Capability

In achieving successful delivery of outputs and making the appropriate contribution to departmental and shared outcomes, the Department has developed its people and infrastructure. This investment in improved capability was appropriately prioritised and underpinned by clear linkages to results.

Output Pricing Review

A departmental output pricing review, conducted in conjunction with central agencies in 2002/03, concluded the Department was facing significant funding issues primarily because of the accumulated impact of unfunded and volume pressures. The result was that the Department’s output delivery was being adversely affected and its capability and capacity diminished.

The Government provided additional funding for the Department to restore and maintain capability progressively from 2003/04. This has enabled the Department to plan delivery against successive Statements of Intent with assurance and to begin to rebuild its capability and capacity to deliver effective service. The review identified, however, the possibility of future consideration of some information technology and asset and property issues.

The review enables the Department to:

• provide additional resources for the Psychological Service ($1.076 million)
• support the work of the New Zealand Parole Board ($0.889 million)
• enhance the investment in training and development for staff and managers ($8.665 million)
• increase the number of Probation Officers, together with improved training programmes for them ($9.100 million)
• develop risk assessment procedures for prisoners ($0.775 million)
• carry out additional property maintenance ($2.605 million)
• provide ongoing support for the information technology platform and infrastructure ($8.570 million)
• improve health services for prisoners ($4.531 million).

The figures above are GST exclusive and represent permanent increases in funding from 2006/07 onwards per annum. In agreeing to proceed, the Government also decided that a review of the effectiveness of the funding provided would be undertaken from 2005 onwards.

Funding 2004/05

In addition to the output pricing review commitments, the following funding was made available as part of the 2004 Budget:

• construction of new corrections facilities in Auckland, Waikato and Otago
• increases in the number of New Zealand Parole Board hearings and home detention orders
• assuming responsibility for the Auckland Central Remand Prison
• enhancing security measures that reduce the supply of drugs into prisons
• continuation of reintegrative support services including the contract with the New Zealand Prisoners’ Aid and Rehabilitation Society and contributing to the costs of volunteer organisations and volunteers
• implementation of extended supervision orders for serious child-sex offenders on their release from prison.

Funding Outlook for 2005/06

The following funding has been made available as part of the 2005 Budget decisions:

• operating costs associated with the Auckland Region Women’s Corrections Facility
• capital funding for the completion of construction, commissioning fit-out and ongoing operating costs for the Spring Hill Corrections Facility and the construction costs associated with the Otago Region Corrections Facility
• funding for an increased number of reports to the New Zealand Parole Board
• funding to maintain the increased number of New Zealand Parole Board hearings
• expansion of services to assist prisoners to reintegrate successfully back into the community
• funding for demand driven costs associated with unexpected prisoner levels, including capital funding for additional accommodation at existing prison sites
• funding for monitoring of prisoners’ telephone calls and to increase crime prevention information capability.

Supporting the Strategic Business Plan, the Department has developed four operational strategies. These strategies provide an approach for the four capability areas outlined below.

Facilities and Infrastructure

The Department’s physical infrastructure, and the management systems required to operate it, has been subject to change and expansion since 1995.

The growth in the prison population in recent years, in excess of forecast trends, has necessitated an expansion in new prison facilities and infrastructure, as well as addressing the capacity of some existing prisons and developing options to meet prison demand post-2008.

During the past year, the most important infrastructure issue for the Department was applying the regional prisons policy in a consistent manner and in managing the pressures generated by increased numbers of prisoners. Planning for this involved the commissioning of new facilities and the maintenance and improvement of existing facilities to ensure that they complemented the regional prisons policy. Maintenance issues included energy efficiency and compliance with occupational safety and health requirements.

The Facilities and Infrastructure Operational Strategy 2003–2008 involves activity in the following key areas:

• implementation of the Regional Prisons Development Project
• economical management of the maintenance of existing facilities and other assets
• ensuring facilities and infrastructure (application of new technology) support the effective management of offenders and facilitate rehabilitation
• developing positive relationships with communities.

