Social Services and Community Committee 2018/19 Estimates Examination Vote Building and Housing Minister of Housing and Urban Development ...

 
Social Services and Community
           Committee

  2018/19 Estimates Examination

    Vote Building and Housing

  Minister of Housing and Urban
           Development
        Questions 1 - 122

Housing New Zealand Corporation

          June 2018

                                  1
REPORTS, PLANNING, AND EVALUATION

Question 1

Please provide a list of all reports that were prepared in relation to the baseline update,
efficiency dividend, value for money or any other savings of the agencies funded under the
Vote identified for 2018/19.

Housing New Zealand has not prepared any reports for 2018/19.

Question 7

Does the Department/Agency/Ministry prepare a weekly report on current or upcoming
issues within or related to the Minister’s portfolio, and if so what is this report called, and
what are the dates and titles of reports produced by the Department/Agency/Ministry since 1
November 2017?

Housing New Zealand contributes to the Housing and Urban Development Update, which is
prepared by the Ministry of Social Development.

Question 8

Has the Department/Agency/Ministry prepared any other types of weekly or fortnightly
reports on current or upcoming issues related to the Minister’s portfolio, and if so what are
these reports called, and what are the dates and titles of reports produced by the
Department/Agency/Ministry since 1 November 2017?

No.

PERFORMANCE MONITORING

Question 9

What mechanisms do the agencies funded by the Vote have in place in 2018/19 for
monitoring its achievement of goals against its stated objectives?

Housing New Zealand’s goals and objectives will be measured in 2018/19 through:

    monthly reporting to the Housing New Zealand Board
    quarterly reporting to the Minister Responsible for Housing New Zealand Corporation
    Annual Report to Parliament.

These reports measure Housing New Zealand’s year to date progress against its key
performance indicators and service delivery measures that contribute to the achievement of
the objectives and outcomes set out in Housing New Zealand’s 2017-21 Statement of Intent
and Statement of Performance Expectations.

The Treasury monitors Housing New Zealand and seeks to ensure:

                                                                                                2
 the Crown’s investment in state housing represents value for money in terms of
     procuring social housing outcomes
    Housing New Zealand’s contribution to housing outcomes is effective and efficient
     given the factors under its control.

Question 10

Provide details of all monitoring, evaluation and auditing of programmes or initiatives that will
be delivered by the agencies funded by the Vote (including details of all performance
measures, targets and benchmarks and whether programmes contributed to desired
outcomes in an efficient and effective manner) in the 2018/19 financial year.

The performance indicators and targets relevant to evaluating Housing New Zealand’s
programmes and initiatives will be included within its future Statement of Performance
Expectations.

CHANGES IN VOTES

Question 13

What work has been undertaken or completed relating to changes in Votes, or operational
changes made in other agencies which impacts on your agencies funded by the Vote?

There have been no changes in Votes or operational changes made in other agencies
affecting the services provided by Housing New Zealand under this Vote, accordingly no
work has been undertaken.

RESTRUCTURING/REVIEWS

Question 15

Is any restructuring planned in the near future for agencies funded by the Vote; if so, what
restructuring is planned in 2018/19 and when will this occur? How much is budgeted for
restructuring costs and what are the estimated savings to be accrued as a result of
restructuring in 2018/19?

The 2018/19 budget contains no plan or provision for the restructuring of services funded by
the Vote.

Question 17

Will any work be conducted around mergers of departments, ministries or other government
funded agencies funded by the Vote in the 2018/19 year? If so, for each such project, what
departments/ministries/entities or agencies are being considered for mergers?

No.

                                                                                                3
Question 18

Is any rebranding planned for agencies funded by the Vote in the next financial year? If so,
how much has been budget for this? Was any re-branding done in the past four financial
years? If so, how much was spent on it?

Housing New Zealand has not planned any rebranding in the past four financial
years. Consideration is being given to minor rebranding later this financial year which may
continue through to 2018/19. This change is subject to a business case being developed
and approved.

In 2016/17 Hobsonville Land Company was renamed HLC (2017) Ltd to reflect the change
from responsibilities for Hobsonville Point only, to include responsibilities for several large
scale urban development projects in Auckland and other parts of New Zealand. HLC spent
$28,000 on the rebranding.

Question 19

Do the agencies funded by the Vote any inquiries or investigations into their performance
currently being undertaken into its actions by another Government
Department/Ministry/entity or its associated agencies? If so, please provide the following
details:
         -     The body conducting the inquiry/investigation
         -     The reason for the inquiry/investigation
         -     The expected completion date
How does this compare to each of the past four financial years?

Housing New Zealand is not currently subject to any inquiry or investigation into its
performance and has not been in the past four years.

COST PRESSURES AND SERVICE CHANGES

Question 20

What services or functions does the Minster intend to cut, curtail, or reallocate funding from
in the forthcoming financial year for agencies funded in the Vote? Describe the service or
function concerned and estimate the cost saving.

Housing New Zealand does not intend to cut or curtail any services or functions in the
forthcoming financial year.

Question 27

How much are the agencies funded by the Vote expecting to cut their overall budget by in
2018/19 and each of the out years as a result of Budget 2018 and what options are being
considered about how and where such cuts will be made?

There are no cuts to requested appropriation budgets in 2018/19.

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Question 28

Have any cuts or reprioritised savings to the budgets of the agencies funded by the Vote for
2018/19 come from frontline services; if so, for each what is the name of the service, how
much has been reprioritised and what was the reason for the reprioritisation?

No.

NEW INITIATIVES/BUDGET BIDS

Question 30

What new services, functions or outputs do the agencies funded by the Vote intend to
introduce in the forthcoming financial year? Describe these and estimate their cost.

Housing New Zealand’s services, functions and outputs are described and costs outlined
within its future Statement of Performance Expectations 2018/19.

USER CHARGES

Question 38

What user charges will be collected by the agencies funded by the Vote in the forthcoming
year? Please break this down by existing user charges, extended user charges and new
user charges.

Housing New Zealand has not budgeted to collect any user charges in 2018/19.

PROPERTY/CAPITAL WORKS

Question 39

How much funding has been allocated to capital works by the agencies funded by the Vote
in the forthcoming financial year? How does this figure compare to that allocated and that
spent in the past four financial years?

The following table sets out Housing New Zealand’s forecast expenditure on capital works
for 2017/18 and 2018/19. Information for previous years is provided in 2016/17 Financial
Review of Housing New Zealand Corporation (Responses to pre hearing questions) question
12.

                                                                                               5
Forecast expenditure on capital works

                                    Expenditure $(m)                            Total
Year                Maintenance and upgrade    New Housing
2017/18*                                158.3                       813.6                971.9
2018/19**                                195.9                     1,170.4              1,366.3
*Forecast
**Draft Budget

Question 40

What assets are planned to be sold by the agencies funded by the Vote in 2018/19, and how
does that compare to the past four financial years?

The table below provides information on assets sold and planned to be sold by Housing New
Zealand between 2014/15 and 2018/19. Housing New Zealand works closely with the
Ministry of Social Development to respond to demand, and consults them before selling
vacant properties.

