Managing in a Changeable Operating Environment
the department of internal affairs statement of intent 2009-12
Part three - Managing the Department
In this section:
As a multi-purpose department, the timely recognition and effective management of any potential risks that might arise from either the external or internal operating environments are critical for the Department to successfully deliver on its broad-ranging set of outputs, work programmes and outcomes.
The Department’s approach to risk
Risk arises from uncertainty. Risk is the potential for an event to occur that could have an impact on the objectives of the Department and, as a result, on the outcomes expected to be achieved for its stakeholders.
The Department views and considers “risk” at a strategic level, at a project/ programme/ portfolio level, and at a business operations level.
The Department operates a set of risk management practices and methodologies that are applied across the Department within a number of management and planning processes. These risk management processes are designed to provide the managers and senior management with a sufficiently comprehensive and timely identification and evaluation of any significant risks to the objectives and outcomes of the Department.
The strategic planning process
The strategic planning processes require each business area to consider their current sector, stakeholder and operating environments. From these, an understanding of the external risk environment is derived for each business area and for the Department as a whole.
This enables us to identify current opportunities and develop strategic initiatives and key business programmes of work.
By then analysing critical business resource and financial management requirements, dependencies and assumptions, the Department is able to identify, early on, any potential risk in its current capability and capacity to deliver. Specific mitigations can then be developed to manage any uncertainty.
The Executive Leadership Team has scheduled four strategic planning sessions across the year to review and refresh past assumptions and evaluations of the external operating context and associated risks. In this way, the Department aims to continually re-evaluate the potential for any adverse external event to impact on the Department’s strategic priorities and objectives.
Monitoring projects
All of the Department’s key projects and programmes are monitored through formal, standardised reporting processes. Potential risks relating to the non-delivery of a project or programme are continually tracked by tools that require progress against expected or forecast positions to be detailed. Any project or programme shown to be at risk is escalated for more detailed scrutiny and deliberation. Mitigation and management of any potential adverse impacts are made in real time, and are themselves tracked and monitored.
Alongside its set of key strategic initiatives and programmes, the Department must also deliver its business-as-usual set of services and outputs across a number of Votes.
As with the key strategic and business projects, these departmental outputs and Statement of Service Performance measures are tracked through standard and formal reporting requirements. All business groups must provide current progress against expected targets and milestones at monthly intervals. Any at-risk target or project requires an explanation and corrective strategy to be identified for review by the Executive Leadership Team.
Internal risk
For any organisation, there is the potential for uncertainty and therefore risk to arise from within its operations and business processes. Business groups are required to give consideration to the potential for any risk to arise from the following generic sources: governance processes, general management, finance, property, contract management, human resources, technology, and service delivery processes, as well as from the current external environment. Risks arising from these areas have the potential to adversely impact on a business group’s capability or capacity to deliver on its work programmes.
Business groups maintain risk registers, which must be reviewed and reassessed regularly by senior management. Risks that have a significant potential impact are reported to the executive management, who can provide a departmental perspective and consideration as to the adequacy of current risk mitigation and management strategies.
The Department has a Project Office, an Internal Audit function, and an independently chaired Audit Committee to augment and support the governance activities of the Department’s Executive Leadership Team. These are positioned within the management and reporting structures so that key performance and risk information is continually and effectively monitored. They provide the Chief Executive and the Executive Leadership Team with an additional level of consideration and evaluation as to the appropriateness and effectiveness of risk mitigation decisions and actions.
2009–12: The Department’s risk profile
Through the aforementioned processes, the Department has undertaken an environmental scan and identified some emerging trends that may affect our work. The most significant issue is the contracting economy and, as noted in the outcome sections, this will challenge the Department to continue to manage its services in an efficient and effective manner. Changing demographics and improving technology may also impact what, and how, we deliver our services. There will be an increased focus on responding to New Zealand’s increasingly diverse communities and using information and communications technology innovations, where appropriate, to provide outstanding service. The detailed implications of these high-level trends are outlined in the outcome sections and on pages 9–12.
In light of these trends and the Department’s operational context, the following table summarises key risks for the organisation.
KEY RISKS FOR THE DEPARTMENT |
MITIGATION |
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Assessing Organisational Health and Capability
We aim to be a high-performing, trusted organisation working as one to maximise our outcome contribution for citizens, communities and government. Our focus is on ensuring the organisation has the capability to achieve outcomes and deliver critical services to Ministers and the public.
