Estimates of appropriations

Vote Building and Construction - Economic Development and Infrastructure Sector - Estimates 2020/21

Vote Building and Construction#

APPROPRIATION MINISTER(S): Minister for Building and Construction (M9), Minister of Housing (M37), Minister for Greater Christchurch Regeneration (M85)

APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment

RESPONSIBLE MINISTER FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development

Overview of the Vote#

Three Ministers are responsible for appropriations in Vote Building and Construction.

The Minister for Building and Construction is responsible for appropriations in the 2020/21 financial year of:

  • just under $58 million for delivering regulatory and control services for the building industry under the Building Act 2004, including related consumer information, maintaining registration and licensing regimes for building practitioners and electrical workers and administration of the Weathertight Financial Assistance Package
  • just under $2 million for payment to banks under the Weathertight Services Financial Assistance Package
  • just over $1 million for policy advice relating to building and construction, and other support to Ministers relating to building and construction, and housing, and
  • $8 million to make assistance available to owner-occupiers or investors in, or facing, hardship that own units in multi-unit, multi-storey residential earthquake-prone buildings in high seismic risk areas.

The Minister of Housing is responsible for appropriations in the 2020/21 financial year of:

  • just under $38 million for providing services relating to performance and monitoring and Residential Tenancies and Unit Titles Service, and
  • just under $2 million to coordinate and provide temporary accommodation to people displaced by a civil emergency.

The Minister for Greater Christchurch Regeneration is responsible for an appropriation in the 2020/21 financial year of just over $9 million for Insurance Claims Resolution.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2019/20 2020/21
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Insurance Claims Resolution (M85)

This appropriation is limited to the provision of residential insurance advisory, mediation and support services for homeowners affected by a disaster, natural or otherwise.
8,522 8,522 9,202

Occupational Licensing (M9)

This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers.
11,647 11,647 11,690

Residential Tenancy and Unit Title Services (M37)

This appropriation is limited to residential tenancy and unit title dispute resolution services, information, education, advice and compliance and enforcement activities; administration and investment of residential tenancy bond monies.
40,787 40,787 37,878

Weathertight Services (M9)

This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims, including reports on actual and probable damage with estimated costs of repair; administration of the financial assistance package; claim management until repair or claim lodged with the Weathertight Tribunal; provision of mediation services; and advice, information and education to support more informed consumer decisions.
7,741 7,741 9,139

Building Regulation and Control (M9)

This appropriation is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met.
41,904 41,904 -

Total Departmental Output Expenses

110,601 110,601 67,909

Non-Departmental Other Expenses

     

Payments in Respect of the Weathertight Services Loan Guarantees PLA (M9)

This appropriation is limited to the payments to banks under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme as authorised under section 65ZG of the Public Finance Act 1989.
1,700 1,700 1,600

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Delivery and Administration of the Loan Scheme for Earthquake Prone Buildings (M9)

This appropriation is limited to the delivery and administration of the loan scheme for Earthquake-Prone Buildings.
750 - 3,000

Unwind of Discount Rate Used in the Present Value Calculation of Direct Payments Under the Weathertight Homes Financial Assistance Package (M9)

This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the Weathertight Homes Financial Assistance Package liability as the liability nears settlement.
1,659 1,659 1,659

Total Non-Departmental Other Expenses

4,109 3,359 6,259

Multi-Category Expenses and Capital Expenditure

     

Building Policy, Regulation and Advice MCA (M9)

The single overarching purpose of this appropriation is effective stewardship and regulation of the building system.
- - 36,522

Departmental Output Expenses

     

Building Regulation and Control

This category is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met.
- - 35,404

Policy Advice and Related Services to Ministers - Building and Construction

This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) and services (including research, evaluation, data analysis and dissemination) to support decision-making by Ministers on government policy matters relating to building and construction.
- - 1,118

Temporary Accommodation Services MCA (M37)

The single overarching purpose of this appropriation is to coordinate and provide temporary accommodation to people displaced by a civil emergency.
10,798 10,798 1,963

Departmental Output Expenses

     

Readiness, Response and Recovery

This category is limited to temporary accommodation coordination, contingency planning, civil defence sector engagement and event-specific civil emergency temporary accommodation service operations.
991 991 993

