WorkSafe New Zealand Implements Funding Reforms for Increased Accountability and Transparency in Health and Safety Management

With the Health and Safety reforms underway, a change has been made to how WorkSafe New Zealand’s funding is managed that adds increased accountability, Workplace Relations and Safety Minister Brooke van Velden confirmed today.

Moving WorkSafe’s funding into a multi-category appropriation allows for greater visibility of spending and performance meaning WorkSafe will be more accountable for its activities and results, says Ms van Velden.

While it has been pleasing to see improvements in WorkSafe’s financial management under its new operating model, this change will further focus its financial management, says Ms van Velden.

WorkSafe has faced challenges in clearly demonstrating the cost and effectiveness of its activities, which has made it harder to fully assess their value or consider requests for additional funding.

This change, informed by the SageBush independent review and past financial management challenges, is designed to improve transparency around WorkSafe’s resource allocation and performance. It’s important to note that total funding for WorkSafe remains unchanged.

The SageBush review also noted that there was an absence of a clear framework to guide resource allocation decisions.

These changes give me confidence in how WorkSafe is allocating resources and that its activities are delivering measurable results. This gives me assurance that WorkSafe can fulfil its role as an effective health and safety regulator.

To address this, the Minister confirmed that the Government will split WorkSafe’s appropriation into five new categories: Engaging to Support Best Practice in Work Health and Safety Enforcing Work Health and Safety Compliance Authorising and Monitoring Work Health and Safety Activities Energy Safety Major Hazard Facilities This marks a significant shift in WorkSafe’s funding priorities towards support, engagement and guidance functions which are closely aligned with the goals of the Health and Safety System reforms.

Notes to editors: The change from a single appropriation to a multi-category appropriation was established as part of the October Baseline Update.

Having a single appropriation does not show what money was actually spent on, or the outcomes achieved by specific activities.

The SageBush Review, and the two preceding baseline reviews of WorkSafe, found the lack of an inputs-outputs-outcomes framework made it difficult to assess the efficiency and effectiveness of WorkSafe and where it was allocating its resources.

This is a summary of the categories within the multi-category appropriation, which are all classified as ‘non-departmental output expenses’: Category Scope Engaging to Support Best Practice in Work Health and Safety Limited to the provision of guidance, information, and support to duty holders in the work health and safety system.

Enforcing Work Health and Safety Compliance Limited to the delivery of enforcement activities to ensure compliance with work health and safety legislation.

Authorising and Monitoring Work Health and Safety Activities Limited to the issuing of licenses, authorisations, and exemptions to third parties, and the monitoring of these.

Energy Safety Limited to the delivery of WorkSafe's legislated Energy Safety function.

Major Hazard Facilities Limited to guidance, investigation, enforcement, and notifications regarding major hazard facilities.