Salesa JennyWorkplace Relations and SafetyCHAIRPERSON (Hon Jenny Salesa): Members we now have the Minister for Workplace Relations and Safety. The Minister is available from 7 p.m. to 7.45 p.m. I call on the Hon Paul Goldsmith. My apologies. The convention is that I usually call on the chair of the committee. I call on Marja Lubeck.MARJA LUBECK (Chairperson of the Education and Workforce Committee): Thank you Madam Chair. I should be faster off my feet. Thank you. It's a pleasure as the chair of the Education and Workforce Committee to take a call in this debate. Our select committee met on 29 June and 5 and 27 July to consider Vote Labour Market. As I said a little bit earlier during this debate we heard from three Ministers responsible for appropriations in Vote Labour Market. We also received advice from the Office of the Auditor-General with regard to Vote Labour Market. Funding from this Vote particularly goes to the Ministry of Business Innovation and Employment (MBIE) WorkSafe New Zealand the Employment Relations Authority the Remuneration Authority and the Equal Employment Opportunities Trust. In 2022-23 the Government is seeking $2.8 billion for Vote Labour Market. This is a 4.83 percent increase from the 2021-2022 estimated actual expenditure of $2.673 billion. The Minister for Workplace Relations and Safety the Hon Michael Wood is responsible for the appropriations of $246.7 million. This is a 5.8 percent increase from the 2021-22 estimated actual expenditure of $233 million. We spoke with the Hon Michael Wood and WorkSafe New Zealand about the 2022-23 appropriations. The Minister addressed the committee on the broader themes and challenges that he's working through in his portfolio. In particular we spoke on the Fair Pay Agreements Bill a bill the select committee is currently considering. We heard from the Minister how he is working hard to ensure that the Fair Pay Agreements Bill will support employers who are raising pay rates by preventing others from undercutting them. The Minister said that employers with higher pay rates are less likely to be affected by fair payment agreements because they are about minimum standards. The Minister described the bill as the Government's biggest legislative priority. He said the bill is aimed at stopping the race to the bottom where employers compete on wages rather than on innovation or by offering better service or products and it does this by establishing minimum terms and conditions for employees. The Minister said that the last two years of the COVID-19 pandemic have really demonstrated to us why fair pay agreements are so important—like we have seen in the public transport sector for example where the operating model has resulted in worse terms and conditions for bus drivers. The Minister said that the case has been built that good minimum standards are needed for our low paid workers such as our security guards supermarket workers and our cleaners. Budget 2021 gave MBIE and the Employment Relations Authority $3.7 million over five years to deliver the fair pay agreements system. Budget 2022 supplements this with two appropriations over four years totalling $21.5 million. On minimum legal entitlements and the Labour Inspectorate we heard that the Minister is open to increasing the number of labour inspectors in future so that we have more accessibility and availability for complainants. However the Minister said he would prefer people are well informed in the first place about their rights so that they don't have to make complaints. We asked how the Budget will support WorkSafe to continue to respond to COVID-19 and the Minister responded: WorkSafe will receive $7.7 million in operational funding and $700000 in capital funding to enforce workplace requirements under the COVID-19 Public Health Response Act 2020. Through a newly established COVID-19 inspectorate WorkSafe is able to closely examine whether workplaces are providing appropriate COVID-19 support. This dedicated inspectorate will prevent resources being diverted from WorkSafe's other health and safety work.This is the largest appropriation in the workplace relations and safety portfolio. Health and safety was increased by $8.3 million to $140.3 million which is 58 percent of the total vote. WorkSafe spoke to the committee about the systemic changes that are needed to improve health and safety outcomes. They've commented on the power imbalance between employers and employees. People get injured if a worker is scared to speak up about risks or hazards. Employers are encouraged to create workplace environments where workers participate in running the business as well as this will improve health and safety and productivity. On the preventative approach the Minister said that while enforcement is important a significant part of WorkSafe's focus is preventing workplace deaths and injuries by embedding good culture and practice.I finish by thanking the Minister for his time in addressing the committee. Thank you.