Formats and related files
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Economic Development (M25), Minister for Small Business (M62)
ADMINISTERING DEPARTMENT: Ministry of Economic Development
MINISTER RESPONSIBLE FOR MINISTRY OF ECONOMIC DEVELOPMENT: Minister for Economic Development
Overview of the Vote#
The Minister for Economic Development is responsible for appropriations in the Vote for the 2009/10 financial year covering the following:
- a total of just under $16 million for policy advice on economic, industry and regional development policies and initiatives to promote sustainable economic development and issues related to small and medium enterprises
- a total of just under $195 million for New Zealand Trade and Enterprise operating expenses
- a total of just over $56 million for New Zealand Trade and Enterprise cash grant schemes
- a total of nearly $114 million for other services related to firms and industry
- a total of $20 million for capital expenditure in the Ministry of Economic Development, and
- a total of just under $23 million for capital investments in the early stage equity finance markets and offshore market development assistance to business.
Details of these appropriations are set out in Parts 2-6 for Vote Economic Development in the Information Supporting the Estimates of Appropriations.
Details of Appropriations#
Details of Annual and Permanent Appropriations
| 2008/09 | 2009/10 | ||
|---|---|---|---|
| Titles and Scopes of Appropriations by Appropriation Type | Budgeted $000 | Estimated Actual $000 | Budget $000 |
Departmental Output Expenses | |||
Policy Advice - Small Business (M62)This appropriation is limited to policy advice on issues relating to lifting the capability and performance of Small to Medium Enterprises (SMEs), including ministerial servicing and advice on the development, coordination and implementation of policies and programmes that affect SMEs. | 1,730 | 1,728 | 1,584 |
Policy Advice and Sector Leadership - Firm Capability, Sectoral and Regional Development (M25)This appropriation is limited to the purchase of policy advice and ministerial servicing for the development, evaluation and overview of economic, industry and regional development policies and initiatives to achieve short and long term economic growth and stability. | 17,952 | 15,758 | 14,039 |
Total Departmental Output Expenses | 19,682 | 17,486 | 15,623 |
Non-Departmental Output Expenses | |||
Analysis and Development Services for Firms (M25)The appropriation is limited to customised advice and support to firms based on analysis of opportunities, issues and risks facing them in their growth and internationalisation, including advice and support for firms to access business assistance grants. | 19,928 | 19,928 | 18,395 |
Identification and Coordination of International Market Opportunities (M25)This appropriation is limited to the identification and coordination of international market opportunities for firms through market analysis and intelligence, facilitation into international business networks and marketing and support of New Zealand's presence at significant international events. | 70,418 | 68,918 | 73,891 |
International Investment Facilitation Services (M25)This appropriation is limited to coordination and analysis of opportunities for investment into New Zealand and investment by New Zealand firms into international markets. | 16,028 | 16,028 | 15,212 |
Investment Fund Management (M25)Operational costs of the Venture Investment and Seed Co-investment Funds. | 2,590 | 2,590 | 2,330 |
Regional and Sector Development Services (M25)This appropriation is limited to customised advice and support to regional institutions for the development of regional economic development strategies, and to sectoral industry bodies and groups of firms for the development and implementation of plans to improve the performance of sectors. | 47,156 | 45,956 | 47,320 |
Standardised Training and Advisory Services (M25)This appropriation is limited to standardised training and advisory services provided by third parties to firms on a range of business development needs including business incubation, capital acquisition, finance brokering and exporting. | 15,187 | 15,187 | 15,765 |
Total Non-Departmental Output Expenses | 171,307 | 168,607 | 172,913 |
Non-Departmental Other Expenses | |||
Film New Zealand (M25)Operation of an independent structure for Film NZ, development of a marketing plan for the film sector and coordination of regional film offices. | 750 | 750 | 799 |
Growth Services Fund (M25)Medium to high growth potential firms to purchase external advice and expertise and marketing intelligence and development services. | 5,927 | 5,927 | 9,627 |
International Biotechnology Partnerships (M25)Facilitation of joint ventures between Australia and New Zealand companies in biotechnology development, manufacturing and marketing. | 2,000 | 2,000 | 4,000 |
Large Budget Screen Production Fund (M25)Assistance to film and television productions that spend over $15 million in New Zealand, if that expenditure equals or exceeds 70% of the production's total budget. | 47,902 | 47,902 | 35,556 |
Major Events Development Fund (M25)Support for major events that provide economic, social, cultural and international profiling benefits to New Zealand. | 4,500 | 4,500 | 6,532 |
Management Development Fund (M25)Assistance to address the management capability gap in New Zealand, through the commissioning of research, stimulation of business interest and supply of management development services. | 276 | 276 | 756 |
Market Development Assistance Fund (M25)Encouragement for the integration of more New Zealand businesses into global markets by facilitating the creation, development and expansion of overseas markets for New Zealand goods, services, intellectual property and know-how. | 44,937 | 44,937 | 40,773 |
Negotiation and Completion of Stadium Projects (M25)This appropriation is limited to a funding facility for relevant Corporate Entities for the purpose of Stadium developments at Dunedin, Christchurch, Nelson and Whangarei to host games for the RWC 2011. | - | - | 35,000 |
