Latest news with #MarkShepherd
NZ Herald
12-05-2025
- Health
- NZ Herald
Health NZ eyes $1.8b cost for unpaid leave dating back 15 years
Eight years ago, compliance problems were discovered in the payroll systems at the 20 district health boards that merged into Health New Zealand in 2022. The errors stretched back to May 2010 and meant some employees weren't receiving their proper leave entitlements. Health NZ confirmed on Monday it expected the errors to cost about $1.8b – and last month it had paid out more than $334m. Now, information obtained by Checkpoint shows that, until the end of September, the organisation had spent almost $130.1m on fixing these errors – money that doesn't go to staff affected by the payroll system errors. About $44.4m was spent on a 'remediation partner' on the project to work through and correct the errors, $34.4m on project contractors, $26.4 on staff costs, such as those seconded to the project, $13.7m on consultants and $10.7m on 'payroll system vendor costs'. Health NZ said it would complete payments to 90,000 present employees by the end of 2025, but workers' unions are reporting delays in the process. Health NZ will start working on payments to 130,000 former staff this year on a region by region basis. Then-current 'Auckland metro' staff were paid in mid-2023. On Monday's Checkpoint, Health NZ northern region deputy chief executive Mark Shepherd refused to name which consultants and contractors had received most of the $130m. He said the work involved the likes of payroll experts, who were fixing systems to make them compliant, and that had so far happened in 15 out of the 20 payroll systems. 'This is an incredibly complicated project, where we're trying to return the money that's really deserved and owed to our staff. 'There's $1.8b that we're trying to organise.' Health NZ interim chief human resources officer Fiona McCarthy said it inherited 20 different payroll systems from district health boards. 'Each payroll was set up differently, with different practices and local arrangements in place, and a majority were no longer suited for modern payroll requirements,' she said. 'The complexities of the Holidays Act, the size of the workforce, the hours people work and the variety of employment arrangements, as well as the state of the payroll systems and processes, all make this a very challenging programme of work.' New Zealand Nurses Organisation delegate Tracy Chisholm said she understood the way the process was being dealt was reviewed when the Government changed in 2023, so she wondered if there was duplication in that $130m spend. 'It makes a mockery of the statement, 'There's no more money for health'. It makes a mockery of, 'We have a limited budget'. 'It makes a mockery of, 'We can't afford to give you any more than maybe an up to 1% pay increase, but over the last how-many years, we've spent $130m on correcting errors that we've made', so you can correct your own errors, but you can't actually pay the staff that are currently employed.' Chisholm said the dates staff were told they'd receive their Holidays Act entitlements were often pushed back. Eye-watering amount to diagnose problem An Association of Salaried Medical Specialists spokesperson said $130m was an eye-watering amount just to diagnose a problem. The association represents senior doctors, who went on strike over pay and conditions late last month. The spokesperson said the $130m was 'a direct result of underinvestment in infrastructure – in this case payroll infrastructure – and a failure to tackle the legacy of 20 separate DHBs'. 'That money could've been much better spent. It is unclear whether Te Whatu Ora is learning the lesson – the failure to invest today will come back to haunt them tomorrow.' The spokesperson also said staff had experienced estimated dates for remediation payments getting pushed back, in some cases four to five times. 'After spending $130m, employees expect something more conclusive from their employer.' Malcolm Mulholland from Patient Voice Aotearoa was shocked at the $130m spend, but said it highlighted the complications of Holidays Act requirements. 'That is a total waste of money. We should not be spending $130m on correcting an error – effectively, that's what's happening. 'That's money that could be much better spent within our health system, [which is] crying out for dollars at the moment, when it comes to things such as an increase in doctors' wages or infrastructure.'
The Guardian
10-02-2025
- Business
- The Guardian
UK insurers paid out record £585m last year as climate breakdown intensifies
Insurers paid out a record £585m for weather-related damage to homes and possessions in Britain last year, after record-breaking rain and storms hit the country. The data, from the Association of British Insurers (ABI), revealed that claims for damage to homes from windstorms, flooding and frozen pipes in 2024 surpassed the previous record in 2022, for the same types of claim, by £77m. The figure is £127m higher than the weather-related claims payouts for 2023. The insurers blame 'significant and consistent bad weather' for the record payments. The 2023-24 storm season included 12 named storms – the most named storms since 2015-16. Climate breakdown has made recent storms more frequent and intense, analysis by the Met Office found. Insurance premiums are climbing globally in areas susceptible to increased risk of severe hurricanes, floods, fires and other extreme events. In the UK, the annual average price of combined building and contents home insurance in 2024 went up by £55 (16%) to £395, compared with 2023. The figures come after Guardian analysis revealed that more than 100,000 new homes will be built on the highest-risk flood zones in England in the next five years. Sign up to Down to Earth The planet's most important stories. Get all the week's environment news - the good, the bad and the essential after newsletter promotion Insurers have suggested not building homes in areas prone to climate risk if possible. Mark Shepherd, head of general insurance policy at the ABI, said: 'Our latest data serves as a blunt reminder of the devastating damage that adverse weather can cause to people's homes and businesses. 'Insurers are braced for these sorts of events at any time – but prevention is always better than cure. That's why we continue to advocate for climate resilience measures to be carefully considered in all planning decisions and building standards, to ensure properties are fit for the future and that they are not built in areas prone to climate risk. We've also long stressed the need for government to further invest in flood defence and maintenance, and to take swift action on mitigating surface water flooding.' The UK government has recently committed to boosting flood defence spending to £2.65bn over the next two years, but the ABI is calling for more guaranteed spending. Insurers want the government to promise at least £1bn a year in flood defences from 2026 onwards. They argue this saves money as research has found that for every £1 spent on flood defence maintenance, £7 is saved in capital spend. Businesses were also hit by extreme weather. The data shows insurers paid out £102m to businesses for weather-related damage and business interruption during the final quarter of the year. This is an increase of 7% on the previous quarter, and 16% on Q4 2023.