Housing New Zealand assets sold or forecast to be sold from 2014/15 to 2018/19

 Asset category           Year                   Units
 Motor vehicles
                          2014/15                            119
                          2015/16                            171
                          2016/17**                           11
                          2017/18                              0
                          2018/19                              0

 Property
                          2014/15                            598
                          2015/16*                           452
                          2016/17**                          300
                          2017/18                             97
                          2018/19                            100

* Excludes 2,708 properties transferred to the Tamaki Redevelopment Company, which
are retained as public housing stock.
** Excludes approx. 1,138 properties transferred to Accessible Properties Limited in
Tauranga, which are retained as public housing stock

Question 41

How much floor space do the agencies funded by the Vote lease, what is the annual cost per
square metre in each specific building, and how does this compare with each of the past four
financial years?

                                                                                             6
Housing New Zealand leases a total of 21,206 square meters of office space as of 29 March
2018, with an annual cost per square meter of $265.48. Information for previous years is
provided below. Housing New Zealand does not have a full cost comparison for the past four
years.

                       Total square     Annual cost per square
        Year
                          metre                 metre
 2014/15                       22,465                   $268.00
 2015/16                       21,204                   $265.59
 2016/17                       21,434                   $266.08

Question 42

How much floor space do the agencies funded by the Vote lease for their head office in
Wellington, what is the annual cost per square metre in each specific building, and how does
this compare with each of the past four financial years?

Housing New Zealand leases a total of 4,791 square meters of office space for its National
Office at 80 Boulcott Street in Wellington (one building). The annual cost per square metre is
$296.56. There has been no change in the rent for the past five years.

An additional 315 square metres has been leased in an adjoining building from 1 March
2018 at an annual rent of $90,562 (including GST).

Question 43

Have the agencies funded by the Vote cancelled any renovations, refurbishments or
redecoration projects as a result of Budget 2018? If so, please provide the following details:
       -      Details of the project
       -      Location of the project
       -      Estimated cost of the project
       -      Estimation completion date

No.

Question 44

Have the agencies funded by the Vote cancelled any other capital projects as a result of
Budget 2018? If so, please provide the following details:
       -     Details of the project
       -     Location of the project
       -     Estimated cost of the project
       -     Estimation completion date

No.

                                                                                             7
Question 45

What is the budgeted amount for each renovation, refurbishment or redecoration project in
offices or buildings of the agencies funded by the Vote that is expected to cost more than
$5,000 in the 2018/19 financial year? For each, please provide the following details:
     - Details of the project
     - Location of the project
     - Name of provider(s) or manufacturer(s)
     - Type of product or service generally provided by the above
     - Estimated cost of the project
     - Estimation completion date
     - Whether tenders were invited, if so, how many were received
     - List separately any single item of furniture worth more than $5000 and its cost.

Please refer to the following table.

                                                                                      Single
                                                 Estimated    Estimated     Tender
Location       Provider    Service                                                    Items over
                                                 Cost         Completion    Y/N
                                                                                      $5,000
                                                 $350,000
                                                 Fit out
                                                 $60,000
Gisborne       Catalyst    Full upgrade                                     Yes       Nil
                                                 furniture
                                                 $30,000
                                                 Security
                           Upgrade and fit-out
Hamilton       Unknown     after landlord work   $350,000                   Yes       Nil
                           to reduce space
                           New co-location
Lower Hutt     Unknown                           $350,000     Unknown       Yes       Nil
                           project
Porirua
               Unknown                           $350,000                   Yes
Level 9
Morningside    Unknown     Security upgrade      $50,000                              Nil
                           Plan to consolidate
                           Corporate office
Auckland       Unknown                           $7,000,000                 Yes       Nil
                           space into one
                           location

Question 46

What offices of the agencies funded by the Vote are planned to be closed in the 2018/19
financial year and for each what is the location of the office, how many staff are employed
there and what is the annual budget of the office? If it is for a relocation please indicate
where it will be relocated to.

Two offices located in Great South Road may be consolidated into one site. The relocation
site is yet to be identified.

                                                                                               8
Question 47

What offices of the agencies funded by the Vote were closed in 2017/18 and how much is
the closure of each office expected to save the Department/Ministry/entity in 2018/19
financial year? If it was for a relocation please indicate where it was relocated to.

Housing New Zealand’s Palmerston North office was relocated to shared office space with
the Ministry of Social Development and Ministry of Education. We do not have an estimate of
expected savings.

Question 48

Do the agencies funded by the vote intend to reduce the opening hours of any of their
regional offices or offices other than the head office the 2018/19? If so, for each, please
provide the new and previous opening hours, date of change, and location.

No.

ICT

Question 51

How many websites do the agencies funded by the Vote plan to run in 2018/19 and for each,
what is it called, what is its URL, when was it established, what is its purpose and what is the
annual cost of operating it?

Housing New Zealand will run the following four external websites in 2018/19. External
hosting costs are estimated at $34,470 (all figures excluding GST), and domain name
registration costs are estimated at $2,131.

Corporate website: www.hnzc.co.nz
This is the main web channel to learn about the Corporation and its services. The website
has existed since the Corporation was established in its current form.

Welcome Home Loan website: www.welcomehomeloan.co.nz
This site was created to provide information about the Welcome Home Loan product.

McLennan Development: www.mclennan.co.nz
This site was created to provide support for the McLennan housing development in Takanini,
Auckland.

Close to Home website: www.close2home.co.nz
This site contains useful information from our tenant newsletter and targets our tenants and
others who would be interested in this information.

HLC will run the following websites in 2018/19, costing approximately $6,000.

Hobsonville Point website: https://hobsonvillepoint.co.nz/

This is the project website for marketing and sales.

                                                                                               9
HLC: https://hlc.co.nz/

This is the company website.

Auckland Housing Programme: ahp.co.nz

Axis Homes: https://axisseries.co.nz/

Hobsonville Point first home buyers’ site.

The following project information websites:

Northcote: http://northcotedevelopment.co.nz/

Mount Roskill: http://mtroskilldevelopment.co.nz/

Owairaka: https://owairakadevelopment.co.nz/

Mt Roskill South: http://mtroskilldevelopment.co.nz/

Mangere: mangeredevelopment.co.nz*

Oranga: orangadevelopment.co.nz*

Three Kings: threekingsdevelopment.co.nz*

*Will be running in 2018/19.

Question 52

What new ICT projects do the agencies funded by the Vote plan to work on in 2018/19? For
each what is the budget for the project, the key milestones, the expected completion date,
and the risks and benefits associated with it?

The following projects were started in 2017/18 and are expected to continue in 2018/19

Tenant Self-Service Application (MyHNZ)
Our current customer channel approach is traditional and largely manual and can result in
variable customer experiences. By introducing a digital self service channel (web and
mobile) we lay a foundation to deliver more diverse and modern service channels to our
tenants. Digital services can be consumed when it suits our tenants and in a medium that is
rapidly becoming the standard for New Zealand Citizens.

Key benefits of MyHNZ include:

       providing cost effective digital services and reduce call volumes to Housing New
        Zealand’s Customer Services Centre.
       improving our customer experience by providing a 24/7 self-service tenant
        application.
       enabling access to wider government and community digital services tailored to the
        general and specific needs of our tenants.