Promotion of New Zealand Associated with the America's Cup (M25)This appropriation is limited to meeting costs associated with the proposed sponsorship of Team New Zealand's participation in the next multi-challenger America's Cup. | 12,250 | - | 13,000 |
Regional and Industry Development Fund (M25)Support of industry and regional specific projects that are likely to have the ability to contribute to government economic objectives and to unlock high growth potential, including support of Buy Kiwi Made sectoral and regional initiatives. | 1,760 | 1,760 | 635 |
Regional Partnerships and Facilitation (M25)Provision of advice and grants to support the development of business incubators and regional clusters, and to support regional partnerships to develop and implement sustainable economic growth strategies. | 12,836 | 9,336 | 16,230 |
Sector Strategies and Facilitation (M25)Assistance with the facilitation of specific sector initiatives, particularly in the areas of major events, pre-feasibility and feasibility studies and guarantees for significant projects to access funding through other government programmes and cash grants. | 1,500 | 1,500 | 1,500 |
Enterprise Development Fund (M25)Assistance for entrepreneurs and businesses to undertake advanced training, engage a business mentor or specific management advice and/ or undertake international market development activities. | 2,774 | 2,774 | - |
Enterprise, Culture and Skills Activities Fund (M25)Support of enterprise education initiatives to encourage a culture of enterprise and entrepreneurship. | 1,511 | 1,511 | - |
Louis Vuitton Pacific Series (M25)This appropriation is limited to a payment to Emirates Team New Zealand for the purposes of holding the Louis Vuitton Pacific Series in partnership with Louis Vuitton and hosted by the Royal New Zealand Yacht Squadron. | 750 | 750 | - |
Trilateral Projects (M25)This appropriation is limited to administration of and support for Trilateral industry development projects that involve New Zealand Trade and Enterprise, the Foundation for Research, Science and Technology, and the Tertiary Education Commission. | 1,250 | 1,250 | - |
Total Non-Departmental Other Expenses | 140,923 | 125,173 | 164,408 |
Departmental Capital Expenditure | |||
Ministry of Economic Development - Capital Expenditure PLA (M25)This appropriation is limited to the purchase or development of assets by and for the use of the Ministry of Economic Development, as authorised by section 24(1) of the Public Finance Act 1989. | 12,278 | 8,898 | 19,606 |
Total Departmental Capital Expenditure | 12,278 | 8,898 | 19,606 |
Non-Departmental Capital Expenditure | |||
New Zealand Trade and Enterprise (M25)To increase NZTE's in-market assistance for New Zealand firms in China, India and Japan. | 6,021 | 2,000 | 124 |
Seed Co-investment Fund (M25)Support the development of the market for early stage equity finance. | 12,674 | 12,674 | 8,000 |
Venture Investment Fund (M25)Capital Investment to accelerate the development of the New Zealand Venture Capital Market. Public funds will be co-invested with the private sector to increase the rate of formation of new businesses based on high added value goods and services. | 33,701 | 33,701 | 14,875 |
Total Non-Departmental Capital Expenditure | 52,396 | 48,375 | 22,999 |
Total Annual and Permanent Appropriations | 396,586 | 368,539 | 395,549 |
Details of Multi-Year Appropriations#
| Type, Title, Scope and Period of Appropriations | Appropriation | $000 |
|---|---|---|
Non-Departmental Output Expenses | ||
New Zealand's Participation at Expo 2010 Shanghai, China (M25)This appropriation is limited to New Zealand's participation at Expo 2010 in Shanghai, China. Commences: 1 July 2008 Expires: 30 June 2011 | Original Appropriation | 26,600 |
| Adjustments for 2007/08 | - | |
| Adjustments to 2008/09 | 9,756 | |
| Adjusted Appropriation | 36,356 | |
| Actual to 2007/08 Year End | - | |
| Estimated Actual for 2008/09 | 7,051 | |
| Estimated Actual for 2009/10 | 24,345 | |
| Estimated Appropriation Remaining | 4,960 | |
Non-Departmental Other Expenses | ||
3D Digital Graphics Cluster (M25)To research and develop commercial projects that build on New Zealand's existing strength in 3D digital graphics technology. Commences: 1 July 2007 Expires: 30 June 2010 | Original Appropriation | 7,000 |
| Adjustments for 2007/08 | - | |
| Adjustments to 2008/09 | - | |
| Adjusted Appropriation | 7,000 | |
| Actual to 2007/08 Year End | 3,000 | |
| Estimated Actual for 2008/09 | 2,000 | |
| Estimated Actual for 2009/10 | 2,000 | |
| Estimated Appropriation Remaining | - | |
Transformational Initiatives Fund (M25)Funding for the implementation of policy on transformational initiatives as agreed by Cabinet. Commences: 1 March 2009 Expires: 30 June 2013 | Original Appropriation | 9,766 |
| Adjustments for 2007/08 | - | |
| Adjustments to 2008/09 | - | |
| Adjusted Appropriation | 9,766 | |
| Actual to 2007/08 Year End | - | |
| Estimated Actual for 2008/09 | 2,466 | |
| Estimated Actual for 2009/10 | 1,000 | |
| Estimated Appropriation Remaining | 6,300 |
Details of Projected Movements in Departmental
Net Assets#
Ministry of Economic Development
| Details of Net Asset Schedule | 2008/09 Estimated Actual $000 | 2009/10 Projected $000 | Explanation of Projected Movements in 2009/10 |
|---|---|---|---|
| Opening Balance | 21,523 | 18,523 | |
| Capital Injections | 6,320 | 16,606 | Deficits incurred on Departmental Output Expenses where memorandum accounts are in operation $3.600 million ($5.400 million in 2008/09) and funding for capital contribution for capital expenditure $13.006 million ($920,000 in 2008/09). |
| Capital Withdrawals | (3,920) | - | |
| Surplus to be Retained (Deficit Incurred) | (5,400) | (3,600) | Deficit for the year comprised of memorandum account deficits $3.600 million ($5.400 million in 2008/09), departmental output expenses where surplus earned is $80,000 ($20,000 in 2008/09), less provision for repayment of surplus $80,000 ($20,000 in 2008/09). |
| Other Movements | - | - | |
Closing Balance | 18,523 | 31,529 |