BRIEFING
Establishing interim Regional Skills Leadership Groups to support
COVID-19 response
Date:
17 April 2020
Priority:
High
Security
In Confidence
Tracking
2793 19-20
classification:
number:
Action sought
Action sought
Deadline
Hon Wil ie Jackson
Note the contents of this briefing.
21 April 2020
Minister of Employment
Agree to
expedite the establishment of
Regional Skil s Leadership Groups to
support the regional labour market
response to COVID-19.
Forward this briefing
to the Labour
Market Ministers Group for their
approval.
Forward this briefing to the Minister for
Māori Development and the Minister for
Pacific Peoples for noting.
Contact for telephone discussion (if required)
Name
Position
Telephone
1st contact
Director, Labour and
Heather Kirkham
Immigration Policy
021 891 600
Principal Advisor, Skil s and
9(2)(a)
Employment Policy
9(2)(a)
The following departments/agencies have been consulted
Ministry of Education, Ministry of Social Development, Tertiary Education Commission
Minister’s office to complete:
Approved
Declined
Noted
Needs change
Seen
Overtaken by Events
See Minister’s Notes
Withdrawn
Comments
BRIEFING
Establishing interim Regional Skills Leadership Groups to support
COVID-19 response
Date:
17 April 2020
Priority:
High
Security
In Confidence
Tracking
2793 19-20
classification:
number:
Purpose
This briefing provides the Labour Market Ministerial Group (LMMG) with information about
expediting the establishment of Regional Skil s Leadership Groups to support the regional labour
market response to COVID-19.
Executive summary
In July 2019, Cabinet agreed to establish Regional Skil s Leadership Groups (RSLGs) for 15
geographic regions to facilitate dialogue about regional labour market needs.
On 19 March 2020, the LMMG agreed to the broad compositional arrangements for 15 RSLGs,
with some minor adjustments to worker representation in three regions. The LMMG also
acknowledged the role RSLGs could play in supporting the response to the regional impacts of
COVID-19 in the medium-long term and asked for further information about how the establishment
of RSLGs could be expedited to help support shorter-term responses.
RSLGs would provide a good mechanism for obtaining coordinated, strategic, qualitative
information about regional labour market disruption resulting from COVID-19 from a diverse range
of regional representatives. RSLGs wil provide a focus for drawing together labour market
information, and offer valuable labour market intelligence to central government and regions
around re-employment and redeployment of displaced workers as well as broader active labour
market policies.
In recent weeks several regions have established, or are looking to establish, regional labour
market and broader economic groups to coordinate labour market and economic intelligence.
Auckland Council has established a COVID Mayoral Business Advisory Panel to help work through
the issues created by the COVID-19 lock-down and to assist the city’s transition back to normal
economic activity when the lock-down is lifted. Other regions, including Northland and Marlborough
have also begun to move to establish similar groups with a labour market focus.
Reflecting these factors, we propose that the immediate COVID-19 response phase be considered
as a pre-RSLG phase with interim RSLGs (iRSLGs) set up. The key differences between an
iRSLG and full RSLG are that they wil not be required to develop annual workforce plans,
membership in the interim phase may not be able to be fully representative initially, and the Chair
role will be provisional and not agreed by the Cabinet Appointment and Honours Committee. This
would avoid needing Cabinet approval for the changes and enable MBIE to work alongside
responses that regions have started to develop in recent weeks.
This would ensure that immediate and pressing needs can be met, and provides time to properly
appoint representatives with the appropriate skil set as iRSLGs evolve into full RSLGs. We would
expect full RSLGs, as initially agreed by Cabinet, to be able to be operational by mid 2021.
The initial role of iRSLGs is proposed to:
meet at least fortnightly to discuss labour market trends provided by the RSLG secretariat and
provide qualitative labour market information to the RSLG secretariat
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be the primary point of contact for central government in terms of regional labour market
information and advice
engage with key stakeholders in the region to identify patterns, trends and urgent needs
relating to labour markets and business continuity in the region.
We are confident that all 15 iRSLGs can be set up within eight weeks, with many likely within four
weeks.