The first of four new corrections facilities, the 350-bed Northland Region Corrections Facility at Ngawha, near Kaikohe, was officially opened in March 2005, and is planned to be operating at full capacity in the second quarter of 2005/06. During the year, construction commenced on the other three new corrections facilities. The 650-bed Spring Hill Corrections Facility is under construction at a site between Meremere and Te Kauwhata and is scheduled to open in 2007. Construction commenced on the Auckland Region Women’s Corrections Facility, a comprehensive 286-bed prison in Manukau City planned to be opened in 2006. The Department also started construction of a 335-bed facility in Otago. The site for the Otago Region Corrections Facility is at Milburn, south of Dunedin and this facility is scheduled to receive prisoners in mid-2007.

Construction of 493 new beds at existing prison sites began in 2004/05 and will continue in 2005/06. This will see the addition of new accommodation at a number of sites, as well as the modification of infrastructure and facilities. The Department also worked on design options associated with consideration of the future of Mt Eden Prison.

The Department has made a concerted effort over the last seven years to improve the overall state of its property portfolio. Accordingly, capital was received to refurbish buildings to meet health and safety standards and provide a sustainable working environment. At the same time, the prison portfolio has been expanding by an average of 220 beds per year and work is in hand to provide for predicted custodial requirements to 2008. The Department has addressed critical building work, principally compliance with health and safety legislation. Funding for deferred maintenance has been provided through to the end of 2005/06 and is prioritised to achieve legislative compliance and meet health and safety standards. Major refurbishment projects at Wanganui, Manawatu, Arohata, Rimutaka and Christchurch prisons have been substantially completed, although the remainder of this work will extend into 2005/06. Deferred maintenance funding has also enabled extensive  modifications at Invercargill, Hawke’s Bay, Christchurch Women’s and Auckland prisons. Work on these sites has been commissioned and will be completed by the end of 2005/06.

A security review completed in 2004/05 resulted in seven prison sites receiving major improvements to perimeter fencing. These sites were also upgraded with metal detectors and improved security camera coverage. A complete reissue of radio communication equipment was also achieved along with many other recommended smallscale improvements.

There has been an ongoing rationalisation of property for Probation and Offender Services. This has involved the co-location of services and the construction of larger combined facilities in the property portfolio owned by the Department. The future direction is for more co-location and responding to changing property needs.

During the year, Corrections Inmate Employment invested in expanding productive capacity in both land-based and manufacturing enterprises. This involved developing large-scale livestock enterprises at several sites, and developing or refurbishing facilities to accommodate prisoner employment activities that operate in as commercial a manner as possible. Corrections Inmate Employment also invested funds to replace kitchen and laundry equipment for providing internal services more efficiently, and for initiatives to centralise kitchen and laundry services.

Information Technology

Information technology (IT) strategies have been progressively developed, since the Department’s inception in 1995, to provide the key business systems needed to manage a large organisation. Standard IT systems were established, as well as a national system for offender management. These strategies focused on developing appropriate infrastructure and systems for the Department.

The Information Technology Strategy 2003–2008 aims to:

• consolidate the existing infrastructure, operational and basic managerial systems
• continue, and strengthen, the management and cost-effective delivery of systems
• continue the evolution of the offender management system to support developing offender management business processes
• design better managerial processes and business decision making, based on quality information from the base business information systems and the data they contain, to support the growth of a knowledge-based management organisation
• maintain and improve current operational systems and ensure they continue to add value
• increase user satisfaction with the delivery of IT services
• continue the proven practices that exist and underpin the delivery of all IT support.

The Department has built an IT service appropriate to its size and business needs.

