusive basis. Where GST is not recoverable as
input tax, then it is recognised as part of the related
asset or expense.
The net amount of GST recoverable from, or payable to,
the Inland Revenue Department (IRD) is included as part
of receivables or payables in the Statement of Financial
Position.
The net GST paid to or received from the IRD, including
the GST relating to investing and financing activities, is
classified as an operating cash flow in the Statement of
Cash Flows.
Commitments and contingencies are disclosed exclusive
of GST.
Income tax
Government departments are exempt from income
tax as public authorities and no income tax has been
provided for.
107
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
108
Cost accounting policies
The Ministry has determined the cost of outputs using
the cost allocation system outlined below.
Input costs can be classified as direct and indirect.
Direct costs are those that are directly linked to the
production of an output, for example the cost of staff
working in a business unit that can be directly linked
to the outputs. Other costs such as staff costs in the
Ministry’s Corporate Groups are indirect because they
are incurred for the operation of the Ministry as a whole
and are not able to be linked directly to a specific output. ›› Direct costs are charged directly to outputs.
›› Indirect costs are charged to outputs based on cost
drivers and related activity or usage information.
To ensure that corporate costs are allocated as accurately
as possible the Ministry has adopted a three tier
corporate allocation methodology.
›› Directly Attributable – if a particular group uses
a corporate resource such as dedicated people or
software license agreements the costs will be directly
charged to the relevant business group and spread
according to the business group’s assessment of
usage across cost centres.
›› Controllable Allocated – costs which can be allocated
on a rational basis in accordance with usage.
›› Uncontrollable Allocated – costs that are not impacted
directly by individual business group activity but tend
to be Ministry-wide costs. Examples of this are various
types of insurance and the costs of annual audits.
Critical accounting estimates, assumptions and
critical judgements in applying accounting policies
In preparing these financial statements, estimates,
assumptions and critical judgements have been made
concerning the future. These estimates and assumptions
may differ from the subsequent actual results. Estimates,
assumptions and critical judgements are continually
evaluated and are based on historical experience
and other factors, including expectations of future
events that are believed to be reasonable under the
circumstances.
The estimates and assumptions that may have a
significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within
the next financial year are disclosed below:
Employee entitlements – retiring, long service and
sick leave
Note 15 provides an analysis of the exposure in relation
to estimates and uncertainties surrounding retirement,
long service and sick leave.
Budget and forecast figures
They are consistent with the Ministry’s best estimate
financial forecast information submitted to Treasury for
the Budget Economic and Fiscal Update (BEFU) for the
year ending 2014/15.
The 2016 forecast figures are for the year ending 30
June 2016, which are consistent with the best estimate
financial forecast information submitted to Treasury for
the BEFU for the year ending 2015/16.
The forecast financial statements were approved for
issue by the Chief Executive on 21 April 2015.
The Chief Executive is responsible for the forecast
financial statements, including the appropriateness
of the assumptions underlying them and all other
required disclosures.
While the Ministry regularly updates its forecasts,
updated forecast financial statements for the year
ending 30 June 2016 will not be published.
Significant assumptions used in preparing the
forecast financials
The forecast figures contained in these financial
statements reflect the Ministry’s purpose and activities
and are based on a number of assumptions on what
may occur during the 2015/16 year. The forecast figures
have been compiled on the basis of existing government
policies and Ministerial expectations at the time the Main
Estimates were finalised. The main assumptions, which
were adopted as at 21 April 2015 were as follows;
›› the Ministry's activities and output expectations will
remain substantially the same as for the previous year
focusing on the Government’s priorities,
›› personnel costs were based on 3,421 full time
equivalent staff, which takes into account staff
turnover
›› operating costs are based on historical experience
and other factors that are believed to be reasonable in
the circumstances and are the Ministry’s best estimate
of future costs that will be incurred. Remuneration
rates are based on current wages and salary costs,
adjusted for anticipated remuneration changes.
›› Land and buildings are not revalued and
›› estimated year-end information for 2015/16 was used
as the opening position for the 2015/16 forecasts.
The actual financial results achieved for 30 June 2016 are
likely to vary from the forecast information presented,
and the variations may be material.
There are no significant events or changes that would
have a material impact on the BEFU forecast. Factors that
could lead to material differences between the forecast
financial statements and the 2015/16 actual financial
statements include changes to the baseline budget
through new initiatives, or technical adjustments.
Basis of the budget and forecast figures
Authorisation statement
The 2015 budget figures are for the year ended 30 June
2015 and were published in the 2013/14 annual report.
The forecast figures reported are those for the year
ending 30 June 2016 included in BEFU 2015. These
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
were authorised for issue on 21 April 2015 by the Chief
Executive who is responsible for the forecast financial
statements as presented. The preparation of these
financial statements requires judgements, estimations,
and assumptions that affect the application of policies
and reported amounts of assets and liabilities, and
revenue and expenses. The estimates and associated
assumptions are based on historical experience and
109
various other factors that are believed to be reasonable
under the circumstances. Actual financial results
achieved for the period covered are likely to vary from
the information presented, and the variations maybe
material.
It is not intended that the prospective financial
statements will be updated subsequent to presentation.
NOTE 2: OTHER REVENUE
2015
$000
Unaudited
Budget
2015
$000
Unaudited
Forecast ^
2016
$000
10,266
10,553
Actual
Actual
2014
$000
Other revenue from exchange transactions
10,227
Companies annual return fees
10,542
5,694
Companies incorporation fees
6,095
5,716
5,718
2,076
Electrical workers fees
3,376
1,393
3,421
548
148,608
Immigration advisors authority fees
Immigration fees
624
550
745
174,979
149,181
192,306
2,724
Insurance proceeds
–
–
–
4,299
Licenced building practitioners fees
4,174
4,315
4,230
4,268
Mineral permit fees
2,463
4,284
2,700
6,586
Patent fees
10,623
62
Personal property securities register fees
6,611
4,513
10,664
10,297
5
62
–
4,900
Radio apparatus licence fees
4,246
4,919
4,478
2,623
Right to transmit radio waves fees
3,243
2,633
2,919
7,778
Shared service recovery
14,067
7,808
15,532
710
816
620
813
Productivity partnership recoveries
8,276
10,795
Tenancy tribunal fees
11,797
Trademark fees
13,958
11,842
12,094
11,240
Other fees
11,569
11,284
10,845
13,841
Revenue other
14,805
13,898
13,186
283,927
246,242
294,157
29,557
21,975
22,731
248,707
Total other revenue from exchange transations
Other reveue from non-exchange transactions
21,891
Building levies
1,297
Electrical workers levies
–
2,373
–
1,069
Electricity levies*
–
718
–
908
20,194
238
12
478
2,858
79
Gas levies*
Interest from tenancy bonds
Late filing fees
Licensed building practitioners penalties
Licensed building practitioners levies
Petroleum fuels monitoring levy
Electrical workers registration board fines
49,024
Total other reveue from non-exchange transactions
297,731
Total other revenue
–
911
–
23,143
20,272
20,196
156
239
68
6
12
–
496
480
496
2,833
2,869
2,122
41
53
–
56,232
49,902
45,613
340,159
296,144
339,770
*Gas and electricity levies were collected from gas and electricity generated for sale under the Energy (Fuels, Levies, and References) Act 1989.
These levies are now recognised within the Ministry Non-Departmental Schedules and Statements.
^The statement of accounting policies provides explanations of these figures which are not subject to audit.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
110
NOTE 3: PERSONNEL COSTS
Actual
Actual
2014
$000
2015
$000
Unaudited
Budget
2015
$000
Unaudited
Forecast ^
2016
$000
137
ACC Levy
800
135
721
472
ACC partnership insurance
278
593
285
Employer contributions to defined contribution schemes
9,416
14,092
14,240
Fringe benefit tax
1,856
–
1,903
917
242
240
8,697
1,557
(1,731)
Increase/(decrease) in employee entitlements
3,578
Recruitment costs
2,099
3,525
2,152
287,553
Salaries and wages
280,142
275,017
353,109
4,702
4,819
4,820
4,892
954
306,109
Training and professional development
Other personnel
Total personnel costs
2,257
3,127
2,314
302,467
301,550
379,784
Salaries and wages include payments to employment agencies for temporary and contract staff.
Employer contributions to defined contribution schemes include contributions to the State Sector Retirement Savings
Scheme, KiwiSaver and the Government Superannuation Fund.
NOTE 4: CAPITAL CHARGE
The Ministry pays a capital charge on Crown equity, at 30 June and 31 December each year. The capital charge interest
rate for the year ended 30 June 2015 was 8 per cent (2014: 8 per cent).
NOTE 5: FINANCE COSTS
2015
$000
Unaudited
Budget
2015
$000
Unaudited
Forecast ^
2016
$000
Actual
Actual
2014
$000
211
–
–
348
8
Interest
Bad debts written off/(recovered)
(28)
–
–
356
Total finance expenses
183
–
–
Actual
Actual
2014
$000
2015
$000
Unaudited
Budget
2015
$000
Unaudited
Forecast ^
2016
$000
NOTE 6: (GAINS)/LOSSES
1,907
Net foreign exchange (gains)/losses
(1,445)
–
–
1,907
Total (gains)/losses
(1,445)
–
–
Actual
Actual
2014
$000
2015
$000
Unaudited
Budget
2015
$000
Unaudited
Forecast ^
2016
$000
675
807
815
NOTE 7: OTHER OPERATING COSTS
695
45
1,322
Audit fees – annual accounts
Audit fee recoveries from previous year
Board members fees and expenses
^The statement of accounting policies provides explanations of these figures which are not subject to audit.
–
–
–
695
1,265
522
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
2015
$000
Unaudited
Budget
2015
$000
Unaudited
Forecast ^
2016
$000
97,210
79,169
72,988
405
694
304
Actual
Actual
2014
$000
82,737
IT costs and technical support
725
Maintenance and repairs of property, plant and equipment
969
Net loss on disposal of property, plant and equipment
4,021
–
–
Premises costs
5,669
11,047
4,256
64,578
Professional services
59,551
54,801
30,295
29,310
Rental and operating lease costs
29,904
32,002
62,002
15,542
Travel – domestic and overseas
13,587
14,872
10,201
21,590
Other operating costs
20,581
24,523
15,852
229,058
Total operating costs
232,298
219,180
197,235
11,545
NOTE 8: DEBTORS AND OTHER RECEIVABLES
Actual
2014
$000
Actual
2015
$000
Current
-
Debtor Crown
11,735
1,358
Department and Crown entities
2,312
8,079
Accrued revenue
8,156
6,153
Trade debtors and other receivables from exchange transactions
8,796
12
Trade debtors and other receivables from non-exchange transactions
7
(489)
Less provision for impairment
15,113
Net trade and other receivables
30,867
(139)
41,033
Residential Tenancies Trust account interest receivable
42,822
56,146
Total current debtor and other receivables
73,689
Non-current
824
Bonds provided for offshore property leases
557
824
Total non-current debtor and other receivables
557
56,970
Total debtors and other receivables
74,246
The carrying value of debtors and other receivables approximates their fair value.
The non-current portion of debtors and other receivables relate to bonds given to property owners to secure offshore
rental accommodation and offices from July 2016 to June 2017.
The ageing profile of debtors and other receivables at year end is:
Gross
2014
$000
Impairment
2014
$000
Net
2014
$000
54,996
–
54,996
955
–
955
32
–
32
Past due 31–60 days
Not past due
Past due 1–30 days
250
–
250
Past due 61–90 days
1,226
(489)
737
Past due >90 days
57,459
(489)
56,970
Total
All receivables greater than 30 days in age are considered to be past due.
The Ministry does not hold the collateral for debts greater than 90 days.
^The statement of accounting policies provides explanations of these figures which are not subject to audit.
Gross
2015
$000
Impairment
2015
$000
Net
2015
$000
73,302
-
73,302
574
-
574
99
-
99
40
-
40
370
(139)
231
74,385
(139)
74,246
111
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
112
The provision for individual impairment of debtors and other receivables is based on a review of specific overdue
receivables and a collective assessment. The collective impairment provision is based on an analysis of past collection
history and debt write-offs.
Actual
2014
$000
Actual
2015
$000
–
Individual impairment
–
489
Collective impairment
139
489
Total provision for impairment
139
Actual
2014
$000
Actual
2015
$000
190
Balance at 1 July
299
Increase/(decrease) provision during the year
–
489
489
139
Receivables written off during the year
(489)
Balance at 30 June
139
NOTE 9: PROPERTY, PLANT AND EQUIPMENT
Land
Building
Office
Leasehold
Equipment Improvements
$000
$000
$000
$000
3,302
1,172
9,423
–
119
254
Furniture
& Fittings
$000
Computer
Hardware
$000
Motor
Vehicles
$000
Total
$000
41,025
11,137
60,662
8,406
135,127
8,030
3,005
14,114
5,724
31,246
Cost or valuation
Balance at 1 July 2013
Additions
Disposals
–
–
(1,646)
–
(1,788)
(18,617)
(9,923)
(31,974)
Reclassifications
–
–
–
(1,736)
1,738
495
–
497
3,302
1,291
8,031
47,319
14,092
56,654
4,207
134,896
Additions
–
5,970
165
6,831
3,623
6,073
67
22,729
Disposals
–
–
(2,795)
(9,058)
(8,397)
(24,621)
(342)
(45,213)
Balance at 30 June 2014
Reclassifications
Balance at 30 June 2015
–
–
–
1,585
(1,585)
(997)
–
(997)
3,302
7,261
5,401
46,677
7,733
37,109
3,932
111,415
Accumulated depreciation and impairment losses
Balance at 1 July 2013
–
(76)
(6,824)
(22,912)
(9,078)
(43,447)
(5,398)
(87,735)
Depreciation
–
(85)
(962)
(8,056)
(714)
(6,934)
(845)
(17,596)
Disposals
–
–
1,054
–
1,314
7,995
3,648
14,011
Balance at 30 June 2014
–
(161)
(6,732)
(30,968)
(8,478)
(42,386)
(2,595)
(91,320)
Depreciation
–
(786)
(413)
(3,526)
(996)
(6,548)
(402)
(12,671)
Disposals
–
–
2,624
8,669
7,562
24,858
275
43,988
Reclassifications
–
(44)
–
44
–
630
–
630
Balance at 30 June 2015
–
(991)
(4,521)
(25,781)
(1,912)
(23,446)
(2,722)
(59,373)
at 30 June 2014
3,302
1,130
1,299
16,351
5,614
14,268
1,612
43,576
at 30 June 2015
3,302
6,270
880
20,896
5,821
13,663
1,210
52,042
Carrying amounts
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
Valuation
The most recent valuation of land and buildings was
performed by independent registered valuer, Ramesh
Behari, of Fairview Valuations at 30 June 2012.
The Ministry did not carry out a property revaluation
in this financial year. The property in Mangere is under
development and it is not appropriate to revalue at this
time. The carrying value of the Suva property does not
materially deviate from its current valuation.
Land
Land is valued at fair value based on its highest and
best use with reference to comparable land values.
Adjustments have been made to the unencumbered land
value where there is a designation against the land or
the use of the land is restricted because of reserve or
endowment status. These adjustments are intended to
reflect the negative effect on the value of the land where
an owner is unable to use the land more intensively.
Buildings
Non-specialised buildings are valued at fair value using
market-based evidence. Market rents and capitalisation
rate methodologies were applied in determining the fair
value of buildings.
Work-in-Progress
Actual
2014
$000
119
Actual
2015
$000
1,593
Computer hardware
3,360
Furniture & Fittings
9,423
Leasehold improvements
5
72
14,572
6,090
Building
1,410
747
3,466
Motor vehicles
2
Plant and equipment
73
Total work-in-progress
11,788
NOTE 10: INTANGIBLE ASSETS
Purchased
$000
Internally
Generated
$000
Total
$000
123,788
38,979
162,767
Additions
50,375
5,464
55,839
Disposals
(3,257)
(167)
(3,424)
–
(495)
(495)
Cost or valuation
Balance at 1 July 2013
Reclassifications
Balance at 30 June 2014
170,906
43,781
214,687
Additions
26,820
19,087
45,907
Disposals
(2,826)
(1,457)
(4,283)
Reclassifications
(46,708)
47,705
997
Balance at 30 June 2015
148,192
109,116
257,308
(78,117)
(9,046)
(87,163)
(11,110)
(1,182)
(12,292)
Accumulated amortisation and impairment losses
Balance at 1 July 2013
Amortisation
Disposals
Balance at 30 June 2014
2,779
131
2,910
(86,448)
(10,097)
(96,545)
113
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
114
Purchased
Amortisation
Disposals
$000
Internally
Generated
$000
Total
$000
(11,986)
(3,230)
(15,216)
1,152
392
1,544
(1,016)
386
(630)
(98,298)
(12,549)
(110,847)
at 30 June 2014
84,458
33,684
118,142
at 30 June 2015
49,894
96,567
146,461
Reclassifications
Balance at 30 June 2015
Carrying amounts
Work-in-Progress
Actual
2014
$000
Actual
2015
$000
54,995
Computer Software Purchased
31,307
Computer Software Internally Generated
86,302
Total work-in-progress
20,528
37,518
58,046
There are no restrictions over the title of the Ministry’s intangible assets. No intangible assets are pledged as security
for liabilities.
NOTE 11: CREDITORS AND OTHER PAYABLES
Actual
2014
$000
Actual
2015
$000
18,905
Trade creditors
13,557
29,853
Accrued expenses
32,416
(474)
48,284
GST payable/(receivable)
Total creditors and other payables
1,866
47,839
Creditors and other payables are non-interest bearing and are normally settled on 30-day terms. Therefore the carrying
value of creditors and other payables approximates fair value.
NOTE 12: UNEARNED REVENUE
Actual
2014
$000
–
4,119
12,766
20
16,905
Actual
2015
$000
Contribution to general secretariat cost
Radio operations fees
Immigration – visa and other application processing
84
4,444
12,695
National multi-user approval
Total unearned revenue
22
17,245
Radio operations fees relate to annual license fees invoiced at the beginning of the period to which they relate and
recognised as unearned revenue where appropriate.
Immigration – visa and other application processing fees are requested on application by Immigration New Zealand.
These fees are recognised in the Statement of Financial Position as unearned revenue where appropriate.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
115
NOTE 13: REPAYMENT OF SURPLUS
Actual
2014
$000
28,505
Actual
2015
$000
Net surplus
32,027
Add back net operating deficit in:
(17,152)
–
(2,724)
–
Memorandum accounts
(34,080)
Unrealised foreign exchange (gains)/losses
(1,560)
Retention of surplus
–
Total multi-year appropriation adjustments
–
8,629
Adjusted net surplus/(deficit)
8,629
Net surplus payable to Crown
(3,613)
–
NOTE 14: PROVISIONS
Actual
2014
$000
Actual
2015
$000
Current provisions are represented by:
115
ACC partnership programme
120
3,026
Property
2,703
1,449
Restructuring
2,297
336
4,926
Other provisions
–
5,120
Total current portion
Non-current provisions are represented by:
19
1,966
98
ACC partnership programme
182
Property
879
Restructuring
2,083
Total non-current portion
7,009
Total provisions
98
1,159
6,279
ACC
Partnership
Programme
$000
Property Restructuring
Other
Total
$000
$000
$000
$000
442
1,566
5,893
439
8,340
Additional provisions made
8
3,426
606
78
4,118
Provision utilised during the year
–
–
(3,708)
(497)
(4,205)
(316)
–
(1,244)
316
(1,244)
Balance at 30 June 2014
134
4,992
1,547
336
7,009
Additional provisions made
168
1,177
1,865
–
3,210
Provision utilised during the year
–
(2,587)
(1,017)
(78)
(3,682)
Other movement
–
–
–
(258)
(258)
302
3,582
2,395
–
6,279
Balance at 1 July 2013
Other movement
Balance at 30 June 2015
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
116
Property
Make-good
The Ministry is required at the expiry of its leases to
make-good any damage caused and remove any fixtures
or fittings installed by it. In many cases the Ministry has
the option to renew these leases, which may change
the timing of the expected cash outflows to make-good
the premises.
Onerous Lease
The provision for onerous lease arose from a noncancellable lease where the unavoidable costs of meeting
the lease contract exceeded the economic benefits to
be received from it. The Ministry will no longer use the
building, Writes Road, Christchurch due to the move
to Cashel Street, Christchurch from December 2016.
No sublease cash inflows on the vacant floors have
been included in measuring the provision as there is
insufficient certainty these floors will be let. The Ministry
has twenty seven months remaining on this lease from
December 2016.
Restructuring
The restructuring provision arises from internal
restructuring programmes in Visa Services, Market
Services and Auckland Call Centre. In addition a major
internal restructuring programme – Building a High
Performing MBIE Programme was announced in March
2015. The provision relates to personnel costs expected
to arise from the programme.