As the economy and labour market change over time in response to COVID-19, we envisage
iRSLGs will evolve into full RSLGs by mid 2021 and move to focus on their intended purpose of
performing a future focused regional labour market planning function. This in turn contributes to the
Reform of Vocational Education as well as wider central government and regional decision making.
Funding for expediting the establishment of iRSLGs can be met within existing MBIE
appropriations through to 30 June 2020. Beyond this, we note significant reputational risk if the
RSLG Secretariat is not funded in Budget 2020 as iRSLGs wil need to be disestablished.
Representation of a diverse range of populations on iRSLGs is important, including Māori and,
where relevant Pacific Peoples. We therefore recommend forwarding the briefing to the Minister for
Māori Development and Minister for Pacific Peoples.
Recommended action
The Ministry of Business, Innovation and Employment recommends that Labour Market Ministers:
Expedite RSLG establishment to support the COVID-19 response
a
Agree to establish pre-Regional Skil s Leadership Groups (RSLGs) called interim Regional
Skil s Leadership Groups (iRSLGs) to support regional labour market responses to COVID-19
Agree / Disagree
b
Agree that for the rest of 2020, and then reviewed on a three month basis by MBIE, that the
role of iRSLGs is to:
i. meet frequently (at least fortnightly) to provide qualitative labour market information to
the MBIE RSLG secretariat and to discuss broad labour market data, including trends
ii. be the central point of contact for central government in terms of regional labour
market information and advice
iii. engage with key stakeholders in the region to identify patterns, trends and urgent
needs relating to labour markets and business continuity in the region
Agree / Disagree
c
Note that some regional groups have already been set up to look at how labour markets can
respond to COVID-19 and where feasible MBIE wil work with these groups to confer iRSLG
responsibilities
Noted
d
Agree that all 15 iRSLGs will be established within eight weeks, with many iRSLGs established
earlier
Agree / Disagree
e
Note that some iRSLG representatives, including iwi/M
āori representatives, may not be able to
be appointed within eight weeks, with remaining representatives appointed as quickly as
possible throughout 2020
Noted
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f
Agree to establish full RSLGs, with a longer-term labour market planning function, by mid 2021
Agree / Disagree
g
Note that
engagement with regional stakeholders, including Regional Public Service Leads,
economic development agencies, iwi and other regionally relevant population groups is critical
to the effective establishment of iRSLGs
Noted
h
Agree that expediting the planned setup of the Secretariat support function for RSLGs is key to
iRSLG success
Agree / Disagree
i
Note funding for the initial establishment of iRSLGs and the Secretariat can be met within
existing MBIE appropriations through to 30 June 2020, but not beyond this
Noted
j
Note there is
significant reputational risk if sufficient Budget 2020 funding is not provided and
RSLGs are subsequently disestablished
Noted
k
Note that COVID-19 and associated regional labour market disruption is evolving quickly and
additional roles for iRSLGs may be required
Noted
l
Agree that the Chief Executive of MBIE will appoint all iRSLG representatives, including acting
Chairs for a period until RSLGs are established as original y agreed by Cabinet
Agree / Disagree
m
Note that Cabinet Appointments and Honours Committee (APH) agreement wil be sought for
the appointment of Chairs to full RSLGs expected to be before mid 2021
Noted
The evolving focus and role of RSLGs over time
n
Note that the role of iRSLGs is intended to evolve over time into full RSLGs with a greater
long-term labour market planning focus once we move into a COVID-19 ‘recovering and
rebuilding’ phase
Noted
Next steps
o
Note that we will provide the Minister of Employment with regular updates on expediting the
establishment of iRSLGs and the evolution of iRSLGs into full RSLGs
Noted
p
Agree to forward this briefing to the Minister for Māori Development and the Minister for Pacific
Peoples
Agree / Disagree
2793 19-20
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9(2)(a)
Hon Iain Lees-Galloway
Minister of Immigration
..... / ...... / ......
Hon Chris Hipkins
Hon Carmel Sepuloni
Minister of Education
Minister for Social Development
..... / ...... / ......
..... / ...... / ......