                                                                                         10
Details

         Estimated Budget: $3,600,000 (multi-year all phases)
         Expected completion date: March 2019 (all phases)
         Key milestones: Go-live Phase 1 July 2018

The following projects are having business cases written to assess the investment case. If
approved the project estimates are as below

ADG Management Information System (ADG PPM)
This project will provide Housing New Zealand’s Asset Development Group with a
technology solution that will allow them to manage the increased volume of construction
work required through improved management information. This will provide an effective,
centralised management and reporting platform that integrates project and programme
activity under the Asset Development portfolio. MIS-P3 functionality is a key component of
the operation of mature asset development processes, and the desired level of operational
performance.

Details
    Estimated Budget: $2,500,000
    Expected completion date: March 2019
    Key milestones: Business Case completed July 2018

Procurement Contract Management Solution (CMS)
To manage the range and volume of contracts that Housing New Zealand operates today
and in the future, Housing New Zealand requires a Contract Lifecycle Management (CLM)
solution. This will register and hold all contracts (including changes and variations) in a
central visible repository. It will provide searchable, automated tracking of important dates
and contract milestones through a “single source of the truth’ for each supplier.

Key benefits include:
     Reduced time and cost to manage contract suppliers, pertinent to the need to deliver
       on Housing New Zealand’s targets.
     Improved Procurement Capability Index and Investor Confidence Rating through
       being able to demonstrate consistent application of best practice procurement policy
       and processes.

Details
    Estimated Budget: $500,000.
    Expected completion date: June 2019.
    Key milestones: Business Case completed Dec 2018.

“OurSpace” CMS upgrade/replacement
The current intranet (OurSpace) solution at Housing New Zealand is now out of date. The
project will address the issues associated with this.

Details
    Estimated Budget: $1,000,000.
    Expected completion date: June 2019.
    Key milestones: Business Case completed Oct 2018.

                                                                                                11
Identity Management
This project would look to improve the identity management functionality.

Details
    Estimated Budget: $800,000.
    Expected completion date: June 2019.
    Key milestones: Business Case completed Dec 2018.

Smart Homes Pilot
By using smart monitoring equipment, we can accurately test how well a home is performing
(from its internal energy usage to external building fabric) or how well the property is being
managed by its occupants. The data captured by sensors will allow us to identify homes that
are not a warm and dry. Data readings that are outside of optimal ranges for warmth and
humidity will allow us to identify what features are working well, and areas for improvement,
enabling the homes we build in the future to be as energy efficient as possible.

Evidence suggests that the sensors can provide a platform to assist tenants to improve the
self-management of their own homes, whilst allowing housing agencies to help those
households who are most likely to experience fuel poverty to better manage their utilities. By
using the right analytics, the empirical data collected by the sensors can help identify and
diagnose problems with a building's fabric or systems, thereby allowing the right resources
to be deployed to provide the right solutions.

       Estimated Budget: $500,000.
       Expected completion date: June 2019.
       Key milestones: Trial completed and report back June 2019.

GIFTS AND EXTERNAL RELATIONSHIPS

Question 53

What policies do the agencies funded by the Vote have on accepting corporate gifts or
hospitality? How does this compare to the past financial year? Please list all corporate gifts
or hospitality accepted by staff in the previous financial year with the following details:
       -        Gift or hospitality accepted
       -        Position of staff member who accepted
       -        Estimated value
       -        Date received
       -        Name of the organisation or individual who paid for/gave the gift or hospitality.

Housing New Zealand requires all staff and Board members to declare and register gifts
defined as any object, offer of free service, or non-cash payments of any kind, given to staff
or Board members as a form of appreciation or reward which would not have been made,
had it not been for the employee’s or Board member’s relationship with Housing New
Zealand.

Appropriate approval must be gained before accepting a gift, gratuity or hospitality with an
approximate value of $50 or greater, and then must be declared and approved via an online
workflow. The gift register policy and procedure has not changed since the 2014/15 financial
year.

                                                                                               12
The following table provides details of registered gifts or hospitality with a value of $50 or
over accepted by Housing New Zealand staff during the 2016/17 financial year.

   Gifts accepted by Housing New Zealand staff during the 2016/17 financial year

 Gift received from   Gift description           Approx      Position of staff         Date
                                                 value ($)   member                    received
 Momentum             Tickets to Wellingtonian   50          Manager Business          01-Nov-16
 Recruitment          of the Year                            Change and
                                                             Improvement
 RedRock              Christmas Function         50          Manager Business          08-Dec-16
                                                             Change and
                                                             Improvement
 Tenant               Beauty Products            50          Tenancy Manager           12-Aug-16
 UniMed               Wine                       87          Senior Payroll Advisor    19-Dec-16
 British High         Dinner                     100         Deputy Chief Executive    31-May-17
 Commissioner
 British High         Dinner                     100         Deputy Chief Executive    14-Jun-17
 Commissioner
 Foreign Office       Dinner                     100         Deputy Chief Executive    14-Jun-17
 Harrison Grierson    Rugby tickets - Lions      150         Deputy Chief Executive    14-Jun-17
 Not disclosed        Flowers                    50          Associate General         22-Dec-16
                                                             Counsel - Public Law
 Urbanism             Basketball tickets         400         General Manager Asset     01-Nov-16
                                                             Development
 Gary Noland          Polo tickets               250         General Manager Asset     16-Jan-17
                                                             Development
 RedRock              Christmas Function         50          Head of Procurement       08-Dec-16
 Conference           Gift                       150         Head of Procurement       18-Apr-17
 Spotless             Dinner                     70          Chief Operating Officer   24-Nov-16
 Contractors
 RDT Consultants      Dinner                     70          Chief Operating Officer   18-Nov-16
 Spark                Rugby tickets              100         Chief Architect           30-Jul-16
 BNZ                  World of Wearable Art      220         Treasury Manager          10-Aug-16
                      tickets
 Carters              Lunch                      66          Standards Advisor         04-Jan-17
 Coffey Projects      Tennis tickets             75          Project Manager -         16-Dec-16
                                                             Delivery
 Coffey Projects      Property Industry          100         Project Manager -         09-May-17
                      Awards tickets                         Delivery
 Aurecon              Lunch                      50          Project Coordinator -     07-Dec-16
                                                             Delivery
 UniMed               Wine                       208         Senior HR Information     19-Dec-16
                                                             Analyst
 Not disclosed        Cricket tickets            50          Urban Design Manager      17-Feb-17
 Paul Brown           Book                       85          Urban Design Manager      19-Dec-16
 Architects
 Ignite Architects    Dinner                     100         Senior Development        15-Jul-16
                                                             Manager
 Datacom              Lunch                      60          Manager ICT               19-Dec-16
                                                             Administration
 G-Summit             Headphones                 200         Manager Customer          03-Aug-16
                                                             Support Optimisation
 Barfoot &            Lunch                      75          Senior Development        09-Dec-16
 Thompson                                                    Manager
 New Zealand          Westfield Gift Voucher     150         Senior Product Analyst    02-Dec-16
 Institute of Legal
 Executives

