Estimates of appropriations

Vote Defence - External Sector - Estimates 2020/21

Formats and related files

Vote Defence#

APPROPRIATION MINISTER(S): Minister of Defence (M22)

APPROPRIATION ADMINISTRATOR: Ministry of Defence

RESPONSIBLE MINISTER FOR MINISTRY OF DEFENCE: Minister of Defence

Overview of the Vote#

The Minister of Defence is responsible for appropriations in the Vote for the 2020/21 financial year covering the following:

  • a total of $2.398 million for audits and assessments of the New Zealand Defence Force and Ministry of Defence
  • a total of $10.983 million for managing procurement or refurbishment, on behalf of the Crown, of defence capabilities for the New Zealand Defence Force
  • a total of $9.883 million for policy advice, management of international defence relations and services to the Minister
  • a total of $350,000 for the purchase or development of assets for use by the Ministry, and
  • a total of $625.389 million for the procurement of major military capabilities for the New Zealand Defence Force.

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

     

Audit & Assessment (M22)

This appropriation is limited to audits and assessments of the New Zealand Defence Force and the Ministry of Defence.
2,091 2,091 2,398

Management of Defence Capabilities (M22)

This appropriation is limited to the management of procurement, refurbishment and delivery of defence capabilities, on behalf of the Crown, for the New Zealand Defence Force.
11,145 11,145 10,983

Total Departmental Output Expenses

13,236 13,236 13,381

Departmental Capital Expenditure

     

Ministry of Defence - Capital Expenditure PLA (M22)

This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Defence, as authorised by section 24(1) of the Public Finance Act 1989.
350 350 350

Total Departmental Capital Expenditure

350 350 350

Non-Departmental Capital Expenditure

     

Defence Capabilities (M22)

This appropriation is limited to the purchase, modification or refurbishment of defence capabilities for the New Zealand Defence Force.
667,248 527,248 625,389

Total Non-Departmental Capital Expenditure

667,248 527,248 625,389

Multi-Category Expenses and Capital Expenditure

     

Policy Advice and Related Outputs MCA (M22)

The single overarching purpose of this appropriation is to provide policy advice, other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
10,472 10,472 9,883

Departmental Output Expenses

     

Ministerial Services

This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
1,227 1,227 1,171

Policy Advice

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 defence and national security.
6,154 6,154 5,871

Policy Support

This category is limited to the provision of services (other than defence policy) that support the development and procurement of military capability, and the conduct of international defence relations.
3,091 3,091 2,841

Total Multi-Category Expenses and Capital Expenditure

10,472 10,472 9,883

Total Annual Appropriations and Forecast Permanent Appropriations

691,306 551,306 649,003

Capital Injection Authorisations#

  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Ministry of Defence - Capital Injection (M22) - - -

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
Future Air Mobility Capability
(pre-acquisition stage)
Defence Capabilities
Non-Departmental Capital Expenditure
2,573 - - - -
Network Enabled Army Programme: Tranche Two Defence Capabilities
Non-Departmental Capital Expenditure
22,643 37,175 46,663 - -
Garrison and Training Support Capability: Phase One Defence Capabilities
Non-Departmental Capital Expenditure
4,407 13,014 10,554 4,407 -
Fixed High Frequency Radio Refresh Defence Capabilities
Non-Departmental Capital Expenditure
5,116 9,394 7,644 4,426 -
Frigate Sustainment Phase 1: Communications
(pre-acquisition stage)
Management of Defence Capabilities
Departmental Output Expense
319 - - - -
Defence Capabilities
Non-Departmental Capital Expenditure
108 574 - - -
Price Related Cost Pressures Audit and Assessment
Departmental Output Expense
- 40 81 131 183
Management of Defence Capabilities
Departmental Output Expense
- 90 182 295 414
Policy Advice and Related Outputs MCA
Multi-Category Expenses and Capital Expenditure
- 206 413 671 942
Portfolio Management Management of Defence Capabilities
Departmental Output Expense
- 465 605 605 605
Policy Advice and Related Outputs MCA
Multi-Category Expenses and Capital Expenditure
- 110 110 110 110
Policy Demand Policy Advice and Related Outputs MCA
Multi-Category Expenses and Capital Expenditure
- 130 369 369 369
 Total Initiatives   35,166  61,198  66,621  11,014  2,623 