Hon Wil ie Jackson
Hon Tracey Martin
Minister of Employment
Minister for Seniors
..... / ...... / ......
..... / ...... / ......
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Background
1.
In July 2019, Cabinet agreed to establish Regional Skil s Leadership Groups (RSLGs) for 15
regions by 1 July 2020, to facilitate dialogue about regional labour market needs (refer
briefing 3721 18-19). Cabinet noted that MBIE would report-back to Ministers in early 2020
with proposals for the composition for each of the 15 RSLGs.
2.
On 19 March 2020, the Labour Market Ministerial Group (LMMG) agreed to the broad
composition of the 15 RSLGs (refer briefing 2382 19-20), with some minor adjustments to
worker representation in three regions. Minor adjustments to RSLG compositions in three
regions are summarised in Annex One.
3.
LMMG acknowledged the role RSLGs could play in supporting the response to the regional
impacts of COVID-19 in the medium-long term. The Group also asked for additional
information about how the establishment of RSLGs could be expedited to help support
shorter-term responses.
4.
This briefing provides LMMG with information about how expediting the establishment of
RSLGs could support the different phases of regional and national responses to labour
market disruptions arising from COVID-19.
Expediting RSLG establishment to support the COVID-19 response
5.
COVID-19 is resulting in significant regional labour market disruption, particularly in regions
that have high concentrations of employment in the hospitality and tourism sectors.
Rationale for expediting the establishment of RSLGs
6.
A range of economic development agencies, chambers of commerce and councils have met
in recent weeks to discuss the immediate labour market impact of COVID-19 on their region.
These meetings have largely been informal and focus on the region’s role in supporting
displaced workers.
7.
Auckland Council has established a COVID Mayoral Business Advisory Panel to help work
through the issues created by the COVID-19 lock-down and to assist the city’s transition
back to normal economic activity when the lock-down is lifted. Other regions including
Northland and Marlborough have also begun to establish groups with a similar aim, albeit
more focused on labour markets.
8.
MBIE has observed the following chal enges in many region-led discussions about the
economic and labour market impact of COVID-19 over recent weeks:
the view of workers, who will be heavily affected by COVID-19, and Māori, a treaty
partner, have largely not been directly represented in discussions
the focus of discussions has been on understanding and mapping labour market
disruption and activity, as well as support provided by government agencies in
response to COVID-19
many economic development agencies and Māori authorities have been overwhelmed
by requests from a range of central government agencies asking for the same kinds of
information
there is often a tension between sub-regional and regional focus, with the former often
coming to the fore given the heavy involvement by economic development agencies,
who are predominantly sub-regional focused
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labour market intelligence collected by MBIE has largely been ad-hoc and influenced
by those who are providing the information. A more strategic and coordinated way of
gaining labour market intelligence would be helpful in assisting the government’s
COVID-19 response regionally.
9.
Many of these chal enges could be mitigated by a more coordinated response and support
from central government. This would make existing groups more effective in helping regional
labour markets respond to COVID-19.
Interim Regional Skills Leadership Groups
10. It is clear that there is an immediate need for labour market intelligence on what is happening
at a regional level as a result of COVID-19, and to help support regions to plan how to
recover and rebuild. RSLGs could meet this need if they operate and function in a slightly cut
down way from what was original y agreed by Cabinet (refer briefing 3721 18-19).
11. The key differences between the proposed iRSLG and full RSLG are that they will not be
required to develop annual workforce plans, membership in the interim phase may not be
able to be fully representative initially, and the Chair role wil be provisional and not agreed
by the Cabinet Appointment and Honours Committee.
12. We recommend establishing pre-RSLG groups called interim Regional Skil s Leadership
Groups (iRSLGs) as soon as practical to help strengthen the coordination of regional labour
market insights in response to COVID-19. These insights would come from government
agencies, including from the Ministry of Social Development and Rapid Response Teams,
and a range of community stakeholders, such as businesses, workers, Māori and different
age ranges. Labour market intelligence provided is likely to be valuable in informing the re-
employment and redeployment of displaced workers as well as broader active labour market
policies.