The non-current portion of the restructuring provision
relates to the cost of expected redundancies when the
Canterbury Earthquake Temporary Accommodation
Service (CETAS) ceases. Management does not expect
this to happen in the next 12 months.
ACC Accredited Employer Programme
The liability for the ACC Accredited Employer Programme
is measured at the present value of expected future
payments for employee injuries and claims up to balance
date, using actuarial techniques. Consideration is given
to expected future wage and salary levels and experience
of employee claims and injuries. Expected future
payments are discounted using market yields at balance
date on government bonds, with terms to maturity that
match, as closely as possible to the estimated future
cash outflows.
The Ministry’s insurance liabilities arise from the
Ministry’s membership in the ACC Accredited Employer
Programme under the Full Self Cover Plan. This
plan assumes full financial and injury management
responsibility for work-related injuries and illnesses for
a selected management period and continuing financial
liability for the life of the claim to a pre-selected limit.
The Ministry has chosen a stop loss limit of 96 per cent
of the standard industry premium for the 2014/15 cover
year. The stop loss limit means the Ministry will only carry
the total cost of claims of up to $558,000 for this cover
year period. The Ministry is not exposed to any significant
concentrations of insurance risk as work-related injuries
are generally the result of isolated events affecting an
individual employee. Exceptions would include motor
vehicle accidents involving a number of staff in one
accident or a disaster, such as an earthquake.
Exposures are managed by promoting a safe and healthy
working environment including:
›› implementing and monitoring health and
safety policies,
›› induction training on health and safety,
›› improving awareness of health and safety
through meetings and induction processes,
›› actively managing workplace injuries to ensure
employees return to work as soon as practical,
›› recording and monitoring workplace injuries and
near misses to identify risk areas and implementing
mitigating actions, and
›› identifying workplace hazards and implementation
of appropriate safety procedures.
An independent actuarial valuer, Mark Weaver of Melville
Jessup Weaver has calculated the Ministry’s liability under
the programme at 30 June 2015.
The results have been discounted for the time value
of money using the payment pattern determined in
the Bornheutter–Ferguson (BF) paid claims valuation
methodology
The key assumptions underlying the methodology were
as follows:
›› The principal assumption is that the development
pattern of claims payments is the same for all
loss periods.
›› The assumed ‘loss ratios’ (claims ÷ liable earnings)
were determined by considering the observed loss
ratios for the earlier loss quarters and having regard
to the general trend in claims costs. The loss ratio
chosen was 0.10 per cent for all loss quarters.
›› Projected future payments were discounted at rates
specified by Treasury to use as at 30 June 2015.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
117
NOTE 15: EMPLOYEE ENTITLEMENTS
Actual
2014
$000
Actual
2015
$000
Current
17,331
Annual leave
16,763
552
Long service leave
124
Sick leave
157
855
Retirement leave
407
3,835
Performance incentives
6,972
Accrued salary
29,669
1,400
680
(548)
Total Current
18,859
Non-current
1,105
Long service leave
2,071
4,400
Retirement leave
4,486
5,505
Total non-current
6,557
35,174
Total employee entitlements
An independent actuarial valuation was undertaken by
Linda Caradus of Melville Jessup Weaver as at 30 June
2015 to estimate the present value of retirement leave
and long service leave. The key assumptions used in
determining the present values were:
›› term specific discount rates derived from yields on
Treasury Bills and Government Bonds, and
›› salary growth rate 2.0 per cent per annum in year 1,
2.5 per cent per annum thereafter.
Sensitivity Analysis
25,416
all other factors held constant, the carrying amount
of the liability would be $0.114 million lower and $0.125
million higher respectively.
If the salary inflation factor were to increase/decrease
by 1 per cent more than the Ministry’s estimates, with
all other factors held constant, the carrying amount of
the liability would be $0.125 million higher and $0.116
million lower respectively.
The current liability represents the amount due for
potential settlement within the next 12 months.
If the discount rate were to increase/decrease by
1 per cent more than the Ministry’s estimates, with
NOTE 16: EQUITY
Actual
2014
$000
Actual
2015
$000
Taxpayers' funds
153,134
Balance at 1 July
179,573
28,505
Surplus/(deficit)
32,027
33,493
Capital contributions
19,700
(8,671)
Capital withdrawal
(17,152)
Transfer of net memorandum account accumulated (surpluses)/deficits for the year
(8,629)
Return of operating surplus to the Crown
–
Other movement
–
(1,107)
179,573
Balance at 30 June
(38)
(34,080)
197,182
Memorandum accounts
(13,255)
Balance at 1 July
17,152
Net memorandum accounts surplus/(deficit) for the year
1,095
Other movement
4,992
Balance at 30 June
4,992
34,080
–
39,072
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
118
Actual
2014
$000
Actual
2015
$000
Revaluation reserves
4,580
Balance at 1 July
4,580
–
Revaluation gains/(losses)
–
–
Other movement
–
4,580
189,145
Balance at 30 June
4,580
Total equity
240,834
NOTE 17: RECONCILIATION OF NET SURPLUS TO NET CASH FLOWS FROM OPERATING ACTIVITIES
2015
$000
Unaudited
Budget
2015
$000
Unaudited
Forecast ^
2016
$000
32,027
3,065
6,660
27,883
30,612
32,734
1,216
–
–
Other non-cash items
(1,466)
–
–
Total non-cash item
27,633
30,612
32,734
Actual
Actual
2014
$000
28,505
Net surplus/(deficit) from operations
Add/(less) non-cash items
29,889
Depreciation
(2,464)
Increase/(decrease) in non-current employee entitlements
2,454
29,679
Add/(less) non-operation items
45
(335)
(335)
969
(81)
Net interest paid/(received)
Net (gain)/loss on sale of property, plant and equipment
3,798
–
–
888
Total non-operation items
3,843
(335)
(335)
Add/(less) movements in working capital
221
(Increase)/decrease in inventory
463
(Increase)/decrease in prepayments
(5,529)
(13,104)
2,515
200
–
–
(1,167)
(110)
–
(Increase)/decrease in debtor and receivables
(14,739)
(463)
6,940
Increase/(decrease) in creditors and payables
(2,880)
4,356
(2,566)
340
(100)
(100)
Increase/(decrease) in deferred revenue
(1,331)
Increase/(decrease) in provisions
3,798
Increase/(decrease) in current employee entitlements
(12,967)
46,105
Total working capital movements
(928)
4,743
(79)
(10,811)
–
–
(29,985)
8,426
4,195
33,518
41,768
43,254
Net surplus/(deficit) from operations
NOTE 18: RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT PERSONNEL
All related party transactions have been entered into
on an arms’ length basis.
The Ministry is a wholly-owned entity of the Crown.
Related party disclosures have not been made for
transactions with related parties that are within a
normal supplier or client/recipient relationship on terms
and conditions no more or less favourable than those
that it is reasonable to expect the Ministry would have
adopted in dealing with the party at arm’s length in the
some circumstances. Further, transactions with other
government agencies are not disclosed as related party
transactions when they are consistent with the normal
operating arrangements between government agencies
and undertaken on the normal terms and conditions
for such transactions.
The Treasury advises that responsible Ministers: Amy
Adams, Bill English, John Key, Nick Smith, Nikki Kaye,
Michael Woodhouse, Paul Goldsmith, Paula Bennett,
Simon Bridges and Steven Joyce have certified that they
have no related party transactions for the year ended
30 June 2015.
^The statement of accounting policies provides explanations of these figures which are not subject to audit.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
Related party transactions involving key management
personnel or their close family members
There are no related party transactions involving key
management personnel or their close family members.
119
No provision has been required, nor any expense
recognised, for impairment of receivables from
related parties.
Key management personnel compensation
Actual
2014
$000
Actual
2015
$000
Leadership Team, including the Chief Executive
3,094
8
Renumeration
2,764
Full-time equivalent staff
The above key management personnel disclosure excludes
the Ministers of the Ministry. The Ministers’ remuneration
and other benefits are not received only for their roles as
members of key management personnel of the Ministry.
7
The Ministers’ remuneration and other benefits are set by
the Remuneration Authority under the Civil List Act 1979
and are paid under Permanent Legislative Authority, and
not paid by the Ministry.
NOTE 19: EVENTS AFTER BALANCE DATE
There were no post-balance date events that required adjustments to the financial statements.
NOTE 20 : FINANCIAL INSTRUMENTS
Categories of financial instruments
The carrying amounts of financial assets and financial liabilities in each of the financial instrument categories are
as follows:
Actual
2014
$000
Actual
2015
$000
Loans and receivables
84,163
Cash and cash equivalents
61,480
56,970
Debtor and other receivables
74,246
Derivatives
–
141,133
FX contracts – Advance Passenger Processing Services Agreement
Total financial assets
4,490
140,216
Financial liabilities measured at amortised cost
48,284
Creditors and other payables
47,839
Derivatives
–
48,284
FX contracts – Advance Passenger Processing Services Agreement
Total financial liabilities
The notional principal amounts of outstanding forward
exchange contracts at 30 June 2015 was $AUD 4.036
million (2014: Nil).
Fair value Hierachy
For those instruments recognised at fair value in the
statement of financial position, fair values are determined
according to the following hierarchy:
4,330
52,169
›› Quoted market price (level 1) – Financial instruments
with quoted prices for identical instruments in
active markets.
›› Valuation technique using observable inputs (level 2)
– Financial instruments with quoted prices for similar
instrument in active markets or quoted prices for
identical or similar instruments in inactive markets
and financial instruments valued using models where
all significant inputs are observable.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
120
›› Valuation techniques with significant non-observable
inputs (level 3) – Financial instruments valued using
models where one or more significant inputs are
not observable.
Currency
2014
2015
73
4
Chinese Renminbi
22
58
EMU Euro
43
7
Fiji Dollar
52
7
Australian Dollar
The Ministry’s activities expose it to a variety of financial
instrument risks, including market risk, credit risk, and
liquidity risk. The Ministry has a series of policies to
manage the risks associated with financial instruments
and seeks to minimise exposure from financial
instruments. These policies do not allow any transactions
that are speculative in nature to be entered into.
Impact of 5 per cent
Change in NZD
Hong Kong Dollar
30
6
Indian Rupee
84
20
Korean Won
39
10
Market risk
Pound Sterling
37
27
Currency risk
Russian Ruble
28
1
Currency risk is the risk that the fair value or future
cash flows of a financial instrument will fluctuate due
to changes in foreign exchange rates.
The Ministry’s greatest direct foreign exchange exposure
arises from the offshore branch and agency network
that provides immigration services. Application fees
are collected in more than 20 currencies through this
network. The offshore branch network incurs significant
local expenses, providing a natural hedge for the branch
revenue. The Ministry’s convention is for branches to
retain buffers in foreign currency accounts up to the
value of an average month’s expenditure.
Under the Ministry’s foreign exchange management
policy the Ministry returns excess funds to New Zealand
and converts them to New Zealand dollars. As there is a
natural hedge in place only the net exposure is returned.
Application fees are set by regulation in New Zealand
dollars and updated annually. Foreign currency equivalent
fees are set by the Ministry to reflect the New Zealand
amount. Foreign currency transaction exposure is also
mitigated to some extent by the ability of the Ministry
to initiate updates of foreign currency fees to bring
them into line with prevailing market conditions.
Sensitivity Analysis
The table below details the additional surplus/deficit
if the New Zealand dollar weakened/strengthened by
5 per cent against various other currencies with all other
variables held constant at 30 June 2015. This movement
is attributable to foreign exchange gains and losses on
translation of the foreign currency held by the Ministry
in its foreign currency account.
Thai Baht
59
15
US Dollar
265
53
Interest rate risk
Interest rate risk is the risk that the fair value of a
financial instrument will fluctuate, or the cash flows
from a financial instrument will fluctuate, due to changes
in market interest rates.
The Ministry has no exposure to interest-bearing financial
instruments apart from the Residential Tenancies
Trust Account.
Credit risk
Credit risk is the risk that a third party will default on
its obligations to the Ministry, causing a loss.
In the normal course of its business the Ministry is
exposed to credit risk from trade debtors, deposits with
banks and derivative financial instrument assets. The
Ministry does not have significant concentrations of
credit risk.
The Ministry’s maximum credit exposure for each class
of financial instrument is represented by the total
carrying amount of cash and cash equivalents, debtors
and other receivables and derivative financial instrument
assets. There is no collateral held as security against
these financial instruments, including those instruments
that are overdue or impaired.
Liquidity risk
Liquidity risk is the risk that the Ministry will encounter
difficulty raising liquid funds to meet commitments as
they fall due.
In meeting its liquidity requirements, the Ministry
closely monitors its forecast cash requirements against
expected cash drawdowns from the New Zealand Debt
Management Office. The Ministry maintains a target
level of available cash to meet liquidity requirements.
^The statement of accounting policies provides explanations of these figures which are not subject to audit.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
121
Contractual maturity analysis of financial liabilities, excluding derivatives
The table below analyses the Ministry’s financial liabilities into relevant maturity groupings based on the remaining
period at balance date to the contractual maturity date. The amounts disclosed are the contractual undiscounted
cash flows.
Carrying
Amount
$000
Contractual
Cash Flows
$000
Less than
6 months
$000
47,839
47,839
47,839
30 June 2015
Creditors and other payables
NOTE 21: CAPITAL MANAGEMENT
The Ministry’s capital is its equity, comprising taxpayers’
funds, memorandum accounts and revaluation reserves.
Equity is represented by net assets.
The Ministry manages its revenues, expenses, assets,
liabilities, and general financial dealings prudently and in
a manner that promotes the current and future interests
of the New Zealand public. The Ministry’s equity is
largely managed as a by-product of managing revenue,
expenses, assets and liabilities, in compliance with the
Government budget processes, Treasury instructions,
and the Public Finance Act 1989.
The objective of managing the Ministry’s equity is to
ensure that the Ministry achieves its goals and objectives
efficiently, while remaining a going concern.
NOTE 22: MEMORANDUM ACCOUNTS
Actual
2014
$000
Actual
2015
$000
VOTE: HOUSING
Building controls
9,687
Balance at 1 July
22,047
Revenue
(21,950)
Expenses
97
9,784
Surplus/(deficit) for the year
Balance at 30 June
9,784
29,770
(22,922)
6,848
16,632
Occupational licensing – building practitioners
(14,386)
Balance at 1 July
4,797
Revenue
(5,830)
Expenses
(1,033)
Surplus/(deficit) for the year
7,095
(8,324)
Capital Contribution
Balance at 30 June
(8,324)
4,727
(4,892)
(165)
–
(8,489)
Occupational licensing – electrical workers
6,368
2,156
(3,062)
Balance at 1 July
Revenue
Expenses
(906)
Surplus/(deficit) for the year
5,462
Balance at 30 June
5,462
3,414
(3,402)
12
5,474
National multi-use approvals
(443)
–
Balance at 1 July
Revenue
(808)
41
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
122
Actual
2014
$000
Actual
2015
$000
(365)
Expenses
(365)
Surplus/(deficit) for the year
(808)
Balance at 30 June
(308)
(267)
(1,075)
Unit titles disputes
20
Balance at 1 July
81
153
Revenue
(92)
Expenses
(215)
177
61
Surplus/(deficit) for the year
(38)
81
Balance at 30 June
43
VOTE: COMMERCE & CONSUMER AFFAIRS
Registration and granting of intellectual property rights
3,163
Balance at 1 July
8,330
18,971
Revenue
22,764
(13,804)
Expenses
(13,810)
5,167
8,330
Surplus/(deficit) for the year
Balance at 30 June
8,954
17,284
Registration and provision of statutory information
1,616
Balance at 1 July
3,863
28,831
Revenue
29,800
(20,584)
Expenses
(22,419)
8,247
(6,000)
3,863
Surplus/(deficit) for the year
Capital withdrawal
Balance at 30 June
7,381
–
11,244
Registration and provision of statutory information – motor vehicle traders register and information
programme
537
1,078
(787)
291
828
Balance at 1 July
828
Revenue
1,191
Expenses
(749)
Surplus/(deficit) for the year
Balance at 30 June
442
1,270
VOTE: COMMUNICATIONS
Management and enforcement of the Radiocommunications Act 1989
7,106
Balance at 1 July
8,243
7,574
Revenue
7,450
(6,437)
Expenses
1,137
8,243
Surplus/(deficit) for the year
Balance at 30 June
VOTE: ENERGY
Management of the Crown mineral estate
(7,003)
447
8,690
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
Actual
2014
$000
490
Actual
2015
$000
Balance at 1 July
6,995
Revenue
(6,974)
Expenses
21
511
511
5,367
(6,502)
Surplus/(deficit) for the year
(1,135)
Balance at 30 June
(624)
VOTE: ECONOMIC DEVELOPMENT & EMPLOYMENT
Government procurement reform agenda
4,019
Balance at 1 July
12,427
Revenue
(11,622)
Expenses
805
4,824
4,824
12,636
(14,406)
Surplus/(deficit) for the year
(1,770)
Balance at 30 June
3,054
Policy advice and support on consumer issues – motor vehicle traders register
and information programme
90
Balance at 1 July
115
192
Revenue
195
(167)
Expenses
(9)
25
Surplus/(deficit) for the year
186
115
Balance at 30 June
301
VOTE: IMMIGRATION
Visas and permits
Balance at 1 July
(27,917)
148,625
(31,522)
Revenue
175,061
(145,020)
Expenses
3,605
(27,917)
(161,876)
Surplus/(deficit) for the year
13,185
Balance at 30 June
(14,732)
Total memorandum accounts
(13,255)
Balance at 1 July
4,992
253,846
Revenue
292,593
(236,694)
Expenses
(258,513)
17,152
Surplus/(deficit) for the year
7,095
Capital contribution
–
Capital withdrawal
–
(6,000)
4,992
34,080
Balance at 30 June
Memorandum accounts summarise financial information
for statutes or activities managed by the Ministry on a full
cost recovery basis.
Before 1 July 2011 memorandum accounts were ‘notional’
accounts included for transparency around outputs that
were fully cost recovered. Since that date the closing
balances of all Government memorandum accounts have
been recognised separately in equity (see Note 16).
39,072
The balance of each memorandum account is expected
to trend toward zero over time, with any annual deficits
being met either from cash or a repayable capital injection
from the Crown.
ƨAction
ƨ
taken to address surpluses
Occupational licensing – electrical workers
The current fees are set at a level intended to use up
the accumulated surpluses. A fees review was completed
in March 2015 with the fees left unchanged.
123
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
124
Registration and provision of statutory information
– motor vehicle traders register and information
programme (Vote Commerce and Consumer Affairs)
The costs of running the register, education and client
communication programs are recovered through
registration fees. The fees are reviewed to keep
them in line with activity.
Registration and granting of intellectual
property rights
The memorandum account was established in 2004/05
to accumulate surpluses to cover the three year gaps in
revenue brought about by the change in the Trade Marks
Act 2002, from a seven year renewal cycle to a ten year
cycle. The balance is expected to decline in 2015/16 as a
result of a peak in renewals for current year incurred to
avoid expected future fee increases.
Management and enforcement of the
Radiocommunications Act 1989
License fees were expected to decrease after the end of
analogue television licensing and the start of the “digital
switch on” initiative. However, the very rapid expansion
of cellular mobile services has more than replaced this
lost revenue. Costs have also continued to decline
proportionately as online licensing has been introduced.
As a result fees will be reviewed to avoid over-recovery
in the near future.
Registration and provision of statutory information
The Companies Office reviews its fees and charges
annually, taking into account new initiatives, volume
considerations and revised pricing schedules. The capital
injection received from the Crown in 2012 was included
in the balance in 2013 and was repaid during 2014. A fee
review will commence in 2015/16.
Government procurement reform agenda
The cost of administering the Government procurement
reform agenda is funded through a small administrative
charge on participating agencies and by suppliers as a
surcharge paid to the Ministry on the all-of-government
(AOG) contract price. As the Ministry was unlikely to
recover sufficient revenue from user charges during
the early stages of the program, the Crown agreed to
provide for repayable capital injections while revenue
from user charges built up. A memorandum account
was established in 2010 so that charges could be
adjusted whenever revenues and expenses diverged
significantly. The balance is expected to decline in
2015/16 as the Ministry will be incurring expenses for
Telecommunications as a Service programme and AOG
Banking over the next 6 months but it is expected that
the revenue from these new contracts will build up over
the next twelve to eighteen months.
Building controls
The balance grew throughout 2014/15 mainly as a result
of large volumes for new building consents. The Ministry
is planning a fee review which is likely to be implemented
in the 2016/17 financial year.
ƨAction
ƨ
taken to adress deficits
Management of Crown mineral estate
The account was established in 2006/07 so the Ministry
could manage the volatility in permit applications
associated with exploration and production activities.
