Panui June 2009

Click HERE for a PDF [3.0 MB] version of Pānui.

Table of Contents

Companies with more women on boards more profitable
From the Minister - Extending the Ministry’s role and influence
Message to Pānui subscribers
Our priorities
Budget boost for work on employment issues for women
Three day walk wins award
Women on the Move
Helping end violence against women in the Pacific
Women on Boards – Giselle McLachlan
In brief

• Matariki
• Māori Language Week
• More maternity funding
• New network for emerging women leaders
• Australian Government plans to reduce violence against women
• Stats
• Parental leave payments increase
• More money for community groups

Companies with more women on boards more profitable

The business case for having more women on boards is compelling – and that is the main message behind a new report, launched in May by the Prime Minister Hon John Key.

Women on Boards: Why women on company boards are good for business was developed by the Ministry of Women’s Affairs with the support of Business New Zealand and the Institute of Directors in New Zealand. The publication brings together, for the first time for a New Zealand audience, the main international evidence on the connection between women on boards and company performance. It presents evidence on the benefits and considers practical ways that companies can gain from a richer mix on their boards.

Women on Boards was launched in Auckland to a guest audience of approximately 100 which included many of New Zealand’s top business leaders. Speakers at the event were the Prime Minister, Women’s Affairs Minister Pansy Wong, Business New Zealand Chief Executive Phil O’Reilly, and Institute of Directors Chief Executive Nicki Crauford. They have also all written a foreword for the report.

Hon Pansy Wong told the audience that getting more women on boards was an issue government could not tackle on its own.

‘Rather it is about government and business working together to ensure companies have usable information that can help them lift performance and gain competitive advantage.

‘There is a wealth of information in the publication, but the main message is simply that it is in business’s interests – your interests – to make better use of women’s skills and talents in the boardroom.’

Less than 9 percent of directors in New Zealand’s top 100 listed companies are women, with 45 women holding 54 directorships out of a total of 624 positions.

Evidence from one international study showed that Fortune 500 companies (the 500 largest companies in America) with the most women board members were around 50 percent more profitable than those with the least.

Ministry of Women’s Affairs Chief Executive, Shenagh Gleisner, said it was of concern that New Zealand, which had maintained a good reputation for its achievements on women in leadership, was now falling behind other countries.

‘It is good to see the wise business leaders, men and women, who are already acting upon the evidence collated in our report, and seeking out women to serve on their boards.’

Director of the Ministry of Women’s Affairs Nominations Service, Pamela Cohen, said the launch of Women on Boards was ‘just the start of our work’.

‘Together with our partner organisations we seek an increase in the number of women on private sector boards.’

From Women on Boards: Why women on company boards are good for business 

‘…when you look at the small number of women in the boardrooms of New Zealand’s top businesses – only about one in every 12 company directors is a woman – you have to wonder whether Kiwi businesswomen are getting the opportunity to succeed that they deserve. And you have to wonder whether our companies are making the best use of the talent on offer.’

‘It is important that women and men stand shoulder to shoulder in our boardrooms. Combining the different strengths of men and women will provide a strong lever for business performance. Our women are competent and ready to serve on boards.’

‘People create value – it’s a basic fact of business. Many companies and other organisations fail to realise maximum value because they miss out on women’s abilities and insights at governance level. The key question is what to do about it.’

‘I think Women on Boards is about the contribution women can bring to the diversity of skills, experience and perspective that all boards need. Shareholders who appoint those directors should tap into the widest possible director candidate pool to create the best board possible. That pool increasingly includes some very capable women.’

BACK TO TOP

From the Minister

Extending the Ministry’s role and influence

May was a big month for the Ministry, with the successful launch of an initiative to get more women on boards and a Budget boost for its work on the pay gap.

The Women on Boards launch on 21 May was the result of several months’ behind-the-scenes work to develop the business case for more women on the boards of New Zealand companies. The significant thing about the initiative is that it is a joint effort between the Ministry, Business New Zealand, and the Institute of Directors in New Zealand.

The business case for more women on boards is strong, but the message is much more powerful when it comes from business itself. Also powerful was the fact that the Prime Minister, Hon John Key, chose to personally launch the initiative and to urge business to do more to make better use of the business talents of women.

This is the beginning of an important initiative that will see government and business working together to increase the number of women in leadership in the commercial sector.

The other big news for the Ministry was the announcement in the Budget of an extra $2 million over four years to boost its capacity to undertake research and policy work on the gender pay gap.

The extra $500,000 a year represents around a 12 percent increase in the Ministry’s annual budget and will strengthen the Ministry’s ability to provide well-researched advice on the pay gap and other employment issues.

These moves are practical demonstrations of my commitment to address the major issues that face New Zealand women, including employment issues and getting more women into leadership.