                                                                                                   13
Gift received from   Gift description          Approx      Position of staff        Date
                                                value ($)   member                   received
 IFA/PAA              Wine                      77          Senior Product Analyst   06-Apr-17
 Not disclosed        Wine                      59          Director Business        19-Dec-16
                                                            Transition Programme
 Tenant               Gift                      200         Lease Manager            29-Nov-16
 Signature Homes      Rugby tickets             100         Senior Development       07-Jun-17
                                                            Manager
 ACC                  Wellington Gold Awards    90          Health Safety and        22-Jun-17
                      tickets                               Security Manager
 Babbage              Property Council of NZ    150         Development Manager      13-Jun-17
 Consultants          Awards
 Greenwood Roche      Lunch                     50          Associate General        15-Dec-16
 Lawyers                                                    Counsel
 BRSL                 Food basket               50          Senior Programme         15-Dec-16
                                                            Manager
 BRSL                 Food basket               50          Senior Programme         14-Dec-16
                                                            Manager
 Dominion             Lunch                     150         Procurement Portfolio    24-Nov-16
 Constructors                                               Manager Asset
                                                            Development
 Tenant               Sheets                    50          Tenancy Manager          30-Apr-17
 Context              Property Council          85          Programme Director       13-Feb-17
 Architecture         Breakfast
 Babbage              Property Council of NZ    413         Senior Development       13-Jun-17
 Consultants          Awards                                Manager
 Deloitte             Deloitte Top 200          200         Chief Executive          1-Dec-16
 Deloitte             Rugby - lions Test        280         Chief Executive          1 –Jun-17

Question 54

What policies do the agencies funded by the Vote have on giving gifts to external
organisations or individuals? How does this compare to the past financial year? Please list
all gifts given to external organisations or individuals in the previous financial year with the
following details:
          -      Gift given
          -      Name of external organisation or individual
          -      Reason given
          -      Estimated value
          -      Date given.

No gifts were given in 2017/18, 2016/17 and 2015/16, and no specific policies are in place
for the giving of gifts to external organisations.

Question 55

What policies do the agencies funded by the Vote have on the organisation giving gifts to
staff? How did this compare to the past financial year? Please list all gifts given to staff
exceeding $100 in value in the previous financial year with the following details:
-       Gift given
-       Position of staff member
-       Reason given

                                                                                                 14
-         Estimated value
-         Date given.

Housing New Zealand’s policy allows gifts to be given to staff as a show of compassion or
personal celebration; e.g. births, bereavement, marriage or leaving the organisation. The
value of the gift other than leaving the organisation should not exceed $75. In instances of
staff leaving, the value of the gift scales upwards depending on the individual’s length of
service to a maximum of $200.

Housing New Zealand does not separately capture the gift information requested in an easily
retrievable format.

Question 56

What potential conflicts of interest have been identified by the agencies funded by the Vote
regarding the board, management or senior staff in 2018/19? For each, please provide the
following details:
        -       Conflict identified.
        -       Whether or not any contract, policy, consent or other consideration has been
                entered into with any entity identified in any conflict in the past four financial
                years.
        -       Value of any contract, policy, consent or other consideration has been
                entered into with any entity identified in any conflict in each of the past four
                financial years.
        -       Steps take to mitigate any possible conflict in granting any contract, policy,
                consent or other consideration which has been entered into with any entity
                identified in any conflict in each of the past four financial years.

Housing New Zealand requires all staff and board members to declare all interests that have
the potential to be a conflict of interest. In general, staff and board members are advised to
avoid any circumstances where their personal interests might conflict with the interests of
Housing New Zealand. Examples of conflicts of interest include:

          a personal relationship with a tenant
          a personal relationship with a supplier
          owning rental properties
          being engaged in secondary employment
          having an interest in a business.

To list board and senior management declarations of interest could identify the individual’s
private information and therefore Housing New Zealand cannot disclose the specific details
of the declarations. Housing New Zealand has no cause for concern over interests declared
by board members and senior management at this time.

Question 57

What non-government organisations, associations, or bodies, if any, do the agencies funded
by the Vote intend to be a member of during 2018/19? For each, what is the cost for each of
its memberships and how does this compare to each of the past four financial years?

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Housing New Zealand has corporate membership of the Australasian Housing Institute,
costing $25,000 in 2016/17 and 2017/18. Housing New Zealand also has corporate
membership of the Business Leaders Health & Safety Forum, costing $17,000 in 2016/17
and 2017/18.

Housing New Zealand expects to renew its memberships in 2018/19.

INVOICES AND PROCUREMENT

Question 58

How many penalties for late payment of an invoice do the agencies funded by the Vote
expect to incur in the 2018/19 year, and how does this compare to the past four financial
years?

Housing New Zealand has not incurred any penalties for late payments in 2013/14, 2014/15,
2015/16, 2016/17 and is not expecting to incur any 2017/18 or 2018/19.

Question 59

What is the total value of penalty interest payments incurred by the agencies funded by the
Vote over each of the past four financial years due to late payment of invoices to small and
medium sized businesses which the agencies funded by the Vote hold contracts with? What
is it expected to be in the 2018/19 financial year?

Please refer to the response to question 54.

Question 60

How many contracts are expected to be awarded by the agencies funded by the Vote with a
value of $1 million or more in the 2018/19 financial year, where known listed by name of
company contracted and total value of contract? How does that compare with each of the
past four financial years?

We would expect to see an increase in the number of contracts with a value of $1 million or
more in 2018/19 compared to previous years, particularly in relation to building and
construction contracts, as we seek to meet our ambitious asset delivery targets.

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ADVERTISING, POLLING, AND PUBLIC RELATIONS

Question 61

What polls, surveys or market research do the agencies funded by the Vote intend to
undertake in the following financial year and what is the total estimated costs of the polls,
survey and market research that is proposed? Please provide the following details:
       -       Who is to conduct the work
       -       Date the work is to commence
       -       Estimated completion date
       -       Estimated total cost
       -       Whether tenders were or are to be invited; if so, how many were received.

Housing New Zealand intends to run its regular tenant satisfaction survey through 2018/19.
A budget of $160,000 has been allowed for this project, and tenders will be invited.

Question 63

For each advertising or public relations campaign or publication to be conducted or
commissioned or planned by the agencies funded by the Vote in or for the 2018/19 financial
year, please provide the following:
         Details of the project including all communication plans or proposals, any reports
           prepared for Ministers in relation to the campaign and a breakdown of costs
         Who is to conduct project
         Type of product or service generally provided by the above
         Date the work is to commence
         Estimation completion date
         Estimated total cost
         Whether it is intended that the campaign will be shown to the Controller and
           Auditor-General
         Whether tenders were or are to be invited; if so, how many were or will be
           received.

Currently Housing New Zealand does not have any campaigns commissioned or planned for
the 2018/19 year.

Question 64

How many public relations and/or communications staff and contractors/consultants do the
agencies funded by the Vote employ; what is the total salary budget for these staff and how
does that compare with each of the past four financial years?

For 2017/18 Housing New Zealand has budgeted 10.6 FTEs for communications and media
staff. The salary budget for these staff is $1,202,612. For 2018/19 Housing New Zealand
has budgeted 12 FTEs for communications and media staff. The salary budget for these
staff is $1,319,041.

Information for previous years is provided in 2016/17 Financial Review of Housing New
Zealand Corporation (Responses to pre-hearing questions) question 47.