The Integrated Offender Management System (IOMS) was implemented in 1999 and today it is used by most operational staff on a daily basis. Major rollouts have progressively delivered functionality, initially for day-to-day offender management and then followed by sentence planning and management, and management of rehabilitative programmes. Development was affected by the introduction of the Sentencing Act 2002 and Parole Act 2002, which required extensive changes to IOMS.

A major review of IOMS and its relevance to the operations of the Department was completed in 2003/04. The review confirmed the effectiveness of the system and identified the ongoing development requirements for the next eight years. Development of a data warehouse began in 2003/04 and has continued to meet demand for management information.

Major IT initiatives undertaken during 2004/05 included:

• continued development of the Department’s data warehouse
• implementation of new systems, including the provision of kiosks, to make information more readily available to prisoners
• development of an electronic document and record management system
• implementation of system enhancements following the IOMS review
• development of the Department’s enterprise architecture.

Human Resources Management

Early human resources development assisted the Department through its establishment phase by focusing on putting in place basic policies, procedures and systems and then supporting the changes required by the development and implementation of a new approach to managing offenders.

The Human Resources Operational Strategy 2003–2008 is intended to support the Department’s outcomes by building on its existing culture and capability through key initiatives grouped under the following themes:

Alignment of Organisational Culture

• more clearly define the desired organisational culture with which to align human resources policy and practice
• evolve a leadership style supporting the organisation’s emerging stage of development
• influence the organisational culture to match more closely that required to support the organisational direction, and the values and ethics of the Department and the public service
• improve relationships between management, employees and their representatives
• develop the work environment to be increasingly safe and healthy for employees and visitors, the public and offenders.

Responsiveness to Maori and Diversity

• increase the number and proportion of Maori and Pacific staff in management and key roles, especially those dealing with Maori and Pacific offenders
• increase awareness of all staff about: Maori and Pacific cultures; women; youth; those with disabilities and health problems; and other groups represented within the offender population
• recognise and value the specific contributions that Maori and Pacific peoples, male and female staff are able to make towards organisational responsiveness within the Department
• identify and eliminate barriers to Maori and Pacific peoples and female staff progressing into senior roles and positions of influence
• recent responsiveness initiatives include implementation of a Te Reo Strategy, responsiveness training for staff, development of a responsiveness training module for managers and consideration of a Maori name for the Department.

Enhancement of People Capability and Capacity

• develop manager and staff capacity in readiness for opening of new prisons
• focus on developing manager competence
• build management and staff capability for the future
• focus on specific recruitment and retention issues
• provide more effective support for managers
• assist managers to develop the competence of frontline and support staff.

An Effective Human Resources Framework

• develop and continuously improve the human resources framework within the Department
• develop the human resources information systems
• support managers and staff to align their actual practice with required policy and desired practice.

The Department now has robust human resources policies and practices. Further work is required to integrate the management development component into a single departmentwide framework, linked with wider public service initiatives. Additional work is also required to address recruitment and retention issues, especially those associated with the commissioning of new prison facilities. The Department has also made progress on identifying what it needs to do to be more responsive to Maori, Pacific peoples and other groups. A number of initiatives have been piloted for wider implementation. While progress has been made, it will take some time for the current initiatives to produce results in terms of increased representation of Maori and Pacific staff in key roles across the Department.

Central to the development of desired organisational culture has been the Department’s focus on its Values Statement: PRIDE, which stands for Professionalism, Responsiveness, Integrity, Diversity, Effectiveness and Efficiency. The PRIDE values have been reinforced throughout the Department, and through the recently developed award scheme, PRIDE in Corrections – a Chief Executive Award, which recognises and rewards staff who demonstrates the Department’s PRIDE values. The scheme will be implemented during 2005/06 along with other initiatives aimed at embedding values and shaping desired culture throughout the Department.

In 2003, the Department achieved primary status in the ACC Partnership Programme and has maintained this status through successive annual audits. The Department has successfully implemented a system for employee representation and provides ongoing training for its elected representatives and staff serving on health and safety committees. Significantly, the frequency and severity of injuries continue to fall and the Department is committed to further consolidation and reinforcement of the systems and processes implemented to date.