It has moved into deficit over the course of this year
and fees will be reviewed in 2015/16.
Occupational licensing – building practitioners
A fee review was undertaken in 2014/15 but it has been
agreed to hold off on changing fees until the Minister
considers the option of a Super Regulator across the
entire building sector.
National multi use approvals (multi-proof)
A revised scope of work, better meeting the needs of
the sector has been implemented. Further options for
addressing the deficit will also be considered in 2015/16
Visa and permits
The account is forecasted to move close to surplus
overtime as a result of significant volume increases
which are forecasted to continue. A review of Visa fees
is currently underway with a proposed fee change of
circa 8 per cent including the new Immigration Levy
to be effective from November 2015.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Financial
statements
NOTE 23: EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET
Statement of Comprehensive Revenue and Expense,
Statement of Financial Position and Statement of
Cash Flows
The Main Estimates figures presented in these Financial
Statements are reviewed and amended throughout
the year.
Total revenue is higher than Main Estimates by $45.543
million. This is mainly due to:
›› 17% increase in revenue from Immigration, in
particular from visa services. This has been driven
from demand particulary from China and India.
›› greater than expected Building levies resulting from
a 31% increase in revenue, mainly due to increased
consenting activity, particularly in Christchurch
and Auckland.
›› greater than expected revenue from Statutory
Information and Intellectual Property. This was
largely driven by higher than expected volumes.
Total expenditure was greater than Main Estimates by
$16.581 million. This was due to:
›› greater level of activities which led to an increase in
associated expenses such as personnel and consulting.
›› greater number of restructuring programs which will
lead to lower costs overtime
›› Capital drawdown to cover various capital projects
which resulted increase in Capital Charge
Total liabilities are lower than Mains Estimates by $11.9
million. Creditors and payables were below estimates by
$9.8 million due to improved working capital monitoring
and timing of payments.
The cash position was $60.3 million below Mains
Estimates due to effective cashflow management,
with unrequired Crown funding drawdowns postponed.
Additional capital spending on intangible assets was
funded from cash reserves rather than new capital
contributions.
125
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
Non-departmental
statements
and schedules
The following non-departmental schedules and statements record the revenue,
expenses, assets, liabilities, commitments, contingent liabilities and contingent
assets that the Ministry manages on behalf of the Crown.
SCHEDULE OF NON-DEPARTMENTAL REVENUE
For the year ended 30 June 2015
Actual
Notes
126
ANNUAL REPORT 2014/2015
2014
$000
Actual
2015
$000
Mains
Estimates
2015
$000
36,464
35,874
659,620
750,738
36,195
26,978
2,318
–
734,597
813,590
Revenue
35,408
747,002
Tax
Non-tax
17,290
Sale of radio spectrum
23,693
Gain on other financial assets
823,393
Total revenue
2
The accompanying notes form part of the financial schedules and statements. For a full understanding of the Crown’s financial position and the results of
its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2015.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
127
SCHEDULE OF NON-DEPARTMENTAL EXPENDITURE
For the year ended 30 June 2015
Notes
Actual
2014
$000
Actual
2015
$000
Mains
Estimates
2015
$000
Expenditure
2,701,103
2,139,616
2,140,970
Output expenses – multi-year appropriations
139,905
199,220
289,272
Other expenses – annual appropriations
139,833
202,729
102,373
Other expenses – multi-year appropriations
186,775
132,859
90,485
Benefits and other unrequited expenses
63,856
62,302
3,926
3,585
–
–
87,616
4,174
482
18,595
355,788
3,649,888
Output expenses – annual appropriations
Depreciation
Other
Doubtful debts
319
–
350,276
417,740
3,024,506
3,159,405
Actual
2015
$000
Mains
Estimates
2015
$000
487,880
146,166
3,860
11,783
165,533
142,048
Loans
1,582
6,488
Derivative assets
2,969
4,873
GST
Total expenditure
SCHEDULE OF NON-DEPARTMENTAL ASSETS
As at 30 June 2015
Notes
Actual
2014
$000
ASSETS
Current assets
482,483
7,771
442,891
1,664
–
24
934,833
Cash and cash equivalents
Prepayments
Debtors and other receivables
3
Assets held for sale
Total current assets
13,904
–
675,728
311,358
27,573
181,438
–
11,629
Non-current assets
31,502
–
3,181
3,024
37,707
972,540
Property, plant and equipment
Debtors and other receivables
Derivative assets
Loans
Total non-current assets
Total assets
Assets held for sale relate to:
›› the Canterbury earthquake transportable units
purchased in 2011 for the purpose of providing
temporary accommodation for people displaced by the
Canterbury earthquake. There is one unit left and this
is expected to be sold in 2015/16 financial year.
4
–
–
3,047
1,595
30,620
194,662
706,348
506,020
›› Land purchases for Christchurch housing
development. The development Agreement was
signed by both Fletchers and the Crown, this was
finalised on 14 July 2015. The sites will remain in
Crown ownership whilst certain development
conditions are met. Following confirmation of the
development conditions the titles will transfer and
funds will be received within the same financial year.
The accompanying notes form part of the financial schedules and statements. For a full understanding of the Crown’s financial position and the results of
its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2015.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
SCHEDULE OF NON-DEPARTMENTAL LIABILITIES
As at 30 June 2015
Notes
128
Actual
Creditors and other payables
5
163,767
308,223
56,731
Provisions
7
88,138
3,028
3,399
Derivative liabilities
2,845
4,687
Actual
2014
$000
2015
$000
Mains
Estimates
2015
$000
LIABILITIES
Current liabilities
213,187
367
35,798
309,482
Employee entitlements
Unearned income
158
486
36,230
213,623
291,138
530,047
7
154,400
123,300
89
–
6
470,067
–
6
Total current liabilities
-
6
Non-current liabilities
151,634
77
Provisions
Employee entitlements
447,449
Unearned income
599,160
Total non-current liabilities
624,556
123,300
908,642
Total liabilities
915,694
653,347
SCHEDULE OF NON-DEPARTMENTAL CONTINGENT LIABILITIES AND CONTINGENT ASSETS
As at 30 June 2015
Unquantifiable contingent liabilities
The following contingent liabilities are unquantifiable:
›› Indemnities under section 63 of the Corporations
Act 1989.
›› Indemnities under section 59 of the Public Finance
Act 1989.
Guarantees
As part of the Financial Assistance Package for
the Weathertight Services Scheme, the Crown has
agreements with trading banks on a loss share
arrangement to assist homeowners accessing bank
finance for agreed repair costs. The appropriation to
cover this expenditure can be seen on the Statement
of Non-Departmental Expenditure and Capital
Expenditure against the appropriation line item
Weathertight Services: Guarantee Fee Subsidy.
Indemnities
The Crown has provided a warranty in respect of title
to the assets transferred to Housing New Zealand
Limited (HNZL). HNZL was incorporated into the Housing
New Zealand Corporation group as a subsidiary in 2001
as part of a legislated consolidation of government
housing functions. The Crown has indemnified HNZL
against any breach of this warranty. In addition, the
Crown has indemnified HNZL against any third-party
claims as a result of acts or omissions prior to 1 November
1992. It has also indemnified the directors and officers
of HNZL against any liability consequent upon the assets
not complying with statutory requirements, provided it
takes steps to rectify any non-compliance.
The Crown also has a liability under an indemnity in a
confidentiality agreement relevant to reserve generation
capacity for the electricity system.
These unquantifiable guarantees and indemnities are
substantially unchanged from 2013/14.
There is an historic claim for breaches of fiduciary duties
and for a constructive trust. A decision on the allocation
of any potential liability rests with Cabinet. Both the
extent of the potential liability and the proportion the
Ministry would be responsible for are unknown.
The accompanying notes form part of the financial schedules and statements. For a full understanding of the Crown’s financial position and the results of
its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2015.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
129
Quantifiable contingent liabilities
Actual
2014
$000
Actual
2015
$000
Quantifiable contingent liabilities
26,349
Guarantees and indemnities
26,349
26,349
Total quantifiable contingent liabilities
26,349
From 1996 to 1999, Housing New Zealand Corporation
sold a significant portion of its Crown mortgage portfolio
to Westpac Banking Corporation. As a condition of the
sale, Westpac obtained an indemnity against any losses
arising from default over the life of the loans. The Crown’s
liability under this indemnity will continue until 2026, with
the maximum exposure actuarially assessed at
$26 million at 30 June 2015. (2014: $26 million)
Funding or part funding of rehabilitation of mine sites
that were subject to mining licenses under the Mining
Act 1971 or the Coal Mines Act 1979 is also a contingent
liability. Although this is primarily the responsibility of
local authorities there are limited circumstances where
there may be a residual liability for the Crown. This is
substantially unchanged from 2013/14.
If New Zealand Post does not agree to pay the annual
membership contribution (Swiss Francs 196,800) to the
Universal Postal Union then the Crown would be obliged
to pay. This is unchanged from 2013/14.
Contingent assets
The Ministry on behalf of the Crown has no contingent
assets (2014: nil).
The accompanying notes form part of the financial schedules and statements. For a full understanding of the Crown’s financial position and the results of
its operations for the year, refer to the consolidated Financial Statements of the Government for the year ended 30 June 2015.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
130
Notes to the non-departmental
schedules and statements
For the year ended 30 June 2015
NOTE 1: STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2015
ƨReporting
ƨ
Entity
The non-departmental statements and schedules present
financial information on public funds managed by the
Ministry on behalf of the Crown.
The non-departmental balances are consolidated into
the Financial Statements of the Government for the
year ended 30 June 2015. For a full understanding of the
Crown’s financial position, results of operations and
cash flows for the year, reference should be made to
the Financial Statements of the Government.
ƨBasis
ƨ
of Preparation
The non-departmental statements and schedules have
been prepared in accordance with the accounting policies
of the Financial Statements of the Government, Treasury
Instructions, and Treasury Circulars.
Measurement and recognition rules applied in the
preparation of these non-departmental statements and
schedules are consistent with New Zealand generally
accepted accounting practice (Tier 1 Public Sector Benefit
Entity Accounting Standards) as appropriate for public
benefit entities.
These non-departmental statements and schedules
are the first prepared in accordance with the new PBE
accounting standards.
Functional and presentation currency
The non-departmental statements and schedules are
presented in New Zealand dollars and all values are
rounded to the nearest thousand dollars ($000). The
functional currency of the Ministry is New Zealand dollars.
Changes in accounting policies
Accounting policies are changed only if the change is
required by a standard or interpretation or otherwise
provides more reliable and more relevant information.
Details of standards and interpretations the Ministry has
adopted are detailed in the Notes to the Departmental
Financial Statements.
ƨSignificant
ƨ
Accounting Policies
Revenue
Revenue – Dividends
Revenue from dividends is recognised as revenue when
the dividend is received. Revenue is measured at fair
value. Fair value is determined using a model that uses
past experience to forecast the expected collectability of
dividends and timing of receipts and discounts these to
present value using an appropriate discount rate.
Revenue – Energy Royalties
Revenue from energy royalties is recognised as revenue
when sales statistics are notified and agreed royalty rates
applied. Revenue is measured at fair value. Fair value is
determined using a model that uses past experience to
forecast the expected collectability of royalties and timing
of receipts and discounts these to present value using an
appropriate discount rate.
Revenue – Levies
Revenue from levies is recognised as revenue when the
obligation to pay is incurred. Revenue is measured at fair
value. Fair value is determined using a model that uses
past experience to forecast the expected collectability
of levies and timing of receipts and discounts these to
present value using an appropriate discount rate.
Revenue – Sale of Radio Spectrum
Revenue from sale of radio spectrum is recognised as
revenue evenly over the term of the management rights.
Grant expenditure
Where grants are deemed discretionary until the payment
is made, the expense is recognised when the payment
is made. Where grants are discretionary, but have no
binding terms, conditions or achievement milestones,
or there are no substantial acts for the recipient to
complete, the Ministry recognises the entire expense and
liability as soon as the grant is approved. Where grants
are discretionary and there is an exchange contract the
Ministry recognises the expense and liability to the extent
that the terms, conditions and achievement milestones
have been met and a present obligation exists, using the
normal accounting rules, unless a specific accounting
standard applies. Where grants are discretionary and
there is a grant agreement which is not an exchange
contract the Ministry recognises the expense and liability
to the extent that the terms, conditions and achievement
milestones have been met and a present obligation
exists. Where grants are non-discretionary the Ministry
recognises the entire expense and liability as soon as
claimants who meet the grant criteria are known. If it is
not clear what the entire expense might be the Ministry
creates a provision for it.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
Foreign currency transactions
Foreign currency transactions including those for
which forward foreign exchange contracts are held are
translated to New Zealand dollars at the rate applicable
on the day of settlement. Monetary assets and liabilities
denominated in foreign currencies at balance date are
translated to New Zealand dollars at the foreign exchange
rate at balance date. Foreign exchange gains or losses
arising from the settlements of such transactions and
from the translation at year end exchange rates of
monetary assets and liabilities denominated in foreign
currencies are recognised in the schedule of nondepartmental revenue or expenditure.
Derivative financial instruments
The Ministry uses derivative financial instruments to
hedge exposure to foreign exchange movements. In
accordance with its Foreign Exchange Management Policy,
the Ministry does not hold or issue derivative financial
instruments for trading purposes. The Ministry has not
adopted hedge accounting.
Derivatives are initially recognised at fair value on
the date a derivative contract is entered into and are
subsequently remeasured at their fair value at each
balance date. Movements in the fair value of derivative
financial instruments are recognised in the schedule of
non-departmental revenue or expenditure.
The full fair value of derivative financial instruments is
classified as current if the contract is due for settlement
within 12 months of balance date. Otherwise, derivative
financial instruments are classified as non-current.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, cash
in transit and bank accounts.
Debtors and Other Receivables
Debtors and other receivables are initially measured at
fair value less any provision for impairment. Loans at nil,
or below market, interest rates are initially recognised
at the present value of their expected future cash flows,
discounted using a rate for loans of a similar term and
credit risk. They are subsequently measured amortised
cost using the effective interest method. The difference
between the face value and present value of expected
future cash flows of the loan is recognised in the
schedule of non-departmental expenses. Impairment of a
receivable is established when there is objective evidence
that the Ministry will not be able to collect amounts
due according to the original terms of the receivable.
Significant financial difficulties of the debtor, probability
that the debtor will enter into bankruptcy, receivership
or liquidation, and default in payments are considered
indicators that the debt is impaired. The amount of the
impairment is the difference between the asset’s carrying
amount and the present value of estimated future cash
flows, discounted using the original effective interest
rate. The carrying amount of the asset is reduced through
the use of an allowance account, and the amount of the
loss is recognised in the schedule of non-departmental
expenditure. When a debt is uncollectable it is written off
against the allowance account for debtors.
Non-current assets held for sale
Non-current assets held for sale are classified as held for
sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing
use. Non-current assets held for sale are measured at the
lower of their carrying amount and fair value less costs
to sell.
Any impairment losses for write-downs of non-current
assets held for sale are recognised in the surplus
or deficit.
Any increases in fair value (less costs to sell) are
recognised up to the level of any impairment losses
that have been previously recognised.
Non-current assets held for sale (including those that
are part of a disposal group) are not depreciated or
amortised while they are classified as held for sale.
Property, plant and equipment
Items of property, plant and equipment costing $5,000
(excluding GST) or more are capitalised and are initially
recorded at cost.
The carrying amounts of property, plant and equipment
are reviewed annually to determine if there are any
indications of impairment. Where an asset’s recoverable
amount is less than its carrying amount, it will be
reported at its recoverable amount and an impairment
loss will be recognised in the schedule of nondepartmental expenditure.
Realised gains and losses arising from sales of property,
plant and equipment are recognised in the schedule of
non-departmental revenue or expenditure in the period
in which the transaction occurs.
Depreciation
Depreciation is charged on a straight-line basis on all
property, plant and equipment , other than land and
work in progress, at rates that will allocate the cost
(or revalued amount) of the assets over their estimated
useful lives.
The useful lives of major categories of property, plant
and equipment have been estimated as follows:
Asset Class Useful Life
Buildings – permanent
50 years
Buildings – Canterbury earthquake building and
ground work
2–4 years
Infrastructure
10 years
Textphone equipment
4 years
The useful lives of buildings are reassessed following
any revaluation.
131
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
132
Impairment of property, plant and equipment
Property, plant and equipment that have a finite useful
life are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs
to sell and value in use.
Value in use is the depreciated replacement cost for an
asset where the future economic benefits or service
potential of the asset is not primarily dependent on the
asset’s ability to generate net cash inflows and where
the Ministry would, if deprived of the asset, replace its
remaining future economic benefits or service potential.
If an asset’s carrying amount exceeds its recoverable
amount, the asset is impaired and the carrying amount
is written down to the recoverable amount. For revalued
assets, the impairment loss is recognised against the
revaluation reserve for that asset class. Where that
results in a debit balance in the revaluation reserve
the balance is recognised in the schedule of nondepartmental expenditure. For assets not carried at a
revalued amount, the total impairment loss is recognised
in the schedule of non-departmental expenditure.
The reversal of an impairment loss on a revalued asset
is credited to the revaluation reserve. However, to
the extent that an impairment loss for that class of
asset was previously recognised in the schedule of
non-departmental expenditure, a reversal of the
impairment loss is also recognised in the schedule
of non-departmental expenditure.
For assets not carried at a revalued amount, the reversal
of an impairment loss is recognised in the schedule of
non-departmental expenditure.
Creditors and payables
Short-term creditors and other payables are recorded
at face value.
Contingent liabilities are not disclosed if the possibility
of the outflow of resources embodying economic
resources is remote.
Goods and services tax (GST)
All items in the non-departmental statements and
schedules are stated exclusive of GST, except for
receivables and payables, which are stated on a GST
inclusive basis. In accordance with Treasury instructions,
GST is returned on revenue received on behalf of
the Crown, where applicable. However, an input
tax deduction is not claimed on non-departmental
expenditure. Instead, the amount of GST applicable
to non-departmental expenditure is recognised as a
separate expense and eliminated against GST revenue on
consolidation of the Financial Statements of Government.
Critical accounting estimates, assumptions and critical
judgements in applying accounting policies
In preparing these financial statements, estimates,
assumptions and critical judgements have been made
concerning the future. These estimates and assumptions
may differ from the subsequent actual results. Estimates,
assumptions and critical judgements are continually
evaluated and are based on historical experience
and other factors, including expectations of future
events that are believed to be reasonable under the
circumstances.
The estimates and assumptions that may have a
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next
financial year are disclosed below:
Provision for weathertight services financial assistance
package (FAP)
There are three critical assumptions: The number of
eligible homes, the take-up rate, and the cost of repairs.
Note 7 provides these key assumptions in detail and
reasons for the high level of uncertainties.
Mine Rehabilitation Provision
Provisions
The Ministry recognises a provision for future expenditure
where there is a present obligation, either legal or
constructive, as a result of a past event but the timing or
the amount of obligation is uncertain.
Commitments
Expenses yet to be incurred on non-cancellable contracts
that have been entered into at balance date are disclosed
as commitments to the extent that there are equally
unperformed obligations. Commitments relating to
employment contracts are not disclosed.
Contingent liabilities
Contingent liabilities are disclosed at the point at
which the contingency is evident and for each class of
contingent liability at the balance date a brief description
of the nature of the contingent liability is provided.
The Crown has indemnified Solid Energy New Zealand Ltd
(Solid Energy) for rehabilitation liabilities arising from
coal mining operations carried out by State Coal Mines
prior to 1 April 1987. The provision is calculated by Solid
Energy for each mine based on the expected cost and
timing of rehabilitation work required. Solid Energy is
responsible for the estimates, assumptions and critical
judgements used in determining the costs and timing of
the rehabilitation work and the split between Crown and
Solid Energy of the recorded liability. The current portion
of the provision reflects the costs expected to be incurred
in the following 12 months.
Due to the long term nature of the rehabilitation
requirements, there is significant uncertainty in relation
to future costs. The work programme is subject to
ongoing review and the Ministry adjusts the value of the
provision each year to reflect the remeasurement.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
133
New Zealand Screen Production Grant Provision
Budget figures
Actual expenditure is sensitive both to the number and
size of qualifying productions. The approximate amount
of the grants and timing of payments are estimated in
advance.
The 2015 budget figures are for the year ending 30 June
2015, which are consistent with the best estimate financial
information submitted to Treasury for the BEFU for the
year ending 2014/15.