As Minister I want to see the barriers that limit women’s employment choices removed, and I want to see women’s skills fully recognised and used, for the benefit of themselves, their families, and for New Zealand as a whole.

Achieving that will require the kind of innovation shown in these two initiatives.

Hon Pansy Wong

Minister of Women’s Affairs

 BACK TO TOP

Message to Pānui subscribers

Help us reduce costs and save the planet!

Switching to receiving Pānui by email saves about $1.50 in postage for each copy – and saves trees.

If you would like to swap to receiving Pānui electronically – or would simply like to change your order for printed copies – please let us know. You can either:

1. Email mwa@mwa.govt.nz with ‘Pānui’ in the subject line. Provide your name, organisation (if relevant) and ‘email please’ and we will change your order. If you want to change the address or numbers of hard copies instead, just let us know what you want in the email.
2.  Phone Pat on (04) 916 5812.

Thank you from the Pānui team.

Our priorities

The Ministry of Women’s Affairs’ Statement of Intent for 2009-2012 – the priority goals that will drive our work – has been published.

The Ministry retains a strong focus on issues such as ending sexual violence and increasing the numbers of women in leadership. Changes in emphasis include more of a focus on looking at the choices women make across their lifetimes, and better understanding the implications of those choices.

Our Statement of Intent 2009-2012 is on our website www.mwa.govt.nz/news-and-pubs.

 BACK TO TOP

Budget boost for work on employment issues for women

The Ministry of Women’s Affairs has received additional funding of $2 million over four years to boost its capacity to undertake research and policy work on the pay gap.

The funding boost was announced in the Budget. Minister of Women’s Affairs Hon Pansy Wong said the new money would strengthen the Ministry’s ability to provide well-researched advice on the pay gap, and other employment issues.

‘Since the passage of the Equal Pay Act in 1972, the pay gap has narrowed. Since 2001, however, the pay gap has sat at around 12 percent so clearly we need to have a good look at what we could do differently if we are going to make the kind of progress I want, and New Zealand women deserve.

‘If ending the pay gap was simply a matter of more legislation it would be easy. But paying someone less, simply because they are a woman, has been illegal for 30 years, so clearly legislation is not enough. There is a complex series of factors that influence income differences. Some of these factors are known and others need further research, but we need to understand them better if we are to design policy that will make a real difference.

‘The extra money will help the Ministry do important work to better understand the pay gap and to provide policy advice that will help us reduce that gap.’

The additional $500,000 a year from this initiative represents approximately a 12 percent increase in the Ministry’s annual budget of around $4 million. The Ministry’s staffing will increase by one to two people as a result.

MWA’s work programme has not yet been finalised, but it is likely that it will focus on the following key areas for action:

• Reducing occupational segregation, particularly avoiding its emergence in new industries.
• Enhancing skills and responsibility in female-dominated jobs.
• Encouraging part-time and flexible work.
• Increasing the acceptability of shared care where children are concerned.
• Looking at what works to combat discrimination in relation to recruitment, employment, and promotion practices.

 BACK TO TOP

Three day walk wins award

A tourism business that involves a three day walk through Wairarapa farmland won the Rural Women New Zealand Enterprising Rural Woman Award 2009.

At a ceremony held at Parliament on Friday 15 May, Rural Women New Zealand’s national president Margaret Chapman announced Tora Coastal Walk - run by Jenny Bargh, Kiri Elworthy and Kath Elworthy – as the inaugural winner of the BNZ-sponsored Award, which attracted 46 entries from all over the country.

The Tora Coastal Walk partners also received $1500 in prize money and the opportunity to attend a BNZ Women in Agribusiness course.

The three women have owned and operated the Tora Coastal Walk, which is open from October to April, for the last 14 years. It is a three day walk over farmland with all accommodation, meals and luggage transfers provided and began when the three decided to diversify and came up with the idea of hosting trampers. The market is almost entirely New Zealanders.

Margaret Chapman said the passion shown by the women for their business, their economic success, and their inputs into the rural community were deciding factors in their win.

‘The business has been running for 14 years, but the women’s enthusiasm is still strong. They live in a very special part of the country and love to share it with others. They make a special effort to bridge the urban-rural divide, talking to their guests about what’s happening on the farm and making it a total rural experience. Attention to detail and personal touches are an important part of the Tora Coastal Walk and its success.’

Rural Women New Zealand set up the Enterprising Rural Woman Award to highlight the innovative ways women are contributing to the rural economy, and their determination to succeed in the face of the extra challenges presented by the difficulties in accessing technology and through geographical location.

 BACK TO TOP

Women on the Move

Congratulations to all the women who received a Queen’s Birthday Honour.

Metiria Turei is the new co-leader of the Green Party.

Career diplomat Heather Riddell is New Zealand’s next Ambassador to Viet Nam.