Non-Departmental Output Expenses

     

Temporary Accommodation Housing Initiatives - Operations

This category is limited to the operating expenses incurred on temporary accommodation supply initiatives.
8,532 8,532 495

Non-Departmental Other Expenses

     

Temporary Accommodation Housing Initiatives - Depreciation

This category is limited to depreciation expenses associated with temporary accommodation supply.
475 475 475

Non-Departmental Capital Expenditure

     

Temporary Accommodation Housing Initiatives - Capital

This category is limited to procuring and purchasing temporary accommodation.
800 800 -

Policy Advice and Related Outputs MCA (M9)

The single overarching purpose of this appropriation is to provide policy advice and other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
4,245 4,245 -

Departmental Output Expenses

     

Building and Construction Data Analysis

This category is limited to research, analysis and dissemination of data on building and construction.
560 560 -

Policy Advice - Building and Construction

This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision making by Ministers on government policy matters relating to building and construction.
3,535 3,535 -

Related Services to Ministers - Building and Construction

This category is limited to the provision of support, information and services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities on matters relating to building and construction, and housing.
150 150 -

Total Multi-Category Expenses and Capital Expenditure

15,043 15,043 38,485

Total Annual Appropriations and Forecast Permanent Appropriations

129,753 129,003 112,653

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Departmental Output Expenses

   

Tenant Health and Safety Information (M37)

This appropriation is limited to providing information to increase tenant health and safety in residential rental properties.

Commences: 01 July 2015

Expires: 30 June 2020
Original Appropriation 2,740
Adjustments to 2018/19 -
Adjustments for 2019/20 -
Adjusted Appropriation 2,740
Actual to 2018/19 Year End 2,571
Estimated Actual for 2019/20 169
Estimate for 2020/21 -
Estimated Appropriation Remaining -

Non-Departmental Capital Expenditure

   

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Loan Scheme for Earthquake Prone Buildings (M9)

This appropriation is limited to loans for Earthquake-Prone Buildings seismic retrofit.

Commences: 01 March 2020

Expires: 30 June 2024
Original Appropriation 10,000
Adjustments to 2018/19 -
Adjustments for 2019/20 -
Adjusted Appropriation 10,000
Actual to 2018/19 Year End -
Estimated Actual for 2019/20 1,000
Estimate for 2020/21 5,000
Estimated Appropriation Remaining 4,000

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations#

  2019/20 2020/21
  Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000
Total Annual Appropriations and Forecast Permanent Appropriations 129,753 129,003 112,653
Total Forecast MYA Departmental Output Expenses 169 169 -
Total Forecast MYA Non-Departmental Capital Expenditure 1,000 1,000 5,000

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations

130,922 130,172 117,653

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

Policy Initiative Appropriation 2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
Finance Management Information System Renewal

Occupational Licensing

- 11 8 3 -
Departmental Output Expense          

Residential Tenancy and Unit Title Services

- 62 48 16 -
Departmental Output Expense          

Weathertight Services

- 10 8 3 -
Departmental Output Expense          

Building Policy, Regulation and Advice MCA - Policy Advice and Related Services to Ministers - Building and Construction

- 40 31 10 -
Departmental Output Expense          
Total Initiatives   - 123 95 32 -

Summary of Financial Activity

  2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Final Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 54,791 61,504 60,966 66,654 68,866 68,866 67,909 - 67,909 59,588 59,028 59,006
Benefits or Related Expenses 65,949 74,919 80,574 22,421 - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 48,697 14,283 5,219 156,802 4,109 3,359 - 6,259 6,259 3,909 3,609 3,609
Capital Expenditure 30,096 3,950 162,800 176 1,000 1,000 - 5,000 5,000 4,000 - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 39,264 52,612 49,716 39,355 55,672 55,672 37,515 495 38,010 38,001 37,980 37,970
Other Expenses - 4,104 - - 475 475 - 475 475 338 288 288
Capital Expenditure - 105,414 1,096 - 800 800 N/A - - - - -

Total Appropriations

238,797 316,786 360,371 285,408 130,922 130,172 105,424 12,229 117,653 105,836 100,905 100,873

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 64,036 792 7,734 3,280 - - N/A - - - - -
Capital Receipts 2,262 7,114 15,807 3,928 - - N/A - - - - -