                                                                                                17
OFFICIAL INFORMATION AND PRIVACY

Question 65

Will the agencies funded by the Vote have an internal group of staff whose primary role is to
support the Minister or their office by processing information requests such as Parliamentary
questions, Official Information Act requests, and ministerial correspondence in 2018/19; if
so, what is the name of that group, how many staff will be in the group and where will they
be located? How do the numbers of staff and their locations compare to each of the past
four financial years?

Among other things, Housing New Zealand’s Government Relations Team is responsible for
supporting the incumbent Minister/s by responding to information requests such as
Parliamentary questions, Official Information Requests, and Ministerial correspondence.

The following table provides the number of permanent and fixed term staff employed by
Housing New Zealand in the Government Relations Team as at 13 March 2018. The number
of staff is comparable to previous years and the location remains unchanged.

    Number of staff in the Government Relations Team
            Year             Number of Staff           Location
     2017/18*                               15             Wellington
    *As at 13 March

Question 66

How many Official Information requests do the agencies funded by the Vote expect to
receive in 2018/19, and how many were replied to in the past five financial years broken
down by whether they were answered or declined? How many complaints to the
Ombudsman were made in respect of the handling of Official Information Requests over the
past five financial years?

       For the 2017/18 financial year provide the following information:

          Number of OIA requests received;
          Number of OIA requests answered within 20 working days;
          Number of OIA requests answered in excess of 20 working days without an
           extension;
          Number of OIA requests answered in excess of 20 working days with an
           extension’ and
          Number of OIA requests transferred within 10 working days; and
          Number of OIA requests transferred outside the 10 working days.

Housing New Zealand expects to receive 250 to 300 Official Information Act requests in
2018/19.

A breakdown of how many requests were declined over the past five years is not available.

                                                                                           18
Housing New Zealand records indicate the following numbers of Official Information Act
complaints were notified to Housing New Zealand by the Ombudsman. Very few final views
were issued.

Year Number of complaints
2017/18   10
2016/17   17
2015/16   11
2014/15   15
2013/14   18

For 2017/18 (as at 30 April 2018) Housing New Zealand had received 268 OIA requests. Of
these:

          188 were answered within 20 working days
          1 was answered in excess of 20 working days without an extension
          79 were answered outside 20 working days with an extension.

Housing New Zealand does not record the number of OIA requests transferred. Those
transferred would be included within the count of 268 received.

Please note that the State Services Commission publishes OIA statistics at:
http://www.ssc.govt.nz/official-information-statistics

Question 67

Do the agencies funded by the Vote have targets or performance measures for the
timeliness of response to Official Information Requests? If so, what are those targets or
performance measures for 2018/19? What were the target or performance results for the
past four financial years for agencies funded by the Vote?

The timeframe for responding to Official Information requests is governed by the Official
Information Act 1982. A response must be provided within 20 working days unless grounds
exist for extending the timeframe as provided for by the Act. Housing New Zealand’s target
is to meet this requirement. For 2017/18, as at 31 March 2018, it did not meet this
requirement on one occasion.

Question 68

How many complaints have been received by the agencies funded by the Vote and how
many investigations into complaints (i.e. through Ombudsmen, Privacy Commissioner etc)
were undertaken in the 2017/18 financial year? How many complaints do the agencies
funded by the Vote expect in the 2018/19 financial year, and how many investigations into
complaints (i.e. through ombudsmen, privacy commissioner etc) do the agencies funded by
the Vote expect in the 2018/19 financial year?

The Ombudsman has investigated 10 formal complaints, including Official Information Act
1982 complaints relating to Housing New Zealand in 2017/18, as at 31 March 2017. These
were resolved without the need for the Ombudsman to make a recommendation. Four

                                                                                            19
complaints about Housing New Zealand have been investigated by the Privacy
Commissioner.

Housing New Zealand may receive about 15 formal investigations from the Ombudsman or
the Privacy Commissioner in 2018/19.

Question 69

What policies do the agencies funded by the Vote have in place for Official Information
requests to be cleared or considered by the Minister’s office? What ‘no surprises’ policies
are in place to inform Ministerial offices about OIA responses?

Housing New Zealand does not have a policy in place for Official Information requests to be
cleared by the Minister’s office. The Minister’s office is consulted or informed as required and
in accordance with the State Services Commission’s guidance on the no surprises policy.

Question 70

Do the agencies funded by the Vote have specific policies or procedures that apply to
requests for information from media, bloggers, or political parties which differ to those for
regular requests, if so, please provide full details of those policies?

No, as these types of requests are treated as regular requests.

PERMANENT STAFF/GENERAL STAFFING BREAKDOWNS

Question 71

How many unfilled positions are there currently within the agencies funded by the Vote and
how many unfilled positions are expected in the 2018/19 financial year? How does this
compare with each of the past four financial years? How do these positions breakdown by
policy area? How are the agencies funded by the Vote continuing to carry out work in the
absence of staff in these positions?

It is not possible to estimate the number of unfilled positions in 2018/19. As at 28 February
2018 Housing New Zealand and HLC (2017) Limited had 216.5 vacant FTE positions, the
majority of which are currently under active recruitment to support the expanded building
programme and management of properties and tenancies. Information for previous years is
provided in the table below.

Housing New Zealand does not have a dedicated policy function.

Any work that is required to be completed in the absence of staff will either be managed
using existing resources or by engaging a backfilling contractor to cover any shortfall until a
replacement can be found.

                                                                                                20
Date (as at 30 June)     FTE of vacant positions

2016/17                                          219.75

2015/16                                          128.23

2014/15                                          124.28

2013/14                                          111.96

2012/13                                            85.85

Question 72

How many permanent staff will be employed within the agency funded by the Vote during
2018/19 financial year? How does this compare to the past four financial years? Please
breakdown by:
        Role (e.g. policy/admin/operational)
        Classification (full and part-time)
        Office (e.g. geographical location)
Please provide detailed explanations for any fluctuations in staff numbers of plus or minus
10%.

Housing New Zealand’s total budget FTE for the 2018/19 year is 1,501. However, this is
based on the total FTE of the number of permanent and fixed term positions, so we are
unable to forecast the number (headcount) of permanent staff for the 2018/19 year.

As at 13 March 2018, Housing New Zealand and HLC (2017) Limited employed 1,233
permanent staff. As at 30 June 2017, 1,078 permanent staff were employed. The planned
uplift is to ensure we are resourced to meet the significant increase in new build and
redevelopment targets, and to provide more intensified support services to our tenants.

The table below shows the number of permanent staff by role, classification and
geographical location as at 13 March 2018. Information for previous years is provided in
2016/17 Financial Review of Housing New Zealand Corporation (Responses to pre-hearing
questions) question 59.

Note fixed term staff are not included in the table.

Staff numbers can fluctuate between and within offices dependent on need and availability
of staff.

As part of the organisational change process between 2011 and 2013, Housing New
Zealand position information (including role category and geographical location) has been
revised and updated. This has resulted in some movement between the administration and
operational classifications, as well as between the Auckland and Wellington locations. In
2012 an Auckland regional office was reclassified from Auckland Central to Auckland South
resulting in a large difference in numbers between these locations.

