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Waka Kotahi gives big bonuses to well-paid staff

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The Transport Agency has given out a quarter of a million dollars in bonuses, with much more of it going to its better-paid staff than to lower earners.

That’s not a shade on the ACC, where yearly bonuses total $6m.

Elsewhere, bonus payments have become endangered in the core public service since orders went out a few years ago to get rid of them.

The 2018 directive put paid entirely to the practice of giving chief executives a bonus.

But they cling on for regular staffers in parts of the core – such as Corrections and Internal Affairs – and outside the core, for instance, at Waka Kotahi and Accident Compensation (though not at the non-core Police).

“Current data indicates 0.2 percent of the workforce in public service departments and departmental agencies received performance pay in 2022,” the Public Service Commission told RNZ.

It is a far cry from 20 years ago when the NZ Herald reported ‘Bonuses part of the deal for state staff’ and ‘Work and Income staff collect $5.8 million in bonuses’.

At NZTA this financial year, up till May, $246,000 was awarded to 135 employees, from a workforce 20 times that, an OIA showed.

“Waka Kotahi does not pay staff bonuses,” the agency said – because it prefers to call them “recognition payments” separate from pay rises (“a one-off payment to recognise instances of where employees have gone above and beyond in their roles”).

Select committee reviews call them bonuses.

About a quarter of the Transport Agency total that went to workers who earn under $100,000 in salary – and those low earners make up 40 percent of NZTA staff.

By contrast, almost two thirds of the $246,000 went to the 40 percent of staff sitting prettier, on $100,000-$150,000 salaries.

The two biggest bunches of bonuses – all of which are either $1500, $3000 or $5000 – went to a cohort earning between $106,000-$184,000.

Someone on more than $240,000 got a $3000 bonus.

Eighteen bonuses went to staffers earning $149,000-$215,000.

Its practice was “in line with public sector guidance on pay restraint”, Waka Kotahi told RNZ.

Elsewhere, the agency said, “The number of our people in higher band levels continue to increase, due to our growing organisational mandate requiring specialist skills to meet government and public expectations and to meet the employment market during a time of historically low unemployment and high inflation.”

At the same time, it said it had “an over-representation of female employees in lower job bands” – a gender pay gap it was working to close.

Waka Kotahi has capped its total bonuses at at $250,000 this year, below the $334,000 paid out last financial year, and above the $168,000 the year prior.

Fewer but bigger at ACC

Meanwhile, the non-core ACC had far fewer but far bigger bonuses.

There, 34 employees shared $6.1m in 2020-21 (the latest year for which an annual review is available).

One got a bonus of up to $460,000; two up to $415,000; one up to $335,000; one up to $325,000 and one up to $290,000.

Why so large?

“In general, ACC does not pay bonuses to staff,” its annual review said.

The exception was a specialist technical group within the investment team “as the prospect of bonus payments is necessary to ensure ACC meets competitive employment conditions in a specialist industry sector where bonuses are common”.

They only get one if they “meet or exceed externally benchmarked individual performance criteria”.

In the core public service, bonuses have disappeared at Justice, Education, the Ministry of Transport, Oranga Tamariki, Health and the Public Service Commission and doubtless others, too.

MBIE last paid them in 2018-19 – $420,000 then – and nothing since.

Corrections is a bit out of step – perhaps reflecting its woes attracting new prison guards – giving out bonuses of $239,000 last year to 94 staff, at up to $5000 each.

The number who get one has bounced around, but the trend is up, not down, from just 65 in 2017.

“Corrections continues to adhere to the Public Service Pay Guidance 2021 from the Public Service Commission by continuing to show restraint in decisions on remuneration, particularly for higher paid staff,” it told the select committee.

Internal Affairs has tightened the belt more, with bonuses dropping from $223,000 for 137 workers in 2017, to just $15,000 for 44 now.

IRD chimed in with a single ‘at risk’ payment – “only paid on achievement of identified performance objectives”, and no longer offered to new senior leaders – of $56,000.

The 2018 directive from the PSC – that “employers will work toward removing at-risk pay and performance bonuses from pay policies and employment agreements” – has definitely had an impact.

The commission dropped all mention of bonuses from its 2021 and 2023 pay guidance, which majors on restraint overall.