New Zealand’s first woman stipendiary steward is Shona Moore. Stipendiary stewards attend race meetings to ensure racing is honest and safe.

Tania Thomas has been appointed Deputy Health and Disability Commissioner – Disability.

Judy Kirk has been appointed to chair the New Zealand Lotteries Commission Board.

Sarah Astor has been appointed chair of MetService and Polly Schaverien has been appointed deputy chair.

Paula Rebstock has been appointed deputy chair of New Zealand Railways Corporation.

Joanna Perry has been appointed deputy chair of Genesis Power.

In July, Dell Higgie takes up the role of New Zealand’s Permanent Representative to the United Nations in Geneva and Ambassador for Disarmament.

Susan Sheldon has been appointed to the board of the Reserve Bank of New Zealand.

Jane Huria, Ngai Tahu, has been appointed to the ACC board.

Julie Christie has been appointed to the New Zealand Trade and Enterprise Board.

Kristy McDonald, QC, has been appointed chairperson of the Real Estate Agents Authority.

BACK TO TOP

Helping end violence against women in the Pacific

Ministry policy analyst Eleanor Hale is off to Fiji to work on a UNIFEM project set up to help Pacific organisations that are working to end violence against women.

Eleanor will be a Gender Project Officer based at the UNIFEM Pacific Regional Office in Suva and will be helping to administer the Pacific Regional Facility Fund which she says is a new initiative.

‘The fund has been established by UNIFEM Pacific to support government departments and civil society organisations to finance work in addressing violence against women. The Fund will also offer technical and financial support to strengthen institution, programming and administrative capacity to plan, document, manage, monitor and evaluate projects and programmes.’

Australian-born Eleanor is going to Fiji through the AusAID-funded Australian Youth Ambassadors for Development Programme, which places skilled young Australians in volunteer positions in developing countries across the Asia-Pacific. The young ambassadors work with local counterparts in host organisations to achieve sustainable development outcomes through capacity building, skills transfer, and institutional strengthening.

Eleanor, who is taking 12 months leave from the Ministry, says she is ‘looking forward to taking knowledge of New Zealand policy experiences overseas, and establishing relationships with people working in the Pacific committed to women’s rights and equality’.

MWA General Manager Policy, Sarah Turner, said it was important for staff to be supported to pursue their career development needs, and sees this opportunity for Eleanor as a win-win.

‘This experience will enhance Eleanor’s policy skills. Sometimes policy people get accused of living in ivory towers and not actually understanding people’s experiences in the “real world”. There is nothing like being out there making a difference on the ground to understand what really matters. We are looking forward to Eleanor coming back with more skills and experience to apply to policy development at the Ministry.’

Eleanor started at the Ministry in February 2007, and has worked in the justice, social assistance and international policy areas.

UNIFEM is the women’s development fund at the United Nations. Since 1976 it has provided financial and technical assistance to innovative programmes which foster women’s empowerment and gender equality.

BACK TO TOP

Women on Boards

Giselle McLachlan

Independent Director, Institute of Financial Advisors (2009- )

Commissioner, Earthquake Commission (2009- )

Chair – Silver Ribbon Foundation (Gynaecological Cancer Charity) (2008 - )

Member, New Zealand Law Society

Member, Institute of Directors in New Zealand

Giselle McLachlan of Auckland is a barrister and an experienced executive manager with a background in corporate law and the insurance sector. She runs her own management consulting business, Clear Counsel Ltd.

Giselle was General Counsel and Head of Corporate Services for IAG, New Zealand’s largest general insurer where she led a team of over 40 staff, and was a partner in legal firm, Phillips Fox.

In May this year Giselle was appointed to the Earthquake Commission Board and she has been chair of the Silver Ribbon Foundation since last year. Pānui talked to Giselle about the gynaecological cancer charity and her role on its board.

Q: Can you tell us a bit about the Silver Ribbon Foundation?

A: It is the ‘Leonie Coates Gynaecological Cancer Charitable Trust’ and is the only charity in New Zealand that deals with gynaecological cancer. It was founded by two women who lost their mum in 2006 to ovarian cancer, and is now entering its third year.

Q: Can you tell us about your role on the Foundation’s Board?

A: I got involved with it when it had been operating for about a year. They needed clear governance and direction. They were only small, but I was able to help with a strategy and some big picture thinking to help get them to where they wanted to be. I am the chair of a five-person board.

There is a good strategy in place now and the Foundation has a clear brand and tone. Getting the tone of the voice right was important.

We launched a book in May which was a proud moment. It is called Sharing the Journey: New Zealand Women share their Gynaecological Cancer Stories and contains personal stories of women’s journeys with gynaecological cancer.

Q: How do you find being a Board member?