                                                                                              21
Permanent staff as at 13 March 2018 by role, classification and geographical
location

                                                                                              Finance Professional

                                                                                                                                                        Legal Professional

                                                                                                                                                                                 Operational Policy
                                                         Communications

                                                                                                                                  IT Professional
                                    Administration

                                                                                                                                                                                                                            Planning and

                                                                                                                                                                                                                                                Management
                                                                                                                                                                                                                            Performance

                                                                                                                                                                                                                                                                           Grand Total
                                                                                                                                                                                                           Operations
                                                                              Executive

                                                                                                                                                                                                                                                 Property

                                                                                                                                                                                                                                                                 QA
                                                                                                                         HR
Geographical Location
                               F   P                 F   P                F   P           F   P                      F   P    F   P                 F   P                    F   P                         P            F      P                   P         F   P
                               T   T                 T   T                T   T           T   T                      T   T    T   T                 T   T                    T   T                    FT   T            T      T           FT      T         T   T
Auckland Central               6   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    65   0            0       0          12      0         0   0    83
Auckland East                  0   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                     0   0            0       0          0       0         0   0    0
                               1                                                          2                                                                                                           11
Auckland South                 7   0                 0   0                0   0           5   0                      0   0    1   0                 0   0                    0   0                     8   6            0       0          7       0         0   0    174
Auckland West                  1   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    22   0            1       0          2       0         0   0    26
Christchurch/Nelson/Marlboro
ugh                            3   1                 0   0                0   0           0   1                      0   0    0   0                 0   0                    0   0                    29   6            0       0          7       0         0   0    47
East Cape/Hawkes Bay           2   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    20   0            0       0          4       1         0   0    27
Hutt Valley                    2   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    21   0            1       0          4       0         0   0    28
Manawatu/Taranaki              2   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    20   0            0       0           9      0         0   0    31
                               3                     1                                    3                                                                                                                                                10
National Office Auckland       1   2                 0   1                6   0           5   0                      3   0    6   0                 3   0                    0   0                    82   1            7       2           2      7         2   0    300
National Office Christchurch   1   0                 1   0                0   0           2   0                      1   0    0   0                 0   0                    0   0                    12   0            0       0          4       0         1   0    22
                               1                     1                                    2                          1        8
National Office Wellington     9   1                 4   2                4   0           2   2                      9   1    8   6                 3   1                    0   0                    62   5            5       0          19      0         5   1    279
Northland                      0   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    13   0            0       0          1       0         0   0    14
Otago/Southland                1   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    8    1            0       0          2       0         0   0    12
Parliament                     0   0                 3   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                     0   0            0       0          0       0         0   0    3
                                                                                                                                                                                                      11
Porirua                        1   2                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                     1   7            0       0          6       0         0   0    127
Waikato/Bay of Plenty          3   1                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    35   1            1       0          7       0         0   0    48

                                                                                                                                                                                                                                                                       22
Wellington    1   0   0   0   0   0   0   0   0   0   0   0   0   0   0   0   9    0    0   0   1    0   0   0   11
West Coast    0   0   0   0   0   0   0   0   0   0   0   0   0   0   0   0    1   0    0   0    0   0   0   0    1
              9       2       1       8       2       9                       62        1       18               123
Grand Total   0   7   8   3   0   0   4   3   3   1   5   6   6   1   0   0    8   27   5   2    7   8   8   1    3

                                                                                                                  23
Question 73

Provide a breakdown by role (e.g. policy/administration/operational) and location of the
agencies funded by the Vote staff numbers in comparison to each of the past four financial
years, by gender.

Please refer to the following table.

                                                                                             24
Gender of Permanent and Fixed Term staff as at 13 March 2018 by role, gender and geographical location

                                                                                                                                                                                                                                                     Property Management
                                                                                               Finance Professional

                                                                                                                                                         Legal Professional

                                                                                                                                                                                  Operational Policy
                                                          Communications

                                                                                                                                   IT Professional
                                     Administration

                                                                                                                                                                                                                                 Planning and
                                                                                                                                                                                                                                 Performance

                                                                                                                                                                                                                                                                                            Grand Total
                                                                                                                                                                                                                Operations
                                                                               Executive

                                                                                                                                                                                                                                                                               QA
                                                                                                                          HR
Geographical Location
                                F   M                 F   M                F   M           F   M                      F   M    F   M                 F   M                    F   M                    F    M                F      M           F    M                     F   M
Auckland Central                7   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    44   23               0       0          11   1                     0   0    86
Auckland East                   0   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    0    0                0       0          0    0                     0   0     0
                                1                                                          1
Auckland South                  8   1                 0   0                0   0           9   7                      0   0    0   1                 0   0                    0   0                    98   33               0       1          7    0                     0   0    185
Auckland West                   1   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    13   10               0       1          2    0                     0   0    27
Christchurch/Nelson/Marlborou
gh                              4   0                 0   0                0   0           0   1                      0   0    0   0                 0   0                    0   0                    28   9                0       0          2    5                     0   0    49
East Cape/Hawkes Bay            2   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    12   9                0       0          3    2                     0   0    28
Hutt Valley                     2   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    17   5                0       1          3    1                     0   0    29
Manawatu/Taranaki               2   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    16   5                0       0          3    6                     0   0    32
                                2   1                                                      1   2                                                                                                                                                     3
National Office Auckland        6   1                 9   2                1   5           1   7                      2   1    1   6                 3   1                    0   0                    44   43               3       6          79   6                     4   0    321
National Office Christchurch    1   0                 0   1                0   0           1   1                      0   1    0   0                 0   0                    0   0                    6    6                0       0          3    1                     1   0    22
                                1                                                              1                      1        4   5                                                                                                                 1
National Office Wellington      9   1                 8   9                2   2           7   9                      5   7    0   5                 1   3                    0   0                    41   30               3       3          10   0                     3   3    291
Northland                       1   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    11   2                0       0          1    0                     0   0    15
Otago/Southland                 1   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    5    4                0       0          1    1                     0   0    12
Parliament                      0   0                 2   1                0   0           0   0                      0   0    0   0                 0   0                    0   0                     0   0                0       0          0    0                     0   0     3
                                                                                                                                                                                                       10
Porirua                         3   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                     0   19               0       0          5    1                     0   0    128
Waikato/Bay of Plenty           5   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    21   16               1       0          4    3                     0   0    50
Wellington                      1   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    4    6                0       0          0    1                     0   0    12
West Coast                      0   0                 0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                     1    0               0       0           0   0                     0   0     1
                                9   1                 1   1                                3   5                      1        4   6                                                                   46   22                       1          13   6
Grand Total                     3   3                 9   3                3   7           8   5                      7   9    1   2                 4   4                    0   0                     1    0               7       2           4   8                     8   3    1291

                                                                                                                                                                                                                                                                                           25
Question 74

What is the gender pay gap between male and female staff? What action, if any, has been
take to close the gender pay gap among staff? Do the agencies covered by the Vote have a
target date for eliminating their gender pay gap?

For 2017/18 (as at May 2018) the gap is 23.3% (excluding executive salaries).

Several initiatives to address this gap are underway in Housing New Zealand:

       On 1 July 2017, Housing New Zealand compressed its pay bands. As a result,
        anyone paid less than 90% of their salary band were automatically moved to 90% of
        their band.
       As of January 2018, anyone paid less than the living wage were moved to $21.63
        per hour (as compared to the living wage of $20.55). A second phase is being
        planned to move all employees to a minimum of 100% in the range, which will have
        a further significant impact on the pay gap.