Total Crown Revenue and Capital Receipts

66,298 7,906 23,541 7,208 - - N/A - - - - -

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring

  2015/16
Adjustments
$000
2016/17
Adjustments
$000
2017/18
Adjustments
$000
2018/19
Adjustments
$000
2019/20
Final Budgeted
Adjustments
$000
2019/20
Estimated
Actual
Adjustments
$000

Appropriations

           
Output Expenses (27,388) (28,574) (28,954) (28,954) (41,904) (41,904)
Benefits or Related Expenses - - - - - -
Borrowing Expenses - - - - - -
Other Expenses - - - - - -
Capital Expenditure - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - -
Multi-Category Expenses and Capital Expenditure (MCA)            
Output Expenses 27,388 28,574 28,954 28,954 41,904 41,904
Other Expenses - - - - - -
Capital Expenditure - - - - - -

Total Appropriations

-

-

-

-

-

-

Crown Revenue and Capital Receipts

           
Tax Revenue - - - - - -
Non-Tax Revenue - - - - - -
Capital Receipts - - - - - -

Total Crown Revenue and Capital Receipts

- - - - - -
Output Expenses

The fluctuating trend for the Output Expense is due to:

  • the implementation of the KiwiBuild Programme from 2017/18, and
  • the transfer of functions to the newly established Ministry of Housing and Urban Development in 2018/19.
Benefits or Related Expenses

The trend for Benefit or Related Expenses is due to:

  • the uptake of the KiwiSaver First Home Deposit Subsidy scheme
  • funding was increased to put into effect the KiwiSaver HomeStart grant policy proposals, and
  • the transfer of functions to the newly established Ministry of Housing and Urban Development in 2018/19.
Other Expenses

The fluctuating trend for Other Expenses is due to:

  • the introduction of the Weathertight Direct Payment Unwind Discount Rate in 2011/12 at $27 million decreasing to around $2 million in out years
  • the Social Housing Fund multi-year appropriation which expired in 2016/17
  • a one off concession expense recorded for Housing Infrastructure loans for 2018/19, and
  • the Remediation of Facades and Parapets of Unreinforced Masonry Buildings in at risk areas appropriation which expired in 2018/19.
Capital

The fluctuating trend for Capital Expenditure is due to:

  • the implementation of the KiwiBuild Programme from 2017/18, and
  • the transfer of functions to the newly established Ministry of Housing and Urban Development in 2018/19.
Multi-Category Output Expenses

The fluctuating trend for the Multi-Category Output Expenses is due to:

  • the transfer of functions to the newly established Ministry of Housing and Urban Development in 2018/19, and
  • the one-off funding only in 2019/20 for the Temporary Accommodation Services multi-category appropriation as part of the Government's response to COVID-19.

1.4 - Reconciliation of Changes in Appropriation Structure#

    Old Structure New Structure
2019/20 Appropriations
in the 2019/20 Structure
2019/20
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2019/20 Appropriations
in the 2020/21 Structure
2019/20
(Restated)
$000
2020/21
$000
Departmental Output Expenses            
Building Regulation and Control
Policy Advice and Related Outputs MCA
Departmental Output Expense
  • Building and Construction Data Analysis
  • Policy Advice - Building and Construction
  • Related Services to Ministers - Building and Construction

41,904

 

 

 

 

560

 

3,535

 

150

Restructured to:
Building Policy, Regulation and Advice MCA
 

(41,904)

 

 

 

 

(560)

 

(3,535)

 

(150)

 

     
    Restructured from:
Building Regulation and Control
Policy Advice and Related Outputs MCA
Departmental Output Expense
  • Building and Construction Data Analysis
  • Policy Advice - Building and Construction
  • Related Services to Ministers - Building and Construction

41,904

 

 

 

 

560

 

3,535

 

150

Building Policy, Regulation and Advice MCA
Departmental Output Expense
  • Building Regulation and Control
  • Policy Advice and Related Services to Ministers - Building and Construction

 

 

 

41,904

 

 

4,245

 

 

 

35,404

 

 

1,118

Total Changes in Appropriations 46,149   -   46,149 36,522

From 2020/21 the provision of Building Regulation and Ministerial Servicing has been restructured from the Departmental Output Expense Appropriation Building Regulation and Control and the Policy Advice and Related Outputs MCA into a single MCA Building Policy, Regulation and Advice.