Continuous capability development is a basic responsibility for any department. The Development Goals for the State Services, updated by the State Services Commission (SSC) in November 2007, aim to create a world-class professional State service for New Zealand. They emphasise a culture of continuous learning, with organisations using technology to deliver coordinated, accessible and networked services for New Zealanders and value for money.
The Department has been pursuing a strategy of “one organisation”, where the whole is more than the sum of the parts. The strategic direction developed by the Department’s senior managers recognises that we can provide much more effective service if we operate as one organisation rather than as a collection of independent functions. We are also mindful of the context in which we are operating, specifically the economic environment, and the need to ensure that efficiency is a key focus in our decision-making around capability.
By operating as one organisation we can make more efficient use of our resources, take actions based on a broader and richer understanding of stakeholders’ interests, and deliver services designed around stakeholder needs, not functions and portfolios. Much of our existing capability development is directed towards achieving our aspiration to be one organisation, trusted and respected by stakeholders for high performance.
Managing organisational change
The Department continues to take on new areas of responsibility as required by government.
On 1 July 2009, the Department will take over responsibility from the State Services Commission (SSC) for the Government Technology Services (GTS). A change management process is in place and SSC and the Department are working together to ensure a smooth transition. Although the transfer only involves approximately 70 staff, GTS provides a number of elements of key importance across government IT infrastructure and accordingly a transfer has to be managed carefully. The Department has been required to find accommodation for GTS staff transferring. A cost-effective solution is being implemented with no additional space required to be leased as existing space capacity is utilised through a reshuffling of work teams.
The organisational design for integrating the Government Technology Services (GTS) into the Department is based on a Day One structure, which will establish an Information and Technologies Group. This brings together our IT Group, Programme Office and the GTS, forming a ninth DIA business group. A set of design principles for integration has been developed. Once the transfer has taken place it is expected that further integration, based on the design principles, will occur from 2009/10 onwards.
The Department has continued with a number of organisational change initiatives during 2008/09 which will require ongoing implementation and ‘bedding in’ to ensure benefits are realised. Initiatives include:
- Following the transfer of Local Government Services from our Regulation and Compliance Branch to the Local Government and Community Branch (LG&C), a review was commenced to ensure that all local government functions and activities within LG&C are organised to optimise our current and future leadership roles in local government. This review is currently on hold pending the clarification of the Government’s priorities for local government.
- An independent review of the functions of the Office of the Chief Executive (OCE) is underway. The purpose of this review is to ensure OCE continues to meet current and future organisation needs. It is expected that implementation of any recommendations arising from the findings will be undertaken in 2009/10.
Developing our people
Our People Strategy is key to the recruitment, retention and development of the people we need to deliver on our outcomes and strategic objectives. It will also help us contribute to the Development Goals for the State Services (an employer of choice with excellent state servants).
During 2008/09, we have been developing a new People Strategy, which is designed to align with the needs and priorities of the organisation and government. We need to be responsive to changes in the operating environment such as taking on significant new functions and responding to an increasingly challenging economic context.
The new People Strategy will have as its focus:
- recruitment
- engagement of staff
- development of staff
- management of change
- productivity
- leadership development
- diversity management.
Building a “one organisation” culture
Staff engagement is a key measure for the organisation. In 2007, we undertook a staff engagement survey and have used this information to better understand the levels of engagement of the Department’s staff. The first survey effectively provided a baseline of information. The survey was repeated in March 2009. It is expected that the information from this will be used to develop action plans at the team level to implement further improvements.
We expect our managers to be actively promoting our workplace principles and building understanding and commitment within their teams for a “one organisation” culture and the outcomes the Department is seeking to achieve. Staff are reminded of the workplace principles and the “one organisation” message through induction, through planning and reporting documents and through communication of achievements across the Department.
During 2008/09, work has been underway to improve the Department’s strategic planning and governance by developing better integrated planning and reporting. This ongoing work supports the “one organisation” culture as well as improving the efficiency of the Department’s processes.
Workplace principles
Developing leaders
To provide outstanding service and policy advice we need leaders who are capable managers and strategic thinkers, able to inspire their people to achieve desired outcomes. The Department will continue to invest time and resources to develop a pool of people with the leadership/management competencies required now and in the future.