13. The recommended role of iRSLGs is to:
meet frequently (at least fortnightly and virtual y where necessary) to provide qualitative
labour market information to the MBIE RSLG secretariat and to discuss broad labour
market data, including trends (provided by the RSLG secretariat)
be the primary point of contact for central government in terms of regional labour
market information and advice
engage with key stakeholders in the region to identify patterns, trends and urgent
needs relating to labour markets and business continuity in the region.
14. MBIE wil work with labour market groups that are already formed, or are about to be formed,
with the aim of making them an iRSLG. MBIE wil work with these groups to ensure a broad
range of representative groups are reflected in line with RSLG representation principles
agreed by Cabinet for local government, business, worker and community representation
(refer briefing 3721 18-19).
15. In regions where groups are not already forming, MBIE wil work with regional stakeholders
to form iRSLGs with composition broadly in line with proposals agreed by LMMG (refer
briefing 2382 19-20) but that also take into account recent events.
16. The clear expectation is that when New Zealand enters into a recovery and rebuilding phase
that iRSLGs wil transition into full RSLGs as original y intended. The full role of RSLGs
includes undertaking regional labour market planning, including developing regional
workforce plans which set out the aspirations for the region and how the desired future state
could be achieved.
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17. To support the early establishment of iRSLGs, we recommend previously outlined RSLG
Expression of Interest processes for Chairs and for identified representative groups are not
carried out for interim RLSGs. Appointments to iRSLGs wil be until mid July 2021, with the
ability to end sooner if required. MBIE will move to having previously agreed appointment
processes in place when full RSLGs wil be set up and New Zealand is in a recovery and
rebuilding phase.
18. We note that wherever possible iRSLGs also need to align with any broader group
established to respond to COVID-19, such as Auckland’s COVID Mayoral Business Advisory
Panel. This wil help mitigate potential duplication of work.
19. Expediting the establishment of iRSLGs may result in some agreed representative groups
initially not being able to be consulted with and appointed quickly. This is likely to be the case
for some community and/or iwi/Māori representatives. In these instances, we recommend
establishing iRSLGs as soon as possible with a majority of agreed representatives and
appointing other representatives as appropriate throughout 2020. Where agreed
representatives are not able to be appointed when iRSLGs are initially set up, there wil be
an expectation for iRSLGs to engage regularly with these groups.
20. Job descriptions for iRSLG members and acting chairs wil be developed to outline key
competencies sought as wel as iRSLG expectations. These wil be consistent with the key
competencies agreed by LMMG in March 2020 (refer briefing 2382 19-20).
Potential risks and mitigations associated with establishing iRSLGs
21. In recommending the establishment of iRSLGs within eight weeks there are a range of
scenarios could play out that may risk the short-term and long-term effectiveness and
credibility of iRSLGs and RSLGs. MBIE has identified the following key risks and developed
strategies to address them.
Not all iRSLG representative positions agreed by LMMG can be filled immediately. We
recommend having the majority of iRSLG members appointed and iRSLGs established
as soon as is practical. Remaining positions would be appointed throughout 2020
according to region readiness. Some members, such as SMEs, may not be able to
actively participate in the short-term due to the direct impact of COVID-19 on their
business. Where agreed representatives are not able to be appointed when iRSLGs
are initially set up there wil be an expectation for iRSLGs to engage regularly with
these groups.
iRSLGs compete, rather than collaborate, with other participants in the region to
provide labour market information to government. The initial role of iRSLGs is made
clear to members, and members are provided regular qualitative information from a
range of data sources by the RSLG secretariat. The Ministry of Education, Ministry of
Social Development, Provincial Development Unit and Regional Public Service Leads
support the early establishment of RSLGs and recognise them as a coordinating point
for qualitative labour market intelligence and associated labour market responses to
COVID-19.
The mana of the members on the group is diminished by being narrowly focused and
not strategic. iRSLGs wil have mana by being the point of contact for central
government on qualitative regional labour market information about their region and
influence government decision making.
iRSLGs functions become so focused on COVID-19 that the purpose of RSLGs is lost
in the medium-long term. The impact of COVID-19 and the associated response will be
the focus of government for some time. Once COVID-19 is no longer the key driver of
labour market issues, the focus of RSLGs wil naturally shift to the key presenting
issues as well as long-term regional labour market planning.