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Insurance Claims Resolution (M85)

Scope of Appropriation
This appropriation is limited to the provision of residential insurance advisory, mediation and support services for homeowners affected by a disaster, natural or otherwise.
Expenses and Revenue
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,522 8,522 9,202
Revenue from the Crown 8,522 8,522 9,202
Revenue from Others - - -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve faster and cheaper resolution of residential insurance claims resulting from disasters, natural or otherwise.

How Performance will be Assessed and End of Year Reporting Requirements
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of users of the Canterbury Earthquake Insurance mediation service agree or strongly agree that they feel supported on their pathway to resolution

At least 75% At least 75% At least 75%

Percentage of users of the Greater Christchurch Claims Resolution Service (GCCRS) that would recommend GCCRS to others

- New measure At least 75%

Percentage of users of the Residential Advisory Services (RAS) that would recommend RAS to others

- New measure At least 75%
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Insurance Claims Resolution - Continuing to Help Resolve Homeowners' Insurance Claims following Disasters 2019/20 9,263 9,185 1,383 815 815

 

Occupational Licensing (M9)

Scope of Appropriation
This appropriation is limited to the development, implementation and maintenance of the registration and licensing regimes for building practitioners and electrical workers.
Expenses and Revenue
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,647 11,647 11,690
Revenue from the Crown 734 734 777
Revenue from Others 10,491 10,491 10,491
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve certainty and confidence for the industry and the public that licensed practitioners and workers in the building, construction and electrical sectors are competent and contribute to safe, healthy and affordable homes and buildings.

How Performance will be Assessed and End of Year Reporting Requirements
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

An internal audit and assurance rating received on the quality and timeliness of administration of licensed building practitioners and electrical workers regimes

Rating of acceptable or better Rating of acceptable or better Rating of acceptable or better
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Finance Management Information System Renewal 2020/21 - 11 8 3 -
Payroll System for the Ministry of Business, Innovation, and Employment 2018/19 25 116 116 116 116
Funding for the Licensed Building Practitioners scheme 2018/19 1,235 1,235 1,235 1,235 1,235
Funding for the Electrical Workers scheme 2018/19 823 823 823 823 823
Memorandum Account
  2019/20 2020/21
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Occupational Licensing - Building Practitioners

     
Opening Balance at 1 July 460 460 1,258
Revenue 6,365 6,207 6,365
Expenses (5,758) (5,409) (5,738)
Transfers and Adjustments - - -

Closing Balance at 30 June

1,067 1,258 1,885

 

  2019/20 2020/21
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Occupational Licensing - Electrical Workers

     
Opening Balance at 1 July 1,210 1,210 1,270
Revenue 4,126 5,137 4,126
Expenses (5,155) (5,077) (5,135)
Transfers and Adjustments - - -

Closing Balance at 30 June

181 1,270 261

Residential Tenancy and Unit Title Services (M37)

Scope of Appropriation
This appropriation is limited to residential tenancy and unit title dispute resolution services, information, education, advice and compliance and enforcement activities; administration and investment of residential tenancy bond monies.
Expenses and Revenue
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 40,787 40,787 37,878
Revenue from the Crown 19,885 19,885 16,976
Revenue from Others 20,902 20,902 20,902
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an environment in which residential tenancy and unit title consumers and businesses are well informed, understand their rights, and meet their regulatory obligations through the provision of information, education, advice, compliance, bond processing and mediation services.

How Performance will be Assessed and End of Year Reporting Requirements
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of customers who are satisfied or very satisfied with overall quality of mediation services

75% 75% 75%

Percentage of customers who are satisfied or very satisfied with the timeliness of mediation services

70% 70% 70%

Number of interventions undertaken dealing with the breaches of the Residential Tenancies Act 1986

- New measure 2,000
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Finance Management Information System Renewal 2020/21 - 62 48 16 -
New Tenancy Bond System - Designing a More Resilient Bond System with Better Housing Outcomes for Landlords and Tenants 2019/20 1,000 500 - - -
Reprioritisation of funding - Housing and Tenancy Services 2019/20 (145) (145) (145) (145) (145)
Payroll System for the Ministry of Business, Innovation, and Employment 2018/19 16 71 71 71 71
Healthy Homes Guarantee Act Implementation 2018/19 3,697 4,147 4,147 4,147 4,147
Tenancy Services - Additional Support 2018/19 4,296 5,009 5,009 5,009 5,009