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 8,293 10,675 12,639 11,678 13,236 13,236 13,381 - 13,381 14,203 14,394 13,633
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - 1,063 - - - - - - - - - -
Capital Expenditure 212,713 281,031 233,021 413,847 667,598 527,598 350 625,389 625,739 1,147,176 139,454 375,869
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 6,480 6,837 7,949 9,095 10,472 10,472 9,883 - 9,883 10,360 10,669 10,940
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations

227,486 299,606 253,609 434,620 691,306 551,306 23,614 625,389 649,003 1,171,739 164,517 400,442

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 225 843 1,782 3,055 - 1,982 N/A - - - - -
Capital Receipts 212,412 280,658 232,898 413,834 667,248 527,248 N/A 625,389 625,389 1,146,826 139,104 65,501

Total Crown Revenue and Capital Receipts

212,637 281,501 234,680 416,889 667,248 529,230 N/A 625,389 625,389 1,146,826 139,104 65,501

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

There have been no restructuring adjustments to prior year information reported in last years' Summary of Financial Activity table.

The departmental appropriations in Vote Defence, which are detailed in the Summary of Financial Activity table in Part 1.2 above, show the significant changes discussed below.

Departmental Output Expense Appropriations

Increasing departmental output expense appropriations over the period shown in Part 1.2 above, reflect the following factors:

  • Increases from 2016/17 to 2018/19 are the result of the Enhancements to Defence Capability Development and Acquisition initiative, which allowed the Ministry of Defence to grow its capability workforce and make one-off investments in systems to successfully deliver on the Crown's anticipated capital spend in defence.
  • Increases from 2019/20 onwards are the result of the additional funding for the Operating Cost Pressures initiative, which provided the funding required to meet the additional costs associated with the Ministry's new permanent location in Defence House.
  • Increases from 2020/21 onwards are the result of the Price Related Cost Pressures initiative, which addresses market driven inflation cost pressures, the Portfolio Management initiative, for the enhancement of existing systems and processes to improve the portfolio efficiency and risk management for major capability projects, and the Policy Demand initiative, to meet additional policy demand in a changing strategic climate and support increased international defence engagement.

Variations in annual expenditure from the above trend are primarily due to the fluctuating costs of pre-acquisition activities undertaken by the Ministry

Departmental Other Expenses Appropriations

The 2016/17 Other Expenses arises from the value of assets written-off or impaired due to the November 2016 Kaikoura earthquake.

Multi-Category Expense Appropriation

Increasing multi-category expense appropriations over the period shown in Part 1.2 above, reflect the factors described in the Departmental Output Expense Appropriations section above.

Departmental Capital Expenditure

The majority of the capital expenditure over the years relates to the maintenance of the Ministry of Defence's asset base, primarily IT software and equipment required by the Ministry to deliver its stated outcomes and outputs.

Non-Departmental Capital Expenditure

The movements in non-departmental capital expenditure relates to the volume of capital projects underway in each financial year and changes in the forecast timing in achieving the project milestones and associated changes in the timing of supplier payments for those milestones.

Capital Receipts

The Ministry of Defence purchases and develops items of major military capability for the New Zealand Defence Force. The Ministry's capital receipts fluctuates in line with non-departmental capital expenditure due to the purchase of developed capabilities by the New Zealand Defence Force.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Audit & Assessment (M22)

Scope of Appropriation
This appropriation is limited to audits and assessments of the New Zealand Defence Force and the Ministry of Defence.
Expenses and Revenue
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 2,091 2,091 2,398
Revenue from the Crown 2,049 2,049 2,398
Revenue from Others 42 42 -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the completion of an approved schedule of audits and assessments as required by the Minister of Defence.