Housing New Zealand does not have a specific date to eliminate the gender pay gap; it does
however have a four-year plan toward eliminating it.

Question 76

What is the cap of Full Time Equivalent (FTE) positions in the agencies funded by the Vote
in 2018/19 and how does this compare to each financial year since the policy was
implemented?

The existing Full Time Equivalent positions cap for Housing New Zealand and HLC (2017)
Limited is 1,244. This cap has operated for the past four financial years.

CONTRACTORS/TEMPORARY CONTRACTS

Question 77

How many contractors and consultants will be engaged or employed by the agencies funded
by the Vote in 2018/19 and what is the estimated total cost? How does this compare to each
of the previous four financial years, both in terms of the number engaged and the total cost?
For each consultant or contractor that has been engaged in the past four financial years
please provide the following details:
        -      Name of consultant or contractor
        -      Type of service generally provided by the consultant or contractor
        -      Details of the specific consultancy or contract
        -      Budgeted and/or actual cost
        -      Maximum hourly and daily rates charged
        -      Date of the contract
        -      Date the work commenced
        -      Completion date
        -      Whether tenders were invited; if so, how many were received, if not the
               reason why it was not tendered
        -      Whether there are proposals for further or following work from the original

                                                                                           26
consultancy; if so what are the details?
       -      A copy of all reports prepared or delivered as a result of the consultancy or
              contract.

Housing New Zealand is expecting to hire a lower number of contractors but a similar
number of consultants in 2018/19 compared to previous years. A detailed update as at 30
June 2018 will be provided to the Committee as part of the 2017/18 Financial Review of
Housing New Zealand later this year. Information for previous years is provided in 2016/17
Financial Review of Housing New Zealand (Responses to pre-hearing questions) question
63.

Question 78

Do the agencies funded by the Vote expect to hire more or fewer contractors and
consultants in the 2018/19 year than it did in 2017/18 and what is the difference in the
amount expected to be spent in 2018/19 compared to 2017/18? If the agencies funded by
the Vote expect to hire more contractors in the 2018/19 year compared to 2017/18 financial
year, why are more contractors required?

Housing New Zealand is expecting to hire a lower number of contractors but a similar
number of consultants in 2018/19 compared to previous years.

Question 79

What is the policy of the agencies funded by the Vote on the use of consultants and
contractors as opposed to regular employees? Has this policy changed recently, and if so,
when was this policy implemented?

Housing New Zealand engages a variety of consultants and contractors according to
business need and where approved by management. There has been no change in policy.

Question 80

How many consultants or contractors expected to be contracted in 2018/19 are likely to have
been previously employed permanently within the agencies funded by the Vote in the prior
two years? How many contractors hired in the past four financial years had previously been
permanent employees in the agencies funded by the Vote in the two years prior?

It is Housing New Zealand’s policy to not engage any former employee who has resigned or
received redundancy to perform essentially the same work as a contractor. In some
situations, where business needs require, exceptions can be made to the policy with the
approval of the appropriate General Manager.

In 2017/18 as at 13 March 2018, no contractors were engaged by Housing New Zealand
who were previously permanently employed by Housing New Zealand in the two years prior.

                                                                                              27
In 2016/17, no contractors were engaged by Housing New Zealand who were previously
permanently employed by Housing New Zealand in the two years prior.

In 2015/16, Housing New Zealand identified two contractors engaged by Housing New
Zealand who were previously employed permanently two years prior. Neither of these
people were made redundant from Housing New Zealand.

In 2014/15 four contractors were engaged by Housing New Zealand who were previously
permanently employed by Housing New Zealand in the two years prior. One person was
made redundant from Housing New Zealand.

Question 81

Will the agencies funded by the Vote contract any consultants or contractors to provide
communications, media or public relations advice or services in the 2018/19 financial year; if
so, with whom will they contract, for what specific purpose or project, for what length of time
and at what total actual or estimated cost?

Housing New Zealand currently contracts a media monitoring service to provide detailed
media monitoring and analysis. The current contract costs approximately $112,000 for 12
months. Housing New Zealand cannot confirm if this contract will continue in 2018/19.

Question 82

Have agencies funded by the Vote budgeted for contractors or consultants to provide policy
advice during 2018/19, if so, how much has been budgeted?

Housing New Zealand has not budgeted for any contractors to provide policy advice in
2018/19.

Question 83

How many staff do the agencies funded by the Vote expect to hire on each of the following
contract lengths: three-month or less, three to six month, or six to nine month? How does
this compare to the number hired on each of these contract types in the past four financial
years?

Forecasts are not available on how many staff Housing New Zealand may employ for a term
of three months or less in 2018/19. All recruitment will be determined by business need and
based on robust business cases.

As at 28 March 2018, Housing New Zealand has employed 10 staff on fixed term
agreements with initial terms of three months or less, nine staff on fixed term agreements
with initial terms of over three and up to six months and 10 staff on fixed term agreements
with initial terms of over six and up to nine months in 2017/18. Note that agreement terms
may be lengthened or shortened during an engagement.

                                                                                              28
A table with the number hired from the 2013/14 Financial Year is provided below. Due to the
way in which fixed term staff used to be recorded in the payroll system, it is not possible to
provide information for the periods for any previous financial years.

Fixed term staff are engaged by Housing New Zealand for specific, one off pieces, of work
requiring external resources. This is done in preference to engaging contractors or
consultants whose rates are more expensive.

Initial Fixed Term Period       2017/18*    2016/17      2015/16    2014/15     2013/14
3 months or Under                  10          20           25         35          66
Over 3 to 6 months                 9           26           32         9           5
Over 6 to 9 months                 10          6            22         12          5
*As at 28 March 2018

Question 84

In the coming financial year, do the agencies funded by the Vote expect to employ staff on a
new contract if they were previously employed on a permanent or temporary basis, if so,
how many?

Housing New Zealand has no current plans to employ previously employed permanent or
fixed term staff on a new employment agreement in 2018/19. All recruitment will be
determined by business need and approved by a business case.

Question 85

How many staff do the agencies funded by the Vote expect to employ on a fixed term
contract in total in 2018/19? How does this compare to each of past four financial years?

The number of staff on fixed term agreements can change depending on the nature of the
engagement. Fixed term staff can be employed to work on projects, to cover long-term
absences for current staff and to assist with additional workloads during busy times of the
year.

As at 28 March 2018, there were 13 fixed term employees who would continue to be
employed into the 2018/19 Financial Year.

The total number of staff engaged by Housing New Zealand on fixed term agreements in
previous years is shown in the table below. It is not possible to provide information for the
periods for any previous financial years.

Number of fixed      2017/18 YTD    2016/17           2015/16       2014/15            2013/14
term staff                40          65                101           69                 79
engaged

Where possible, fixed term staff are engaged by Housing New Zealand for specific, one off
pieces of work requiring external resources. This is done in preference to engaging
contractors or consultants whose rates are more expensive.