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Information gained from iRSLGs is not used effectively by central government. The
MBIE RSLG secretariat wil be tasked with collating information provided by iRSLGs
and making MBIE and other central government agencies aware of it regularly and
effectively’. The iRSLG secretariat wil also engage with relevant agencies to
understand their regional labour market intelligence needs and be responsible for
coordinating any central government questions to the Group. This wil help ensure
government agencies receive information they require and are working off the same
regional information and minimise the risk of duplication of effort, such as that seen in
the immediate response to the Canterbury earthquakes.
Timeframes for expediting the establishment of iRSLGs
22. We outlined four broad types of RSLG composition to LMMG in March 2020 (refer briefing
2382 19-20) – regions with existing groups where RSLG responsibilities wil be conferred,
regions where RSLGs wil incorporate some existing arrangements, regions where
transitional arrangements are recommended and regions where there is no ongoing existing
arrangements.
23. More recently, some regions have begun to set up regional labour market groups to help the
regional response to COVID-19. These groups could help fast track the establishment of
iRSLGs.
24. The ‘best case’ scenario is to have all iRSLGs established within eight weeks, noting that
some RSLGs could be established earlier. The fol owing table shows an estimated ‘best
case’ for iRSLG establishment. Timeframes are based on recent engagement with Regional
Public Service Leads and regional stakeholders.
iRSLG establishment timeframe
Type
Region
iRSLG establishment
‘Best case’ scenario
Existing groups
Waikato
(Waikato Labour Market
Within 2 weeks
Strategy Group)
Te Tairāwhiti
(CARE Forum)
Within 2 weeks
Hawke’s Bay
(Matariki Strategy – Pou 2) Within 2 weeks
Manawatū-Whanganui
(Skills and Talent Within 2 weeks
Advisory Group – STAG)
Incorporating
Bay of Plenty
Within 2-4 weeks
some existing
Taranaki
Within 2-4 weeks
groups
Wel ington
Within 2-4 weeks
Nelson-Tasman
Within 2-4 weeks
Marlborough
Within 2-4 weeks
Canterbury
Within 2-4 weeks
Otago
Within 2-4 weeks
Southland
Within 2-4 weeks
Transitional
Northland
Within 2-4 weeks
arrangements
Auckland
Within 2 weeks
No ongoing
West Coast
Within 5-8 weeks
group to build on
25. Ongoing engagement with regional stakeholders, including Regional Public Service Leads, is
critical to ensuring regions are ready for iRSLGs and are supported through the process. It is
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possible that the timeframe for iRSLG establishment in each region may change along with
iRSLG composition in each region.
iRSLG secretariat support
26. MBIE wil also expedite the setup of the Secretariat support function for RSLGs. Secretariat
support will aid the provision of labour market intelligence from government agencies,
including the Ministry of Social Development, Ministry of Education and Tertiary Education
Commission, to regions in a coordinated manner. The secretariat wil also ensure regional
intelligence is fed back to relevant government agencies in a way that best supports the
COVID-19 response.
iRSLG appointments
27. To ensure that iRSLGs are established as quickly as possible, MBIE recommends that the
Chief Executive of MBIE appoints all members, including an acting Chair, rather than the
Cabinet Appointments and Honours Committee as original y envisaged. This is to streamline
the appointment process in the short term to enable iRSLGs to be stood up as soon as
possible. .
28. We recommend that the APH process for appointing Chairs be followed when we get to the
stage of establishing full RSLGs, expected before mid 2021. In the meantime MBIE will raise
iRSLG Chair appointments with the Minister of Employment prior to making them.
Funding for early establishment in advance of any Budget funding can be met through re-allocation
to 30 June 2020
29. RSLGs were to be established by July 2020, reflecting the requirement for funding in Budget
2020. The budget bid is for $7.2m per year.
30. Funding for the initial establishment of iRSLGs and the RSLG Secretariat can be met within
existing MBIE appropriations through to 30 June 2020, but not beyond this. Funding will be
met from the Immigration Sector Agreements appropriation, the scope of which is consistent
with the purpose of RSLGs.