NOTE 2: NON-TAX REVENUE
Actual
2014
$000
Actual
2015
$000
Non-tax revenue
Revenue from exchange transactions
90,000
157
353,837
21
Dividend from Housing New Zealand Corporation
Employee Remuneration Authority filing fee
Energy royalties
108,000
142
258,360
Interest on deferred payment on sale of Radio Spectrum
1,462
1,489
Rental income
1,676
926
Other revenue
446,430
Total revenue from exchange transactions
317
369,957
Revenue from non-exchange transactions
1,249
82,079
Commerce Commission levy
Electricity Authority levy
1,117
80,464
6,042
Electricity levy
11,073
5,372
External Reporting Board levy
5,946
15,290
1,526
48,077
644
–
Financial Markets Authority levy
Forfeited ESOL Tuition Fees
Health and safety in employment levy
21,089
708
88,314
IAA levy
754
IRR Subsidy Returned
909
9,959
Migrant levy
9,979
9,813
Proceed of Crime
5,634
–
Refund from Housing New Zealand Corporation
1,055
–
Refund from other Crown Entities
290
Remuneration Authority levy
306
268
100,000
4,233
–
540
–
15,480
Telecommunications development levy
Telecommunications regulation levy
50,000
4,802
Worksafe Return of Surplus
1,114
Regulated airport infringement
443
Repayment of surplus
Other penalties
2,187
3,479
300,572
Total revenue from non-exchange transactions
289,663
747,002
Total non-tax revenue
659,620
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
134
NOTE 3: DEBTORS AND OTHER RECEIVABLES
Actual
2014
$000
Actual
2015
$000
Current
Overclaimed income related rent subsidy
55,454
(52,729)
2,725
Overclaimed income related rent subsidy
53,487
Less provision for impairment
(51,456)
Net overclaimed income related rent subsidy
2,031
Receivables from exchange transactions
323,231
–
323,231
Other receivables
103,357
Less provision for impairment
–
Net overclaimed income related rent subsidy
103,357
Receivables from non-exchange transactions
117,182
(247)
Fine, levy & penalties receivables
60,494
Less provision for impairment
(349)
116,935
Net receivables from non-exchange transactions
442,891
Total current debtors and other receivables
60,145
165,533
The carrying value of accrued revenue and other receivables approximates fair value.
The ageing of receivables at year end is:
Gross
2014
$000
Impairment
2014
$000
Net
2014
$000
438,870
–
438,870
225
–
225
–
–
–
Past due 31–60 days
Past due 61–90 days
56,772
(52,976)
3,796
495,867
(52,976)
442,891
Not past due
Past due 1–30 days
Total
Gross
2015
$000
Impairment
20155
$000
Net
2015
$000
163,118
–
163,118
233
–
233
49
–
49
53,938
(51,805)
2,133
217,338
(51,805)
165,533
All receivables greater than 30 days in age are considered to be past due.
The Ministry does not hold the collateral for debts greater than 90days.
Actual
2014
$000
Actual
2015
$000
247
Individual impairment
349
52,729
Collective impairment
51,456
52,976
Total provision for impairment
51,805
Movements in the provision for impairment of receivables are as follows:
Actual
2014
$000
36,304
16,672
Actual
2015
$000
Balance at 1 July
Increase in the provision made during the year
–
Provision reversed during the year
–
Receivables written off during the year
52,976
Balance at 30 June
The provision for impairment is based on a review of specific overdue receivables and a collective assessment.
The collective impairment provision is based on an analysis of past collection history and debt write-offs.
52,976
349
(1,273)
(247)
51,805
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
135
NOTE 4: PROPERTY PLANT AND EQUIPMENT
Canterbury
Earthquake
Building &
Ground Work
Infrastructure
Textphone
Land
Building
Total
$000
$000
$000
$000
$000
$000
13,678
20,000
1,605
6,570
10,391
52,244
Additions
–
–
192
–
7,744
7,936
Disposals
–
–
–
–
–
–
13,678
20,000
1,797
6,570
18,135
60,180
Additions
–
–
–
–
–
–
Disposals
–
–
–
–
–
–
Cost or valuation
Balance at 1 July 2013
Balance at 30 June 2014
–
–
(63)
–
–
(63)
13,678
20,000
1,734
6,570
18,135
60,117
Other adjustment
Balance at 30 June 2015
Accumulated depreciation and impairment losses
Balance at 1 July 2013
(6,953)
(6,000)
(1,466)
–
(10,022)
(24,441)
Depreciation
(2,082)
(2,000)
(145)
–
(10)
(4,237)
Eliminate on disposals
–
–
–
–
–
–
Balance at 1 July 2014
(9,035)
(8,000)
(1,611)
–
(10,032)
(28,678)
(1,839)
(2,000)
(75)
–
(12)
(3,926)
Eliminate on disposals
–
–
–
–
–
–
Other adjustment
–
–
60
–
–
60
(10,874)
(10,000)
(1,626)
–
(10,044)
(32,544)
Depreciation
Balance at 30 June 2015
Carrying amounts
at 30 June 2014
4,643
12,000
186
6,570
8,103
31,502
at 30 June 2015
2,804
10,000
108
6,570
8,091
27,573
NOTE 5: CREDITORS AND OTHER PAYABLES
Actual
2014
$000
Actual
2015
$000
Current
67,324
Trade creditors
16,428
3,429
Levies refundable
4,146
64,564
Accrued expenses
128,766
48,671
New Zealand Trade and Enterprises grant payable
11,832
29,199
GST Payable
2,595
213,187
Total creditors and other payables
163,767
Creditors and other payables are non-interest bearing and are normally settled on 30-day terms. Therefore, the carrying
value of creditors and other payables approximates their fair value.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
136
NOTE 6: UNEARNED REVENUE
Actual
2014
$000
35,798
Actual
2015
$000
Radio spectrum sales – current unearned revenue
36,230
447,449
Radio spectrum sales – non-current unearned revenue
470,067
483,247
Total unearned revenue
506,297
Under the Radio Communications Act 1989, sales of management rights over portions of the radio spectrum occur from
time to time. The rights extend for varying periods and carry implementation requirements. Once these requirements
have been fulfilled, the holder retains the rights through to the end of the specific term, after which they revert to the
Crown and may be reoffered for sale.
Sales of spectrum rights are amortised over the term of the management rights. Contracts with deferred payment
terms are secured by a table mortgage over the spectrum licenses. Payments are due in five equal instalments
commencing on the date of advance and annually thereafter. Interest is recognised in the period payment is received.
NOTE 7: PROVISIONS
Actual
2014
$000
Actual
2015
$000
Current provisions are represented by:
32,828
New Zealand Screen Production Grant
64,070
18,900
Weathertight services financial assistance package
19,368
5,003
56,731
Mine Rehabilitation
4,700
Total current portion
88,138
Non-current provisions are represented by:
3,000
93,500
30
55,104
151,634
208,365
New Zealand Screen Production Grant
–
Weathertight services financial assistance package
84,900
Weathertight services guarantee fee subsidy
–
Mine Rehabilitation
69,500
Total non-current portion
154,400
Total provisions
242,538
Balance at 1 July 2013
Additional provisions made
Weathertight
Services:
Financial
Assistance
Package
$000
Weathertight
Services:
Guarantee
Fee Subsidy
New Zealand
Screen
Production
Grant
Mine
Rehabilitation
Total
$000
$000
$000
$000
123,300
63
–
88,908
212,271
–
–
35,828
–
35,828
Provision utilised during the year
(6,800)
–
–
(28,801)
(35,601)
Unutilised provision reversed
(6,400)
(33)
–
–
(6,433)
2,300
–
–
–
2,300
112,400
30
35,828
60,107
208,365
Unwind of discount rate and effect
of the changes in discount rate
Total provisions at 30 June 2014
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
Weathertight
Services:
Financial
Assistance
Package
$000
Mine
Rehabilitation
Total
$000
$000
$000
$000
–
–
64,070
21,221
85,291
(30)
(33,904)
(7,128)
(49,973)
–
–
(1,924)
–
(1,924)
779
–
–
–
779
104,268
–
64,070
74,200
242,538
Unutilised provision reversed
Unwind of discount rate and effect
of the changes in discount rate
Total provisions at 30 June 2015
New Zealand
Screen
Production
Grant
(8,911)
Additional provisions made
Provision utilised during the year
Weathertight
Services:
Guarantee
Fee Subsidy
Provision for weathertight services financial assistance
package (FAP)
This provision represents the Government’s obligation to
contribute 25 per cent of agreed repair costs to eligible
owners of leaky homes under the weathertight services
financial assistance package.
Description of weathertight services financial
assistance package
The package offers qualifying homeowners a share of
the agreed actual repair cost of repairing leaky homes.
The Government and the territorial authority (if the
territorial authority is participating in the FAP) each pay
25 per cent of the agreed repair cost and the homeowner
pays the remaining 50 per cent. Under the FAP the
homeowner agrees not to sue contributing territorial
authorities and the Government, although homeowners
can still pursue other liable parties such as builders,
developers or manufacturers of defective products.
The scheme became available to homeowners on
29 July 2011 and eligible homeowners must lodge claims
with the Ministry prior to 29 July 2016. The 10-year
limitation on lodging a weathertight claim means
that over time the forecast eligible claims will reduce.
Key Assumptions
As the scheme has only been running for four years,
there is still considerable uncertainty surrounding the
estimate of the Government’s likely contribution.
There are three critical assumptions: the number of
eligible homes, the take-up rate, and the cost of repairs.
The number of eligible homes considers the claims lodged
to date with the weathertight homes resolution service,
and those claims expected to arise in the future. The
number of claims expected to arise in the future is based
on the claims lodged to date, allowing for the period
during which the occurrence of the problem was at its
most severe and taking into account the 10 year time
limit for lodging a claim.
The second critical assumption is the take-up rate.
The Ministry database indicates the progress of each
known claim. The take-up rate then varies by phase and
property dwelling type, multi-unit or standalone, as well
as how likely the claimant is to choose the FAP resolution
option. To illustrate, where a claimant is already in the
FAP we assume they will continue in the scheme, meaning
a 100 per cent take up rate. A separate assumption is
made for a drop off or discontinuance of the claims.
For claims awaiting assessment and future claims the
take-up rate under the FAP is 65 per cent for standalone
dwellings and 50 per cent for multi-unit dwellings.
The third critical assumption is the assumed average
cost of repair per eligible home. There is limited data in
respect of repair costs, as currently only a few claims
have been through the entire process. Until more claims
are processed we have chosen to continue with the
previous 2013 assumptions, which were based off the
PricewaterhouseCoopers (PwC) report in 2009. We have
no information to suggest that repair costs under the
FAP will be different than that of claims settling under
the previous resolution process. The PwC figures are
consistent with our estimates of the cost of repairs
for claims settled previously. The inflation adjusted
assumed average cost per dwelling for a full repair
is $138,052 for multi-unit dwellings and $345,130 for
standalone dwellings.
In its judgement on the Osborne case, dated 10th June
2015, the Supreme Court decided that the 10 year
limitation period should be determined by reference
to the date the Compliance Code Certificate was issued.
The Court did not rule on whether this ruling would apply
to claims which have been rejected to date. However
the eligibility of all new claims will now be judged by
reference to the Osborne case. This ruling has the impact
of increasing to a small degree the number of claims that
that can potentially be lodged under the Weathertight
Homes Resolution Service. The impact is expected to be
highly limited and at this time it is not feasible to attempt
to put a cost on this.
Uncertainties
There are several reasons why the estimates are
subject to a high level of uncertainty:
›› The ultimate number and costs of leaky buildings
claims is inherently uncertain
›› The financial projection model is a simplification of
the complex reality of the actual claims processes and,
to the extent that hidden or unmodelled relationships
are present, the model will be unreliable
137
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
138
›› The past experience may not be a good guide as to
what will happen in the future
›› The data on which the analysis is based, and from
which the assumptions are derived, is limited.
Sensitivity Analysis
Sensitivity for the FAP provision against the three critical assumptions above is as follows:
Assumption
Change
Total Cost
$000
Central Estimate
Take-up rates
Repair costs
Number of Future Claims
Impact
$000
104,267
+10%
115,029
10,762
–20%
82,744
(21,523)
+10%
114,694
10,427
–10%
93,840
(10,427)
+10%
106,550
2,283
–10%
101,984
(2,283)
New Zealand Screen Production Grant Provision
Mine rehabilitation provision
The New Zealand Screen Production Grant scheme
provides grants for high profile film productions, such
as the Hobbit and Avatar, to film in New Zealand.
The Crown has indemnified Solid Energy New Zealand Ltd
(Solid Energy) for rehabilitation liabilities arising from
coal mining operations carried out by State Coal Mines
prior to 1 April 1987. The provision is calculated by Solid
Energy for each mine based on the expected cost and
timing of rehabilitation work required. Solid Energy is
responsible for the estimates, assumptions and critical
judgements used in determining the costs and timing of
the rehabilitation work and the split between Crown and
Solid Energy of the recorded liability. The current portion
of the provision reflects the costs expected to be incurred
in the following 12 months.
Under the scheme productions may receive a cash grant
equivalent to 15 per cent of their New Zealand based
expenditure, or 20 per cent after 1 July 2014. The grants
are non-discretionary, applicants cannot be refused if
they meet the criteria and the scheme is uncapped. To
be eligible feature films must spend $15 million or more
in New Zealand.
The productions which will make claims under the
scheme typically signal their intention to apply to the
New Zealand Film Commission, as administrator of the
scheme, in advance of any application. The approximate
amount of the grants and timing of payments are
estimated in advance.
Actual expenditure is very sensitive both to the number
and size of qualifying productions. The provision is the
Ministry’s best assessment of projects that will qualify
for a grant rebate and the expenditure patterns of the
individual productions. It is only once applications have
been received and verified that the exact expenditure
can be confirmed. Due to the long term nature of the rehabilitation
requirements, there is significant uncertainty in relation
to future costs. This provision will move from the
Ministry's non-departmental accounts to Treasury's
non-department accounts from 1 July 2015. This has
been approved by Joint Ministers.
The provision was classified as creditors and other
payables in 2013/14 and reclassified as a provision
in 2014/15.
NOTE 8: EVENTS AFTER BALANCE DATE
Cabinet has made a decision to transfer the provision for mine rehabilitation to The Treasury from 1 July 2015.
The mine rehabilitation provision will no longer be included in the Ministry’s balance sheet from that time.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
139
NOTE 9: FINANCIAL INSTRUMENTS
Categories of financial instruments
The carrying amounts of financial assets and financial liabilities in each of the NZ IAS 39 categories are as follows:
Actual
2014
$000
Actual
2015
$000
Loans and receivables
482,483
Cash and cash equivalents
442,891
Debtor and other receivables
13,738
487,880
165,533
4,629
Loans
Derivatives assets
3,181
942,293
Foreign exchange contracts – oil contracts
2,969
Total loans and receivables
661,011
Financial liabilities measured at amortised cost
213, 187
Creditors and other payables
163,767
Derivatives
3,399
216,586
Foreign exchange contracts – oil contracts
2,845
Total financial liabilities measured at amortised cost
166,612
The Ministry’s activities expose it to a variety of financial instrument risks, including market risk, credit risk, and
liquidity risk. The Ministry has a series of policies to manage the risks associated with financial instruments and seeks
to minimise exposure from financial instruments. These policies do not allow any transactions that are speculative in
nature to be entered into.
ƨMarket
ƨ
risk
ƨCredit
ƨ
risk
Currency risk
Credit risk is the risk that a third party will default on its
obligations to the Ministry, causing the Ministry to incur
a loss. In the normal course of its business the Ministry
is exposed to credit risk from trade debtors, deposits
with banks and derivative financial instrument assets.
Currency risk is the risk that the fair value or future
cash flows of a financial instrument will fluctuate due
to changes in foreign exchange rates. Currency risk
arises from contracts for the supply of future goods
and services, which are denominated in a foreign currency. The Ministry, on behalf of the Crown, purchases capital
expenditure and goods and services internationally and
is exposed to currency risk arising from various currency
exposures, primarily with respect the USD, AUD and
EURO. The Ministry’s foreign exchange management
policy requires the Ministry to manage direct foreign
currency exposure by ensuring these contracts for
supply of goods and services are naturally hedged
with the receipts received through the departmental
accounts and therefore forward exchange contracts
are not generally required.
Interest rate risk
Interest rate risk is the risk that the fair value of a financial
instrument will fluctuate, or the cash flows
from a financial instrument, will fluctuate due to
changes in market interest rates.
The Ministry has no exposure to interest rate risk because
it has no interest-bearing financial instruments as no
money was invested in apart from that which is recorded
in the financial statements relating to the Residential
Tenancies Trust Account.
The Ministry is only permitted to deposit funds with
Westpac New Zealand Limited, a registered bank, and
enter into foreign exchange forward contracts with
the New Zealand Debt Management Office as these
entities have high credit ratings. For its other financial
instruments, the Ministry does not have significant
concentrations of credit risk. The Ministry’s maximum
credit exposure for each class of financial instrument is
represented by the total carrying amount of cash and cash
equivalents, debtors and other receivables and derivative
financial instrument assets. There is no collateral held as
security against these financial instruments, including
those instruments that are overdue or impaired.
Foreign exchange risk
Foreign exchange risk is the risk that the fair value of
future cash flows of a financial instrument will fluctuate
due to changes in foreign exchange rates. When the
Ministry is exposed to foreign exchange risk on foreign
currency transactions, forward exchange contracts or
options are entered into in order to manage this risk.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Non-departmental
statements and schedules
140
ƨLiquidity
ƨ
risk
Liquidity risk is the risk that the Ministry will encounter
difficulty raising liquid funds to meet commitments as
they fall due.
In meeting its liquidity requirements, the Ministry
closely monitors its forecast cash requirements with
expected cash drawdowns from the New Zealand Debt
Management Office. The Ministry maintains a target
level of available cash to meet liquidity requirements.
Contractual maturity analysis of financial liabilities, excluding derivatives
The table below analyses the Ministry’s financial liabilities into relevant maturity groupings based on the remaining
period at balance date to the contractual maturity date. The amounts disclosed are the contractual undiscounted
cash flows.