                                                                                                 29
Question 86

How many temporary staff are currently employed within the agencies funded by the Vote?
How does this compare to the past four financial years? Please breakdown by:
   - Role (e.g. policy/admin/operational)
   - Classification (full and part-time)
   - Office (e.g. geographical location)
Provide detailed explanations for any fluctuations in staff numbers of plus or minus 10%

Housing New Zealand has interpreted temporary staff as fixed term employees. The first
table below shows the number of fixed term staff by financial year as at 30 June 2017. The
second table provides the number of fixed term staff at Housing New Zealand by role,
classification and geographical location in 2017/18 as at 13 March 2018. The figures include
all temporary employees, full-time and part-time, on fixed term agreements. Casual
employees are not included.

The numbers of staff on fixed term agreements can change depending on the nature of the
engagement, and can be employed to work on projects, to cover long-term absences for
current staff, and to assist with additional workloads during busy times of the year.

Note that, where possible, fixed term staff are engaged by Housing New Zealand for
specific, one off pieces of work requiring external resources. This is done in preference to
engaging contractors or consultants whose rates are uniformly more expensive.

Number of fixed term staff by financial year

Date (as at 30 June)                           Number of Fixed Term Staff

2017/18*                                                                       58

2016/17                                                                        53

2015/16                                                                        92

2014/15                                                                        96

2013/14                                                                      112

2012/13                                                                        83

*As at 13 March 2018

                                                                                               30
Fixed Term staff as at 13 March 2018 by role, classification and geographical location

                                                                                                                                                                                                                                Property Management
                                                                                             Finance Professional

                                                                                                                                                       Legal Professional

                                                                                                                                                                                Operational Policy
                                                        Communications

                                                                                                                                 IT Professional
                                   Administration

                                                                                                                                                                                                         Planning and
                                                                                                                                                                                                         Performance

                                                                                                                                                                                                                                                                     Grand Total
                                                                                                                                                                                                          Operations
                                                                             Executive

                                                                                                                                                                                                                                                          QA
                                                                                                                        HR
Geographical Location
                               F   P                F   P                F   P           F   P                      F   P    F   P                 F   P                    F   P                    F   P     F        P   F   P                     F   P
                               T   T                T   T                T   T           T   T                      T   T    T   T                 T   T                    T   T                    T   T     T        T   T   T                     T   T
Auckland Central               1   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    2   0     0        0   0   0                     0   0    3
Auckland East                  0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    0   0     0        0   0   0                     0   0    0
Auckland South                 2   0                0   0                0   0           1   0                      0   0    0   0                 0   0                    0   0                    7   0     1        0   0   0                     0   0    11
Auckland West                  0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    1   0     0        0   0   0                     0   0    1
Christchurch/Nelson/Marlbor
ough                           0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    2   0     0        0   0   0                     0   0    2
East Cape/Hawkes Bay           0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    1   0     0        0   0   0                     0   0    1
Hutt Valley                    0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    1   0     0        0   0   0                     0   0    1
Manawatu/Taranaki              0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    1   0     0        0   0   0                     0   0    1
National Office Auckland       3   1                0   0                0   0           3   0                      0   0    0   1                 1   0                    0   0                    4   0     0        0   6   0                     2   0    21
National Office Christchurch   0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    0   0     0        0   0   0                     0   0    0
National Office Wellington     0   0                1   0                0   0           2   0                      2   0    1   0                 0   0                    0   0                    4   0     0        1   1   0                     0   0    12
Northland                      1   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    0   0     0        0   0   0                     0   0    1
Otago/Southland                0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    0   0     0        0   0   0                     0   0    0
Parliament                     0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    0   0     0        0   0   0                     0   0    0
Porirua                        0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    1   0     0        0   0   0                     0   0    1
Waikato/Bay of Plenty          1   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    1   0     0        0   0   0                     0   0    2
Wellington                     0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    1   0     0        0   0   0                     0   0    1
West Coast                     0   0                0   0                0   0           0   0                      0   0    0   0                 0   0                    0   0                    0   0     0        0   0   0                     0   0    0
                                                                                                                                                                                                     2
Grand Total                    8   1                1   0                0   0           6   0                      2   0    1   1                 1   0                    0   0                    6   0     1        1   7   0                     2   0    58

                                                                                                                                                                                                                                                                    31
COLLECTIVE BARGAINING & EMPLOYMENT ISSUES

Question 87

Provide a summary of any collective employment contract negotiations completed in the
2017/18 financial year, and an outline and timeline of negotiations to be conducted in
2018/19? How are collective employment contract bargaining negotiations proceeding at the
agencies funded by the Vote?

Initiation for bargaining can take place from 2 May 2018.

As at April 2018, planning is underway for the upcoming negotiations. Meeting dates have
been scheduled for mid-May 2018 to allow the parties the opportunity to settle prior to the 30
June 2018 expiry date.

Question 91

Do the agencies funded by the Vote expect to hire any staff during the 2018/19 with a 90
day trial period in their contract? If so, how many and why? How does this compare to each
of the previous four financial years?

Housing New Zealand does not employ people on employment agreements that include a
90-day trial period.

Question 92

What regular engagement do senior leaders or representatives of the agency have with
union representatives outside of any formal collective bargaining round? How many
meetings are scheduled in the next twelve months and how does this compare to the last
three years?

      At least three formal meetings are held between the Chief Executive (CE) and the
       Public Service Association (PSA) per annum.

      A National Consultative is held at least four times per annum.
      In 2017, Housing New Zealand and the PSA held a joint engagement delegates day
       which was attended by the CE.

      In 2017 the CE also attended the PSA /Housing New Zealand Annual General
       Meetings in Auckland and Wellington.

      Planned engagement for the next 12 months comprises four National Consultative
       meetings and at least two additional regional joint meetings with PSA delegates and
       Housing New Zealand leaders.

                                                                                            32
LEAVE AND EAP

Question 93

What is the average annual leave entitlement for staff employed by the agencies funded by
the Vote, does this include or exclude any departmental/ministry holidays; if so, how many?
How does this compare with each of the past four financial years?

The average annual leave entitlement for Housing New Zealand and HLC (2017) Limited
staff was 4.5 weeks as at 13 March 2018. For each of the previous four years, the average
was 4.6 weeks.

Both Housing New Zealand and HLC (2017) Limited do not provide separately for
departmental holidays.

Question 94

How many days of annual leave are employees expected to have accrued on average
during 2018/19? How does this compare to each of the past four years? What strategies do
the agencies funded by the Vote employ to encourage employees to reduce annual leave
balances?

In 2018/19, Housing New Zealand employees will accrue on average approximately 22.5
days of annual leave during the year. This is the slightly down on the average of
approximately 23 days for each of the previous four years.

Housing New Zealand regularly reports on staff with high annual leave balances and
encourages staff and managers to work together to develop leave plans so that high annual
leave balances are reduced.

Question 95

How many annual leave applications do the agencies funded by the Vote expect to cancel
during 2018/19? How does this compare to each of the past four financial years?

Housing New Zealand and HLC (2017) Limited do not expect to cancel any annual leave
applications that have been approved by managers in the 2018/19 financial year. Annual
leave can only be cancelled at the request of or with the agreement of the employee.

Neither Housing New Zealand nor HLC (2017) Limited monitors annual leave applications
that are cancelled.

Question 96

How many employees do the agencies funded by the Vote expect to take up the option of
selling their fourth week of annual leave? How does this compare to each of the previous
financial years since this policy came into effect?

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