31. In addition to the above, regional stakeholders have reinforced the need to have iRSLGs
appropriately resourced from the outset. This is especially the case in a disrupted labour
market as a result of COVID-19 where RSLG member resources will be stretched.
32. There is significant reputational risk if the Secretariat is unable to be funded after June 2020
as iRSLGs wil need to be disestablished.
The evolving focus and role of RSLGs over time
33. The intended purpose of RSLGs, agreed to by Cabinet in July 2019, is to undertake regional
labour market planning, including developing regional workforce plans which set out the
aspirations for the region and how the desired future state wil be achieved (refer briefing
3721 18-19).
34. The response to COVID-19 is likely to be in three phases, each requiring an evolution in the
role and function of iRSLGs to support each phase. Due to the rapidly changing nature of the
current environment, these phases may need to be revised in the future.
Containment and cushioning the economic impact (0-6 months at least)
Kick-starting the economy (estimate late 2020)
Recovering and rebuilding (estimate 2021 onwards)
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35. We recommend the role and function of iRSLGs evolve over time, from supporting the
regional labour market response and initial recovery resulting from COVID-19 to the intended
long-term regional labour market planning function original y agreed by Cabinet. At each
phase, information from RSLGs can be used to inform the Reform of Vocational Education
as well as wider central government and regional decision making.
36. The following table summarises the potential evolution of interim RSLGs in each of the
COVID-19 response phases.
Potential RSLG evolution
Containment and
Kick-starting the
Recovering and
cushioning the
economy (estimate late
rebuilding (estimate
economic impact (0-6
2020)
2021 onwards)
months at least)
Broad
Fighting the virus and
Measures to stimulate
Refreshing economic
economic
cushioning the economic recovery and growth at a planning at a regional
and labour
impact in containment.
national and regional
level for a long-term
market focus
Labour market focus on
level.
rebuild.
maintaining labour
Labour market focus on
Regional labour markets
market attachment and
supporting regions shift
refocus on their longer-
understanding how to
towards maximising
term labour market
mitigate labour market
displaced workers’
needs, aspirations and
disruption.
opportunities for a
developing a more
speedy return to
resilient workforce for the
sustainable employment
future.
and short-medium term
workforce planning.
RSLG
Expedite the
Interim RSLGs
RSLGs continue to
evolution and establishment of interim
coordinate the provision
evolve to fulfil their full
role
RSLGs with a focus on
of regular labour market
intended function by mid
coordinating labour
intelligence to central
2021.
market intelligence.
government agencies
RSLGs expand the focus
Interim RSLGs to have a
and across regions.
of their initial annual
majority of agreed
Some interim RSLGs are regional workforce plan
representatives
in a position to develop
to also consider a longer-
appointed when initially
regional workforce plans
term regional labour
established.
for the next three-five
market outlook and future
years. The plans focus
Expand initial interim
labour market
on the immediate
RLSG composition as
aspirations.
rebuilding of regional
required to ensure
labour markets,
appropriate
chal enges and
representatives are in
opportunities.
place to support interim
RSLGs in a fast moving
environment.
Next Steps on expediting the establishment of RSLGs
Progress updates to the Minister of Employment
37. We wil continue to provide progress updates to the Minister of Employment on the expedited
process to establish iRSLGs and the evolution into full RSLGs by mid 2021.
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Annex One: Minor adjustments to RSLG composition proposals
following LMMG feedback
RSLG compositional proposals for Nelson-Tasman, Marlborough and Southland were tweaked
following LMMG feedback on 19 March 2020. Tweaks include:
Nelson-Tasman. Clarifying the SME representative is one of the four business
representatives rather than a worker representative. Two worker representatives remain.
Marlborough. Clarifying that the SME representative is one of the four business
representatives rather than a worker representative. Two worker representatives remain.
Southland. Increasing worker representation from one to two.
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