Our management and leadership development framework is designed to better target development initiatives for managers and prospective managers. We have reviewed the framework to ensure it continues to reflect the leadership areas of the organisation and the leadership traits required to be a highly effective leader in the Department.
Regular Managers’ Forums provide an opportunity for senior managers to gain a better understanding of the Department’s purpose and direction and build senior manager capability. From 2009, these will take place twice a year. The number of forums per year has been reduced to two (from four) as a means of reducing costs. The Executive Leadership Team Strategic Management meetings will continue to be held on a quarterly basis with a focus on renewing the Department’s strategic direction and monitoring organisational performance.
Building our people capability
The Department needs to continue to build the capability of staff to successfully deliver our services and policy advice. We must ensure we have a diverse range of people with the competencies to successfully undertake their current roles, and prepare them for future roles within the Department and the wider State services. The Department has an established competency framework that is used during recruitment, for performance agreements, performance management, and as a basis for development.
As an organisation, we are focused on delivery and want to ensure our staffing composition reflects this. Key measures we monitor are turnover and average length of service, which help us to assess how successful we are in retaining the staff we need. Since 2007/08, we have collected additional information on reasons for people leaving, which is increasingly being used to inform the Department’s recruitment and training and development plans.
We have implemented a post-induction survey to establish the quality of staff and manager induction and have put in place staff and manager guidelines and templates.
The Department signed off on a mature employment strategy in early 2009. This strategy looks at ways to better retain and attract skilled, mature workers through initiatives targeted at mature workers.
We are continuing to provide learning and development opportunities for our staff and to pursue a Department-wide training and development strategy. The Department will be developing a talent management strategy to identify high-potential future leaders across the Department and put in place individualised talent development programmes for them.
Creating a high-performing, inclusive work environment
Our aim is to provide a work environment that attracts the capability needed, that supports people to contribute their best, and that recognises and makes best use of a diverse range of skills, knowledge and talents. Achieving this means focusing not just on leaders and staff individually but also on the broader work environment.
With a tighter labour market, there is likely to be less staff movement. In this environment engaging and motivating staff will be critical. The Department will be using the engagement survey results to identify opportunities to improve productivity.
The Department’s Collective Agreement was settled in late 2008, implementing the common leave provision for the public service.
A recruitment agency request for proposal process was completed in March 2009 with the number of agencies the Department will work with on a panel basis reduced from 40 plus to 10 with potential savings secured.
The Department launched the employee health check in late 2008. Useful feedback was provided to individual employees as to their overall health, enabling them to improve their attendance and productivity.
We continue to work with managers and staff to improve understanding of State sector standards of integrity and conduct and the Department’s Code of Conduct.
As part of being a good employer we continue to promote diversity and equal employment opportunities (EEO) and support the policy for the Equality and Diversity public service, which took effect in April 2008. Our Diversity/EEO Plan to 2010 aims to increase and support a diverse workforce so that we can meet the needs of the people we serve. Since May 2006, we have also been providing training in intercultural awareness to support our work with ethnic communities. We have reviewed our approach to setting EEO targets to be consistent with the outcome of the review undertaken by the SSC. We have disestablished targets but continue to monitor EEO numbers for staff and senior management. We continue to support five EEO network groups.
The Department of Internal Affairs’ Effectiveness for Mäori Plan has been reviewed and an updated strategy for 2009–12 developed. The Effectiveness for Mäori Plan identifies, as a priority, building our staff capability in te reo, tikanga and Treaty of Waitangi, as they are relevant to job requirements.
The Department continues to invest in health and safety. A key measure of our success is maintaining tertiary status in ACC’s Workplace Safety Management Practices Programme. The Department will be audited for tertiary status again in May 2009. Maintaining tertiary status is part of being a good employer, but also brings cost savings for the Department through lower ACC premiums.
Enhancing our information and communications technology capability
Information and communications technology (ICT) is integral to the Department’s strategic capability and operations. We now have a centralised model for the management of ICT which is intended to reduce fragmentation, make better use of resources, improve skill levels and overall critical mass, and help create a stronger and more resilient Department. A key performance measure is business group satisfaction with service delivery.