Previous Government

           
Implementation Funding for Changes to the Residential Tenancies Act 2016/17 380 - - - -
Funding profile for compliance and enforcement functions 2016/17 3,282 3,282 3,282 3,282 3,282
Reasons for Change in Appropriation

The decrease in this appropriation for 2020/21 is mainly due to one off cost pressures as a result of higher regulatory and service delivery costs in 2019/20 as well as delays from 2018/19 pushing funding into 2019/20.

Memorandum Account
  2019/20 2020/21
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Unit Titles Act

     
Opening Balance at 1 July (101) (101) (102)
Revenue 77 77 77
Expenses (78) (78) (78)
Transfers and Adjustments - - -

Closing Balance at 30 June

(102) (102) (103)

Weathertight Services (M9)

Scope of Appropriation
This appropriation is limited to assessing the eligibility of weathertight homes claims; independent technical assessment of claims, including reports on actual and probable damage with estimated costs of repair; administration of the financial assistance package; claim management until repair or claim lodged with the Weathertight Tribunal; provision of mediation services; and advice, information and education to support more informed consumer decisions.
Expenses and Revenue
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 7,741 7,741 9,139
Revenue from the Crown 7,741 7,741 9,139
Revenue from Others 113 113 113
What is Intended to be Achieved with this Appropriation

This appropriation is intended to assist resolution of weathertight homes claims in New Zealand.

How Performance will be Assessed and End of Year Reporting Requirements
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The percentage of short assessments (Eligibility) completed within 60 working days of being allocated to an assessor

80% 80% 80%

The percentage of long assessments (full, follow-up full, addendum, concise, cost update and supplemental) completed within 120 working days of being allocated to an assessor

80% 80% 80%
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Finance Management Information System Renewal 2020/21 - 10 8 3 -
Payroll System for the Ministry of Business, Innovation, and Employment 2019/20 1 7 7 7 7
Reprioritisation of funding - Weathertight Services 2019/20 (100) (100) (100) (100) (100)
Reasons for Change in Appropriation

The increase in this appropriation for 2020/21 is mainly due to a one-off transfer of funding in 2019/20 to support Residential Tenancy and Unit Title Services which had been experiencing higher regulatory and service delivery costs.

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

Payments in Respect of the Weathertight Services Loan Guarantees PLA (M9)

Scope of Appropriation
This appropriation is limited to the payments to banks under the Weathertight Services Financial Assistance Package: Loan Guarantee scheme as authorised under section 65ZG of the Public Finance Act 1989.
Expenses
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,700 1,700 1,600
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve certainty and confidence for banks; through the provision of a loss share contribution if a loan claimant defaults on a mortgage associated with the repair of a home under the Weathertight Financial Assistance Package.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Delivery and Administration of the Loan Scheme for Earthquake Prone Buildings (M9)

Scope of Appropriation
This appropriation is limited to the delivery and administration of the loan scheme for Earthquake-Prone Buildings.
Expenses
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 750 - 3,000
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of support for eligible homeowners to access funding to strengthen their homes.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of the annual appropriation is less than $5 million.

Unwind of Discount Rate Used in the Present Value Calculation of Direct Payments Under the Weathertight Homes Financial Assistance Package (M9)

Scope of Appropriation
This appropriation is limited to the expense incurred in unwinding the discount rate used in the present value calculation of the Weathertight Homes Financial Assistance Package liability as the liability nears settlement.
Expenses
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 1,659 1,659 1,659
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the unwinding of the discount rate used in the present value calculation of the Weathertight Homes Financial Assistance Package liability.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for the unwinding of the discount rate used in the present value calculation of direct payments under the Weathertight Homes Financial Assistance Package.

3.5 - Non-Departmental Capital Expenditure#

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Loan Scheme for Earthquake Prone Buildings (M9)

Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Residential Earthquake-Prone Buildings Financial Assistance Scheme: Loan Scheme for Earthquake Prone Buildings (M9)

This appropriation is limited to loans for Earthquake-Prone Buildings seismic retrofit.