The bonus crackdown has been more effective than the directives during the same period, for public agencies to cut their big spending on contractors and consultants. It did level off a little, but then jumped higher last year to well over a billion dollars.

Source RNZ

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Police say person who fired gun at officers still at large

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Police say a person who fired a gun at officers in Napier is still at large.

Eastern District Commander Superintendent Joel Lamb said Police tried to stop a vehicle in the Pirimai Area at about 10pm on Tuesday.

He said someone in the back seat pointed what was presumed to be a firearm at officers pursuing the vehicle.

“Staff have then heard two distinct gunshots as the firearm was discharged.

“Fortunately, neither of our officers were injured, and the patrol vehicle did not sustain any damage.”

He said hours later, the vehicle was seen travelling north on the Waikato Expressway towards Auckland.

Police seized the vehicle at an address in Manurewa, but they had not found the alleged offender.

Lamb said people who lived at the Manurewa address were engaging with Police.

He said Eastern District and Counties Manukau Police were making enquiries.

“Presenting a firearm at a Police officer is a serious escalation that puts our staff and the wider community at risk. This behaviour is entirely unacceptable.

“We are taking this incident extremely seriously and will be pursuing all lines of enquiry to locate the offender and hold them accountable.”

Police asked anyone who witnessed the incident to contact Police on 105 or online using the reference number 261111/3764.

Information could also be provided anonymously via Crime Stoppers on 0800 555 111.

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New Zealand sides named for RLWC finals

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The players tasked with ending Australia’s Rugby League World Cup dominance have been named.

The Kiwis and Kiwi Ferns have announced their squads for this Sunday’s World Cup finals in Brisbane.

Both sides are chasing their first titles since 2008, and both are looking to end their opponents run of three crowns in a row.

“Our Kiwi Ferns have been so dominant in years gone by, and we want to bring dominance back to this jersey, so I think it will be a case of who wants it more,” said co-captain Georgia Hale of the impending clash.

The Kiwis get a major boost for the final as they welcome back Ronaldo Mulitalo after he served a one-match ban for a high tackle against Fiji Bati.

Mulitalo replaces Charnze Nicoll-Klokstad, who moves to the six-man bench, which again includes utility Te Maire Martin, middle forwards Naufahu Whyte, Erin Clark and Xavier Willison plus fullback Keano Kini.

Loose forward Joseph Tapine will make his 30th Test appearance in a familiar pack again, including second-rowers Isaiah Papali’i and Briton Nikora, and props James Fisher-Harris and Moses Leota.

Winger Jamayne Isaako is on the cusp of claiming the New Zealand record for most Test points.

His five goals against Tonga lifted his career points tally to 225 – level with Shaun Johnson – while centre Casey McLean goes into the final with 16 tries in just eight Tests.

Fisher-Harris will again captain the team.

Fullback Ponga said the goal of the group was clear.

“We have high expectations around what we want to achieve, and obviously winning a world Cup is one of them.”

Meanwhile, Ricky Henry has selected a settled side to take on the Jillaroos, led by their lethal centre combination of Stacey Waaka and Mele Hufanga.

Veteran Apii Nicholls takes the number one jersey, Leianne Tufuga and Mackenzie Wiki on the wings.

Henry has stuck with his halves pairing of Chantay Kiria-Ratu and Raecene McGregor with Alexis Tauaneai, Georgia Hale and Otesa Pule up front.

Rounding out the starting pack is Shaniece Monschau, Kaiyah Atai, and Angelina Teakaraanga-Katoa.

“We have been building well throughout the tournament; we understand the Jillaroos side, and will give it our all to make New Zealand proud this weekend,” said Henry.

RLWC Finals:

Kiwi Ferns vs Jillaroos- 6.10pm

Kiwis vs Kangaroos – 9.35pm

Sunday November 15

Suncorp Stadium, Brisbane

Live blog updates on RNZ

Kiwi Ferns:

1. Apii Nicholls 2. Leianne Tufuga 3. Mele Hufanga 4. Stacey Waaka 5. Mackenzie Wiki 6. Chantay Kiria-Ratu 7. Raecene McGregor 8. Alexis Tauaneai 9. Georgia Hale 10. Otesa Pule 11. Shaniece Monschau 12. Kaiyah Atai 13. Angelina Teakaraanga-Katoa.