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

Timeliness: Assessed by the percentage of reports that are submitted by the timeframe set in the approved terms of reference.

>= 75% >= 75% >= 75%

Ministerial satisfaction: Minister's satisfaction with the quality of reports, as assessed by survey.

>= 70% >= 70% >= 70%

Quality - process: All audits and assessments meet the Ministry's pre-determined quality criteria.

100% 100% 100%

Quality - external review: All major audits and assessments completed by the Ministry are externally quality assured (see Note 1).

100% 100% 100%

Note 1 - Small, simple reviews may be peer reviewed by qualified Ministry of Defence staff from outside the Division. All major reviews are reviewed by qualified persons external to the Ministry.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Defence 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
Price Related Cost Pressures 2020/21 - 40 81 131 183
Operating Cost Pressures 2019/20 200 270 276 285 285
Reasons for Change in Appropriation

The increase in this appropriation of $307,000 for 2020/21 is mainly due to:

  • additional funding from the Operating Cost Pressures initiative of $70,000 for increased rental and operating accommodation costs
  • additional funding from the Price Related Cost Pressures initiative of $40,000 for market driven inflation cost pressures, and
  • changes of $203,000 in 2019/20 that are not being carried forward to 2020/21 for:
    • a $345,000 transfer to other departmental output expense appropriations to align resourcing with demand and activities in that year
    • offset by a transfer of $100,000 from 2018/19 to 2019/20 to reflect the timing of audits and assessments, and
    • one-off insurance proceeds of $42,000 for costs incurred as a result of the November 2016 Kaikoura earthquake.
Conditions on Use of Appropriation
Reference Conditions
Authority The audit or assessment will be undertaken as and when required by the Minister of Defence or in accordance with a work plan approved by the Minister.

Management of Defence Capabilities (M22)

Scope of Appropriation
This appropriation is limited to the management of procurement, refurbishment and delivery of defence capabilities, on behalf of the Crown, for the New Zealand Defence Force.
Expenses and Revenue
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,145 11,145 10,983
Revenue from the Crown 8,563 8,563 10,983
Revenue from Others 2,582 2,582 -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the management of procurement of major military capabilities for the New Zealand Defence Force in a transparent and fair way, and in accordance with government procurement policies.

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

Quality of deliverable: Options to be presented to the Minister for each refurbishment or procurement project up to the preferred tenderer stage will meet the high-level user requirements and will be affordable within the Defence Capital Plan.

100% 100% 100%

Schedule: Each refurbishment or procurement project up to the identification of the preferred tenderer will be managed to the agreed schedule, except when there are circumstances beyond the control of the Ministry.

100% 100% 100%
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Defence 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
Price Related Cost Pressures 2020/21 - 90 182 295 414
Portfolio Management 2020/21 - 465 605 605 605
Operating Cost Pressures 2019/20 380 511 523 541 541
Reasons for Change in Appropriation

The decrease in this appropriation by $162,000 for 2020/21 is mainly due to:

  • revenue from others of $2.582 million in 2019/20 which does not continue in 2020/21 for:
    • cost recoveries from the New Zealand Defence Force of $2.487 million, and
    • one-off insurance proceeds of $95,000 for costs incurred due to the November 2016 Kaikoura earthquake.

These are offset by increases in 2020/21 for:

  • a transfer of $1.200 million from 2019/20 to each of the three following years of $400,000 to reflect the timing of capability projects
  • additional funding from the Portfolio Management initiative of $465,000 to improve the portfolio efficiency and risk management for major capability projects
  • additional funding from the Operating Cost Pressures initiative of $131,000 for increased rental and accommodation costs, and
  • additional funding from the Price Related Cost Pressures initiative of $90,000 for market driven inflation cost pressures.