A: Really, really rewarding. It is good to operate at a level where you are dealing with strategy risk issues, particularly reputational risk. It brings a nice variety to be in a governing role along with other roles which are more hands-on. It is a huge responsibility but a privilege.

Q: So you would recommend pursuing a directorship to other women?

A: Definitely, although it is extremely difficult at the moment to get full-time roles where an employer will also be flexible about enabling someone to take on these other obligations.

Q: What is one thing you would say to those women?

A: It is a five-year career plan, not something you can achieve in a year. It takes a lot to pull together. The advisory services such as MWA and the Institute of Directors can be a huge help in this process – but one needs to be patient.

Q: Can you tell us a little about your personal life?

A: I have quite an interesting and not-that-typical life right now. My son who is nearly 16 now lives half -time with his father, which has meant I can take on more roles than I could when he was younger. I live two-thirds of the time in Auckland and one-third in Otago with my partner, who runs an organic sheep and beef farm. Mine is a very varied and challenging life.

The Silver Ribbon Foundation is at www.silverribbon.co.nz.

The Institute of Directors is at www.iod.org.nz.

BACK TO TOP

In brief

Matariki

One of the most significant celebrations in the Māori calendar is the Māori New Year, Matariki.

Matariki is a small but distinctive star cluster whose appearance in the north eastern pre-dawn sky in late May, early June marks the start of a new phase of life. Although there are tribal differences regarding the timing, celebrations most often begin at the next new moon after Matariki has risen. The exact timing varies from year to year but usually occurs during the month of June.

Māori Language Week

Māori Language Week has been celebrated since 1975 and this year it runs from 27 July to 2 August. The theme for 2009 is ‘Te Reo i te Hapori - Māori Language in the Community’. For more information go to www.koreromaori.co.nz

More maternity funding

In May, Health Minister Tony Ryall announced the government will spend an extra $103.5 million over four years to boost maternity services for parents. The additional funding includes provision for longer stays in birthing facilities and fully funding the Plunketline 24 hour telephone advice service.

New network for emerging women leaders

The New Zealand Global Women network, a new organisation of women in top leadership positions, has been set up to identify and mentor emerging women leaders. The group aims to identify emerging leaders, offer peer-to-peer support for top women leaders, and it hopes to take an aspirational role for New Zealand women.

Australian Government plans to reduce violence against women

A report recently released in Australia will be used to develop an Australian National Plan to Reduce Violence against Women.

Time for Action is the report of the National Council to Reduce Violence against Women and their Children. The National Council was a group of independent experts appointed by the Australian Government. The report makes recommendations designed to tackle the unacceptable levels of sexual assault and domestic and family violence in Australia. The report can be seen at www.fahcsia.gov.au/sa/women/pubs/vionece/Pages/default.aspx.

Stats

Recent statistics from Statistics New Zealand for the March 2009 year show that:

• A newborn girl can expect to live an average of 82.2 years
• The birth rate was 2.2 births per woman, the highest rate of fertility since the March 1991 year
• Women aged 30-34 years had the highest fertility rate (125 births per 1,000 women)
• The median age of women giving birth is now 30 years, compared with 25 years in 1969.

Also, in 2008:

• 21,900 marriages were registered to New Zealand residents
• The general marriage rate was 13.7 marriages per 1,000 not-married population aged 16 years and over
• 327 civil unions were registered, of which 78 percent were same-sex unions
• 9,700 orders for dissolution of marriage were granted
• There were 11.3 divorces for every 1,000 estimated existing marriages.

Parental leave payments increase

The maximum parental leave payment will increase from $407.36 per week to $429.76 per week from 1 July. The minimum payment for self-employed parents will also increase from $120 to $124 per week.

The number of New Zealand parents receiving parental leave payments is over 23,000 per year. Parents eligible for the scheme are entitled to up to 14 weeks paid leave at a rate calculated on the basis of their average weekly earnings.

More money for community groups

Community groups received $1.2 million in the Budget. The $400,000 annual initiative over three years, beginning in 2009/10, will involve refreshing the membership of the Community Sector Taskforce, which has experience in working with and building local community networks.

Around 97,000 non-profit organisations make up the community and voluntary sector in New Zealand. They employ 105,000 paid staff and over one million volunteers, who together contribute 4.9 percent to gross domestic product.

Overall, the sector contributes $9.8 billion of expenditure into the economy annually. Paid staff and volunteers represent 9.6 percent of the labour force.

BACK TO TOP

Pānui is published by the Ministry of Women's Affairs, New Zealand. We welcome your feedback and ideas. Send them to The Editor, Pānui, Ministry of Women's Affairs, PO Box 10 049, Wellington 6143, New Zealand. Email:mwa@mwa.govt.nz.

The viewpoints expressed in Pānui do not necessarily reflect the views of the Ministry of Women's Affairs.

BACK TO TOP