Commences: 01 March 2020

Expires: 30 June 2024
Original Appropriation 10,000
Adjustments to 2018/19 -
Adjustments for 2019/20 -
Adjusted Appropriation 10,000
Actual to 2018/19 Year End -
Estimated Actual for 2019/20 1,000
Estimate for 2020/21 5,000
Estimated Appropriation Remaining 4,000
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of support for eligible homeowners to access funding to strengthen their homes.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of the annual appropriation is less than $15 million.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Building Policy, Regulation and Advice (M9)

Overarching Purpose Statement
The single overarching purpose of this appropriation is effective stewardship and regulation of the building system.
Scope of Appropriation
Departmental Output Expenses

Building Regulation and Control
This category is limited to activities associated with the setting of performance standards for buildings and the design and delivery of regulatory schemes and other initiatives to help ensure those standards are met.

Policy Advice and Related Services to Ministers - Building and Construction
This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) and services (including research, evaluation, data analysis and dissemination) to support decision-making by Ministers on government policy matters relating to building and construction.

Expenses, Revenue and Capital Expenditure
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

- - 36,522

Departmental Output Expenses

     
Building Regulation and Control - - 35,404
Policy Advice and Related Services to Ministers - Building and Construction - - 1,118

Funding for Departmental Output Expenses

     

Revenue from the Crown

- - 1,118
Policy Advice and Related Services to Ministers - Building and Construction - - 1,118

Revenue from Others

- - 37,954
Building Regulation and Control - - 37,954
Comparators for Restructured Appropriation
  2019/20 2020/21
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote Building and Construction, Departmental Output Expense, Building Regulation and Control 41,904 41,904 -
Vote Building and Construction, Departmental Output Expense, Policy Advice and Related Outputs MCA - Building and Construction Data Analysis 560 560 -
Vote Building and Construction, Departmental Output Expense, Policy Advice and Related Outputs MCA - Policy Advice - Building and Construction 3,535 3,535 -
Vote Building and Construction, Departmental Output Expense, Policy Advice and Related Outputs MCA - Related Services to Ministers - Building and Construction 150 150 -
Vote Building and Construction, Departmental Output Expense, Building Policy, Regulation and Advice MCA - Building Regulation and Control - - 35,404
Vote Building and Construction, Departmental Output Expense, Building Policy, Regulation and Advice MCA - Policy Advice and Related Services to Ministers - Building and Construction - - 1,118
Total 46,149 46,149 36,522
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve a regulatory system that ensures safe and healthy building practice in the construction sector, and effective policy advice and support to Ministers.

How Performance will be Assessed for this Appropriation
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Average satisfaction of Ministers annually

- New measure Average score of 4 out of 5 or better
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Building Regulation and Control

     

Percentage of determinations successfully appealed

- New measure Less than 2%

Percentage of determinations subject to clarification due to inadequate coverage of issues

- New measure Less than 3%

Percentage of users satisfied that information provided on matters relating to Building Control has met their needs

- New measure At least 72% of users surveyed

This appropriation is intended to achieve a regulatory system that ensures safe and healthy building practice in the construction sector.

     

Policy Advice and Related Services to Ministers - Building and Construction

     

This category is intended to achieve the provision of high quality policy advice and support to Ministers.

     

Technical quality of policy advice papers assessed by a survey with a methodological robustness of 80%.

- New measure At least an average of 73%

Percentage of requests completed within either specified or statutory timeframes:

     
  • Ministerial correspondence
- New measure 95% or above
  • Ministerial Official Information Act 1982 requests
- New measure 95% or above
  • Parliamentary Questions
- New measure 95% or above

Building and Construction sector data and research are undertaken to inform policy and regulatory work

- New measure Achieved
End of Year Performance Reporting

This performance information will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Finance Management Information System Renewal 2020/21 - 40 31 10 -
Payroll System for the Ministry of Business, Innovation, and Employment 2019/20 13 59 59 59 59
Building and Construction Policy Advice Savings Initiative 2018/19 (250) (250) (250) (250) (250)

Previous Government

           
Housing Infrastructure Fund 2017/18 1,000 500 500 500 500
Implementation of the National Policy Statement on Urban Development Capacity 2017/18 239 90 90 90 90
Reasons for Change in Appropriation

This appropriation was established to consolidate the Policy Advice and Related Outputs multi-category appropriation and the Building Regulation and Control appropriation in response to Cabinet's directive to consolidate appropriations as part of modernising the public finance system.