Centralising ICT resources also provides an opportunity to rationalise and consolidate the Department’s infrastructure into a consistent model. The Strategy and Architecture Team has been established and work is underway on replacing the 2005 IT Strategy for the Department with a new IT Strategic Plan. This is intended to provide a framework for guidance on appropriate IT investment decisions. An Enterprise Architecture framework is also being developed to align the Department’s IT delivery with the strategic goals outlined in the IT Strategy.
The aim is to move progressively to a consistent architecture in which the technology, information and process management principles allow fast reaction to business change requirements, without imposing maintenance overheads that reduce resources available for delivery. This approach will enable us to make better use of technology to transform the provision of services for New Zealanders.
Establishment of enterprise architecture and consolidation of ICT resources, including GTS, into a single group will enable the Department’s Executive Leadership Team to take a broad view of requirements across the organisation, with a more accurate assessment of resources and the potential impacts of change. Enterprise architecture is closely aligned with asset management, as it informs decisions for investment, allowing the Department to get the best return from its ICT assets. This reflects the Department’s increasing focus on value for money.
The Department will remain focused on delivering core services and this will need to be balanced with business-driven need for change and the associated considerations regarding available resources and the ability of the organisation as a whole to manage change.
Implementing our property strategy
We are continuing to implement a medium-term property strategy that supports our vision of “one organisation” and will provide us with accommodation options to meet our current and anticipated business needs. This will improve the efficiency and effectiveness of our property portfolio and make sure it is meeting the changing needs of the organisation.
The recent decision on accommodation arrangements for GTS staff transferring to the Department was consistent with the property strategy as well as being a cost-effective solution. During 2009/10, we will continue to undertake planning of the Department’s Wellington accommodation in accordance with the property strategy.
Financial management
Overview
Departmental expenditure is forecast to decrease from $250.208 million in 2009/10 to $241.186 million in 2012/13. Revenue is from both Crown funding and third-party funded services. Revenue from third parties is forecast to increase from 51% to 62% of total revenue, due principally to forecast increases in applications for passports offset by decreases in Crown-funded expenditure on Government Technology Services and Implementation of Auckland Governance Reforms.
Non-departmental expenditure managed by the Department varies between $120.003 million in 2009/10 and $126.299 million in 2012/13, with the increase in expenditure due to higher levels of claims under the Rates Rebate Scheme. These appropriations mainly fund grants schemes, expenses for past and present Executive Council and Members of the Executive, and the Rates Rebate Scheme.
The Department operates memorandum accounts[14] to assist in managing fees for the larger third party-funded activities, in particular where these fees are established through regulations. Other fees are charged for services that are not regulated through specific statute. The majority of fees are generated for passport production, with a significant increase in the volumes predicted over the next five years as a result of the validity period of passports being reduced from 10 years to five years.
The Department has the following memorandum accounts:
- identity service products, principally passports, citizenship, birth, death and relationship certifications and other products
- administration of non-casino gaming
- the New Zealand Gazette
- the use of facilities and access to Lake Taupo by boat users.
Capital management
The average capital expenditure over the past three years has been approximately $10 million per year, however, capital investment is forecast to increase significantly over the next five years. The ability of the Department to implement the capital plan is dependent upon the availability of adequate project management and technical capability.
Overall the Department is aiming at maintaining the capital asset base in order to meet the outcomes of delivering quality services and advice to stakeholders. Forecast capital expenditure for the Department of Internal Affairs over the period 2009/10 to 2013/14 is shown in the table over.
The Department has commenced implementation of major infrastructural asset projects, including the replacement of the passports processing and recording system, an Emergency Management Information System, and ongoing development of an all-of-government identity verification system initiated by Government Technology Services. These projects are forecast to be largely completed in 2010/11.
Property, Plant and Equipment covers expenditure on computer hardware associated with the infrastructural asset projects, and the VIP Transport vehicle fleet programme.
Expenditure on Other assets covers office fit outs and associated furnishing.
The following measures are used by the Department to monitor its financial management.