Carrying
Amount
Contractual
Cash Flows
Less than
6 months
$000
$000
$000
163,767
163,767
163,767
30 June 2015
Creditors and other payables
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Appropriation
statements
141
STATEMENT OF BUDGETED AND ACTUAL EXPENSES AND CAPITAL EXPENDITURE INCURRED
AGAINST APPROPRIATIONS
For the year ended 30 June 2015
Expenditure
before
remeasurements
Remeasurements
Expenditure
after
Remeasurements
Approved
Location of
appropria- end-of-year
tion † performance
information
††
2015
$000
2015
$000
2015
$000
2015
$000
Regulatory Services
97
–
97
119
Total Departmental Output Expenses
97
–
97
119
111,995
–
111,995
111,995
3
9,107
–
9,107
9,107
3
296,853
–
296,853
296,853
3
1,197
–
1,197
1,197
26
438,593
–
438,593
438,593
3
72,300
–
72,300
72,300
3
930,045
–
930,045
930,045
23,323
–
23,323
23,323
26
7,134
–
7,134
7,134
26
30,457
–
30,457
30,457
2,441
–
2,441
2,502
• Ministerial Services
445
–
445
501
1
• Policy Advice – ACC
1,996
–
1,996
2,001
1
2,441
–
2,441
2,502
963,040
–
963,040
963,123
VOTE: ACC
Departmental Output Expenses
1
Non-Departmental Output Expenses
Case Management and Supporting Services
Case Management and Supporting Services – Treatment
Injuries for Non-Earners'
Public Health Acute Services
Public Health Acute Services –
Treatment Injuries for Non-Earners'
Rehabilitation Entitlements and Services
Rehabilitation Entitlements and Services –
Treatment Injuries for Non-Earners'
Total Non-Departmental Output Expenses
Benefits or Related Expenses
Compensation Entitlements
Compensation Entitlements –
Treatment Injuries for Non-Earners'
Total Benefits or Related Expenses
Multi-Category Expenses and Capital Expenditure
Policy Advice and Related Outputs MCA
Departmental Output Expenses
Total Multi-Category Expenses and Capital Expenditure
Total Annual and MYA Expenses
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Appropriation
statements
142
Expenditure
before
remeasurements
Remeasurements
Expenditure
after
Remeasurements
Approved
Location of
appropria- end-of-year
tion † performance
information
††
2015
$000
2015
$000
2015
$000
2015
$000
2,011
–
2,011
2,427
1
Official Assignee Functions
14,424
–
14,424
14,428
1
Registration and Granting of Intellectual
Property Rights
14,447
–
14,447
17,612
1
Registration and Provision of Statutory Information
25,472
–
25,472
26,162
1
3,648
–
3,648
3,687
1
–
–
–
4
1
60,002
–
60,002
64,320
Accounting and Assurance Standards Setting
4,410
–
4,410
4,410
4
Administration of the Takeovers Code
1,494
–
1,494
1,494
5
935
–
935
935
6
Enforcement of General Market Regulation
13,935
–
13,935
13,935
6
Retirement Commissioner
6,092
–
6,092
6,092
7
Economic Regulation of Electricity Line Services
2014–2019 (MYA Expense)
7,244
–
7,244
6,770
6
Economic Regulation of Gas Pipeline Services
2014–2019 (MYA Expense)
1,580
–
1,580
2,088
6
597
–
597
598
6
36,287
–
36,287
36,322
Contributions to International Organisations
403
–
403
485
26
Financial Markets Authority Litigation Fund
919
–
919
2,000
8
–
–
–
200
5
1,322
–
1,322
2,685
13,112
–
13,112
13,186
526
–
526
562
1
VOTE: COMMERCE AND CONSUMER AFFAIRS
Departmental Output Expenses
Consumer Information
Trading Standards
Upgrading and Promoting the Consumer Powerswitch
Website (MYA Expense)
Total Departmental Output Expenses
Non-Departmental Output Expenses
Enforcement of Dairy Sector Regulation and Auditing of
Milk Price Setting
Economic Regulation of Specified Airport Services
2014–2019 (MYA Expense)
Total Non-Departmental Output Expenses
Non-Departmental Other Expenses
Takeovers Panel Litigation Fund
Total Non-Departmental Other Expenses
Multi-Category Expenses and Capital Expenditure
Policy Advice and Related Outputs MCA
Departmental Output Expenses
• Investigative Services – Trade Remedies
• Ministerial Services – Consumer Affairs
• Ministerial Services and Crown Entity
Monitoring – Commerce
• Policy Advice – Commerce
• Policy Advice – Consumer Affairs
415
–
415
200
1
1,693
–
1,693
1,321
1
9,030
–
9,030
9,648
1
1,448
–
1,448
1,455
1
7,973
–
7,973
7,973
2
12,556
–
12,556
12,556
2
Services and Advice to Support Well-fuctioning Financial
Markets MCA
Non-Departmental Output Expenses
• Performance of Investigation and
Enforcement Functions
• Performance of Licensing and Compliance
Monitoring Functions
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Appropriation
statements
Expenditure
before
remeasurements
Remeasurements
Expenditure
after
Remeasurements
2015
$000
2015
$000
2015
$000
5,655
–
5,655
5,655
2
• Commerce Commission Externally-Sourced Litigation
(491)
–
(491)
7,000
2
• Commerce Commission Internally-Sourced
Litigation Fund
2,331
–
2,331
3,500
2
• Performance of Market Analysis and Guidance,
Investor Awareness, and Regulatory Engagement
Functions
Approved
Location of
appropria- end-of-year
tion † performance
information
††
2015
$000
Commerce Commission Litigation Funds MCA
Non-Departmental Other Expenses
Total Multi-Category Expenses and Capital Expenditure
Total Annual and MYA Expenses
41,136
–
41,136
49,870
138,747
–
138,747
153,197
184
–
184
186
1
7,583
–
7,583
9,641
1
75
–
75
251
1
4,644
4,658
1
VOTE: COMMUNICATIONS
Departmental Output Expenses
Communications and ICT operational policy, ministerial
servicing and Crown entity monitoring
Management and Enforcement of the
Radiocommunications Act 1989
Management of Emergency
Telecommunications Services
Policy Advice – Communications
Total Departmental Output Expenses
4,644
12,486
–
12,486
14,736
1,616
–
1,616
1,719
26
6,000
–
6,000
6,000
6
Non-Departmental Output Expenses
Administrative Support for Telecommunications
Relay Equipment and Services
Enforcement of Telecommunications Sector Regulation
848
–
848
1,679
9
1,198
–
1,198
1,198
26
9,662
–
9,662
10,596
9,038
–
9,038
22,159
9
907
–
907
970
26
Telecommunications Development Levy Funded
Procurement – Deaf Relay Service TSO
4,567
–
4,567
4,780
26
Telecommunications Development Levy Funded
Procurement – Non-Urban Infrastructure
28,520
–
28,520
28,520
9
Total Non-Departmental Other Expenses
43,032
–
43,032
56,429
210,000
–
210,000
210,000
10
–
–
–
200
26
210,000
–
210,000
210,200
275,180
–
275,180
291,961
Fibre Drop Costs
Establishment of New Broadband
Performance Testing
Total Non-Departmental Output Expenses
Non-Departmental Other Expenses
Broadband Investment (Rural Supply)
Contributions to International
Telecommunications Organisations
Non-Departmental Capital Expenditure
Broadband Investment (Crown Fibre Holdings
Capital Costs) (MYA Expense)
Acquisition of Textphone Equipment
Total Non-Departmental Capital Expenditure
Total Annual and MYA Expenses
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
143
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Appropriation
statements
144
Expenditure
before
remeasurements
Remeasurements
Expenditure
after
Remeasurements
Approved
Location of
appropria- end-of-year
tion † performance
information
††
2015
$000
2015
$000
2015
$000
2015
$000
2,263
–
2,263
2,557
1
20,295
–
20,295
23,150
1
4,394
–
4,394
4,619
1
26,952
–
26,952
30,326
VOTE: ECONOMIC DEVELOPMENT AND EMPLOYMENT
Departmental Output Expenses
Canterbury Recovery
Implementation of Improvements in Public Sector
Procurement and Services to Business
Employment Sector Analysis and Facilitation
Total Departmental Output Expenses
Non-Departmental Output Expenses
Māori and Pasifika Trades Training Consortia
1,904
–
1,904
2,566
Total Non-Departmental Output Expenses
1,904
–
1,904
2,566
11
Depreciation on Auckland's Queens Wharf
2,000
–
2,000
2,000
26
Film New Zealand
1,300
–
1,300
1,300
26
Major Events Development Fund
8,699
–
8,699
9,000
12
Management Development Fund
512
–
512
756
26
New Zealand Screen Production Grant –
International (MYA Expense)
109,762
–
109,762
66,970
12
Total Non-Departmental Other Expenses
122,273
–
122,273
80,026
Venture Investment Fund (MYA Expense)
5,000
–
5,000
10,378
Total Non-Departmental Capital Expenditure
5,000
–
5,000
10,378
Ministry of Business, Innovation and Employment –
Capital Expenditure PLA
68,636
–
68,636
87,374
Total Departmental Capital Expenditure
68,636
–
68,636
87,374
21,713
–
21,713
24,038
415
–
415
504
1
• Policy Advice – Economic Development
11,494
–
11,494
12,839
1
• Policy Advice – Employment
1,900
–
1,900
2,151
1
1,177
–
1,177
1,234
1
6,555
–
6,555
7,093
1
172
–
172
217
1
31,429
–
31,429
31,429
2
112,023
–
112,023
114,703
2
13,181
–
13,181
13,181
2
2,330
–
2,330
2,330
26
Non-Departmental Other Expenses
Non-Departmental Capital Expenditure
13
Departmental Capital Expenditure
27
Multi-Category Expenses and Capital Expenditure
Policy Advice and Related Outputs MCA
Departmental Output Expenses
• Ministerial Services – Employment
• Policy Advice – Small Business
• Ministerial Services and Crown Entity Monitoring –
Economic Development
• Ministerial Services – Small Business
Support the Growth and Development of New Zealand
Firms, Sectors and Regions MCA
Non-Departmental Output Expenses
• Services to Support Sector Development
and Special Events
• International Business Growth Services
• Services to Support the Growth and Development
of New Zealand Businesses
Seed Co-Investment Fund MCA
Non-Departmental Output Expenses
• Investment Fund Management
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Appropriation
statements
Expenditure
before
remeasurements
Remeasurements
Expenditure
after
Remeasurements
Approved
Location of
appropria- end-of-year
tion † performance
information
††
2015
$000
2015
$000
2015
$000
2015
$000
5,975
–
5,975
6,354
26
(13,162)
–
(13,162)
27,212
2
2
Non-Departmental Capital Expenditure
• Seed Co-Investment Fund
Support New Market Opportunities for High Growth
New Zealand Firms and Sectors MCA
Non-Departmental Other Expenses
• International Growth Fund
• Sector Strategies and Facilitation
Total Multi-Category Expenses and Capital Expenditure
Total Annual and MYA Expenses
(156)
–
(156)
1,004
173,333
–
173,333
220,251
398,098
–
398,098
430,921
998
–
998
1,007
1
VOTE: ENERGY
Departmental Output Expenses
Administration of Fuel Quality Monitoring Programme
664
–
664
819
1
Energy and Resource Information Services RDA
1,827
–
1,827
1,827
1
Energy and Resources operational policy, ministerial
servicing and Crown entity monitoring
2,216
–
2,216
2,226
1
Management of the Crown Mineral Estate
17,451
–
17,451
17,458
1
1
Energy and Resource Information Services
4,064
–
4,064
4,261
27,220
–
27,220
27,598
72,899
–
72,899
72,899
14
Implementation of the Home Insulation Programme
2,500
–
2,500
2,500
15
Management of IEA Oil Stocks
Policy Advice – Energy and Resource Issues
Total Departmental Output Expenses
Non-Departmental Output Expenses
Electricity Industry Governance and Market Operations
4,961
(337)
4,624
6,697
16
Resource Data Acquisition and Management
(MYA Expense)
200
–
200
2,000
16
Total Non-Departmental Output Expenses
80,560
(337)
80,223
84,096
1,297
–
1,297
1,412
26
–
–
–
444
14
International Energy Agency Contribution
129
–
129
150
26
International Energy Agency Subscription
135
–
135
170
26
12
21,221
21,233
199
26
37,431
–
37,431
36,069
15
–
–
–
1,878
26
39,004
21,221
60,225
40,322
Crown Energy Efficiency
1,921
–
1,921
2,000
Total Non-Departmental Capital Expenditure
1,921
–
1,921
2,000
29,584
–
29,584
29,584
13,000
–
13,000
13,000
Non-Departmental Other Expenses
Crown Contribution to Pike River Recovery and
Related Matters
Electricity Litigation Fund
Ministry of Energy Residual Liabilities
Home Insulation (MYA Expense)
Energy and Resources: The Pike River Mine Site
Total Non-Departmental Other Expenses
Non-Departmental Capital Expenditure
15
Multi-Category Expenses and Capital Expenditure
Energy Efficiency and Conservation MCA
Non-Departmental Output Expenses
• Electricity Efficiency
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
2
145
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Appropriation
statements
146
• Energy Efficiency and Conservation
Expenditure
before
remeasurements
Remeasurements
Expenditure
after
Remeasurements
2015
$000
2015
$000
2015
$000
16,584
–
16,584
Approved
Location of
appropria- end-of-year
tion † performance
information
††
2015
$000
16,584
2
29,584
–
29,584
29,584
178,289
20,884
199,173
183,600
24,012
–
24,012
28,111
1
1,414
–
1,414
1,532
1
8,957
–
8,957
9,266
1
390
–
390
700
1
24,753
–
24,753
24,823
1
2,363
–
2,363
2,453
1
Special Housing Areas
2,207
–
2,207
3,263
1
Weathertight Services
10,210
–
10,210
12,233
1
74,306
–
74,306
82,381
Canterbury Earthquakes: Emergency and Temporary
Accommodation
2,447
–
2,447
3,244
26
HNZC Housing Support Services
14,121
–
14,121
18,992
17
Kainga Whenua Infrastructure Grant
2,551
–
2,551
5,689
2
926
–
926
1,395
17
1,670
–
1,670
3,020
26
–
(728)
(728)
–
26
21,715
(728)
20,987
32,340
1,495
–
1,495
1,495
26
26
Total Multi-Category Expenses and Capital Expenditure
Total Annual and MYA Expenses
VOTE: HOUSING
Departmental Output Expenses
Building Regulation and Control
Canterbury Recovery: Building and Housing Assistance
Occupational Licensing
Professional Engineering input toward the Resolution of
Canterbury Residential Rebuild Design Uncertainty
Residential Tenancy and Unit Title Services
Social Housing Unit
Total Departmental Output Expenses
Non-Departmental Output Expenses
Management of Crown Properties held under the Housing
Act 1955
Tamaki Regeneration
Purchase of housing and related services for tenants
paying income related rent
Total Non-Departmental Output Expenses
Benefits or Related Expenses
Housing Assistance
KiwiSaver Deposit Subsidy
Total Benefits or Related Expenses
31,904
–
31,904
37,388
33,399
–
33,399
38,883
–
–
–
5,000
19
3,919
–
3,919
4,104
17
–
–
–
1,300
26
Non-Departmental Other Expenses
Christchurch City Council Home Ownership Initiative
Community Housing Rent Relief Programme
Payments in respect of the Weathertight Services Loan
Guarantees PLA
Rural and Māori Housing
Social Housing Fund (MYA Expense)
Unwind of Discount Rate used in the Present Value
Calculation of Direct Payments under the Weathertight
Homes Financial Assistance Package.
Weathertight Services: Guarantee Fee Subsidy
Weathertight Homes Resolution
819
–
819
4,000
26
39,582
–
39,582
48,290
18
3,097
–
3,097
3,215
26
281
–
281
600
19
–
–
–
6,860
19
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Appropriation
statements
Expenditure
before
remeasurements
Remeasurements
Expenditure
after
Remeasurements
Approved
Location of
appropria- end-of-year
tion † performance
information
††
2015
$000
2015
$000
2015
$000
2015
$000
Wellington City Council Social Housing Assistance
28,500
–
28,500
28,500
Total Non-Departmental Other Expenses
76,198
–
76,198
101,869
7,206
–
7,206
7,206
26
19
Non-Departmental Capital Expenditure
Acquisition and Improvement of Housing
New Zealand Corporation state houses
13,880
–
13,880
13,880
26
173,900
–
173,900
173,901
17
194,986
–
194,986
194,987
10,112
–
10,112
10,939
• Building and Construction Ministerial Servicing
134
–
134
–
1
• Building and Construction Policy
231
–
231
2,915
1
9,747
–
9,747
7,742
1
1
Christchurch Housing Developments
Refinancing of Housing New Zealand Corporation
and Housing New Zealand Limited Debt
Total Non-Departmental Capital Expenditure
Multi-Category Expenses and Capital Expenditure
Policy Advice and Related Outputs MCA
Departmental Output Expenses
• Housing Policy Advice
–
–
–
282
10,112
–
10,112
10,939
410,716
(728)
409,988
461,399
218,538
(1,281)
217,257
218,799
1
20,124
–
20,124
20,190
1
2,674
–
2,674
2,716
1
241,336
(1,281)
240,055
241,705
Crown debt impairment
348
–
348
350
Total Non-Departmental Other Expenses
348
–
348
350
5,598
–
5,598
7,199
1,082
–
1,082
1,176
1
1
• Related Services to Ministers – Building and Housing
Total Multi-Category Expenses and Capital Expenditure
Total Annual and MYA Expenses
VOTE: IMMIGRATION
Departmental Output Expenses
Immigration Services
Refugee and Protection Services
Regulation of Immigration Advisers
Total Departmental Output Expenses
Non-Departmental Other Expenses
26
Multi-Category Expenses and Capital Expenditure
Policy Advice and Related Outputs MCA
Departmental Output Expenses
• Ministerial Services
• Policy Advice – Immigration
Total Multi-Category Expenses and Capital Expenditure
Total Annual and MYA Expenses
4,516
–
4,516
6,023
5,598
–
5,598
7,199
247,282
(1,281)
246,001
249,254
30,915
–
30,915
31,152
1
1
VOTE: LABOUR
Departmental Output Expenses
Employment Relations Services
Shared Services Support
Total Departmental Output Expenses
14,312
–
14,312
15,532
45,227
–
45,227
46,684
Non-Departmental Output Expenses
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
147
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Appropriation
statements
148
Expenditure
before
remeasurements
Remeasurements
Expenditure
after
Remeasurements
Approved
Location of
appropria- end-of-year
tion † performance
information
††
2015
$000
2015
$000
2015
$000
2015
$000
Employment Relations Education Contestable Fund
599
–
599
681
26
Health and Safety in Employment Levy –
Collection Services
869
–
869
869
26
20
87,061
–
87,061
87,061
88,529
–
88,529
88,611
Bad Debt Expense
–
–
–
15
26
Crown Debt Write Offs
–
–
–
25
26
3,098
–
3,098
3,980
26
1,291
–
1,291
1,400
26
450
–
450
450
26
15
–
15
15
26
294
–
294
300
26
5,148
–
5,148
6,185
Workplace Health and Safety
Total Non-Departmental Output Expenses
Non-Departmental Other Expenses
Employment Relations Authority Members' Salaries and
Allowances PLA
International Labour Organisation
Joint Equal Employment Opportunities Trust
New Zealand Industrial Relations Foundation
Remuneration Authority Members' Fees, Salaries
and Allowances
Total Non-Departmental Other Expenses
Non-Departmental Capital Expenditure
WorkSafe NZ capability change programme
1,876
–
1,876
8,428
Total Non-Departmental Capital Expenditure
1,876
–
1,876
8,428
26
9,440
–
9,440
9,786
• Policy Advice – Labour
8,235
–
8,235
8,551
1
• Ministerial Services
1,205
–
1,205
1,235
1
Multi-class Output Appropriation
Multi-Category Expenses and Capital Expenditure
Policy Advice and Related Outputs MCA
Departmental Output Expenses
9,440
–
9,440
9,786
150,220
–
150,220
159,694
Building Innovation Potential
9,078
–
9,078
9,078
22
National Science Challenges (MYA Expense)
5,796
–
5,796
10,530
21
Realising the Benefits of Innovation
16,000
–
16,000
16,000
22
Research and Development Growth Grants
(MYA Expense)
93,774
–
93,774
119,200
22
Biological Industries Research
91,205
–
91,205
94,918
21
Business Research and Development
Contract Management
11,208
–
11,208
11,208
22
201,622
–
201,622
201,622
21
Energy and Minerals Research
11,499
–
11,499
11,499
21
Engaging New Zealanders with Science
and Technology
7,649
–
7,649
8,269
21
Environmental Research
32,396
–
32,396
32,447
21
Fellowships for Excellence
10,269
–
10,269
10,470
21
Total Multi-Category Expenses and Capital Expenditure
Total Annual and MYA Expenses
VOTE: SCIENCE AND INNOVATION
Non-Departmental Output Expenses
Crown Research Institute Core Funding
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Appropriation
statements
Expenditure
before
remeasurements
Remeasurements
Expenditure
after
Remeasurements
2015
$000
2015
$000
2015
$000
14,182
–
14,182
14,185
21
82,586
–
82,586
82,586
21
High Value Manufacturing and Services Research
57,223
–
57,223
57,911
21
Marsden Fund
52,383
–
52,383
52,383
21
National Measurement Standards
5,764
–
5,764
5,764
22
Repayable Grants for Start-Ups
13,716
–
13,716
13,716
22
25,829
–
25,829
25,829
22
Research Contract Management
6,060
–
6,060
6,227
21
Vision Matauranga Capability Fund
3,947
–
3,947
5,257
21
30,714
–
30,714
43,631
22
782,900
–
782,900
832,730
4,000
–
4,000
4,000
23
983
–
983
983
21
85
–
85
135
26
Hazards and Infrastructure Research
Health and Society Research
Callaghan Innovation Strategic Investment
Targeted Business Research and Development Funding
(MYA Expense)
Total Non-Departmental Output Expenses
Approved
Location of
appropria- end-of-year
tion † performance
information
††
2015
$000
Non-Departmental Other Expenses
Advanced Network Capacity
Australian Synchrotron
Convention Du Metre
Genomics Research Infrastructure
International Relationships
Māori Innovation Fund
National eScience Infrastructure
Royal Society of New Zealand
–
–
–
110
21
8,327
–
8,327
9,451
21
428
–
428
2,000
26
5,628
–
5,628
5,632
21
500
–
500
500
26
7,869
–
7,869
7,898
21
639
–
639
639
26
28,459
–
28,459
31,348
Advanced Technology Institute
8,000
–
8,000
8,000
Total Non-Departmental Capital Expenditure
8,000
–
8,000
8,000
26,620
–
26,620
27,835
6,024
–
6,024
6,286
1
• Science and Innovation Contract Management
11,547
–
11,547
12,430
1
• Strategic Leadership in the Science and
Innovation Sector
9,049
–
9,049
9,119
1
26,620
–
26,620
27,835
845,979
–
845,979
899,913
Policy Advice – Tourism
3,040
–
3,040
3,252
1
Tourism Data and Operational Policy, Ministerial Servicing
and Crown Entity Monitoring
3,750
–
3,750
4,659
1
Science Collections and Infrastructure
Square Kilometre Array
Total Non-Departmental Other Expenses
Non-Departmental Capital Expenditure
22
Multi-Category Expenses and Capital Expenditure
Advice and Support on Shaping the Science
and Innovation System MCA
Departmental Output Expenses
• Policy Advice
Total Multi-Category Expenses and Capital Expenditure
Total Annual and MYA Expenses
VOTE: TOURISM
Departmental Output Expenses
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
149
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Appropriation
statements
150
Expenditure
before
remeasurements
Remeasurements
Expenditure
after
Remeasurements
2015
$000
2015
$000
2015
$000
6,790
–
6,790
7,911
113,350
–
113,350
113,350
24
25
Total Departmental Output Expenses
Approved
Location of
appropria- end-of-year
tion † performance
information
††
2015
$000
Non-Departmental Output Expenses
Marketing of New Zealand as a Visitor Destination
Tourism Growth Partnership
3,743
–
3,743
7,434
117,093
–
117,093
120,784
2,000
–
2,000
2,000
26
Maintaining the Quality of the Great Rides
743
–
743
2,000
26
National Cycleway Fund – Extension
500
–
500
500
26
New Zealand Cycle Trail Incorporated Seed Funding
257
–
257
349
26
3,500
–
3,500
4,849
127,383
–
127,383
133,544
Total Non-Departmental Output Expenses
Non-Departmental Other Expenses
Tourism facilities development grants
Contribution to Wero Facilities
Total Non-Departmental Other Expenses
Total Annual and MYA Expenses
†† The numbers in this column represent where the end-of-year performance information has been reported for each appropriation administered
by the Ministry, as detailed below:
1. The Ministry’s annual report
2. Appendix to the Ministry’s annual report
3. Accident Compensation Corporation’s annual report
4. External Reporting Board’s annual report
5. Takeovers Panel’s annual report
6. Commerce Commission’s annual report­
7. Commission for Financial Literacy and Retirement Income’s annual report
8. Financial Market’s Authority’s annual report
9. Minister for Communications’ Vote Communications non-departmental report
10. Crown Fibre Holding Limited’s annual report
11. Minister for Tertiary Education, Skills and Employment’s Vote Economic Development and Employment non-departmental appropriations report
12. Minister for Economic Development’s Vote Economic Development and Employment non-departmental appropriation report
13. New Zealand Venture Investment Fund’s annual report
14. Electricity Authority’s annual report
15. Energy, Efficiency and Conservation Authority’s annual report
16. Minister of Energy and Resources’ Vote Energy non-departmental appropriations report
17. Housing New Zealand Corporation’s annual report
18. Minister for Social Housing’s Vote Housing non-departmental appropriations report
19. Minister for Building and Housing’s Vote Housing non-departmental appropriations report
20. WorkSafe New Zealand’s annual report
21. Minister of Science and innovation’s Vote Science and Innovation non-departmental appropriations report
22. Callaghan Innovation’s annual report
23. Research and Educations Advances Network New Zealand’s annual report
24. Tourism New Zealand’s annual report
25. Minister of Tourism’s Vote Tourism non-departmental appropriations report
26. No reporting due to an exemption obtained under section 15D of the PFA
27. Capital expenditure supports the delivery of the Ministry’s output performance measures outlined throughout the annual report.