2.3 - Departmental Capital Expenditure and Capital Injections#

Ministry of Defence - Capital Expenditure PLA (M22)

Scope of Appropriation
This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Defence, as authorised by section 24(1) of the Public Finance Act 1989.
Capital Expenditure
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 250 250 250
Intangibles 100 100 100
Other - - -

Total Appropriation

350 350 350
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the purchase and development of assets by and for the use of the Ministry of Defence in its day-to-day operations.

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

Capital expenditure is within Capital Plan.

Within Capital Plan Within Capital Plan Within Capital Plan
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Defence in its Annual Report.

Capital Injections and Movements in Departmental Net Assets
Ministry of Defence
Details of Net Asset Schedule 2019/20
Estimated Actual
$000
2020/21
Projected
$000
Explanation of Projected Movements in 2020/21
Opening Balance 2,353 2,353  
Capital Injections - -  
Capital Withdrawals (1,063) -  
Surplus to be Retained (Deficit Incurred) 1,063 -  
Other Movements - -  

Closing Balance

2,353 2,353  

Part 3 - Details of Non-Departmental Appropriations#

3.5 - Non-Departmental Capital Expenditure#

Defence Capabilities (M22)

Scope of Appropriation
This appropriation is limited to the purchase, modification or refurbishment of defence capabilities for the New Zealand Defence Force.
Capital Expenditure
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 667,248 527,248 625,389
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the procurement of major military capabilities for the New Zealand Defence Force in a transparent and fair way, and in accordance with government procurement policies.

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

Cost: Each procurement or refurbishment project will be managed within its approved budget, inclusive of approved variations to the contract price and project budget (see Note 1).

100% 100% 100%

Quality of deliverable: Each procurement or refurbishment project will achieve on delivery the agreed/contracted specifications that are critical to acceptance (see Note 2).

100% 100% 100%

Schedule: Each procurement or refurbishment project will be managed to schedule, without avoidable schedule over-run (see Note 3).

>=85% >85% >=85%

Benefits realisation: The aggregate percentage of planned benefits expected to have been realised by quarter, as set out in approved project benefits realisation plans.

>= 80% >= 80% >= 80%

Cost forecasting: The aggregate actual capital expenditure on procurement or refurbishment projects compared to the forecast capital expenditure (see Note 4).

Within +/-10% of forecast Within +/-10% of forecast Within +/-10% of forecast

Note 1 - Measured by the percentage of all projects that have project-related capital expenditure incurred in the year within the approved project expenditure budget.

Note 2 - Measured by the percentage of all projects in the delivery phase that meet all specifications that are critical to acceptance.

Note 3 - Measured by the percentage of all projects in the delivery phase progressed within agreed schedule.

Note 4 - This measure compares the actual expenditure with the most recent Crown forecast. It is also calculated at hedged exchange rates to remove the impact of movements in exchange rates.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Defence and included in the Ministry of Defence's 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
Network Enabled Army Programme: Tranche Two 2019/20 22,643 37,175 46,663 - -
Garrison and Training Support Capability: Phase One 2019/20 4,407 13,014 10,554 4,407 -
Fixed High Frequency Radio Refresh 2019/20 5,116 9,394 7,644 4,426 -
Frigate Sustainment Phase 1: Communications 2019/20 108 574 - - -
Dive and Hydrographic Vessel 2018/19 10,531 700 - - -
Fixed High Frequency Radio Refresh 2018/19 245 - - - -
Future Air Surveillance Capability 2018/19 453,034 753,191 643,232 111,094 35,370
NH90 Simulator 2018/19 8,850 - - - -
Operational and Regulatory Aviation Compliance Sustainment 2018/19 19,284 20,711 9,169 1,854 -
Protected Mobility Capability 2018/19 7,470 5,300 5,360 - -
Frigate Systems Upgrade 2017/18 71,964 2,469 - - -
Maritime Sustainment Capability 2015/16 82,668 6,200 - - -
Reasons for Change in Appropriation

The increase in this appropriation in 2020/21 is primarily due to the Future Air Surveillance Capability project progressing in the main production phase of the project, offset by reduced costs for the Frigate Systems Upgrade and Maritime Sustainment Capability projects as these projects near completion.