Memorandum Account
  2019/20 2020/21
  Budgeted
$000
Estimated Actual
$000
Budget
$000

Building Controls

     
Opening Balance at 1 July 55,548 55,548 55,217
Revenue 46,880 40,344 37,880
Expenses (41,211) (40,675) (34,711)
Transfers and Adjustments - - -

Closing Balance at 30 June

61,217 55,217 58,386

 

  2019/20 2020/21
  Budgeted
$000
Estimated Actual
$000
Budget
$000

National Multi Use Approvals

     
Opening Balance at 1 July (1,556) (1,556) (1,853)
Revenue 74 148 74
Expenses (693) (445) (693)
Transfers and Adjustments - - -

Closing Balance at 30 June

(2,175) (1,853) (2,472)

Temporary Accommodation Services (M37)

Overarching Purpose Statement
The single overarching purpose of this appropriation is to coordinate and provide temporary accommodation to people displaced by a civil emergency.
Scope of Appropriation
Departmental Output Expenses
Readiness, Response and Recovery
This category is limited to temporary accommodation coordination, contingency planning, civil defence sector engagement and event-specific civil emergency temporary accommodation service operations.
Non-Departmental Output Expenses
Temporary Accommodation Housing Initiatives - Operations
This category is limited to the operating expenses incurred on temporary accommodation supply initiatives.
Non-Departmental Other Expenses
Temporary Accommodation Housing Initiatives - Depreciation
This category is limited to depreciation expenses associated with temporary accommodation supply.
Non-Departmental Capital Expenditure
Temporary Accommodation Housing Initiatives - Capital
This category is limited to procuring and purchasing temporary accommodation.
Expenses, Revenue and Capital Expenditure
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

10,798 10,798 1,963

Departmental Output Expenses

     
Readiness, Response and Recovery 991 991 993

Non-Departmental Output Expenses

     
Temporary Accommodation Housing Initiatives - Operations 8,532 8,532 495

Non-Departmental Other Expenses

     
Temporary Accommodation Housing Initiatives - Depreciation 475 475 475

Non-Departmental Capital Expenditure

     
Temporary Accommodation Housing Initiatives - Capital 800 800 -

Funding for Departmental Output Expenses

     

Revenue from the Crown

991 991 993
Readiness, Response and Recovery 991 991 993
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve coordination and provision of temporary accommodation to people displaced by a civil emergency.

How Performance will be Assessed for this Appropriation
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of users of the service who are satisfied or very satisfied

At least 75% 75% At least 75%
What is Intended to be Achieved with each Category and How Performance will be Assessed
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Departmental Output Expenses

     

Readiness, Response and Recovery

     

This category is intended to achieve fulfilment of MBIE's fundamental temporary accommodation responsibilities and roles.

     

Percentage of users of the service who are satisfied or very satisfied

At least 75% At least 75% At least 75%

Non-Departmental Output Expenses

     

Temporary Accommodation Housing Initiatives - Operations

     

This category is intended to provide a broad range of flexible temporary accommodation options.

     

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this annual category for a non-departmental output expense is less than $5 million

Exempt Exempt Exempt

Non-Departmental Other Expenses

     

Temporary Accommodation Housing Initiatives - Depreciation

     

This category is intended to provide a broad range of flexible temporary accommodation options.

     

An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act 1989 as the amount of this category for a non-departmental other expense is less than $5 million

Exempt Exempt Exempt
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Temporary Accommodation Housing Initiatives - Operations            
Reprioritisation of funding - Temporary Accommodation Operations 2019/20 (5) (5) (5) (5) (5)
Readiness, Response and Recovery            
Reprioritisation of funding - Temporary Accommodation Services 2019/20 (10) (10) (10) (10) (10)
Reasons for Change in Appropriation

The decrease in this appropriation for 2020/21 is mainly due to one off funding for the Government's response in dealing with the impacts of Covid-19 as well as a delay in the execution of a contract to procure portacabins, transferring funding from 2018/19.