As part of the Department’s commitment to manager development (the Management at Corrections initiatives programme), four training modules were developed in 2004/05. These modules will be progressively implemented in 2005/06 along with the development of further core products and greater linkages to the opportunities provided by existing public service development programmes.

Other key human resources initiatives progressed during 2004/05 included:

• development of a new three-year National Health and Safety Strategy
• continued development of the Department’s Human Resources Performance Monitoring Framework
• development of the new Te Reo Strategy
• continued delivery of the Department’s Future Leaders and Career Workshops programmes
• continuation of the Probation and Offender Services management capability project
• implementation of ‘core’ training for Corrections Inmate Employment instructors
• assessment of a range of initiatives targeting recruitment of staff into the Department
• the introduction of a new scheme to recognise long service.
• development of the Probation Officer curriculum.

Communications

Earlier communications strategies focused on supporting the organisation through a period of sustained change and resulted in:

• the Department developing a robust corporate identity
• the development of policies and systems to support the proactive management of external and internal relations, including specific tools to support interactions with Maori and Pacific peoples
• the establishment of a consistent, professional and credible interface between the Department and the media, for managing routine enquiries and major incidents
• improved public awareness and understanding of the Department’s role and responsibilities, and improved stakeholder support for major initiatives and projects
• a focus on consultation with communities at both regional and national levels.

The goals of the Communications Operational Strategy 2003–2008 are to:

• foster internal appreciation of, and commitment to, the Department’s strategic direction and how we work together to achieve it
• increase external awareness, understanding of, and support for, the role of the Department and the issues and challenges in managing offenders
• build communications activities for specific initiatives that give focus to, and reinforce, the four themes underpinning the Department’s strategic direction.

Current communications challenges in supporting the overall strategic direction include issues of working together as an organisation, increasing community involvement with the Department’s work and ensuring that the Department’s perspective is included in media coverage and public debate.

The challenge of increasing staff understanding and support for the strategic direction is a vital component of enhancing the Department’s capability and capacity. With much already achieved in terms of establishing an overall identity, there is now an emphasis on internal relationships and improving staff understanding of the organisation as a whole.

In recent years, the Department has increasingly emphasised the importance of working with communities and stakeholders. As a result, the Department has been more proactive about the way in which it communicates with the public and community groups. In particular, the increased focus given by the Department to initiatives involving Maori and Pacific peoples has required the development of specific communications activities to support these.

With high public interest in the Department’s work, there will frequently be reactive management of media interest in specific events. The Department may receive upwards of two hundred media enquiries each month and a new Media Centre section has been added to the Department’s website to assist journalists’ access  to factual information and data. In addition to responding to and providing balance and context to these enquiries, a wide range of proactive communications initiatives were undertaken in the year, including support for:

• the opening of new facilities, including the Northland Region Corrections Facility
• staff recruitment campaigns
• the introduction of new Corrections legislation
• the launch of new departmental strategies, including the Pacific Strategy 2005–2008 and the Strategy to Reduce Drug and Alcohol Use by Offenders 2005–2008
• the launch of new reintegrative initiatives and pilot programmes
• the publication of research and evaluation results
• public open days at several Corrections facilities
• the facilitation of documentary filming proposals on aspects of Corrections operational activities
• production of internal and external publications, including the Department’s flagship publication Corrections News.

Capital Expenditure

Capital expenditure is incurred by the Department in accordance with financial delegations from Cabinet to the Chief Executive through the Responsible Minister. The requirements of the Public Finance Act 1989, State Sector Act 1988, Treasury Instructions and any other legislation governing the operations of the Department are also complied with when any capital expenditure is incurred. Capital expenditure trends and forecasts are shown in figure 19.

Figure 19: Capital Expenditure Trends and Forecasts