19 January 2024
BUDGET SENSITIVE
Dr Claire Achmad
1982
Children & Young People’s Commission
Level 8
110 Featherston St
Act
Wellington
Tēnā koe Claire
FISCAL OBJECTIVES ACROSS THE TERM AND BUDGET 2024
Happy New Year Claire. I hope you had a relaxing and enjoyable break.
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The previous Government wrote to all statutory Crown entity board chairs in
September 2023, seeking support towards the Fiscal Sustainability and
Effectiveness Programme. This included demonstrating value-for-money
outcomes and additional benefit to New Zealanders.
This letter builds on that expectation and sets out the Government’s goals
relating to fiscal sustainability. The Crown has been in operating deficit since
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2019/20 and the ongoing fiscal environment is challenging. High inflation and
interest rates are creating significant cost of living pressures for New Zealanders
and putting pressure on Government finances. Our economy relies on a fiscal
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strategy that sees a steady path to return to surplus, supporting monetary policy
to bring inflation down. Strict fiscal management will be necessary to get the
government books back in order and ensure limited funds are directed towards
the highest value investments. The Government expects all public sector
organisations to play their part in this, including statutory Crown entities, Crown
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entity companies, State Owned Enterprises and Public Finance Act Schedule 4A
companies.
As part of the Government’s immediate actions, decisions will be taken to reduce
public expenditure, including consultant and contractor expenditure. Meeting the
Government’s fiscal objectives while also delivering better public services
requires looking at all public expenditure, not just that of departments. A target
level of savings for Budget 2024 has been established for all agencies as part of
the Initial Baseline Exercise. The responsible departments are required to quickly
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identify these savings.
Government agencies and other public organisations should expect enhanced
scrutiny of Crown funding. Crown entities are also expected to operate
efficiently, effectively and in a financially responsible manner, ensuring that they
The Aurora Centre, 56 The Terrace, PO Box 1556, Wellington
– Telephone 04-916 3300 – Facsimile 04-918 0099
1982
Act
Information
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19 January 2024
BUDGET SENSITIVE
Shannon Pakura
1982
Social Workers Registration Board
110 Featherston St
Wellington
Act
Tēnā koe Shannon
FISCAL OBJECTIVES ACROSS THE TERM AND BUDGET 2024
Happy New Year Shannon. I hope you had a relaxing and enjoyable break.
The previous Government wrote to all statutory Crown entity board chairs in
September 2023, seeking support towards the Fiscal Sustainability and
Information
Effectiveness Programme. This included demonstrating value-for-money
outcomes and additional benefit to New Zealanders.
This letter builds on that expectation and sets out the Government’s goals
relating to fiscal sustainability. The Crown has been in operating deficit since
2019/20 and the ongoing fiscal environment is challenging. High inflation and
Official
interest rates are creating significant cost of living pressures for New Zealanders
and putting pressure on Government finances. Our economy relies on a fiscal
strategy that sees a steady path to return to surplus, supporting monetary policy
the
to bring inflation down. Strict fiscal management will be necessary to get the
government books back in order and ensure limited funds are directed towards
the highest value investments. The Government expects all public sector
organisations to play their part in this, including statutory Crown entities, Crown
entity companies, State Owned Enterprises and Public Finance Act Schedule 4A
companies. under
As part of the Government’s immediate actions, decisions will be taken to reduce
public expenditure, including consultant and contractor expenditure. Meeting the
Government’s fiscal objectives while also delivering better public services
requires looking at all public expenditure, not just that of departments. A target
level of savings for Budget 2024 has been established for all agencies as part of
the Initial Baseline Exercise. The responsible departments are required to quickly
identify these savings.
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Government agencies and other public organisations should expect enhanced
scrutiny of Crown funding. Crown entities are also expected to operate
efficiently, effectively and in a financially responsible manner, ensuring that they
act as a successful going concern. Crown entity boards have an important role to
The Aurora Centre, 56 The Terrace, PO Box 1556, Wellington
– Telephone 04-916 3300 – Facsimile 04-918 0099
play in meeting the government’s expectations amidst fiscal constraints and
challenges. You should be able to demonstrate that activities funded from Crown
revenue are:
• as efficient as possible
• making a difference for New Zealanders.
The Initial Baseline Exercise is a government-wide initiative, with public agencies
and Crown entities alike required to absorb cost pressures and find savings.
These fiscal objectives add to the previously communicated fiscal sustainability
messaging to your Board. The target level of savings for Vote Social
Development has been set at 6.5% of eligible baseline funding.
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The Social Workers Registration Board receives baseline funding of $0.113
million through Vote Social Development. As part of the Initial Baseline Exercise,
we would like to meet with you to discuss potential savings of 6.5% totalling
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$7,345 per financial year from 2024/25 onwards and efficiency improvements for
your entity, including trade-offs and impacts on functions of Social Workers
Registration Board. We have attached the savings template we will need to
complete with you by 2 February 2024.
The Minister has asked for each of her Crown entities to provide her with
information on total FTEs in June 2017 and June 2023. Please provide this
information to Sacha O’Dea by 2 February 2024.
For the duration of this term, it is expected that there will be a greater focus on
reprioritisation and managing cost drivers, while delivering improved
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performance. This applies to both departmental and non-departmental
appropriations.
I acknowledge that Social Workers Registration Board has indicated funding
pressures exist. We understand that you are completing a review of Social
Workers Registration Board Worker’s fee. This may be an opportunity to meet
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some cost pressures.
I appreciate that an additional reduction of 6.5% in Crown funding may add
challenging financial constraints and wish to assure you that Ministry of Social
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Development will continue to work through implications of the Initial Baseline
Exercise with you.
Sacha O’Dea will be in touch to organise a meeting with you or a delegated
representative.
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Nāku iti noa, nā
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Viv Rickard
Acting Chief Executive, Ministry of Social Development