Operating Expenditure |
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Expenditure variance (excluding demand-driven third party expenditure) is: |
Within 5% of budget |
Working Capital |
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Liquid Ratio |
1.00:1 |
Current Ratio |
1.20:1 |
Average Debtors Outstanding |
10 days |
Average Creditors Outstanding |
25 days |
Resource Utilisation |
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Occupancy Rate (m² per FTE) |
20m² |
Investment in assets is: |
Equal to or greater than depreciation over a five-year period |
Forecast capital investment |
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Category |
2009/10 $ million |
2010/11 $ million |
2011/12 $ million |
2012/13 $ million |
2013/14 $ million |
Intangibles |
25.423 |
21.507 |
9.248 |
10.972 |
12.478 |
Property, Plant and Equipment |
9.043 |
1.628 |
3.954 |
3.792 |
2.300 |
Other |
1.112 |
1.329 |
2.974 |
1.467 |
1.531 |
Total |
35.578 |
24.464 |
16.176 |
16.231 |
16.309 |
Improving financial management and value for money
The Department already has work underway to develop more integrated planning and budgeting processes, which are designed to encourage improved resource planning over the medium term. Looking ahead, a key focus will be on improved capital planning and asset management.
Our preliminary thinking is that in 2009/10 we will begin work on a potential upgrade and development of the Financial Management Information System (FMIS). This is to address the system’s current limitations and meet the need for additional tools to assist in forecasting and modelling, project accounting, reporting and capital planning, and asset management.
We have also established a ‘Value for Money’ team to increase productivity and efficiency across the Department. Essentially the team will be working to ensure that, within the Department, high productivity, efficiency and delivering value for money are seen as a way of life – not a short-term cost-cutting exercise. We will be encouraging staff to contribute their cost and time-saving ideas, be innovative and find ways to do more with less.
[14] Memorandum accounts are notional accounts to record the accumulated actual surpluses and deficits of particular activities with the objective of breaking even over the medium to long term.
Legislation We Administer
As at 31 March 2009, the following is a list of legislation we administer, classified by Vote.
Internal Affairs
Births, Deaths, Marriages and Relationships Act 1995 |
Births, Deaths, Marriages and Relationships (Fees) Regulations 1995 |
Births, Deaths, Marriages and Relationships (Prescribed Information and Forms) Regulations 1995 |
Births, Deaths, Marriages and Relationships (Non-Disclosure Direction) Regulations 2008 |
Boxing and Wrestling Act 1981 |
Citizenship Act 1977 |
Citizenship Regulations 2002 |
Citizenship (Western Samoa) Act 1982 |
Civil Union (Prescribed Information, Fees, and Forms) Regulations 2005* |
Commissions of Inquiry Act 1908 |
Commonwealth Games Symbol Protection Act 1974 |
Fire Safety and Evacuation of Buildings Regulations 2006 |
Fire Service Act 1975 |
Fire Service Levy Order 1993 |
Fire Service Regulations 2003 |
Forest and Rural Fires Act 1977 |
Forest and Rural Fires Regulations 2005 |
Gambling Act 2003 |
Gambling (Class 4 Banking) Regulations 2006 |
Gambling (Class 4 Net Proceeds) Regulations 2004 |
Gambling (Fees) Regulations 2007 |
Gambling (Forms) Regulations 2004 |
Gambling (Harm Prevention and Minimisation) Regulations 2004 |
Gambling (Infringement Notices) Regulations 2004 |
Gambling (Licensed Promoters) Regulations 2005 |
Gambling (Problem Gambling Levy) Regulations 2007 |
Gambling (Prohibited Property) Regulations 2005 |
Human Assisted Reproductive Technology (Fees) Regulations 2005* |
Marriage (Fees) Regulations 1995* |
Marriage (Forms) Regulations 1995* |
New Zealand Daylight Time Order 2007 |
New Zealand Fire Brigades Long Service and Good Conduct Medal (1981) (Royal Warrant) |
Official Appointments and Documents Act 1919 |
Passport (Fees) Regulations 1996 |
Passports Act 1992 |
Queen’s Fire Service Medal Regulations 1955 (Royal Warrant) |
Royal Titles Act 1974 |
Rural Fire Fighting Fund Regulations 1992 |
Seal of New Zealand Act 1977 |
Seal of New Zealand Proclamation 1977 |
Time Act 1974 |
Emergency Management
Civil Defence Emergency Management Act 2002 |
Civil Defence Emergency Management Regulations 2003 |
National Civil Defence Emergency Management Plan Order 2005 |
Local Government
Bylaws Act 1910 |
Bylaws Regulations 1968 |
Chatham Islands Council Act 1995 |
Counties Insurance Empowering Act 1941 |
Dog Control Act 1996 |
Dog Control (Microchip Transponder) Regulations 2005 |
Dog Control (National Dog Control Information Database Levy) Order 2006 |
Dog Control (Prescribed Forms) Regulations 1996 |
Impounding Act 1955 |
Impounding Regulations 1981 |
Lake Taupo (Crown Facilities, Permits and Fees) Regulations 2004 |
Land Drainage Act 1908 |
Libraries and Mechanics’ Institutes Act 1908 |
Litter Act 1979 |
Local Authorities (Members’ Interests) Act 1968 |
Local Authority Reorganisation (Property Transfers) Act 1990 |
Local Electoral Act 2001 |
Local Electoral Regulations 2001 |
Local Government Act 1974 |
Local Government Act 2002 |
Local Government (Infringement Fees for Offences: Navigation Safety Bylaws) Regulations (Various) 2002–2008 |
Local Government (Auckland Regional Parks) Order 2008 |
Local Government Official Information and Meetings Act 1987 |
Local Government (Rating) Act 2002 |
Local Government (Watercare Services Limited) Order 2007 |