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

Multi-Category Expenses and Capital Expenditure#

Policy Advice and Related Outputs (M22)

Overarching Purpose Statement
The single overarching purpose of this appropriation is to provide policy advice, other support to Ministers in discharging their policy decision-making and other portfolio responsibilities.
Scope of Appropriation
Departmental Output Expenses
Ministerial Services
This category is limited to the provision of services to Ministers to enable them to discharge their portfolio (other than policy decision-making) responsibilities.
Policy Advice
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 defence and national security.
Policy Support
This category is limited to the provision of services (other than defence policy) that support the development and procurement of military capability, and the conduct of international defence relations.
Expenses, Revenue and Capital Expenditure
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

10,472 10,472 9,883

Departmental Output Expenses

     
Ministerial Services 1,227 1,227 1,171
Policy Advice 6,154 6,154 5,871
Policy Support 3,091 3,091 2,841

Funding for Departmental Output Expenses

     

Revenue from the Crown

9,726 9,726 9,883
Ministerial Services 1,168 1,168 1,171
Policy Advice 5,855 5,855 5,871
Policy Support 2,703 2,703 2,841

Revenue from Others

746 746 -
Ministerial Services 59 59 -
Policy Advice 299 299 -
Policy Support 388 388 -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of civilian advice on defence policy matters and the development of international defence relations.

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

The performance of the MCA as a whole will be assessed by the average performance success of the below measures. Measured by the average difference between actual results and the budget standard of all percentage-based measures within the MCA categories.

>0% >0% >0%
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

     

Ministerial Services

     

This category is intended to achieve the provision of quality and timely Ministerial support to the Minister.

     

Quality, as assessed by the percentage of first draft of all correspondence accepted by the Minister.

>= 95% Measured at end of period >= 90%

Timeliness, as assessed by the percentage of papers that were submitted by the timeframe set in legislation, or otherwise agreed with the Minister.

>=95% Measured at end of period >=95%

Policy Advice

     

This category is intended to achieve the provision of accurate, timely and responsive policy advice.

     

Technical quality of policy advice, as assessed by independent review of a sample of policy papers (see Note 1).

>= 3.5 Measured at end of period >= 3.5

Minister's satisfaction with the quality of policy advice, as assessed by survey (see Note 2).

>= 3.5 Measured at end of period >=3. 5

Policy Support

     

This category is intended to achieve the provision of quality and timely policy support to the Minister.

     

Minister's satisfaction with the quality of policy support, as assessed by survey.

>= 70% Measured at end of period >= 70%

Note 1 - the all-of-government methodology for the technical review of policy advice was changed in 2019/20.

Note 2 - the all-of-government methodology for assessing Ministerial satisfaction was changed in 2019/20.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Defence 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
Policy demand 2020/21 - 130 369 369 369
Price related cost pressures 2020/21 - 206 413 671 942
Portfolio management 2020/21 - 110 110 110 110
Operating cost pressures 2019/20 1,048 1,413 1,444 1,495 1,495
Reasons for Change in Appropriation

The decrease in this appropriation by $589,000 for 2020/21 is mainly due to an increase of $1.335 million in 2019/20 which does not continue into 2020/21 for:

  • a transfer of $589,000 from other departmental output expense appropriations to align resourcing with demand and activities
  • cost recoveries of $529,000 from other government departments, and
  • a one-off increase of $217,000 from insurance proceeds for costs incurred as a result of the November 2016 Kaikoura earthquake.

These are offset by:

  • additional funding from the Operating Cost Pressures initiative of $365,000 for increased rental and accommodation costs
  • additional funding from the Price Related Cost Pressures initiative of $206,000 for market driven inflation cost pressures
  • additional funding from the Policy Demand initiative of $130,000 to meet additional policy demand in a changing strategic climate and support increased international defence engagement, and
  • additional funding from the Portfolio Management initiative of $110,000 to improve the portfolio efficiency and risk management for major capability projects.