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Multi-year
appropriations
151
The Ministry has a multi-year appropriation for output expenses to be incurred by the Crown for the upgrading the
capability of consumer New Zealand’s powerswitch website and promoting and facilitating the use of the website
to consumers. This appropriation started on 1 November 2010 and expired on 30 June 2015.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
VOTE: COMMERCE AND CONSUMER AFFAIRS
Appropriation for departmental output expenses: Upgrading and promoting
the consumer powerswitch website
4,500
Original appropriation
4,500
4,500
4,500
Total adjusted appropriation
4,500
4,500
3,427
Cumulative actual expenditure 1 July
4,496
4,496
1,069
Current year actual expenditure
4,496
Cumulative actual expenditure 30 June
4
Appropriation remaining 30 June
–
4
4,496
4,500
4
–
The Ministry has a multi-year appropriation for output expenses to be incurred by the Crown for the regulation of
electricity lines services under Part 4 of the Commerce Act 1986. This appropriation started on 1 July 2014 and expires
on 30 June 2019.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
VOTE COMMERCE AND CONSUMER AFFAIRS
Appropriation for non-departmental output expenses: Economic Regulation
of Electricity Line Services
–
Original appropriation
28,311
28,311
–
Total adjusted appropriation
28,311
28,311
–
Cumulative actual expenditure 1 July
–
–
–
Current year actual expenditure
7,244
6,770
–
Cumulative actual expenditure 30 June
7,244
6,770
–
Appropriation remaining 30 June
21,067
21,541
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Multi-year
appropriations
152
The Ministry has a multi-year appropriation for output expenses to be incurred by the Crown for the regulation of
gas pipelines services under Part 4 of the Commerce Act 1986. This appropriation started on 1 July 2014 and expires
on 30 June 2019.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
VOTE COMMERCE AND CONSUMER AFFAIRS
Appropriation for non-departmental output expenses: Economic Regulation
of Gas Pipeline Services
–
Original appropriation
9,684
9,684
–
Total adjusted appropriation
9,684
9,684
–
–
1,580
2,088
Cumulative actual expenditure 30 June
1,580
2,088
Appropriation remaining 30 June
8,104
7,596
–
Cumulative actual expenditure 1 July
–
Current year actual expenditure
–
–
The Ministry has a multi-year appropriation for output expenses to be incurred by the Crown for the regulation
of specified airport services under Part 4 of the Commerce Act 1986. This appropriation started on 1 July 2014 and
expires on 30 June 2019.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
VOTE COMMERCE AND CONSUMER AFFAIRS
Appropriation for non-departmental output expenses: Economic Regulation
of Specified Airport Services
–
Original appropriation
2,763
2,763
–
Total adjusted appropriation
2,763
2,763
–
Cumulative actual expenditure 1 July
–
–
–
Current year actual expenditure
597
598
–
Cumulative actual expenditure 30 June
597
598
–
Appropriation remaining 30 June
2,166
2,165
The Ministry has a multi-year appropriation for capital expenditure to be incurred by the Crown for the provision
of ongoing investment funding for Crown Fibre Holdings to implement the Government’s broadband investment
commitment. This appropriation started on 22 August 2011 and expires on 30 June 2016.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
Original appropriation
408,000
408,000
Cumulative adjustments
357,000
357,000
Total adjusted appropriation
765,000
765,000
Cumulative actual expenditure 1 July
365,000
365,000
200,000
Current year actual expenditure
210,000
210,000
365,000
Cumulative actual expenditure 30 June
575,000
575,000
Appropriation remaining 30 June
190,000
190,000
VOTE COMMUNICATIONS
Appropriation for non-departmental capital expenduture: Broadband Investment
408,000
774,500
1,182,500
165,000
817,500
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Multi-year
appropriations
153
The Ministry has a multi-year appropriation for other expenses to be incurred by the Crown for the provision of grant
assistance to screen productions that are internationally focused and produced in New Zealand. This appropriation
started on 1 July 2014 and expires on 30 June 2019.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
252,780
252,780
517
517
253,297
253,297
–
–
VOTE ECONOMIC DEVELOPMENT AND EMPLOYMENT
Appropriation for non-departmental other expenses: New Zealand Screen Producition
Grant – International
–
Original appropriation
–
Cumulative adjustments
–
Total adjusted appropriation
–
Cumulative actual expenditure 1 July
–
Current year actual expenditure
108,004
66,970
–
Cumulative actual expenditure 30 June
108,004
66,970
–
Appropriation remaining 30 June
145,293
186,327
The Ministry has a multi-year appropriation for other expenses to be incurred by the Crown for the capital investment
to NZVIF to accelerate the development of the New Zealand Venture Capital Market. This appropriation started on
1 July 2014 and expires on 30 June 2018.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
37,453
37,453
(12,000)
(12,000)
25,453
25,453
–
–
VOTE ECONOMIC DEVELOPMENT AND EMPLOYMENT
Appropriation for non-departmental capital expenduture: Venture
Investment Fund
–
Original appropriation
–
Cumulative adjustments
–
Total adjusted appropriation
–
Cumulative actual expenditure 1 July
–
Current year actual expenditure
5,000
10,378
–
Cumulative actual expenditure 30 June
5,000
10,378
–
Appropriation remaining 30 June
20,453
15,075
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Multi-year
appropriations
154
The Ministry has a multi-year appropriation for output expenses to be incurred by the Crown for the acquisition
and analysis of seismic information relating to New Zealand’s minerals, petroleum and geothermal resources.
This appropriation started on 1 July 2014 and expires on 30 June 2018.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
VOTE ENERGY
Appropriation for non-departmental output expenses: Resource Data
Acquisition and Management
–
Original appropriation
8,000
8,000
–
Total adjusted appropriation
8,000
8,000
–
Cumulative actual expenditure 1 July
–
Current year actual expenditure
–
Cumulative actual expenditure 30 June
–
Appropriation remaining 30 June
–
–
200
2,000
200
2,000
7,800
6,000
The Ministry has a multi-year appropriation for output expenses to be incurred by the Crown for the management
of emergency events by the System Operator, if required, including increased monitoring and management
responsibilities in the event of an emerging security situation, and planning and running an emergency conservation
campaign. This appropriation started on 1 July 2012 and expires on 30 June 2017.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
VOTE ENERGY
Appropriation for non-departmental output expenses: Security Management
6,000
Original appropriation
6,000
6,000
6,000
Total adjusted appropriation
6,000
6,000
–
–
–
Cumulative actual expenditure 1 July
–
Current year actual expenditure
–
1,200
–
Cumulative actual expenditure 30 June
–
1,200
6,000
4,800
6,000
Appropriation remaining 30 June
The Ministry has a multi-year appropriation for output expenses to be incurred by the Crown for the funding for marine
energy generation and associated administration. This appropriation started on 1 July 2011 and expires on 30 June 2016.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
VOTE ENERGY
Appropriation for non-departmental other expenses: Contestable Fund for Deployment
of Marine Energy Devices
4,949
(4,000)
949
Original appropriation
Cumulative adjustments
4,949
4,949
(4,949)
(4,949)
Total adjusted appropriation
–
–
–
Cumulative actual expenditure 1 July
–
–
–
Current year actual expenditure
–
–
–
Cumulative actual expenditure 30 June
–
–
Appropriation remaining 30 June
–
–
949
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Multi-year
appropriations
155
The Ministry has a multi-year appropriation for output expenses to be incurred by the Crown for the provision of
grant towards insulation targeting low income households. This appropriation started on 1 July 2013 and expires on
30 June 2016.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
VOTE ENERGY
Appropriation for non-departmental other expenses: Home Insulation
93,000
Original appropriation
93,000
93,000
93,000
Total adjusted appropriation
93,000
93,000
Cumulative actual expenditure 1 July
33,000
33,000
–
33,000
Current year actual expenditure
37,431
36,069
33,000
Cumulative actual expenditure 30 June
70,431
69,069
60,000
Appropriation remaining 30 June
22,569
23,931
The Ministry has a multi-year appropriation for output expenses to be incurred by the Crown for research and research
applications to find innovation solutions to fundamental issues New Zealand faces in its future development. This
appropriation started on 1 October 2013 and expires on 30 June 2018.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
252,722
252,722
6,520
6,520
259,242
259,242
–
–
VOTE SCIENCE AND INNOVATION
Appropriation for non-departmental output expenses:
National Science Challenges
252,722
–
252,722
Original appropriation
Cumulative adjustments
Total adjusted appropriation
–
Cumulative actual expenditure 1 July
–
Current year actual expenditure
7,206
10,530
–
Cumulative actual expenditure 30 June
7,206
10,530
252,036
248,712
252,722
Appropriation remaining 30 June
The Ministry has a multi-year appropriation for output expenses to be incurred by the Crown for the co-funding for
private businesses to invest in a multi-year programme of research and development. This appropriation started on
1 July 2013 and expires on 30 June 2017.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
393,000
393,000
VOTE SCIENCE AND INNOVATION
Appropriation for non-departmental output expenses: Research
and Development Growth Grants
393,000
–
393,000
–
Original appropriation
Cumulative adjustments
Total adjusted appropriation
Cumulative actual expenditure 1 July
40,000
40,000
433,000
433,000
47,447
47,447
47,447
Current year actual expenditure
93,774
119,200
47,447
Cumulative actual expenditure 30 June
141,221
166,647
291,779
266,353
345,553
Appropriation remaining 30 June
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Multi-year
appropriations
156
The Ministry has a multi-year appropriation for output expenses to be incurred by the Crown for the co-funding for
private businesses to undertake research and development projects and for funding students to work in research
and development active businesses. This appropriation started on 1 July 2013 and expires on 30 June 2017.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
173,000
173,000
(2,250)
(2,250)
170,750
170,750
36,869
36,869
VOTE SCIENCE AND INNOVATION
Appropriation for non-departmental output expenses: Targeted Business Research and
Development Funding
173,000
(2,250)
170,750
–
Original appropriation
Cumulative adjustments
Total adjusted appropriation
Cumulative actual expenditure 1 July
36,869
Current year actual expenditure
30,714
43,631
36,869
Cumulative actual expenditure 30 June
67,583
80,500
133,881
Appropriation remaining 30 June
103,167
90,250
The Ministry has a multi-year appropriation for other expenses to be incurred by the Crown for the purchasing
of services from or providing support to, third party providers of social and/or affordable housing services. This
appropriation started on 1 July 2012 and expired on 30 June 2015.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
104,100
104,100
VOTE HOUSING
Appropriation for non-departmental other expenses: Social Housing Fund
104,100
41,188
145,288
Original appropriation
Cumulative adjustments
Total adjusted appropriation
12,046
12,046
116,146
116,146
16,466
Cumulative actual expenditure 1 July
67,856
67,856
51,390
Current year actual expenditure
39,582
48,290
107,438
116,146
8,708
–
67,856
Cumulative actual expenditure 30 June
77,432
Appropriation remaining 30 June
The Ministry has a multi-year appropriation for other expenses to be incurred by the Crown for the expense reflecting
the guarantee fee subsidy under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme.
This appropriation started on 1 July 2010 and expired on 30 June 2015.
Actual
Actual
2014
$000
2015
$000
Approved
appropriation †
2015
$000
13,520
13,520
(12,818)
(12,818)
Appropriation for non-departmental other expenses: Weathertight Services:
Guarantee Fee Subsidy
13,520
Original appropriation
(7,091)
Cumulative adjustments
6,429
Total adjusted appropriation
702
702
Cumulative actual expenditure 1 July
102
102
102
–
102
6,327
Current year actual expenditure
Cumulative actual expenditure 30 June
Appropriation remaining 30 June
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
–
600
102
702
600
–
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Multi-year
appropriations
157
Changes in Appropriation Structure
As a result of the changes in the Public Finance Act 1989, all 2013/14 Multi-Class Output Appropriations (MCOA’s) were
converted in to Multi-Category Appropriations (MCA’s) for 2014/15 and outyears.
Vote Mergers for 2014/15.
›› Vote Economic Development and Vote Employment merged and named Vote Economic Development and
Employment, and
›› Vote Commerce and Vote Consumer Affairs merged and named Vote Commerce and Consumer Affairs.
As a result of the above mergers, the following Multi-Class appropriations (MCAs) were established:
›› In Vote Economic Development and Employment
–– Policy Advice and Related Matters – MCA (Departmental Output Expenses)
–– Support the Growth and Development of New Zealand Firms, Sectors and Regions – MCA (Non-Departmental
Output Expenses)
–– Support New Market Opportunities for High Growth New Zealand Firms and Sectors – MCA (Non-Departmental
Other Expenses), and
–– Seed Co-Investment Fund – MCA (Non-Departmental Output Expense and Non-Departmental Capital Expense).
›› In Vote Commerce and Consumer Affairs
–– Policy Advice and Related Matters – MCA (Departmental Output Expenses)
–– Services and Advice to Support Well-functioning Financial Markets – MCA (Non-Departmental Output Expenses),
and
–– Commerce Commission Litigation Funds – MCA (Non-Departmental Other Expenses).
STATEMENT OF EXPENSES AND CAPITAL EXPENDITURE INCURRED WITHOUT, OR IN EXCESS OF,
APPROPRIATION OR OTHER AUTHORITY
For the year ended 30 June 2015
Actual
2015
$000
Supplementary
estimates
2015
$000
Unappropriated
expenditure
2015
$000
134
–
52
VOTE HOUSING
Departmental output expenses
Building and Construction Ministerial Servicing
This expenditure outside the scope of appropriation was due to the scope identifying only one portfolio when
servicing was provided to more than one portfolio. This error was corrected as part of the 2015 March baseline
update. Expenditure of $52,000 was incurred up to the approval of the 2015 March Baseline Update on 31 March 2015.
Service provided to Ministers outside of scope in 2013/14 cannot be estimated reliably.
Actual
2015
$000
Supplementary
estimates
2015
$000
Unappropriated
expenditure
2015
$000
935
935
82
VOTE COMMERCE AND CONSUMER AFFAIRS
Non-departmental output expenses
Enforcement of Daiy Sector Regulation and Auditing of Milk Price Setting
Changes to the Non-departmental output expense: Enforcement of Dairy sector Regulation and Auditing of Milk
Price Setting appropriation, were submitted and agreed as part of the 2015 Budget technical initiatives. The amount
authorised under imprest supply was mistakenly lower than actual amounts paid in April 2015. The correct level of
appropriation was subsequently approved in the Supplementary Estimates in June 2015. Therefore unappropriated
expenditure was incurred during April and May 2015. ––
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Multi-year
appropriations
158
Actual
2015
$000
Supplementary
estimates
2015
$000
Unappropriated
expenditure
2015
$000
18
25
18
VOTE LABOUR
Non-departmental other expenses
Impairment of debt owed to the Crown
The Ministry has identified five Crown debts totalling $18,000 that have been identified as unrecoverable. These debts
arisen from infringement notices issued to retailers of non-compliant electrical equipment and products. In January
2015 Treasury advised, supported by Audit New Zealand, that a doubtful debt expense should have been recognised as
soon as the Ministry became aware that the infringement notices became unenforceable. As a consequence of there
being no appropriation available for recording the impairment in the recoverable value of these infringement notices,
unappropriated expenditure has been incurred.
Actual
2015
$000
Supplementary
estimates
2015
$000
Unappropriated
expenditure
2015
$000
18
–
18
VOTE COMMERCE AND CONSUMER AFFAIRS
Non-departmental other expenses
Impairment of debt owed to the Crown
Two Crown debts dating back to October 2012 are deemed unrecoverable. The two Companies owing the debts are no
longer trading and have been struck off the Companies Register. Audit NZ have requested these debts are provided as
doubtful debts for 2014/15 fiscal year. There is no appropriation under Vote Commerce and Consumer Affairs for these
Crown debts.
Actual
2015
$000
Supplementary
estimates
2015
$000
Unappropriated
expenditure
2015
$000
41
–
41
VOTE TOURISM
Non-departmental other expenses
Impairment of debt owed to the Crown
Old Crown debts dating back before the establishment of the Ministry of Business, Innovation and Employment have
been identified and are deemed to be unrecoverable. Audit NZ have requested these debts to be provided as doubtful
debts for 2014/15 fiscal year. There is no appropriation under Vote Tourism for these Crown debts.
STATEMENT OF DEPARTMENT CAPITAL INJECTION
Actual
Actual
2014
$000
2015
$000
Appropriation
Voted †
2015
$000
19,700
37,162
VOTE ECONOMIC DEVELOPMENT AND EMPLOYMENT
33,493
Ministry of Business, Innovation and Employment – capital injection
† These are the appropriations from the Supplementary Estimates, adjusted for any transfers under section 26A of the PFA.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Residential Tenancies
Trust Account
Independent Auditor’s Report
To the readers of the Residential Tenancies Trust Account’s financial statements
for the year ended 30 June 2015.
The Auditor-General is the auditor of Residential Tenancies Trust Account (the Trust). The Auditor-General has
appointed me, Ajay Sharma, using the staff and resources of Audit New Zealand, to carry out the audit of the financial
statements of the Trust on her behalf.
OPINION
We have audited the financial statements of the Trust on pages 161 to 165, that comprise the statement of financial
position as at 30 June 2015, the statement of comprehensive revenue and expense, statement of movements in
bondholders funds and statement of cash flows for the year ended on that date and the notes to the financial
statements that include accounting policies and other explanatory information.
In our opinion, the financial statements of the Trust:
›› present fairly, in all material respects:
–– its financial position as at 30 June 2015; and
–– its financial performance and cash flows for the year then ended; and
›› comply with generally accepted accounting practice in New Zealand and have been prepared in accordance with
Public Benefit Entity Standards.
Our audit was completed on 25 September 2015. This is the date at which our opinion is expressed.
The basis of our opinion is explained below. In addition, we outline the responsibilities of the Chief Executive of the
Ministry of Business, Innovation and Employment and our responsibilities, and explain our independence.