Local Legislation Acts 1926–1992 |
Municipal Insurance Act 1960 |
Public Authorities (Party Wall) Empowering Act 1919 |
Public Bodies Contracts Act 1959 |
Public Bodies Leases Act 1969 |
Rangitaiki Land Drainage Act 1956 |
Rates Rebate Act 1973 |
Rates Rebates Order 2006 |
Rates Rebates (Specified Amounts) Order 2008 |
Rating (Fees) Regulations 1997 |
River Boards Act 1908 |
Waimakariri-Ashley Water Supply Act 1961 |
Community and Voluntary Sector
Charities Act 2005 |
Charities (Fees, Forms, and Other Matters) Regulations 2006 |
Community Trusts Act 1999 |
Community Trusts (Fees) Regulations 2000 |
Trustee Banks Restructuring Act Repeal Act 1999 |
Winston Churchill Memorial Trust Act 1965 |
Racing
Racing Act 2003 |
Racing (Harm Prevention and Minimisation) Regulations 2004 |
Ministerial Services
Executive Travel, Accommodation, Attendance, and Communications Services Determination 2003** |
* Regulations made under legislation administered by the Ministry of Justice.
** Regulations made under legislation administered by the Department of the Prime Minister and Cabinet.
Online Information
The Department of Internal Affairs’ websites: |
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Departmental Websites |
Main corporate website |
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Anti-spam information and spam complaints |
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Births, Deaths and Marriages information |
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Access to birth, death and marriage historical records |
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Grants Online website – for online Community Organisation Grants scheme and Lottery Grants applications |
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Censorship information |
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Citizenship information |
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Ministry of Civil Defence and Emergency Management information and services |
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Local Government and Community Branch information |
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Apostille Certification information |
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Document Authentication information |
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Information about the Electronic Monitoring System for gaming machine societies |
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Office of Ethnic Affairs information and services |
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New Zealand Gazette information |
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Identity services transactional website |
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Information about Language Line – an interpreting service |
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Directory of central government agencies, to help local authorities make contact for community outcomes processes |
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Information to support central and local government in achieving community outcomes |
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Passports information |
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Information about the Rates Rebate Scheme |
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Translation Service information |
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Official website of the Government of New Zealand |
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Public Information Websites |
CommunityNet Aotearoa – an Internet resource to support communities |
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Public safety information about dogs |
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Get Ready, Get Thru – civil defence public information website |
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New Zealand government logon and identity management service |
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Access to all New Zealand central and local government information and services |
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Public Service Directory |
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Single transferable voting information website |
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Information about the New Zealand Government Web Standards |
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Civil defence public information for young people |
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Independent Agency Websites |
Ministerial Review into Allegations of Abuse at the Regular Force Cadet School |
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Commission of Inquiry into Police Conduct |
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Confidential Forum for Former In-Patients of Psychiatric Hospitals |
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New Zealand Gambling Commission |
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Local Government Commission |
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Confidential Listening and Assistance Service |
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Local Government Rates Inquiry |
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Royal Commission on Auckland Governance |
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Urban Search and Rescue information for emergency sector groups |
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Joint Working Group on Concerns of Viet Nam Veterans |