Interchange: 14. Ashleigh Quinlan 15. Annessa Biddle 16. Shannon Mato 17. Ivana Lauitiiti.

Reserves: 18. Brooke Anderson 19. Zahara Temara 20. Brianna Clark 21. Abigail Roache 22. Tenika Willison.

Kiwis:

1. Kalyn Ponga, 2. Jamayne Isaako, 3. Dane Gagai, 4. Casey McLean, 5. Ronaldo Mulitalo, 6. Kodi Nikorima, 7. Jahrome Hughes, 8. James Fisher-Harris (c), 9. Jeremy Marshall-King, 10. Moses Leota, 11. Isaiah Papali’i, 12. Briton Nikora, 13. Joseph Tapine (v/c).

Interchange: 14. Te Maire Martin, 15. Naufahu Whyte, 16. Erin Clark, 17. Xavier Willison.

Reserves: 18. Keano Kini, 19. Phoenix Crossland, 20. Charnze Nicoll-Klokstad, 21. Scott Sorensen, 22. Leo Thompson.

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Opportunities to mitigate multi-million-dollar RNZ budget blowout likely missed – experts

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Multiple opportunities to identify and mitigate a multi-million-dollar budget blowout at RNZ appear have been missed, according to the former executive director at Audit New Zealand.

The public broadcaster on Monday revealed a near $12 million shock financial loss after a litany of financial blunders, which will now lead to sweeping job cuts.

The $11.8m loss is more than 25 times the $470,000 RNZ had expected to lose over the year to June.

CEO Paul Thompson took responsibility for the result, and said internal reports gave an inaccurate picture of the finances, meaning the scale of the loss only became clear in October.

RNZ’s former chief financial officer Hilary Parker resigned unexpectedly in early October.

The board said it would commission an independent review into what went wrong.

Independent contractor Stephen Walker, who left the Audit Office earlier this year, said the size of the loss was surprising, as was the length of time it took to identify it – months after the financial year ended.

Stephen Walker.
Independent contractor Stephen Walker is a former executive director at Audit New Zealand.

Supplied / OAG

“Probably more of a concern is that they had seemingly been unaware that they were running up a significant deficit until they were in the preparation stage of their annual report in October.”

Walker said public entities typically produced monthly financial reports.

An interim audit also took place before the end of the financial year, he said, but if the organisation hadn’t identified significant losses at that stage, the auditor could also be in the dark.

“It seems that there’s a real weakness in forecasting and budgeting that’s occurred here and that the monthly accounts, when they’re produced, either haven’t identified these significant variances against budget or the magnitude of them really hasn’t come to light until right towards the end of the financial year,” Walker said.

“And really at that point, there’s no opportunity for the chief executive, the leadership team to take, and the board to take, any corrective action because the year has effectively been completed.”

Walker said the “significant miss” was difficult to account for given it was more than 10 percent of RNZ’s total funding.

He said based on RNZ’s annual report, financial complexity didn’t appear to be a factor.

“This $11.8m loss isn’t made up of one particular item … it seems to have been contributed to by a number of separate expense lines running over budget. So I don’t think it’s necessarily to do with complexity.”

Among the errors, RNZ wrongly counted $2m from land sales as income in its budget. Staff costs also came in $3.2m over budget, including $1.4m in redundancy payments.

Professor at Auckland University’s business school Norman Wong said based on media reports the issues identified were “significant and troubling”.

Norman Wong.
Norman Wong.

Supplied / University of Auckland

“But recognising the sale of land as income in their budget is a basic error that one would have expected to have been caught and corrected well before it got to this point.”

With funding reductions at RNZ over the past two years, Walker expected greater scrutiny of financial results.

“Virtually every public entity has had their annual budget reduced. And so you would expect … the leadership team on a monthly basis and board – I’m not sure how frequently the board will consider the information – but you would expect them to be interrogating the results on a regular basis throughout the year,” he said.

Walker said initiating an independent review was the correct course of action and that he’d want to understand what information the leadership team and the board were regularly receiving.

He said he’d “love to say” surprising financial results were rare, but conceded they occured on a semi-frequent basis during his time leading the Audit Office.

“The benefit of independent scrutiny by the Audit Office – and the auditors providing that support to the Auditor General – [is] that the reporting is fairly presented at the end of the year, whether it’s good, bad or ugly.”

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