BASIS OF OPINION
We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the
International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements
and plan and carry out our audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to
influence readers’ overall understanding of the financial statements. If we had found material misstatements that were
not corrected, we would have referred to them in our opinion.
An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgement, including our assessment of risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider
159
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2012/2013
2014/2015
Residential Tenancies
Trust Account
160
internal control relevant to the preparation of the Trust’s financial statements in order to design audit procedures
that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of
the Trust’s internal control.
An audit also involves evaluating:
›› the appropriateness of accounting policies used and whether they have been consistently applied;
›› the reasonableness of the significant accounting estimates and judgements made by the Chief Executive of the
Ministry of Business, Innovation and Employment;
›› the adequacy of the disclosures in the financial statements; and
›› the overall presentation of the financial statements.
We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements. Also, we
did not evaluate the security and controls over the electronic publication of the financial statements.
We believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.
RESPONSIBILITIES OF THE CHIEF EXECUTIVE OF THE MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
The Chief Executive is responsible for the preparation and fair presentation of financial statements for the Trust that
comply with generally accepted accounting practice in New Zealand and Public Benefit Entity Standards.
The Chief Executives’ responsibilities arise from section 126 of the Residential Tenancies Act 1986.
The Chief Executive is responsible for such internal control as they determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error. The Chief Executive
is also responsible for the publication of the financial statements, whether in printed or electronic form.
RESPONSIBILITIES OF THE AUDITOR
We are responsible for expressing an independent opinion on the financial statements and reporting that opinion to
you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 and section 128 of the
Residential Tenancies Act 1986.
INDEPENDENCE
When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate
the independence requirements of the External Reporting Board.
Other than the audit, we have no relationship with or interests in the Trust.
Ajay Sharma
Audit New Zealand
On behalf of the Auditor-General
Wellington, New Zealand
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2012/2013
2014/2015
Residential Tenancies
Trust Account
161
STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE
––
For the year ended 30 June 2015
Actual
2014
$000
Actual
2015
$000
Revenue
20,132
Interest earned from bank deposits
23,204
Expenditure
20,132
–
Interest to Ministry of Business, Innovation and Employment
23,204
–
Operating surplus
–
–
Other comprehensive revenue and expenses
–
–
Total comprehensive revenue and expenses
–
Note: Residential Tenancies Trust Account (RTTA) audit fees are paid by the Ministry of Business, Innovation
and Employment.
RECONCILIATION OF MOVEMENTS IN BONDHOLDERS’ FUNDS
For the year ended 30 June 2015
Actual
2014
$000
Actual
2015
$000
390,715
Bondholders' funds at 1 July
195,935
Bond lodged
208,162
Bonds refunded
(171,376)
Total bondholders' funds
457,536
(165,900)
420,750
420,750
STATEMENT OF FINANCIAL POSITION
As at 30 June 2015
Notes
Actual
2014
$000
Actual
2015
$000
Current Assets
8,462
133,490
24,219
166,171
Cash and cash equivalents
Investment
Interest receivables
4
2,3,4
4
Total current assets
9,017
202,288
31,644
242,949
Non-current assets
294,788
Investment
2,3,4
258,000
294,788
Total non-current assets
258,000
460,959
Total assets
500,949
Current liabilities
40,175
Ineterest payable to the Ministry of Business, Innovation and Employment
43,379
34
Other current liabilities
34
40,209
Total current liabilities
43,413
40,209
Total liabilities
43,413
The accompanying notes form part of these financial statements.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Residential Tenancies
Trust Account
Notes
Actual
2014
$000
Actual
2015
$000
Bondholders' funds
390,715
Opening balance
30,035
Net increase
420,750
420,750
36,786
Total bondholders' funds
457,536
STATEMENT OF CASH FLOWS
For the year ended 30 June 2015
Actual
2014
$000
Notes
162
Actual
2015
$000
Cash flows from operating activities
Cash was provided from:
15,984
Interest received
15,779
Cash was disbursed to:
–
15,984
Interest payments to Ministry of Business, Innovation and Employment
Net cash flows from operating activities
(20,000)
5
(4,221)
Cash flows from investing activities
Cash was provided from:
155,500
–
Proceed from maturity of investments
Disposal of goods
159,990
–
Cash was disbursed to:
(207,778)
(52,278)
Purchase of investments
Net cash flows from investing activities
(192,000)
(32,010)
Cash flows from financing activities
Cash was provided from:
195,935
Lodgement bonds
208,162
Cash was disbursed to:
(165,900)
Refund of bonds
30,035
Net cash flows from financing activities
(6,259)
Net increase/(decrease) in cash held
(171,376)
36,786
555
14,721
Cash at the beginning of the year
8,462
8,462
Cash at the end of the year
9,017
The accompanying notes form part of these financial statements.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Residential Tenancies
Trust Account
Notes to the financial statements
For the year ended 30 June 2015
NOTE 1: STATEMENT OF ACCOUNTING POLICIES FOR RESIDENTIAL TENANCIES TRUST ACCOUNT
ƨReporting
ƨ
entity
Receivables
The Ministry of Business, Innovation and Employment
(The Ministry) was established and commenced
operations on 1 July 2012, and manages the Residential
Tenancies Trust Account (RTTA) pursuant to the Public
Finance Act 1989 and the Residential Tenancies Act 1986.
Receivables are stated at estimated realisable value.
The financial statements of the Residential Tenancies
Trust Account are for the year ended 30 June 2015 and
were authorised for issue by the Chief Executive of the
Ministry on 25 September 2015.
ƨBasis
ƨ
of preparation
The financial statements of the Residential Tenancies
Trust Account statements and schedules have been
prepared in accordance with the requirements of the
Public Finance Act 1989, which include the requirement
to comply with New Zealand Generally Accepted
Accounting Practice (NZGAAP).
These financial statements have been prepared
in accordance with, and comply with the new PBE
accounting standards.
Measurement base
The financial statements have been prepared on
historical cost basis.
Investments
Investments are not generally traded and are held to
maturity. Investments in bank deposits are initially
measured at fair value plus transaction costs (if any).
After initial recognition, investments in bank deposits
are measured at amortised cost using the effective
interest rate, less any provision for impairment.
Financial instruments
The Residential Tenancies Trust Account is party to
financial instruments as part of its normal operations.
These financial instruments include accounts payable
and receivable, cash and cash equivalents and
investments. Revenue and expenditure in relation to
all financial instruments is recognised in the Statement
of Comprehensive Revenue and Expense.
All financial instruments are shown at estimated fair
value except for those items covered by a separate
accounting policy.
Taxation
The Residential Tenancies Trust Account is exempt
from income tax in terms of the Income Tax Act 2007.
Functional and presentation currency
Changes in accounting policies
The financial statements are presented in New Zealand
dollars and all values are rounded to the nearest thousand
dollars ($000). The functional currency of the Residential
Tenancies Trust Account is New Zealand dollars.
There have been no changes in accounting policies.
All policies have been applied on a basis consistent
with the previous year.
ƨAccounting
ƨ
policies
The accounting policies set out below have been applied
consistently to all periods presented in these financial
statements.
Revenue
The RTTA derives revenue from interest on investments.
Interest on investments is accrued on a monthly basis.
Cash and Cash equivalents
Cash is defined as coins, notes and demand deposits in
the RTTA bank accounts and other deposits held on call.
The accompanying notes form part of these financial statements.
163
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Residential Tenancies
Trust Account
164
NOTE 2: INVESTMENTS BY COUNTERPARTY
Investments are undertaken in line with the Ministry’s investment policy. Investments were held with the following
counterparties as at 30 June (investment values at book value).
Actual
2014
$000
Actual
2015
$000
Current
42,000
ANZ
43,500
9,990
ASB
37,288
45,000
BNZ
36,000
36,500
Westpac
85,500
133,490
Total current
202,288
Non-current
46,500
ANZ
52,500
135,788
ASB
153,000
41,000
BNZ
71,500
Westpac
5,000
47,500
294,788
Total non-current
258,000
428,278
Total investments by counterparty
460,288
Weighted average interest rates
4.80%
Short-term deposit
4.93%
5.50%
Long-term deposit
5.38%
NOTE 3: BOOK VALUE OF INVESTMENTS
Actual
2014
$000
428,278
428,278
Actual
2015
$000
Bank deposits
Total book value of investments
460,288
460,288
Fair value of the investments approximates the book value.
NOTE 4: FINANCIAL INSTRUMENTS
Financial instruments that are potentially subject to credit risk principally consist of cash and cash equivalents, accounts
receivable and investments.
Credit risk
Credit risk is the risk that a third party will default on its obligations. The maximum exposures to credit risk at balance
date were:
Actual
2014
$000
Actual
2015
$000
8,462
Cash held
24,219
Accounts receivable
428,278
460,959
Investments
Total book value of financial instruments
There are no major concentrations of credit risk for accounts receivable.
9,017
31,644
460,288
500,949
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2014/2015
Residential Tenancies
Trust Account
Currency risk
Currency risk is the risk that the value of debtors and
creditors due in foreign currency will fluctuate because
of changes in foreign exchange rates.
The Residential Tenancies Trust Account has no currency
risk, given that any financial instruments it deals with
are denominated in New Zealand dollars.
Interest rate risk
Interest rate risk is the risk that the return on the funds
invested will fluctuate due to changes in market interest
rates. As all investments are held to maturity, the
Residential Tenancies Trust Account has no interest rate
risk other than at the point of maturity and reinvestment
of individual deposits. Deposits are held with authorised
New Zealand banks.
Fair value
The fair value of all financial instruments is equivalent
to the carrying amount disclosed in the Statement of
Financial Position.
NOTE 5: RECONCILIATION OF OPERATING SURPLUS TO NET CASH FLOWS FROM OPERATING ACTIVITIES
Actual
2014
$000
–
Actual
2015
$000
Operating surplus
–
Add/(less) movements in working capital
(4,147)
(Increase)/ decrease in interest receivable
20,131
Increase/(decrease) in interest payable
15,984
Net cash flows from operating activities
(7,425)
3,204
(4,221)
NOTE 6: COMMITMENTS AND CONTINGENT LIABILITIES
The Residential Tenancies Trust Account had no commitments or contingent liabilities as at 30 June 2015 (2014: nil).
NOTE 7: EVENTS AFTER THE BALANCE DATE
No events have occurred between the balance date and date of signing these financial statements that materially
affect the financial statements.
NOTE 8: CAPITAL MANAGEMENT
The Residential Tenancies Trust Account’s capital is its bondholders’ funds and is represented by net assets.
165
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
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Appendix A: Crown entities and other Crown
organisations associated with the Ministry
The Ministry of Business, Innovation and Employment monitors and/or funds a
number of Crown entities and Public Finance Act 1989 Schedule 4A companies.
VOTE ACC
VOTE HOUSING
Accident Compensation Corporation
Housing New Zealand Corporation
Fairway Resolution Limited
Tamaki Redevelopment Company Limited
VOTE COMMERCE AND CONSUMER AFFAIRS
VOTE LABOUR
Commerce Commission
WorkSafe New Zealand
External Reporting Board
Financial Markets Authority
VOTE SCIENCE AND INNOVATION
Retirement Commissioner
Callaghan Innovation
Standards Council
Takeovers Panel
Research and Education Advanced Network New Zealand
Limited (REANNZ)
Testing Laboratory Registration Council of New Zealand
Crown Research Institutes:
VOTE COMMUNICATIONS
›› AgResearch Limited
›› Institute of Environmental Science and Research
Limited (ESR)
Crown Fibre Holdings Limited
›› Institute of Geological and Nuclear Sciences Limited
(GNS Science)
VOTE ECONOMIC DEVELOPMENT AND EMPLOYMENT
›› Landcare Research New Zealand Limited
Education New Zealand
New Zealand Trade and Enterprise
New Zealand Venture Investment Fund Limited
Tertiary Education Commission
VOTE ENERGY
Electricity Authority
Energy Efficiency and Conservation Authority
›› National Institute of Water and Atmospheric Research
Limited (NIWA)
›› New Zealand Forest Research Institute Limited (Scion)
›› The New Zealand Institute for Plant and Food
Research Limited
VOTE TOURISM
Tourism New Zealand
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2013/2014
Appendix B: The Ministry’s
legislative framework
As at 30 June 2015, the Ministry administers the following Acts (listed below) and
their associated regulations, together with several international conventions.
INJURY PREVENTION, REHABILITATION,
AND COMPENSATION
Incorporated Societies Act 1908
Accident Compensation Act 2001
Insolvency Act 2006
Industrial and Provident Societies Act 1908
Insolvency (Cross-border) Act 2006
BUILDING AND CONSTRUCTION
KiwiSaver Act 2006 (Part 4, aspects of Part 5, Schedules 1 and 2)3
Building Act 2004
Layout Designs Act 1994
Chartered Professional Engineers of New Zealand
Act 2002
Limited Partnerships Act 2008
Construction Contracts Act 2002
Mercantile Law Act 1908
Electricity Act 1992 (only provisions relating to registration of
electrical workers)
New Zealand Institute of Chartered Accountants Act 1996
Marine Insurance Act 1908
Engineering Associates Act 1961
New Zealand Superannuation and Retirement Income Act 2001
(Part 4 and Schedule 6)4
Fencing of Swimming Pools Act 1987
Partnership Act 1908
Plumbers, Gasfitters, and Drainlayers Act 2006
Patents Act 1953
Registered Architects Act 2005
Patents Act 2013
Retirement Villages Act 2003
Personal Property Securities Act 1999
Weathertight Homes Resolution Services Act 20061
Plant Variety Rights Act 1987
1 The “Justice provisions” in the Weathertight Homes Resolution Services
Act 2006 are administered by the Ministry of Justice.
Sale of Goods Act 1908
Receiverships Act 1993
Sale of Goods (United Nations Convention) Act 1994
CANTERBURY EARTHQUAKE RECOVERY
Securities Act 1978
Canterbury Earthquake Recovery Act 2011
(administered by CERA not MBIE)
Securities Markets Act 1988
COMMERCE
Standards Act 1988
Auditor Regulation Act 2011
Building Societies Act 1965
Carriage of Goods Act 1979
Co-operative Companies Act 1996
Commerce Act 1986
Companies Act 1993
Copyright Act 1994
Corporations (Investigation and Management) Act 1989
Designs Act 1953
Dumping and Countervailing Duties Act 1988
Financial Advisers Act 2008
Financial Markets Authority Act 2011
Financial Markets Conduct Act 2013
Financial Reporting Act 2013
Financial Service Providers (Registration and Dispute Resolution)
Act 2008 (Parts 1 and 2)1
Friendly Societies and Credit Unions Act 1982
Geographical Indications (Wine and Spirits) Registration Act 2006
Haka Ka Mate Attribution Act 2014
Imports and Exports (Restrictions) Act 19882
Securities Transfer Act 1991
Securities Trustees and Statutory Supervisors Act 2011
Superannuation Schemes Act 1989
Takeovers Act 1993
Tariff Act 1988
Temporary Safeguard Authorities Act 1987
Testing Laboratory Registration Act 1972
Trade and Industry Act Repeal Act 1988
Trade Marks Act 2002
Trustee Companies Management Act 1975
Trans-Tasman Mutual Recognition Act 1997
Unit Trusts Act 1960
1 Responsibility for the administration of Part 3 of the Financial Service
Providers (Registration and Dispute Resolution) Act 2008 lies with the
Consumer Affairs portfolio.
2 The Ministry for the Environment has policy and administrative
responsibility for the Imports and Exports (Restrictions) Prohibition
Order (No 2) 2004. Parliamentary responsibility for the Order lies with
the Commerce portfolio.
3 Overall responsibility for the administration of the KiwiSaver Act
2006 lies with the Revenue portfolio. The Ministers of Commerce
and Finance are jointly responsible for the appointment of default
KiwiSaver providers under section
177 of the Act.
4 Provisions relating to the Retirement Commissioner.
167
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Appendices
168
COMMUNICATIONS AND INFORMATION
TECHNOLOGY
Electronic Transactions Act 2002
Post Office Act Repeal Act 1987
Postal Services Act 1998
Radiocommunications Act 1989
Telecommunications Act 2001
Telecommunications (Interception Capability and Security)
Act 2013
Ngai Tahu (Pounamu Vesting) Act 1997
Petroleum Demand Restraint Act 1981
1 The Minister for Climate Change Issues is responsible for the overall
administration of the Climate Change
Response Act 2002.
2 The Minister of Consumer Affairs is responsible for subpart 1 of Part 4.
HOUSING
Home Ownership Savings Act 1974
Unsolicited Electronic Messages Act 2007
Housing Act 1955
Year 2000 Information Disclosure Act 1999
Housing Accords and Special Housing Areas Act 2013
Housing Assets Transfer Act 1993
CONSUMER AFFAIRS
Auctioneers Act 2013
Consumer Council Act Repeal Act 1988
Consumer Guarantees Act 1993
Credit (Repossession) Act 1997
Credit Contracts and Consumer Finance Act 2003
Electricity Industry Act 2010 (subpart 1 of Part 4 only)1
Fair Trading Act 1986
Housing Corporation Act 1974
Housing Restructuring and Tenancy Matters Act 1992
Residential Tenancies Act 1986
State Advances Corporation Act 1965
Unit Titles Act 20101 (for the purposes of Part 1, subparts 12-14
of Part 2, and Part 5)
1 Administered jointly with the Ministry of Justice and Land Information
New Zealand.
Financial Service Providers (Registration and Dispute Resolution)
Act 2008 (Part 3 only)2
IMMIGRATION
Motor Vehicle Sales Act 2003
Immigration Act 2009
Weights and Measures Act 1987
Immigration Advisers Licensing Act 2007
1 The Minister of Energy and Resources is responsible for the
administration of the rest of the Electricity Industry Act 2010.
LABOUR
2 The Minister of Commerce is responsible for the administration of the
rest of the Financial Advisers (Registration
and Dispute Resolution) Act 2008.
ECONOMIC DEVELOPMENT
Major Events Management Act 2007
Ministry of Economic Development Act 2000
New Zealand International Convention Centre Act 2013
New Zealand Trade and Enterprise Act 20031
Rugby World Cup 2011 (Empowering) Act 2010
Tobacco Growing Industry Repeal Act 1987
1 The Minister for Economic Development and the Minister of Trade are
both responsible Ministers for New Zealand Trade and Enterprise and
the New Zealand Trade and Enterprise Act 2003.
ENERGY AND RESOURCES
Atomic Energy Act 1945
Climate Change Response Act 2002 (Part 6 only)1
Crown Minerals Act 1991
Electricity Act 1992
Electricity Industry Act 20102
Energy Companies Act 1992
Energy Efficiency and Conservation Act 2000
Energy (Fuels, Levies, and References) Act 1989
Labour Department Act Repeal Act 1989
Employment Relations Act 20001
Equal Pay Act 1972
Health and Safety in Employment Act 1992
Remuneration Authority Act 1977
Holidays Act 2003
Machinery Act 1950
Marine and Power Engineers’ Institute Industrial
Disputes Act 1974
Mines Rescue Act 2013
Minimum Wage Act 1983
Parental Leave and Employment Protection Act 1987
Seamen’s Union Funds Act 1971
Sharemilking Agreements Act 1937
Shop Trading Hours Act Repeal Act 1990
Trade Unions Act 1908
Union Representatives Education Leave Act Repeal
Act 1992
Volunteers Employment Protection Act 1973
Wages Protection Act 1983
Waterfront Industry Reform Act 1989
WorkSafe New Zealand Act 2013
1 Section 198 is administered by the Ministry of Justice.
Energy Resources Levy Act 1976
Gas Act 1992
SCIENCE AND INNOVATION
International Energy Agreement Act 1976
Building Research Levy Act 1969
Lake Taupo Compensation Claims Act 1947
Callaghan Innovation Act 2012
Manapouri – Te Anau Development Act 1963
Heavy Engineering Research Levy Act 1978
National Development Act Repeal Act 1986
Measurement Standards Act 1992
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2013/2014
Appendices
Research, Science, and Technology Act 2010
Wheat Industry Research Levies Act 1989
Crown Research Institutes Act 19921
1 The Treasury provides administrative support for functions
concerning Crown Research Institutes.
TOURISM
New Zealand Tourism Board Act 1991
New Zealand Māori Arts and Crafts Institute Act 1963
169
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
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ANNUAL REPORT 2013/2014
Appendix C: Non-departmental
appropriations performance
VOTE COMMERCE AND CONSUMER AFFAIRS
COMMERCE COMMISSION LITIGATION FUND MCA
ƨƨOverarching Purpose
The single overarching purpose of this appropriation is to meet the costs of litigation activity undertaken by the
Commerce Commission arising from its general market or sector specific activities.
ƨƨIntention
This appropriation is intended to achieve the best possible outcomes for New Zealanders in competitive and regulated
markets by enabling the Commission to undertake major or complex litigation where appropriate.
NON-DEPARTMENTAL OTHER EXPENSES
ƨƨCategory
Output Class – Commerce Commission Externally-Sourced Litigation
Scope
This category is limited to meeting the external direct costs of major litigation activity undertaken by the Commerce
Commission arising from its general market or sector specific activities.
Intention
This category is intended to achieve an increase in competitive markets through enforcement litigation.
Output Class – Commerce Commission Internally-Sourced Litigation Fund
Scope
This category is limited to meeting the internal costs of major litigation activity undertaken by the Commerce
Commission arising from its general market or sector specific activities.
Intention
This category is intended to achieve an increase in competitive markets through enforcement litigation.
Non-financial performance
Performance measure
Enforcement is a critical element in promoting competitive markets. The Commerce Commission
litigates to protect the competitive process and to deter others from behaving anticompetitively,
thereby making a significant contribution to economic welfare
Standard
2014/15 Actual
Using the Litigation
Fund in accordance
with the conditions
for using the Fund
Achieved
A number of major investigations were concluded this financial year, of particular note was the Commerce Commission
completing the long-running investigation into the sale of interest rate swaps to farmers by ANZ, Westpac and ASB
banks. This case presented several challenges, not least being that many complaints related to transactions that
occurred as early as 2005. The settlements reached with the three banks resulted in compensation of $24 million
for complainants.
The Commission closed two investigations which had been transferred into the major Litigation Fund without taking
any further action.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2013/2014
Appendices
171
The Commission filed criminal charges and civil proceedings against Budget Loans Limited and Evolution Finance
Limited alleging their repossession and debt recovery practices breached the Fair Trading Act.
In August 2015 the Commission filed action against two livestock companies and five individuals for alleged price fixing
in connection with the introduction of the National Animal Identification Tracing Act 2012. The Commission is currently
in discussions with a third company.
Financial performance
2014/15
Main estimates
2014/15
Actual
$000
2014/15
Supplementary
estimates
$000
Commerce Commission Externally-Sourced Litigation
7,000
7,000
(491)
Commerce Commission Internally-Sourced Litigation Fund
3,500
3,500
2,331
$000
Total Expenses
The Commission’s externally-sourced expenditure for major litigation activity for 2014/15 financial year was $1.9 million
or 31 per cent of our total available Litigation Budget. In addition, $3 million was spent during 2014/15 on internallysourced costs. Settlements in the interest rate swaps cases meant that less time and expenditure was spent on
litigation than what was budgeted.
NON-DEPARTMENTAL OUTPUT EXPENSES
ƨƨServices and Advice to Support Well-functioning Financial Markets MCA
Overarching Purpose
The single overarching purpose of this appropriation is to support well-functioning financial markets through the
activities of the Financial Markets Authority.
Intention
This appropriation is intended to contribute to fair, efficient, and transparent financial markets.
ƨƨCategory
Output Class – Performance of Investigation and Enforcement Functions
Scope
This category is limited to the performance of statutory functions relating to the investigation and enforcement of
financial markets legislation, including the assessment of complaints, tips, and referrals.
Intention
This category is intended to achieve fair, efficient and transparent financial markets through FMA’s regulatory and
enforcement actions.
Output Class – Performance of Licensing and Compliance Monitoring Functions
Scope
This category is limited to the performance of statutory functions relating to licensing of market participants and riskbased monitoring of compliance, including with disclosure requirements under financial markets legislation.
Intention
This category is intended to achieve compliance of market participants and frontline regulators.
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2013/2014
Appendices
172
Output Class – Performance of Market Analysis and Guidance, Investor Awareness, and Regulatory
Engagement Functions
Scope
This category is limited to the performance of statutory functions relating to market intelligence, guidance, exemptions,
investor education, and regulatory and government co-operation and advice.
Intention
This category is intended to achieve investors having access to resources that help them make more informed decisions.
Non-financial performance
Performance measures
Standard
2014/15 Actual
70% of inquiries and investigations are conducted within the timeframes and standards defined
in the enforcement governance framework
70%
89%
FMA works with the Serious Fraud Office on all investigations of joint-interest in accordance with
Memorandum of Understanding (MoU) arrangements
100%
100%
Details of all public enforcement actions are published on FMA’s website
100%
Performance of Investigation and Enforcement Functions
Risk-based, proportionate and timely action against misconduct
A report on the key issues and themes arising from investigations and enforcement activities and
outcomes is published annually
One report
One report
90%
100%
• acknowledged within two working days
80%
98.6%
• evaluated and determined for further action, referral or closing and the reporter is advised
within 10 working days of receiving all relevant information
80%
95.9%
• frontline regulator referrals or cases requiring urgent attention prioritised for action within
one working day
80%
100%
• Qualifying Financial Entities will be processed within 60 working days
90%
100%
• Statutory Supervisors and Securities Trustees will be processed within 60 working days
90%
100%
• Authorised Financial Advisers will be processed within 20 working days
90%
100%
100%
100%
FMA conducts five thematic monitoring projects per annum
5
9
FMA publishes five reports on significant issues arising from monitoring and surveillance work
per annum
5
6
Regulated offers are screened for risk-based review within five working days after a new PDS is
lodged or a new prospectus is registered
100%
100%
100% of high-risk offer documents for regulated offers are reviewed post-registration or
lodgement
100%
100%
FMA has systems and procedures in place by 1 December 2014 to allow assessment of license
applications submitted under the FMC Act
100%
Achieved
FMA has systems and procedures in place by 1 December 2014 to review regulated offers made
under Part 3 of the FMC Act
100%
Achieved
90% of MoU requests for assistance are completed within agreed timeframes to the satisfaction
of international regulators
80% of misconduct reports about market participants once received by FMA’s assistance team
are processed within established timeframes:
Performance of Licensing and Compliance Monitoring Functions
Risk-based monitoring and surveillance
On receipt of fully completed application for a licence, 90% are processed in accordance with
established processes and timeframes:
Reviews of registered securities markets and accredited bodies are completed and published
annually
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2013/2014
Appendices
Performance measures
Standard
2014/15 Actual
100%
100%
Less than 5%
0%
60%
66%
Market participants’ input is proactively gained and considered prior to establishing all significant
new guidance
100%
100%
Quarterly briefings are provided to the Minister of Commerce highlighting key priorities for
reform
100%
100%
90% of completed applications for exemptions are processed within 6 weeks of receiving all
relevant information or as agreed with applicant
90%
100%
100%
100%
90%
98.5%
50
87
220,000
340,050
70%
60–63%
Satisfied
Satisfied
FMA publishes investor messages on all significant thematic risks
100%
100%
The Consumer Advisory Panel is consulted on development of FMA’s investor education materials
100%
In 100% of cases where FMA intervenes, disclosures are improved or documents withdrawn
Less than 5% of licensing decisions are successfully challenged
Performance of Market Analysis and Guidance, Investor Awareness, and Regulatory
Engagement Functions
Market analysis and guidance
60% of respondents to the annual market participant survey agree that FMA consults well when
introducing significant changes to the regulatory framework
Internal threat/risk assessments are produced in accordance with FMA’s Intelligence and
Risk Framework
Market and investor engagement
90% of enquiries receive a substantive response from FMA within 20 working days of FMA
receiving all relevant information
50 public engagements are undertaken annually by FMA’s staff
The number of website visits increases from the 2012/13 baseline
70% of respondents to the annual market participant survey say their level of awareness and
understanding of FMA’s actions has increased in the past year
Government agencies are “satisfied” with the quality of advice and assistance provided by FMA
Not applicable –
No meetings of the
panel took place
during the financial
year ending 30
June 2015. The
role of the panel
is currently being
reconsidered.
The Financial Market Authority achieved almost all of its targeted performance measures for the 2014/15 year; except
for two standards that were not met.
Sixty three per cent of respondents (slightly lower than the target of 70 per cent) to the annual market participant
survey, that has a plus or minus 6.6 per cent margin of error, indicated an increase in their level of awareness and
understanding of FMA’s actions over the past year. Another measure became inapplicable, which related to consulting a consumer advisory panel on the development of
investor education materials, as there were no meetings of the panel that took place during the year. The role of the
panel is currently being considered.
Financial performance
2014/15
Main estimates
2014/15
Actual
$000
2014/15
Supplementary
estimates
$000
7,973
7,973
7,973
12,556
12,556
12,556
5,655
5,655
5,655
$000
Total Expenses
Performance of Investigation and Enforcement Functions
Performance of Licensing and Compliance Monitoring Functions
Performance of Market Analysis and Guidance, Investor Awareness, and
Regulatory Engagement Functions
173
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
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Appendices
174
VOTE ECONOMIC DEVELOPMENT AND EMPLOYMENT
SUPPORT THE GROWTH AND DEVELOPMENT OF NEW ZEALAND FIRMS, SECTORS AND REGIONS MCA
ƨƨOverarching Purpose
The single overarching purpose of this appropriation is to provide support for the growth and development of
New Zealand firms, sectors and regions to maximise international business opportunities.
ƨƨIntention
This appropriation is intended to achieve assistance to firms to develop and grow international business and exports,
to develop business and management capability to improve individual firms, and to support key sector initiatives and
special events that can provide significant economic benefit for New Zealand.
NON-DEPARTMENTAL OUTPUT EXPENSES
ƨƨCategory
Output Class – International Business Growth Services
Scope
This category is limited to helping firms export and internationalise by identifying and exploiting market and investment
opportunities; overcoming internationalisation barriers; providing customised advice and support; and enabling access
to international business networks.
Intention
This category is intended to assist firms to develop and grow their international business and exports to generate
economic benefits for New Zealand.
Output Class – Services to Support Sector Development and Special Events
Scope
This category is limited to securing and capitalising on significant economic development opportunities for New Zealand,
with a focus on sectors and special events.
Intention
This category is intended to support key sector initiatives and special events that can provide significant economic
benefits for New Zealand.
Output Class – Services to Support the Growth and Development of New Zealand Businesses
Scope
This category is limited to building and enhancing business and management capability through providing access to
effective assessment, advice, training, mentoring and information.
Intention
This category is intended to develop business and management capability to improve individual firm and wider business
performance and generate economic benefits for New Zealand.
Non-financial performance
Performance measures
Standard
2014/15 Actual
525–575
621
Total number of customers in NZTE’s customer portfolio (excluding those intensively managed)
3,000–3,500
(demand driven)
3,389
Percentage of intensively account managed (F500) customers that agree or strongly agree that
NZTE has added value to their business
Meets or exceeds
2013/14 result
91%
International Business Growth Services
Number of intensively account managed (F500) customers in NZTE’s customer portfolio
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2013/2014
Appendices
Performance measures
Standard
2014/15 Actual
Exceeds
2013/14 result
71%
Meets or exceeds
2013/14 result
$1.1b
2 percentage
points higher than
NZ’s overall total
export growth
18.5 percentage
points higher than
NZ’s overall total
export growth
$600m
$866m
New measure
Not measured due
to changes made
to high-impact
programmes
4 to 1
5.3 to 1
Baseline to be
established in
2014/15
48
Up to 10
Not measured due
to changes made
to high-impact
programmes
85%
Not measured due
to changes made
to high-impact
programmes
2,500
(demand driven)
3,478
Meets or exceeds
2013/14 result
92%
2014/15
Actual
$000
2014/15
Supplementary
estimates
$000
International Business Growth Services
11,006
114,703
112,023
Services to Support Sector Development and Special Events
31,072
31,429
31,429
Services to Support the Growth and Development of New Zealand Businesses
13,181
13,181
13,181
Percentage of NZTE customers that agree or strongly agree that NZTE has added value to their
business (excluding those intensively account managed)
Total value of deals effected with NZTE involvement
Annual growth in international revenue for NZTE’s intensively account managed customers
Total value of capital deployed (debt and equity) with NZTE involvement
Under development – Effectiveness measure for HIPs
Potential direct economic impact ratio for approved International Growth Fund grants
Total net promoter score for the Regional Partner Network
Services to Support Sector Development and Special Events
Number of high-impact programmes funded by NZTE
Percentage of deliverables achieved for high-impact programmes.
Services to Support the Growth and Development of New Zealand Businesses
Number of businesses receiving business development services through the Regional
Partner Network
Percentage of businesses that give a positive satisfaction rating to services provided through
the Regional Partner Network
Financial performance
2014/15
Main estimates
$000
Total Expenses
SUPPORT NEW MARKET OPPORTUNITIES FOR HIGH GROWTH NEW ZEALAND FIRMS AND SECTORS MCA
ƨƨOverarching Purpose
The single overarching purpose of this appropriation is to provide support to high growth firms and sectors in securing
new market opportunities.
ƨƨIntention
This appropriation is intended to achieve an increase in firms undertaking market development and business capability
development activities, and the co-funding of feasibility studies of investment cases required for growth in new
markets that delivers benefits for the firm and the New Zealand economy.
175
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2013/2014
Appendices
176
NON-DEPARTMENTAL OTHER EXPENSES
ƨƨCategory
Output Class – International Growth Fund
Scope
This category is limited to supporting high growth firms to undertake additional market development and business
capability activities required for growth in new markets, that deliver benefits for both the firm and the wider
New Zealand economy.
Intention
This category is intended to support high growth firms to undertake additional market development and business
capability activities required for growth in new markets, that delivers benefits for the firm and the NZ economy.
ƨƨOutput Class – Sector Strategies and Facilitation
Scope
This category is limited to assistance with the facilitation of specific sector initiatives, particularly in areas of major
events, pre-feasibility and feasibility studies and guarantees for significant projects to access funding through other
government programmes and cash grants.
Intention
This appropriation is intended to co-fund feasibility studies which are used to develop and present the business case
for investment in New Zealand.
Non-financial performance
Performance measures
Standard
2014/15 Actual
60
(demand driven)
1 12
Meets or exceeds
2013/14 result
98%
Up to 6 grants
(demand driven)
3
2014/15
Actual
$000
2014/15
Supplementary
estimates
$000
29,712
27,212
(13,162)
1,204
1,004
(156)
International Growth Fund
Number of businesses receiving grants funding as part of a wider assistance package
Percentage of businesses that give their experience with the International Growth Fund a
positive rating
Sector Strategies and Facilitation
Number of Strategic Investment Fund grants awarded
Financial performance
2014/15
Main estimates
$000
Total Expenses
International Growth Fund
Sector Strategies and Facilitation
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2013/2014
Appendices
VOTE ENERGY
177
ENERGY EFFICIENCY AND CONSERVATION MCA
ƨƨOverarching Purpose
The overarching purpose of this appropriation is to provide research and policy advice in relation to energy efficiency
and conservation and renewable energy.
ƨƨIntention
This appropriation is intended to achieve effective and efficient ministerial services and high quality policy advice that
contribute to skilled and safe workplaces, and trusted, competitive and well-functioning markets, through an effective
accident compensation system that seeks to prevent injury and rehabilitate those who are injured.
NON-DEPARTMENTAL OUTPUT EXPENSES
ƨƨCategory
Output Class – Electricity Efficiency
Scope
This category is limited to:
›› conducting electricity efficiency research, and
›› development and administration of programmes that provide incentives for cost-effective energy efficiency
and conservation, aimed at changing market behaviours.
Intention
This category is intended to contribute to making improvements in energy efficiency, energy conservation and
renewable energy, in accordance with the New Zealand Energy Efficiency and Conservation Strategy 2011–2016.
Output Class – Energy Efficiency and Conservation
Scope
This category is limited to operational and policy outputs in accordance with statutory functions under the Energy
Efficiency and Conservation Act 2000 and the government’s energy strategies.
Intention
This category is intended to contribute to making improvements in energy efficiency, energy conservation and
renewable energy, in accordance with the New Zealand Energy Efficiency and Conservation Strategy 2011–2016.
Non-financial performance
Performance measures
Standard
2014/15 Actual
Energy savings from electricity levy funded activities:
• The cumulative number of GWh and saved levy funded electricity efficiency programmes (PJ)
• The cumulative savings in MW peak demand from levy funded electricity efficiency
programmes
1,836 GWh (6.6 PJ)
1,818 GWh (6.5 PJ)
601 GWh pa (2.2 PJ)
321 GWh pa (1.2 PJ)
568 MW Annual
savings 131 MW
85 MW pa
626 MW
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2013/2014
Appendices
178
Performance measures
Consumer and business markets are aware of energy efficiency opportunities and are
engaged and willing to take action in key sectors in residential, commercial, industrial and
transport sectors
Standard
2014/15 Actual
71% awareness
Consumer market
• 64% awareness/
recall amongst
our audience
of television
viewers aged
18 plus
• 38% people
inspired to take
action
Business market
• 44% awareness
of EECA
Business
Initiatives
• 17% of aware
businesses
ready to take
action
Implement new projects which reduce net carbon dioxide emissions at a total national net benefit
• The net carbon dioxide emission reductions in the first year of the projects
• The net carbon dioxide emission reductions over the lifetime of the measures
5,000 tonnes
Not achieved
150,000 tonnes
312,000 tonnes
The Energy Efficiency and Conservation Authority (EECA) contributes to the Government’s priority of building a more
productive and competitive economy by encouraging, promoting and supporting energy efficiency and the increased
use of renewable energy. EECA’s work is also aimed at reducing carbon emissions to help New Zealand’s transition to
a low emissions economy. Key highlights for 2014/15 include:
›› 21,500 low income and high health needs homes have been insulated under the Warm Up New Zealand: Healthy
Homes programme, bringing the total number of homes insulated under Warm Up New Zealand programme since
2009 to 281,000
›› Securing $23.6 million from third party funding, enabling 5,500 more homes than the 16,000 target for the year to
be insulated
›› Energy efficiency agreements entered into with businesses that represent nearly a third of the energy use of all
New Zealand businesses
›› Five key industry associations have partnered with EECA to promote energy efficiency to their members
›› Sixty two per cent of the tyre market has signed up to participate in the fuel efficient tyres programme
›› 0.5 PJ of energy savings achieved from the EECA business programmes, representing actual CO2 savings of 25,000
tonnes each year with estimated annual cost savings of $12 million to business.
For more information please see the EECA 2014/15 Annual Report www.eeca.co.nz.
Financial performance
2014/15
Main estimates
2014/15
Actual
$000
2014/15
Supplementary
estimates
$000
17,519
13,000
13,000
16,584
16,584
16,584
$000
Total Expenses
Electricity Efficiency
Energy Efficiency and Conservation
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2013/2014
Appendices
VOTE HOUSING
179
NON-DEPARTMENTAL OUTPUT EXPENSES
ƨƨKāinga Whenua Infrastructure Grant
Scope
This appropriation is limited to infrastructure associated with housing developments on Māori land.
Intention
This appropriation is intended to achieve the development of infrastructure for safe, healthy and affordable homes on
Māori land.
Non-financial performance
Performance measure
Projects completed within agreed timeframes
Standard
2014/15 Actual
Achieved
Achieved
In 2014/15, the Ministry approved Kāinga Whenua Infrastructure Grant (KWIG) grants totalling $4.299 million. The 34
grants approved (12 to trusts and 22 to individuals) support infrastructure for 199 houses on Māori or Māori customary
land (75 new build houses and 124 existing houses). Of the newly built houses supported, 70 KWIGs were linked to
Kāinga Whenua Loans (or other home loans) thus meeting one of the key objectives for the programme. The locations
where grants were approved have principally focused on areas of greatest need, including Northland, Waikato, Bay of
Plenty, Hawke’s Bay and the Chatham Islands.
ƨƨFinancial performance
2014/15
Main estimates
Total Expenses
2014/15
Actual
$000
2014/15
Supplementary
estimates
$000
2,800
5,689
2,551
$000
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT
ANNUAL REPORT 2013/2014
Appendices
180
Appendix D: Where to find us
The following are the main contact details for the Ministry of Business, Innovation
and Employment.
GENERAL ENQUIRIES
IMMIGRATION NEW ZEALAND CONTACT CENTRES
Phone +64 4 901 1499
Auckland +64 9 914 4100
Wellington +64 4 910 9915
CHIEF EXECUTIVE
Rest of New Zealand 0508 558 855
15 Stout Street, Wellington 6011
PO Box 1473, Wellington 6140
Phone +64 4 901 1499
HEALTH AND SAFETY AND EMPLOYMENT
RELATIONS CONTACT CENTRE
Call 0800 20 90 20
NATIONAL OFFICE, WELLINGTON
15 Stout Street, Wellington 6011
Phone +64 4 472 0030 or +64 4 917 0199
Fax +64 4 473 4638 or +64 4 917 0190
TENANCY ADVICE AND INFORMATION
Call 0800 TENANCY (0800 83 62 62)
BOND ADVICE AND INFORMATION
Call 0800 737 666
MB13259_1779 2015